Sodini said the company saw positive developments in the quarterdespite a plunge in net income to a penny per share, from $1.45 pershare in the comparable quarter the year before, which the companyattributed to an unusually steep drop in profits on gasoline sales.The Pantry's profit on gasoline sales plunged to $40 million from$86 million.

Although disappointed by the bottom-line results for thequarter, Sodini said that the the company made positive strides inits long-term expansion strategy, through which it has now acquiredor agreed to acquire 133 convenience stores in fiscal 2007. Thelargest transactions either closed or planned include 24 Sun Stopstores in Florida, Georgia and Alabama; and 16 Angler's Mini-Martstores in the Charleston, SC market.

In addition, shortly after the end of the quarter that companyofficials were discussing Thursday, the company announced adefinitive agreement to acquire 66 Petro Express stores in NorthCarolina and South Carolina. Based on these results and theexpected consummation of future deals, Sodini said, the company metor exceeded its goals for the quarter both in terms of the numberand the quality of the locations that the company acquired or plansto acquire.