- First Quarter Net Loss from Continuing Operations of $72.7
Million, or $1.36 Per Share, Compared to the Prior Year First
Quarter Net Loss of $99.3 Million, or $1.88 Per Share
- First Quarter Adjusted Net Loss from Continuing Operations
of $2.0 Million, or $0.04 Per Share, Compared to the Prior Year
First Quarter Adjusted Net Loss of $7.5 Million, or $0.14 Per
Share
- First Quarter Adjusted EBITDA from Continuing Operations of
$107.4 Million, Compared to the Prior Year First Quarter Adjusted
EBITDA of $110.3 Million
- COVID-19 had a $30 million net negative impact on First
Quarter Adjusted EBITDA
- First Quarter Revenues Increased 12.2 Percent - Strong
Growth in Both Retail Pharmacy and Pharmacy Services
Segments
- Launches Offer to Exchange up to $750,000,000 Aggregate
Principal Amount of Outstanding 6.125% Senior Notes Due 2023 for
Newly Issued 8.0% Senior Secured Notes Due 2026 and Cash
- Withdraws Fiscal 2021 Outlook Due to Uncertainty Around
Ultimate Impact of COVID-19
- Expects to Generate Positive Free Cash Flow in Fiscal
2021
Rite Aid Corporation (NYSE: RAD) today reported operating
results for its first fiscal quarter ended May 30, 2020.
For the first quarter, the company reported net loss from
continuing operations of $72.7 million, or $1.36 per share,
Adjusted net loss from continuing operations of $2.0 million, or
$0.04 per share, and Adjusted EBITDA from continuing operations of
$107.4 million, or 1.8 percent of revenues.
“I couldn’t be more proud of how our teams have worked
tirelessly to support and care for our communities during these
unprecedented times, while continuing to push forward in achieving
our vision for the future,” said Heyward Donigan, president and
chief executive officer, Rite Aid. “Our Retail Pharmacy teams
responded to the COVID-19 crisis by taking immediate action to
maintain our supply chain and stay in stock, enhance our digital
experience, quickly implement safety measures, keep our stores open
and provide outstanding service, all of which helped us drive
double-digit front-end sales growth and gain retail market share.
In the Pharmacy Services Segment, our full leadership team is now
in place, and our team has made excellent progress in integrating
the assets of EnvisionRxOptions, soon to be renamed Elixir, as we
continue the integration with Rite Aid.
“There are certainly challenges brought about by COVID-19,
including the decline in acute prescriptions and increased costs
incurred to assure the safety of our associates and customers. No
matter the challenge, we can execute our strategy and deliver
day-to-day operational excellence in the face of a pandemic. I am
amazed by the passion and spirit of our more than 50,000
associates, who have come to work every day driven by a desire to
help customers stay healthy and demonstrating the essential role of
pharmacy in our communities. Thanks to their hard work, the
fundamentals of our business are strong, and we are right on track
with the launch of our new RxEvolution strategy. I am excited to
continue this important work as we look to become a leading
mid-market PBM, unlock the value of our pharmacists and revitalize
our retail and digital experiences.”
First Quarter Summary
Revenues from continuing operations for the quarter were $6.03
billion compared to revenues from continuing operations of $5.37
billion in the prior year’s quarter. Retail Pharmacy Segment
revenues were $4.12 billion and increased 6.7 percent compared to
the prior year period due to an increase in same store sales.
Revenues in the Pharmacy Services Segment were $1.98 billion, an
increase of 26.2 percent compared to the prior year period, which
was primarily due to an increase in Medicare Part D membership of
approximately 252,000 compared to the prior year period.
Retail Pharmacy Segment same store sales from continuing
operations for the first quarter increased 6.6 percent over the
prior year period, consisting of a 14.2 percent increase in
front-end sales and a 2.2 percent increase in pharmacy sales.
