On Thursday, April 25, convenience-store operator The Pantry
• Net sales grew 10.7% as same-store sales improved 2.7% in merchandise and 0.8% in gasoline. Higher-profit merchandise sales grew slightly faster than total gasoline sales.
• Net earnings fell 7.7% as selling, general, and administrative expenses grew 16% and offset an improvement in gross margins. Management cited costs to acquire recently acquired stores and other fees and expenses.
• Management lowered guidance and is now calling for 2007 net earnings of $2.30 to $2.40.
• The Pantry carries a three-star rating in The Motley Fool's CAPS community, as does archrival Casey's General Stores
(Figures in thousands, except per-share data)
Income Statement Highlights
Q2 2007 |
Q2 2006 |
Change |
|
---|---|---|---|
Sales |
$1,456,078 |
$1,315,746 |
10.7% |
Net Profit |
$8,360 |
$9,196 |
(9.1%) |
EPS |
$0.36 |
$0.39 |
(7.7%) |
Diluted Shares |
22,956 |
23,377 |
(1.8%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q2 2007 |
Q2 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
13.1% |
12.8% |
0.3 |
Operating Margin |
2% |
2.1% |
(0.1) |
Net Margin |
0.6% |
0.7% |
(0.1) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$64,184 |
$130,524 |
(50.8%) |
Accounts Rec. |
$69,891 |
$56,173 |
24.4% |
Inventory |
$152,303 |
$125,538 |
21.3% |
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Accounts Payable |
$157,353 |
$139,450 |
12.8% |
Long-Term Debt |
$601,170 |
$603,259 |
(0.3%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Fools will have to wait until the Pantry supplies its 10-Q to the Securities and Exchange Commission for juicy cash flow details. Find out why free cash flow is a Fool's best friend.
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned further.