- Revenues of $8.3 Billion for the
Fourth Quarter, Up 20.8 Percent Year-Over-Year and $30.7 Billion
for the Full Year, Up 15.9 Percent Year-Over-Year
- Fourth Quarter Adjusted Net Income
Per Diluted Share of $0.07, Compared to the Prior Year of $0.06;
Full Year Adjusted Net Income Per Diluted Share of $0.23, Compared
to the Prior Year of $0.27
- Fourth Quarter Net Income Per
Diluted Share of $0.06, Compared to the Prior Year of $1.79; Full
Year Net Income Per Diluted Share of $0.16, Compared to the Prior
Year of $2.08
- Prior Year’s Fourth Quarter and Full
Year Net Income Benefited from a Deferred Tax Valuation Allowance
Adjustment of $1.841 Billion, or Approximately $1.80 Per Diluted
Share
- Adjusted EBITDA of $383.0 Million
for the Fourth Quarter, Up 11.6 Percent Year-Over-Year and $1,402.3
Million for the Full Year, Up 6.0 Percent Year-Over-Year
Rite Aid Corporation (NYSE:RAD) today reported operating results
for its fourth quarter and fiscal year ended February 27, 2016.
For the fourth quarter, the company reported revenues of $8.3
billion, net income of $65.6 million, or $0.06 per diluted share,
Adjusted net income of $76.1 million, or $0.07 per diluted share
and Adjusted EBITDA of $383.0 million, or 4.6 percent of revenues.
For the full year, the company reported revenues of $30.7 billion,
net income of $165.5 million, or $0.16 per diluted share, Adjusted
net income of $241.0 million or $0.23 per diluted share and
Adjusted EBITDA of $1,402.3 million, or 4.6 percent of
revenues.
“Our positive fourth-quarter results helped us deliver a
successful fiscal year that reflects the tremendous progress we’re
making to expand our retail healthcare offering,” said Rite Aid
Chairman and CEO John Standley. “In the fourth quarter, we
generated nearly $40 million of growth in Adjusted EBITDA,
including an increase in our Retail Pharmacy Segment and strong
results from our new Pharmacy Services Segment. This was one of
many key highlights of fiscal 2016, which was a transformational
year that saw us acquire EnvisionRx, launch the ground-breaking
wellness+ with Plenti program, complete our 2,000th Wellness store
and exceed $30 billion in revenues for the first time.”
“We look forward to building upon this success and to continue
delivering a higher level of care in the communities we serve. We
thank our dedicated Rite Aid associates for their hard work in
executing our strategy and providing an even better retail
healthcare experience for our customers. We’re also excited about
our opportunity to join forces with Walgreens Boots Alliance to
further expand consumer access to health care as part of the first
global, pharmacy-led health and wellbeing enterprise.”
Fourth Quarter Summary
Revenues for the quarter were $8.3 billion compared to revenues
of $6.8 billion in the prior year’s fourth quarter, an increase of
$1.4 billion or 20.8 percent. Retail Pharmacy Segment revenues were
$6.8 billion and decreased 0.3 percent compared to the prior year
period primarily as a result of a decrease in same store sales.
Pharmacy Services Segment revenues were $1.5 billion.
Same store sales for the quarter decreased 0.6 percent over the
prior year, consisting of a 0.8 percent decrease in pharmacy sales
and a 0.4 percent decrease in front-end sales. Pharmacy sales
included an approximate 241 basis point negative impact from new
generic introductions. The number of prescriptions filled in same
stores increased 0.1 percent over the prior year period.
Prescription sales accounted for 68.1 percent of total drugstore
sales, and third party prescription revenue was 97.9 percent of
pharmacy sales.
Adjusted net income (which is reconciled to net income in the
attached tables) was $76.1 million or $0.07 per diluted share
compared to last year’s fourth quarter adjusted net income of $65.2
million or $0.06 per diluted share.
Adjusted EBITDA (which is reconciled to net income in the
attached tables) was $383.0 million or 4.6 percent of revenues for
the fourth quarter compared to $343.3 million or 5.0 percent of
revenues for the same period last year. Adjusted EBITDA improved
due to $34.2 million of Pharmacy Services Segment Adjusted EBITDA
and an increase of $5.5 million in Retail Pharmacy Segment Adjusted
EBITDA. The increase in Retail Pharmacy Segment Adjusted EBITDA was
driven by an increase in front-end gross profit, partially offset
by a decrease in pharmacy gross profit and an increase in selling,
general and administrative expenses.
