The Pantry, Inc. (NASDAQ: PTRY), a leading independently operated convenience store chain in the southeastern U.S., today announced financial results for its fiscal fourth quarter and fiscal year ended September 26, 2013.
Fourth Quarter Summary:
- Net income was $1.0 million or $0.04 per diluted share. This compares to net loss of $4.8 million or $0.21 per share in last year's fourth quarter. Excluding the impact of impairment charges and debt extinguishment costs, net income for the fourth quarter of fiscal 2013 was $1.4 million, or $0.06 per diluted share, compared to net loss of $2.0 million, or $0.09 per share, in the prior year (see reconciliation below). Net income was impacted by pre-tax charges totaling $4.6 million or $0.12 per diluted share related to a proposed litigation settlement and strategy consulting costs incurred during the quarter.
- Adjusted EBITDA was $49.0 million, down from $52.8 million in the prior year quarter.
- Fuel gross profit was $47.8 million compared to $44.0 million a year ago. Retail fuel margin per gallon increased to $0.107 from $0.095 in the prior year quarter and more than offset a 2.5% decline in comparable store fuel gallons sold.
- Comparable store merchandise revenue increased 2.0%.
- Merchandise gross margin was 34.3% compared to 34.6% in the prior year quarter.
- Store operating and general and administrative expenses were $162.0 million compared to $153.7 million a year ago. During the quarter, the company accrued $3.1 million in relation to a proposed settlement of the Amason litigation which has been described in our SEC filings for some time. In addition, the company incurred $1.5 million in strategy consulting costs and experienced higher expenses related to the store remodel program.
- Our effective tax rate for the fourth quarter of fiscal 2013 was a benefit of 128.4% compared to a benefit of 39.3% in the fourth quarter of fiscal 2012.
Fiscal Year 2013 Summary:
- Net loss was $3.0 million or $0.13 per share. This compares to net loss of $2.5 million or $0.11 per share in the last fiscal year. Excluding the impact of impairment charges and debt extinguishment costs, net loss for fiscal 2013 was $0.1 million, or $0.00 per diluted share, compared to net income of $4.7 million, or $0.21 per diluted share, in the prior year (see reconciliation below).
- Adjusted EBITDA was $202.4 million, down from $210.1 million a year ago.
- Fuel gross profit was $199.3 million, compared to $210.3 million a year ago. Retail fuel margin per gallon was unchanged at $0.115 compared to the prior year as comparable store fuel gallons sold declined 4.8%.
- Comparable store merchandise revenue increased 0.9%.
- Merchandise gross margin increased to 34.0% compared to 33.7% a year ago.
- Store operating and general and administrative expenses were $609.0 million compared to $610.0 million a year ago.
- Our effective tax rate for fiscal 2013 was a benefit of 65.8% compared to a benefit of 54.1% in fiscal 2012 due to a higher level of Workers Opportunity Tax Credits and changes in pretax profit levels.
President and Chief Executive Officer Dennis G. Hatchell said, "We achieved improved operating results during the fourth quarter and are gaining momentum in merchandise sales as we move into fiscal 2014. Our sales initiatives generated comparable store merchandise revenue growth of 2.0% as merchandise sales per customer continued to grow."
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