Pantry income up in Q2

Sanford, N.C. The Pantry reported that net income for its second quarter was $6.3 million, compared with a net loss of $5.1 million in the year-ago period.

Merchandise revenues for the second quarter were up 2.4% overall and 1.3% on a same-store sales basis vs. last year.

For the first six months of fiscal 2009, net income was $45.8 million, compared with a net loss of $1.8 million for the first half of fiscal 2008.

During the second quarter, the company repurchased $26 million in principal amount of its outstanding debt for an aggregate purchase price of approximately $19 million, resulting in a pretax gain of $6.7 million for the quarter.

In addition, the company agreed to acquire 40 convenience stores, primarily in the Mobile, Ala., market. The acquisition is expected to close in the second half of fiscal 2009.