The Pantry Inc. has released its financial results for its fiscal third quarter ended June 27, 2013.
Net income was $5.9 million or $0.26 per diluted share. This compares to net income of $14.8 million or $0.65 per diluted share in last year’s third quarter.
Excluding the impact of impairment charges, net income for the third quarter of fiscal 2013 was $6.4 million, or $0.28 per diluted share, compared to net income of $15.9 million, or $0.70 per diluted share, in the prior year.
Adjusted EBITDA was $65.3 million, down from $74.7 million a year ago.
Fuel gross profit was $53.8 million, compared to $67.1 million a year ago as retail fuel margin per gallon decreased to $0.123 from $0.146 in the prior year quarter. Comparable store fuel gallons sold decreased 4.4%.
Comparable store merchandise revenue increased 1.3% and increased 3.3% excluding cigarettes.
Merchandise gross margin was 33.8% compared to 33.5% a year ago.
Store operating and general and administrative expenses were $149.4 million compared to $152.1 million a year ago.
The Pantry’s effective tax rate for the third quarter of fiscal 2013 was 54.9% compared to 36.5% in the third quarter of fiscal 2012 due to actual and anticipated levels of pre-tax profit. The company now anticipates a full-year 2013 effective tax rate of 32.6% compared to 54.1% in 2012.
“I am pleased with the progress we made during the third quarter,” said president and CEO Dennis Hatchell. “Our comparable store merchandise sales growth moved back into positive territory as average sales per customer increased 2.5% compared to the prior year quarter. Additionally, we slowed the rate of decline in retail fuel gallons sold. However, fuel margins were $0.023 per gallon lower than during last year’s third quarter leading to the decline in Adjusted EBITDA.”
Hatchell added, “During the third quarter we made significant strides in the areas of store remodels and QSRs, completing 31 store remodels and opening three new QSR’s. We intend to maintain this pace going forward and to complement these activities with new store openings.”