US convenience store chain The Pantry has said its earnings in the current quarter have been impacted by damage caused by recent hurricanes.
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“Estimated uninsured property losses attributable to Hurricanes Charley, Frances and Ivan, which primarily impacted the company’s stores in Florida and the Mississippi Gulf Coast, will reduce pre-tax income in the current quarter by approximately $2.2m to $2.5m, or approximately $0.06 to $0.07 per share,” The Pantry said.
The company said that all but two locations in the affected areas were reopened shortly after the storms passed and power was restored. Factoring in increased business in the affected areas prior to the storms, the company said the net effect of the hurricanes on operating results (other than the property losses) was minimal.
“Overall damage to our store base was relatively modest, given the unusual number and severity of hurricanes this fiscal year,” said president and CEO Peter Sodini.
“We are pleased to report that in spite of these hurricane disruptions and the related estimated losses, and excluding financing-related expenses earlier in the year, we now expect fiscal 2004 diluted earnings per share to be in a range between $1.60 and $1.63 versus previous guidance of $1.58 to $1.63,” he added. The company’s fiscal year ends on 30 September.
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By GlobalData“Looking ahead, we believe a portion of our store base will benefit from increased traffic due to hurricane-related reconstruction activity,” Sodini added.
The Sanford, North Carolina-based company operates over 1,000 stores in ten states under a number of banners including The Pantry, Kangaroo Express, Golden Gallon and Lil Champ Food Store.