Front-end same store sales, excluding cigarettes and tobacco
products, increased 16.0 percent, driven by increases in general
cleaning products, sanitizers, wipes, paper products, liquor,
over-the-counter products and summer seasonal items. The company
increased its front-end market share by 270 basis points in both
dollar and unit sales1. The number of prescriptions filled in same
stores, adjusted to 30-day equivalents, increased 0.4 percent over
the prior year period driven by increases in maintenance medication
fills, supported by personalized Medication Therapy Management
interventions and home deliveries, partially offset by a reduction
in acute prescriptions of 14.8 percent resulting from the
postponement of outpatient medical visits and elective surgical
procedures in connection with the COVID-19 pandemic. Prescription
sales from continuing operations accounted for 64.2 percent of
total drugstore sales.
Net loss from continuing operations was $72.7 million, or $1.36
per share compared to last year’s first quarter net loss from
continuing operations of $99.3 million, or $1.88 per share. The
improvement in net loss was due primarily to a LIFO credit in the
current year compared to a LIFO charge in the prior year, an income
tax benefit in the current year compared to income tax expense in
the prior year, and lower restructuring-related costs, partially
offset by intangible asset impairment charges relating to the
rebranding of the Pharmacy Services Segment to its new brand name,
Elixir.
Adjusted EBITDA from continuing operations was $107.4 million or
1.8 percent of revenues for the first quarter compared to last
year’s first quarter Adjusted EBITDA from continuing operations of
$110.3 million or 2.1 percent of revenues. Retail Pharmacy Segment
Adjusted EBITDA from continuing operations decreased $21.0 million
due primarily to the impact of the COVID-19 pandemic and the
completion of services provided under the Transition Services
Agreement. Although our Retail Pharmacy Segment benefited from
increased front-end sales, the reduction in acute prescription
count and incremental expenses for payroll and other operating
costs resulted in a combined net negative impact from COVID-19 of
approximately $30.0 million in the quarter. Pharmacy Services
Segment Adjusted EBITDA increased $18.1 million over the prior year
due to increased revenues and improvements in pharmacy network
management.
1 – Source: IRI. Excludes tobacco, cigarettes, greeting cards
and online sales. For drug store channel during Rite Aid’s first
fiscal quarter.
Rite Aid on the Front Lines of the COVID-19 Crisis
Rite Aid is on the front lines of providing communities with
essential care, services and products and took the following
actions during the COVID-19 pandemic to serve its customers and
communities:
- Worked with the U.S. Department of Health and Human Services to
be early adopters of COVID-19 testing, launching 97 sites with the
capacity to conduct more than 48,000 tests each week.
- Provided additional support specific to associate pay and
safety, including our Hero Pay program that ran from March 15 to
May 16, 2020, a $1,000 Hero Bonus for retail store management,
Pandemic Pay, Administrative Leave, and various in-store safety
procedures.
- Through The Rite Aid Foundation, committed $6 million to
support healthcare providers and first responders, regional hot
spots, community needs and The Rite Aid Foundation Associate Relief
Fund.
- Hired approximately 6,000 full and part-time associates to
support store and distribution center teams.
- Instituted “Pandemic Pay” policy that ensures associates are
compensated if diagnosed with the virus or quarantined because of
exposure.
- Implemented specific internal protocols to keep associates safe
and ready to serve customers, including the installation of
Plexiglas shields at pharmacy and front-end counters to provide
additional protection.
- Ensured contact-less capabilities at our stores for
prescription pickup and payment.
- Expanded home delivery of front-end items through a new
partnership with Instacart.
- Launched a new telehealth service Rite Aid Virtual Care to
better serve patient needs.
- Established social distancing procedures that include marking
floor areas in front of the pharmacy and front-end counters with
tape to ensure 6-foot separation.
- Waived delivery-service fees for eligible prescriptions.
- Followed enhanced cleaning and sanitization protocols designed
specifically to prevent the spread of a wide spectrum of viruses,
including COVID-19 and influenza.
During the first three weeks of June, the company saw continued
increases in comparable front-end sales of 7.2 percent excluding
cigarettes and tobacco products over the same prior year period,
due to demand for personal care, paper products and OTC
medications. We believe our continued strong front-end performance
is due to good in-stock positioning through vendor partnerships and
store-level execution, success with keeping stores open for longer
hours compared to competitors and maintaining a safe and clean
store experience for associates and customers. Same store
prescription counts during the first three weeks of June increased
80 basis points over the same prior year period due to a lessening
impact of acute prescription declines, which decreased by 11.7
percent.
