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The Pantry shares fall after company misses Wall Street estimates

The Pantry's stock dropped more than 10 percent early Tuesday after the Cary convenient store chain's second quarter earnings missed Wall Street estimates.

Excluding the impact of impairment charges and the loss on extinguished debt, The Pantry's net loss for the quarter was $6.3 million, or 28 cents per share.

The consensus among Wall Street analysts who cover the company was a loss of 21 cents per share.

The Pantry saw s 4.6 percent decline in same-store traffic compared to the second quarter last year.

On a conference call with analysts Tuesday, CEO Dennis Hatchell attributed the decline to colder temperatures in its markets, particularly in March.

Hatchell also said the company was hurt by economic uncertainties and a lack of consumer confidence, as well as the higher payroll taxes that took hold at the beginning of the year.

The Pantry has 1,567 stores throughout the Southeast, primarily under the Kangaroo Express brand.

The Pantry reports net loss but beats Wall Street estimates

The Pantry reported a net loss in the first quarter, but its results beat Wall Street estimates as improved sales of store merchandise helped offset a decline in fuel sales.

Excluding the impact of impairment charges, The Pantry’s net loss for the quarter was $1.7 million, or 8 cents per share, compared to a loss of 11 cents per share in the first quarter last year. The consensus among analysts who cover the Cary company was a loss of 11 cents per share.

The Pantry has 1,571 stores throughout the Southeast, primarily under the Kangaroo Express brand. Comparable store merchandise sales at the company’s stores increased 2.2 percent while gross margin was 34.3 percent, up from 33.2 percent a year ago.

The Pantry names new CFO

The Pantry on Thursday named B. Clyde Preslar to be its chief financial officer.

Preslar joins the Cary convenience store company from RailAmerica, where he has served as chief financial officer since 2008. He also previously served as CFO for Cott Corporation, a maker of nonalcoholic beverages, and the snack food manufacturer Lance.

“Clyde is a proven leader ideally suited for The Pantry with more than 15 years of financial leadership experience as a Chief Financial Officer,” said Dennis Hatchell, The Pantry's CEO, in a statement.

“Clyde has an extensive breadth of financial experience, including financial leadership in the consumer goods arena, and an exceptional track record of financial management, planning and corporate development. We look forward to having Clyde join the executive leadership team.”

Preslar replaces Mark Bierley, who resigned in May to take a position near his home in Michigan. Berry Epley, the company's corporate controller, had been handling CFO responsibilities while The Pantry searched for a permanent replacement.

The Pantry has more than 1,500 stores throughout the Southeast, primarily under the Kangaroo Express brand.

The Pantry reports net loss in fourth quarter

The Pantry swung to a net loss in the fourth quarter.

Excluding the impact of impairment charges and loss on extinguished debt, the Cary company reported Tuesday a net loss of $2 million, or 9 cents per share, compared with earnings per share of 37 cents during the fourth quarter of 2011.

The consensus among Wall Street analysts who cover the company was earnings per share of 1 cent.

Comparable store merchandise sales at those stores increased 3.3 percent. Gasoline revenues fell. Fuel gross profit was $44 million in the quarter, compared with $64.4 million a year ago.

For the year, the company reported a net loss of $2.5 million, or 11 cents per share, compared to net income of $9.8 million, or 44 cents per share, in 2011.

The Pantry has more than 1,500 stores throughout the Southeast, primarily under the Kangaroo Express brand.

Coffee for a penny at Kangaroo Express on Sept. 29

Kangaroo Express convenience stores will be celebrating National Coffee day with penny coffee for customers.

Fill a 12 oz. cup for 1 cent between 8 a.m. and noon Saturday, Sept. 29, at any Kangaroo Express. One per customer.

If you're lucky you might even score a free cup.

Pantry 3Q earnings beat Wall Street estimates

The Pantry shares rose 3 percent on Tuesday as the Cary convenience store chain reported third-quarter earnings that beat Wall Street estimates.

The company reported net income of $14.8 million, or 65 cents per share, compared with $19 million, or 84 cents per share during the third quarter of 2011. The consensus among Wall Street analysts who cover the company was earnings per share of 57 cents.

The Pantry has more than 1,500 stores throughout the Southeast, primarily under the Kangaroo Express brand.

Comparable store merchandise sales at those stores increased 3.6 percent. Gasoline revenues continue to lag. Fuel gross profit was $67.1 million in the quarter, compared with $80.1 million a year ago.

