Both The Pantry Inc. and TravelCenters of America release their third and second quarter financial results, respectively.
The Pantry Inc. and TravelCenters of America (TA) report their financial results through the end of June for this year.
Pantry Inc. reported its net income was $14.8 million or $0.65 per share. This compares to net income of $19.0 million or $0.84 per share in last year’s third quarter. Comparable store merchandise revenue increased 3.6% and merchandise gross margin was 33.5% compared to 34.0% a year ago. The fuel gross profit was $67.1 million compared to $80.1 million a year ago, and cash flow from operations was $80.2 million.
“We generated $75 million of Adjusted EBITDA for our fiscal third quarter, which was at the high end of our expectations,” said Dennis Hatchell, president and CEO. “While pleased with these results, we are focused on improving them over time by implementing strategic initiatives, such as our store remodel, foodservice and lifestyle merchandising programs.”
Hatchell said the company’s initiative to improve leverage resulted in a reduction of funded debt during fiscal 2012 of approximately $182 million, including reductions to its recent refinancing.
TravelCenters of America LLC (TA) announced its results for three and six months ended June 30. Its net income was $29.9 million for the second quarter of 2012, which reflected an improvement of $8 million as compared to the net income of 2011 in the second quarter. TA’s results also reflected improvement in EBITDAR, which increased by $11.2 million or 13.5% over the 2011 second quarter to $94.1 million in 2012 second quarter.
However, TA’s fuel sales volume decreased by 0.6 million gallons or 0.1% in the 2012 second quarter compared to the 2011 second quarter. During the second quarter of 2012, TA experienced a 2.2% decrease in same site fuel sales volume compared with the second quarter of 2011.
The Pantry Inc. is based in Cary, N.C., and operates 1,589 c-stores in 13 states under select banners, including the Kangaroo Express. TravelCenters of America, based in Westlake, Ohio, operates 240 locations across the U.S.