In addition, we continue to closely manage and reduce costs. We
have recently eliminated 254 corporate office positions across both
our Retail Pharmacy and Pharmacy Services segments. We have also
taken steps to reduce other expenses, such as shrink, advertising,
rent, travel and call center expenses. In total, we expect these
reductions to result in savings of over $40 million in Fiscal 2021
that were not included in our original guidance and over $55
million on a run rate basis. The company expects to incur severance
costs of $7 million related to the elimination of corporate
positions, which will be classified as a restructuring expense.
The company currently has liquidity of approximately $1.7
billion, which consists of availability to borrow under our secured
revolving credit facility of approximately $1.52 billion and cash
on hand of approximately $180 million.
Outlook for Fiscal 2021
Due to the significant uncertainty that continues to exist
around the severity and duration of the COVID-19 pandemic and the
related potential impacts on our business, particularly on acute
prescription volume, SG&A expense and Pharmacy Services Segment
membership, the company is withdrawing the Fiscal 2021 guidance
issued on March 16, 2020. The company does expect to generate
positive free cash flow in Fiscal 2021, in part by reducing costs,
improving working capital and reducing expected capital
expenditures from our original guidance of $350 million to $275
million.
Conference Call Broadcast
Rite Aid will hold an analyst call at 8:30 a.m. Eastern Time
today with remarks by Rite Aid's management team. The call will be
broadcast via the Internet at
https://www.riteaid.com/corporate/investor-relations/presentations.
The telephone replay will be available beginning at 12 p.m. Eastern
Time today and ending at 11:59 p.m. Eastern Time on June 27, 2020.
To access the replay of the call, telephone (800) 585-8367 or (416)
621-4642 and enter the seven-digit reservation number 9726719. The
webcast replay of the call will also be available at
https://www.riteaid.com/corporate/investor-relations/presentations
starting at 12 p.m. Eastern Time today. The playback will be
available until the company’s next conference call.
About Rite Aid Corporation
Rite Aid Corporation is on the front lines of delivering health
care services and retail products to over 1.6 million Americans
daily. Our pharmacists are uniquely positioned to engage with
customers and improve their health outcomes. We provide an array of
whole being health products and services for the entire family
through over 2,400 retail pharmacy locations across 18 states.
Through Elixir, we provide pharmacy benefits and services to
approximately 4 million members nationwide. For more information,
www.riteaid.com.
Cautionary Statement Regarding Forward-Looking
Statements
Statements in this release that are not historical, are
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Such statements include, but are not limited to, statements
regarding Rite Aid's ability to generate positive free cash flows
in fiscal 2021; the impact of the recent global coronavirus
(COVID-19) pandemic on the company’s business; Rite Aid’s plan to
hire additional associates; and any assumptions underlying any of
the foregoing. Words such as "anticipate," "believe," "continue,"
"could," "estimate," "expect," "intend," "may," "plan," "predict,"
"project," "should," and "will" and variations of such words and
similar expressions are intended to identify such forward-looking
statements.
These forward-looking statements are not guarantees of future
performance and involve risks, assumptions and uncertainties,
including, but not limited to: the impact of COVID-19 on our
workforce, operations, stores, expenses, and supply chain, and the
operations of our customers, suppliers and business partners; our
ability to successfully implement our new business strategy
(including any delays and adjustments as a result of COVID-19) and
improve the operating performance of our stores; Rite Aid’s ability
to complete the exchange offer; our high level of indebtedness and
our ability to satisfy our obligations and the other covenants
contained in our debt agreements; general competitive, economic,
industry, market, political (including healthcare reform), and
regulatory conditions, as well as factors specific to the markets
in which we operate; the impact of private and public third-party
payers continued reduction in prescription drug reimbursements and
efforts to encourage mail order; our ability to manage expenses and
our investments in working capital; our ability to achieve the
benefits of our efforts to reduce the costs of our generic and
other drugs; outcomes of legal and regulatory matters; our ability
to partner and have relationships with health plans and health
systems; and the continued integration of our new senior management
team and our ability to realize the benefits from our
organizational restructuring.
