The Pantry Announces Q1 Fiscal 2012 Results

The Pantry Inc. has announced financial results for its fiscal first quarter ended Dec. 29, 2011.

First Quarter Summary:

  • Net loss was $2.9 million or $0.13 per share. This compares to a net loss of $12.2 million or $0.54 per share in last year’s first quarter. Excluding the impact of impairment charges and loss on extinguishment of debt, the net loss for the first quarter of fiscal 2012 was $2.6 million or $0.11 per share.
  • Adjusted EBITDA was $43.8 million, compared to $32.1 million a year ago.
  • Comparable store merchandise revenue increased 2.0%.
  • Merchandise gross margin was 33.2%, compared to 33.5% a year ago.
  • Fuel gross profit was $55.9 million, compared to $50.7 million a year ago.
  • Long-term debt was reduced by $44.1 million in the first quarter of fiscal 2012. Additionally, $33.9 million of the 3% convertible notes were repurchased in the second quarter of fiscal 2012 bringing the year-to-date total reduction to $78.0 million.

“We delivered $43.8 million of Adjusted EBITDA in the first quarter of fiscal 2012, an $11.7 million increase compared to the prior year, primarily due to a more favorable fuel pricing environment and lower expenses,” said Interim Chief Executive Officer Edwin Holman. “As we continue revising our pricing strategy to position the company for the longer term, we remain focused on improving our sales trends, expense management, and debt reduction.”

Comparable store merchandise sales in the first quarter increased 2% in total and 4.4% excluding cigarettes. Total merchandise gross profit for the quarter was $142.2 million, an increase of 1.2% from the first quarter a year ago.

Retail fuel gallons sold in the first quarter decreased 6.5% overall and 7.4% on a comparable store basis from last year’s first quarter. Fuel gross profit for the first quarter increased 10.2% compared to the same period a year ago, primarily due to an increase in retail fuel margin per gallon to $0.122 compared to $0.104 a year ago.

Total store operating and general and administrative expenses for the first quarter were $154.4 million, a decrease of $4.9 million from the first quarter last year. This decrease was primarily due to lower lease and other store facilities expenses, as well as reductions in general and administrative expenses.

The company had $150.7 million in cash on hand and $123.6 million in available capacity under its revolving credit facilities as of Dec. 29, 2011, allowing it to continue to execute on its core strategies.

Fiscal 2012 Outlook
The Pantry announced the following updated guidance ranges for its expected performance (excluding potential acquisitions) in fiscal 2012, which is a 52-week fiscal year:

 

 

 

 

 

 

 

 

 

 

 

 

Q2 FY11

 

Q2 FY12 Guidance

 

 

FY11

 

FY12 Guidance

 

 

Actual

 

Low

 

High

 

 

Actual

 

Low

 

High

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchandise sales ($B)

 

$0.42

 

$0.42

 

$0.43

 

 

$1.78

 

$1.78

 

$1.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchandise gross margin

 

34.3%

 

33.5%

 

34.3%

 

 

33.9%

 

33.5%

 

34.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail fuel gallons (B)

 

0.45

 

0.41

 

0.42

 

 

1.89

 

1.75

 

1.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail fuel margin per gallon

 

$0.137

 

$0.095

 

$0.115

 

 

$0.135

 

$0.115

 

$0.129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store operating expenses ($M)

 

$127

 

$127

 

$130

 

 

$524

 

$520

 

$528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General & administrative expenses ($M)

 

$29

 

$23

 

$24

 

 

$104

 

$93

 

$96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation & amortization ($M)

 

$29

 

$29

 

$30

 

 

$117

 

$113

 

$117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense ($M) *

 

$22

 

$20

 

$21

 

 

$88

 

$81

 

$84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures, net ($M)

 

$26

 

$21

 

$24

 

 

$93

 

$80

 

$90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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