The Pantry has sold 57 stores this fiscal year, and CEO Dennis Hatchell said on a conference call with analysts that the company would continue to divest itself of stores that don’t fit its criteria for future investment. The Pantry ended the quarter with 1,592 stores, and expects to have about 1,575 by the end of the year.

“While pleased with these results, we are focused on improving them over time by implementing our strategic initiatives, such as our store remodel, foodservice and lifestyle merchandising programs,” Hatchell said in a statement.

The Pantry’s stock closed up 38 cents at $14.97 on Tuesday. The shares are up 25 percent this year.

The Pantry releases preliminary 3Q results

The Pantry released preliminary third quarter financial results Wednesday that were slightly above the company's own guidance for the quarter.

Comparable store merchandise sales were up 3.6 percent while total merchandise sales were $476 million. The Cary convenience store chain expects income from operations of between $40 million and $45 million.

The Pantry has more than 1,600 stores throughout the Southeast, primarily under the Kangaroo Express brand.

The company reported a wider net loss in the second quarter as the convenience store chain was hurt by higher gasoline prices.

Last week, The Pantry said that it is was seeking to refinance more than $700 million in debt.

The Pantry shares opened trading Wednesday at $15.29. The stock is up 28 percent this year. 

The Pantry reports wider net loss in second quarter

The Pantry reported a wider net loss in the second quarter as the convenience store chain was hurt by higher gasoline prices.

The company had a loss of $9.7 million, or 43 cents, a share, compared with a loss of $300,000, or 1 cent a share, during the second quarter of 2011.

After excluding impairment charges and loss on extinguishment of debt, the company's net loss was $6.7 million, or 30 cents per share, compared to a gain of 1 cent per share in the prior year.

That was better than the 37 cents a share loss that Wall Street analysts predicted.

The Pantry has more than 1,600 stores throughout the Southeast, primarily under the Kangaroo Express brand.

Comparable store merchandise sales at those stores increased 4.8 percent in the quarter and total merchandise gross profit for the quarter was $145.4 million, up $400,000 from the second quarter a year ago.

While The Pantry sold about the same amount of fuel in the quarter as the year prior, its fuel gross profit decreased 30 percent in the quarter. Retail fuel margin per gallon fell to $0.096 from $0.137 a year ago.

The average retail fuel price per gallon was about 20 percent higher in the second quarter than in the same period in 2011.

"We were pleased with our positive comparable store merchandise sales and fuel gallon trends within the quarter," CEO Dennis Hatchell said in a statement.

"Fuel gross profit was negatively impacted by consistently rising wholesale fuel costs, which was partially offset by our ongoing expense management efforts."

He added that the company continues to reduce its debt, having repaid $94 million this year.

The Pantry's CFO resigns

The Pantry announced Friday that its chief financial officer, Mark Bierley, is resigning effective May 25.

Bierley has accepted a position near his home in Michigan, the company said. The position wasn't disclosed.

Berry Epley, the company's corporate controller, will handle Bierley's responsibilities while The Pantry searches for a permanent replacement.

In February, the Cary-based convenience store chain named Dennis G. Hatchell as its new president and CEO. He began his job on March 5.

Hatchell replaced Terrance Marks, who resigned in October to become the CEO of the Hooters restaurant chain.

Hatchell was previously vice chairman of Alex Lee, a North Carolina-based holding company for Lowe's Food Stores, Merchants Distributors and Institution Food House.

The Pantry has more than 1,600 stores throughout the Southeast, primarily under the Kangaroo Express brand.

Pay package for The Pantry's new CEO includes $750,000 annual salary

The Pantry's new CEO, Dennis G. Hatchell, will receive an initial starting salary of $750,000 and shares of restricted stock that is currently worth $436,000.

The Cary-based convenience store chain detailed Hatchell's pay package in a regulatory filing this week.

Hatchell will also receive shares of performance-based restricted stock and a signing bonus of $46,100. For fiscal year 2012, he will receive a cash bonus equal to either $475,500 or the amount he would receive under the company's bonus plan for senior executives if that number is greater.

Hatchell will receive a $3,000 a month living allowance for two months and will be paid $150,000 when he purchases a residence in Cary. He'll also receive up to $25,000 for legal expenses related to the negotiation of the agreement.

Hatchell, 62, starts his new job March 5.

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