These and other risks, assumptions and uncertainties are more
fully described in Item 1A (Risk Factors) of our most recent Annual
Report on Form 10-K and in other documents that we file or furnish
with the Securities and Exchange Commission (the “SEC”), which you
are encouraged to read. To the extent that COVID-19 adversely
affects our business and financial results, it may also have the
effect of heightening many of such risk factors.
Should one or more of these risks or uncertainties materialize,
or should underlying assumptions prove incorrect, actual results
may vary materially from those indicated or anticipated by such
forward-looking statements. Accordingly, you are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date they are made.
The degree to which COVID-19 may affect Rite Aid’s results and
operations, will depend on future developments, which are highly
uncertain, including, but not limited to, the duration and spread
of the outbreak, its severity, the actions to contain the virus or
treat its impact (including travel bans and restrictions,
quarantines, shelter-in-place orders and shutdowns), and how
quickly and to what extent normal economic and operating conditions
can resume. As a result, the impact on Rite Aid’s financial and
operating results cannot be reasonably estimated with specificity
at this time, but the impact could be material. Rite Aid expressly
disclaims any current intention to update publicly any
forward-looking statement after the distribution of this release,
whether as a result of new information, future events, changes in
assumptions or otherwise.
Reconciliation of Non-GAAP Financial Measures
Rite Aid separately reports financial results on the basis of
Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted
Share and Adjusted EBITDA which are non-GAAP financial measures.
See the attached tables for a reconciliation of Adjusted Net Income
(Loss), Adjusted Net Income (Loss) per Diluted Share and Adjusted
EBITDA to net income (loss), and net income (loss) per diluted
share, which are the most directly comparable GAAP financial
measures. Adjusted Net Income (Loss) and Adjusted Net Income (Loss)
per Diluted Share exclude amortization expense, merger and
acquisition-related costs, non-recurring litigation settlement,
gains and losses on debt retirements, LIFO adjustments, goodwill
and intangible asset impairment charges, restructuring-related
costs and the WBA merger termination fee. The current calculations
of Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per
Diluted Share reflect a modification made in the second quarter of
fiscal 2019 to add back all amortization expenses rather than the
amortization of EnvisionRx intangible assets only.
Adjusted EBITDA is defined as net income (loss) excluding the
impact of income taxes, interest expense, depreciation and
amortization, LIFO adjustments, charges or credits for facility
closing and impairment, goodwill and intangible asset impairment
charges, inventory write-downs related to store closings, gains or
losses on debt retirements, the WBA merger termination fee, and
other items (including stock-based compensation expense, merger and
acquisition-related costs, non-recurring litigation settlement,
severance, restructuring-related costs and costs related to
facility closures and gain or loss on sale of assets). The current
calculation of Adjusted EBITDA reflects a modification made in the
second quarter of fiscal 2019 to eliminate the add back of revenue
deferrals related to our customer loyalty program and to present
amounts previously included within other as separate reconciling
items. We further note that the add back of LIFO (credit) charge
when calculating Adjusted EBITDA, Adjusted Net Income (Loss) and
Adjusted Net Income (Loss) per Diluted Share removes the entire
impact of LIFO (credits) charges, and effectively reflects Rite
Aid's results as if the company was on a FIFO inventory basis.
Not an Offer of any Security
This release is for information purposes only and is not an
offer to sell, or a solicitation of an offer to buy or sell, any
security of Rite Aid, and may not be relied upon in connection with
the purchase or sale of any such security.
