Pantry Posts 2Q Profit, Helped By Bond Buyback

SANFORD, N.C. (AP) — The Pantry Inc., a convenience store chain in the Southeastern U.S., said Tuesday that it swung to a second-quarter profit as it benefited from buying back about $26 million of its own bonds.

The Pantry earned $6.3 million, or 28 cents per share, in the quarter that ended March 26. That compares with a loss of $5.1 million, or 23 cent per share loss, a year earlier.

The bond buyback boosted the most recent quarter's results by 18 cents per share, helping the company to beat a prediction from a Thomson Reuters poll of analysts. The analysts, who typically exclude one-time items, had expected a loss of 18 cents per share.

The year-earlier quarterly profit had been hurt by a 23 cent per share loss on hedging positions.

Revenue in the second quarter fell 36 percent to $1.31 billion from $2.04 billion. Analysts had expected $1.47 billion in revenue.

Chief Executive Peter Sodini called the quarterly results "solid" in a statement.

Earlier the company announced plans to buy 40 convenience stores, mostly in Mobile, Ala. The acquisition is expected to close in the second half of fiscal 2009.

In afternoon trading, shares fell 44 cents to $24.40. The day's high of $25.97 was a new 52-week high.