The Pantry Announces Q1, Fiscal 2013 Results

Improvement over the prior year quarter reflects the team’s continued focus on improving merchandise sales, margins and controlling expenses, notes The Pantry’s CEO.

The Pantry Inc. has announced financial results for its fiscal first quarter ended December 27, 2012.

First Quarter Summary:

Net loss was $3.1 million or $0.14 per share. This compares to a net loss of $2.9 million or $0.13 per share in last year’s first quarter. Excluding the impact of impairment charges, net loss for the first quarter of fiscal 2013 improved to $1.7 million or $0.08 per share, compared to net loss per share of $0.11 in the prior year.

Adjusted EBITDA increased $5.1 million to $48.9 million, compared to $43.8 million a year ago.

Fuel gross profit was $49.2 million, compared to $55.9 million a year ago; retail fuel margin per gallon was $0.114 compared to $0.122 a year ago; comparable store fuel gallons sold decreased 4.8%.

Comparable store merchandise revenue increased 2.2%; excluding cigarettes, comparable store merchandise revenue increased 4.6%.

Merchandise gross margin was 34.3%, compared to 33.2% a year ago. Store operating and general and administrative expenses were $147.2 million, compared to $154.4 million a year ago.

Net cash provided by operating activities was $17.0 million, an increase of $10.3 million over the prior year quarter.

Long-term debt was reduced by $60.8 million in the first quarter of Fiscal 2013 and has now been reduced by $200.4 million since December 2011. The company believes its liquidity position will allow it to continue to execute its core strategic initiatives given the $24.4 million in cash on hand and $129.9 million in available capacity under its revolving credit facilities as of Dec. 27, 2012.

“We improved adjusted EBITDA to $49 million in the first fiscal quarter of 2013, which is an increase of 12% from the same quarter a year ago,” said president and CEO Dennis Hatchell. “This improvement over the prior year quarter is a reflection of our team’s continued focus on improving merchandise sales and margins and controlling expenses. This was achieved despite lower fuel volume and margins compared to the same period a year ago.”

 “We are also excited to have Clyde Preslar joining our team as senior vice president and chief financial officer (CFO), he added. Clyde’s 15 years of experience as a public company CFO and his work in the consumer goods space make him a great fit for the Pantry and we are convinced that he will make significant contributions to the Pantry realizing its strategic initiatives.”

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