RITE AID CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE
SHEETS (Dollars in thousands) (unaudited) May
30, 2020 February 29, 2020 ASSETS Current assets: Cash and cash
equivalents
$
288,316
$
218,180
Accounts receivable, net
1,592,799
1,286,785
Inventories, net of LIFO reserve of $527,574 and $539,640
1,890,024
1,921,604
Prepaid expenses and other current assets
107,672
181,794
Current assets held for sale
-
92,278
Total current assets
3,878,811
3,700,641
Property, plant and equipment, net
1,180,346
1,215,838
Operating lease right-of-use assets
2,894,333
2,903,256
Goodwill
1,108,136
1,108,136
Other intangibles, net
316,204
359,491
Deferred tax assets
16,680
16,680
Other assets
126,364
148,327
Total assets
$
9,520,874
$
9,452,369
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Current maturities of long-term debt and lease financing
obligations
$
8,066
$
8,840
Accounts payable
1,460,325
1,484,081
Accrued salaries, wages and other current liabilities
679,322
746,318
Current portion of operating lease liabilities
490,202
490,161
Current liabilities held for sale
-
37,063
Total current liabilities
2,637,915
2,766,463
Long-term debt, less current maturities
3,321,972
3,077,268
Long-term operating lease liabilities
2,694,929
2,710,347
Lease financing obligations, less current maturities
18,590
19,326
Other noncurrent liabilities
233,679
204,438
Total liabilities
8,907,085
8,777,842
Commitments and contingencies
-
-
Stockholders' equity: Common stock
54,675
54,716
Additional paid-in capital
5,892,720
5,890,903
Accumulated deficit
(5,285,735
)
(5,222,194
)
Accumulated other comprehensive loss
(47,871
)
(48,898
)
Total stockholders' equity
613,789
674,527
Total liabilities and stockholders' equity
$
9,520,874
$
9,452,369
RITE AID CORPORATION AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS (Dollars in thousands, except per share
amounts) (unaudited) Thirteen weeks endedMay
30, 2020 Thirteen weeks endedJune 1, 2019 Revenues
$
6,027,376
$
5,372,589
Costs and expenses: Cost of revenues
4,829,057
4,245,866
Selling, general and administrative expenses
1,197,147
1,162,652
Lease termination and impairment charges
3,753
478
Intangible asset impairment charges
29,852
-
Interest expense
50,547
58,270
Gain on sale of assets, net
(2,260
)
(2,712
)
6,108,096
5,464,554
Loss from continuing operations before income taxes
(80,720
)
(91,965
)
Income tax (benefit) expense
(8,018
)
7,374
Net loss from continuing operations
(72,702
)
(99,339
)
Net income (loss) from discontinued operations, net of tax
9,161
(320
)
Net loss
$
(63,541
)
$
(99,659
)
Basic and diluted loss per share:
Numerator for loss per share: Net loss from continuing operations
attributable to common stockholders - basic and diluted
$
(72,702
)
$
(99,339
)
Net income (loss) from discontinued operations attributable to
common stockholders - basic and diluted
9,161
(320
)
Loss attributable to common stockholders - basic and diluted
$
(63,541
)
$
(99,659
)
Denominator: Basic and diluted weighted
average shares
53,462
52,976
Basic and diluted loss per share Continuing operations
$
(1.36
)
$
(1.88
)
Discontinued operations
$
0.17
$
0.00
Net basic and diluted loss per share
$
(1.19
)
$
(1.88
)
RITE AID CORPORATION AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF CASH FLOWS (Dollars in thousands) (unaudited)
Thirteen weeks endedMay 30, 2020 Thirteen weeks
endedJune 1, 2019 OPERATING ACTIVITIES: Net loss
$
(63,541
)
$
(99,659
)
Net income (loss) from discontinued operations, net of tax
9,161
(320
)
Net loss from continuing operations
$
(72,702
)
$
(99,339
)
Adjustments to reconcile to net cash used in operating activities
of continuing operations: Depreciation and amortization
79,103
83,926
Lease termination and impairment charges
3,753
478
Intangible asset impairment charges
29,852
-
LIFO (credit) charge
(12,066
)
7,489
Gain on sale of assets, net
(2,260
)
(2,712
)
