On Thursday, April 25, convenience-store operator The Pantry (NASDAQ:PTRY) released second-quarter results for the period ended March 31. Here are the quick and dirty details.

•  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 (NASDAQ:CASY). Grocery-store operator Kroger (NYSE:KR) also has some c-stores and a more appetizing four-star rating. Costco (NASDAQ:COST) also carries four stars and sells gasoline to drive store traffic -- a strategy pursued by retail behemoth Wal-Mart (NYSE:WMT), though it only has a two-star rating.

(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)

*Expressed in percentage points

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.

Related Foolishness:

•   Warren Buffett's Priceless Investment Advice

•   An Empty Pantry

•   70 Times Better Than the Next Microsoft 

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Costco is a Motley Fool Stock Advisor selection.

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.