CARY, N.C. -- The Pantry Inc. has announced financial results for its fiscal first quarter ended December 30, 2010. Net loss was $12.2 million or 54 cents per diluted share. This compares to a net loss of $26.1 million or $1.17 per diluted share in last year's first quarter.
Comparable store merchandise revenue increased 1.3%. Merchandise gross margin improved to 33.5% from 32.6% in last year's first quarter. Fuel gross profit was $50.7 million, compared to $57.0 million a year ago.
Adjusted EBITDA was $31.3 million, compared to $40.3 million a year ago.
President [image-nocss] and CEO Terrance M. Marks said, "Adjusted EBITDA was below our expectations for the quarter, driven by soft merchandise comparable store sales growth and low fuel margins. Merchandise sales performance was particularly weak in the latter half of December, which we believe was primarily driven by the severe winter weather that affected the Southeast. On a positive note, the sales performance in our '[Program] Fresh' stores continues to exceed expectations. We completed the Charlotte store conversion process on schedule in December and are moving quickly to our next markets."
For details on Program Fresh, see related story in this issue of CSP Daily News.
Comparable store merchandise sales in the first quarter increased 1.3% and 1.7% excluding cigarettes. Total merchandise gross profit for the quarter was $140.5 million, an increase of 3.1% from the first quarter a year ago.
Comparable store retail gallons sold in the first quarter decreased 5.2%. Retail fuel revenues in the first quarter increased 4.8% to $1.4 billion primarily as a result of the 12% increase in the average retail price per gallon to $2.81 from $2.52. Fuel gross profit for the first quarter decreased 10.9% compared to the same period a year ago, due to a decrease in retail fuel margin per gallon to $0.104 compared to $0.109 and the decrease in retail fuel gallons sold.
Total store operating and general and administrative expenses for the first quarter increased 4.6% to $16 million from the first quarter last year primarily as a result of strategic investments in advertising and category management capability to support the Program Fresh initiative and professional costs associated with an acquisition. It completed the 47-store Presto acquisition, using $47.6 million in cash.
The company remains comfortable, it said, with its liquidity position given the $132 million in cash on hand and approximately $106 million in available capacity under its revolving credit facilities as of December 30, 2010.
Headquartered in Cary, N.C., The Pantry is a leading independently operated convenience store chain in the southeastern United States. As of February 7, 2011, the company operated 1,662 stores in 13 states under select banners, including Kangaroo Express, its primary operating banner.
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