Stock-based compensation expense
1,874
5,380
Changes in operating assets and liabilities: Accounts receivable
(308,636
)
(17,565
)
Inventories
43,647
(11,454
)
Accounts payable
13,320
(75,893
)
Operating lease right-of-use assets and operating lease liabilities
(6,595
)
(11,893
)
Other assets
99,177
22,513
Other liabilities
13,263
47,831
Net cash used in operating activities of continuing operations
(118,270
)
(51,239
)
INVESTING ACTIVITIES: Payments for property, plant and equipment
(28,459
)
(40,981
)
Intangible assets acquired
(10,715
)
(8,210
)
Proceeds from dispositions of assets and investments
2,755
658
Net cash used in investing activities of continuing operations
(36,419
)
(48,533
)
FINANCING ACTIVITIES: Net proceeds from revolver
242,000
125,000
Principal payments on long-term debt
(1,298
)
(1,780
)
Change in zero balance cash accounts
(26,567
)
36,387
Payments for taxes related to net share settlement of equity awards
(99
)
(195
)
Deferred financing costs paid
(1,332
)
(186
)
Net cash provided by financing activities of continuing operations
212,704
159,226
Cash flows from discontinued operations: Operating activities of
discontinued operations
(82,189
)
(13,877
)
Investing activities of discontinued operations
94,310
523
Net cash provided by (used in) discontinued operations
12,121
(13,354
)
Increase in cash and cash equivalents
70,136
46,100
Cash and cash equivalents, beginning of period
218,180
144,353
Cash and cash equivalents, end of period
$
288,316
$
190,453
RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL
SEGMENT OPERATING INFORMATION (Dollars in thousands) (unaudited)
Thirteen weeks endedMay 30, 2020 Thirteen weeks
endedJune 1, 2019
Retail Pharmacy Segment Revenues
from continuing operations (a)
$
4,123,271
$
3,864,808
Cost of revenues from continuing operations (a)
3,041,735
2,834,313
Gross profit from continuing operations
1,081,536
1,030,495
LIFO (credit) charge from continuing operations
(12,066
)
7,489
FIFO gross profit from continuing operations
1,069,470
1,037,984
Adjusted EBITDA gross profit from continuing operations
1,098,427
1,040,263
Gross profit as a percentage of revenues - continuing
operations
26.23
%
26.66
%
LIFO (credit) charge as a percentage of revenues - continuing
operations
-0.29
%
0.19
%
FIFO gross profit as a percentage of revenues - continuing
operations
25.94
%
26.86
%
Adjusted EBITDA gross profit as a percentage of revenues -
continuing operations
26.64
%
26.92
%
Selling, general and administrative expenses from continuing
operations
1,108,976
1,071,325
Adjusted EBITDA selling, general and administrative expenses from
continuing operations
1,035,445
956,255
Selling, general and administrative expenses as a percentage of
revenues - continuing operations
26.90
%
27.72
% Adjusted EBITDA selling, general and administrative expenses as a
percentage of revenues - continuing operations
25.11
%
24.74
% Cash interest expense
47,368
54,610
Non-cash interest expense
3,179
3,660
Total interest expense
50,547
58,270
Interest expense - continuing operations
50,547
58,270
Interest expense - discontinued operations
-
-
Adjusted EBITDA - continuing operations
62,982
84,008
Adjusted EBITDA as a percentage of revenues - continuing operations
1.53
%
2.17
%
Pharmacy Services Segment Revenues (a)
$
1,977,246
$
1,566,292
Cost of revenues (a)
1,860,463
1,470,064
Gross profit
116,783
96,228
Gross profit as a percentage of revenues
5.91
%
6.14
%
Adjusted EBITDA
44,410
26,339
Adjusted EBITDA as a percentage of revenues
2.25
%
1.68
%
(a) - Revenues and cost of revenues include $73,141 and
$58,511 of inter-segment activity for the thirteen weeks ended May
30, 2020 and June 1, 2019, respectively, that is eliminated in
consolidation. RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL
INFORMATION RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (In
thousands) (unaudited) Thirteen weeks endedMay
30, 2020 Thirteen weeks endedJune 1, 2019
Reconciliation of net loss to adjusted EBITDA: Net loss -
continuing operations
$
(72,702
)
$
(99,339
)
Adjustments: Interest expense
50,547
58,270
Income tax (benefit) expense
(8,018
)
7,374
Depreciation and amortization
79,103
83,926
LIFO (credit) charge
(12,066
)
7,489
Lease termination and impairment charges
3,753
478
Intangible asset impairment charges
29,852
-
Merger and Acquisition-related costs
-
3,085
Stock-based compensation expense
1,874
5,380
Restructuring-related costs
35,735
43,350
Inventory write-downs related to store closings
834
841
Gain on sale of assets, net
(2,260
)
(2,712
)
Other
740
2,205
Adjusted EBITDA - continuing operations
$
107,392
$
110,347
Percent of revenues - continuing operations
1.78
%
2.05
%
RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL
INFORMATION ADJUSTED NET LOSS (Dollars in thousands, except per
share amounts) (unaudited) Thirteen weeks endedMay
30, 2020 Thirteen weeks endedJune 1, 2019 Net loss from
continuing operations
$
(72,702
)
$
(99,339
)
Add back - Income tax (benefit) expense
(8,018
)
7,374
Loss before income taxes - continuing operations
(80,720
)
(91,965
)
Adjustments: Amortization expense
24,420
27,660
LIFO (credit) charge
(12,066
)
7,489
Intangible asset impairment charges
29,852
-
Merger and Acquisition-related costs
-
3,085
Restructuring-related costs
35,735
43,350
Adjusted loss before income taxes - continuing operations
(2,779
)
(10,381
)
Adjusted income tax benefit (a)
(768
)
(2,862
)
Adjusted net loss from continuing operations
$
(2,011
)
$
(7,519
)
Adjusted net loss per diluted share - continuing operations:
Numerator for adjusted net loss per diluted share: Adjusted
net loss from continuing operations
$
(2,011
)
$
(7,519
)
Denominator: Basic and diluted weighted
average shares
53,462
52,976
Net loss from continuing operations per diluted share -
continuing operations
$
(1.36
)
$
(1.88
)
Adjusted net loss per diluted share - continuing
operations
$
(0.04
)
$
(0.14
)
(a) The fiscal year 2021 and 2020 annual effective
tax rates, calculated using a federal rate plus a net state rate
that excluded the impact of state NOL's, state credits and
valuation allowance, was used for the thirteen weeks ended May 30,
2020 and June 1, 2019, respectively. RITE AID CORPORATION AND
SUBSIDIARIES SUPPLEMENTAL INFORMATION RECONCILIATION OF ADJUSTED
EBITDA GROSS PROFIT AND RECONCILIATION OF ADJUSTED EBITDA SELLING,
GENERAL AND ADMINISTRATIVE EXPENSES- RETAIL PHARMACY SEGMENT (In
thousands) (unaudited) Thirteen weeks endedMay
30, 2020 Thirteen weeks endedJune 1, 2019
Reconciliation of adjusted EBITDA gross profit: Revenues
$
4,123,271
$
3,864,808
Gross Profit
1,081,536
1,030,495
Addback: LIFO (credit) charge
(12,066
)
7,489
Depreciation and amortization (cost of goods sold portion only)
2,663
2,263
Restructuring-related costs - SKU optimization charges
25,763
-
Other
531
16
Adjusted EBITDA gross profit - continuing operations
$
1,098,427
$
1,040,263
Percent of revenues - continuing operations
26.64
%
26.92
%
Reconciliation of adjusted EBITDA selling,
general and administrative expenses: Revenues
$
4,123,271
$
3,864,808
Selling, general and administrative expenses
1,108,976
1,071,325
Less: Depreciation and amortization (SG&A portion only)
60,909
65,039
Stock-based compensation expense
1,725
5,265
Merger and Acquisition-related costs
-
2,314
Restructuring-related costs
9,946
39,381
Other
951
3,071
Adjusted EBITDA selling, general and administrative expenses -
continuing operations
$
1,035,445
$
956,255
Percent of revenues - continuing operations
25.11
%
24.74
%
Adjusted EBITDA - continuing operations
$
62,982
$
84,008
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200625005368/en/
INVESTORS: Byron Purcell (717) 975-5809 investor@riteaid.com
MEDIA: Christopher Savarese (717) 975-5718
Christopher.Savarese@riteaid.com
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