In the fourth quarter, the company opened 3 stores, relocated 10
stores, remodeled 89 stores and expanded 1 store, bringing the
total number of wellness stores chainwide to 2,042. The company
also acquired 2 stores and closed 4 stores, resulting in a total
store count of 4,561 at the end of the fourth quarter. The company
also opened 3 clinics in the fourth quarter, bringing the total to
78.
Full Year Results
For the fiscal year ended February 27, 2016, Rite Aid had
revenues of $30.7 billion compared to revenues of $26.5 billion in
the prior year, an increase of $4.2 billion or 15.9 percent. Retail
Pharmacy Segment revenues were $26.9 billion and increased 1.3
percent compared to the prior year primarily as a result of an
increase in same store sales. Pharmacy Services Segment revenues
were $4.1 billion from the date of the acquisition of EnvisionRx,
which was June 24, 2015, through the end of the fiscal year.
Same store sales for the year increased 1.3 percent consisting
of a 1.8 percent increase in pharmacy sales and a 0.2 percent
increase in front end sales. Pharmacy sales included an approximate
221 basis point negative impact from new generic introductions. The
number of prescriptions filled in same stores increased 0.5 percent
over the prior year period. Prescription sales accounted for 69.1
percent of total drugstore sales, and third party prescription
revenue was 97.8 percent of pharmacy sales.
Adjusted net income for fiscal 2016 was $241.0 million or $0.23
per diluted share compared to last year’s adjusted net income of
$273.0 million or $0.27 per diluted share. The decline in adjusted
net income resulted primarily from increased interest expense
incurred in connection with the company’s acquisition of EnvisionRx
and higher depreciation expense related to an increase in capital
spending, partially offset by an increase in Adjusted EBITDA.
Adjusted EBITDA was $1,402.3 million or 4.6 percent of revenues
for the year compared to $1,322.8 million or 5.0 percent of
revenues for last year. Adjusted EBITDA improved due to $101.4
million of Pharmacy Services Segment Adjusted EBITDA, partially
offset by a decrease of $21.9 million in Retail Pharmacy Segment
Adjusted EBITDA. The decrease in Retail Pharmacy Segment Adjusted
EBITDA was due to an increase in selling, general and
administrative expenses related to our higher level of sales and a
decrease in pharmacy gross profit, partially offset by an increase
in front-end gross profit.
Operating cash flow for fiscal 2016 was approximately $1.0
billion, due to strong Adjusted EBITDA results and contributions
from working capital management. Working capital primarily
benefited from a reduction in store level pharmacy inventory. The
company used this operating cash flow to fund capital expenditures
and to reduce borrowings following the acquisition of
EnvisionRx.
For the year, the company relocated 20 stores, acquired 6
stores, remodeled 412 stores, expanded 2 stores, opened 5 stores,
and closed 20 stores. The company also opened 23 clinics during the
fiscal year.
As previously announced on October 27, 2015, Rite Aid and
Walgreens Boots Alliance, Inc. (“WBA”) entered into a definitive
agreement under which WBA will acquire all outstanding shares of
Rite Aid for $9.00 per share in cash, for a total enterprise value
of approximately $17.2 billion, including acquired net debt. The
board of directors of both companies and Rite Aid’s shareholders
have approved the transaction, which is subject to certain
conditions, including, among others, the receipt of approval under
applicable antitrust laws and other customary closing conditions.
The transaction is expected to close in the second half of calendar
2016.
Given the agreement with WBA described above, and as is
customary for transactions of this type, Rite Aid does not intend
to provide earnings guidance for fiscal 2017.
Rite Aid is one of the nation’s leading drugstore chains with
4,561 stores in 31 states and the District of Columbia. Information
about Rite Aid, including corporate background and press releases,
is available through Rite Aid’s website at www.riteaid.com.
Cautionary Statement Regarding Forward Looking
Statements
Statements in this release that are not historical and
statements regarding the expected timing of the closing of the
proposed merger and the ability of the parties to complete such
transaction considering the various closing conditions and any
assumptions underlying any of the foregoing, are forward-looking
statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. 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, our high level of indebtedness and our ability to make interest
and principal payments on our debt and satisfy the other covenants
contained in our debt agreements, general economic, market and
competitive conditions, our ability to improve the operating
performance of our stores in accordance with our long term
strategy, 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, outcomes of legal and regulatory
matters, changes in legislation or regulations, including
healthcare reform, and risks related to the proposed merger. 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, in the definitive proxy statement that we
filed with the Securities and Exchange Commission on December 21,
2015 in connection with the proposed merger, and in other documents
that we file or furnish with the Securities and Exchange
Commission, which you are encouraged to read. 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. Additionally, there can be no assurance that the
proposed merger will be completed, or if it is completed, that it
will close within the anticipated time period or that the expected
benefits of the proposed merger will be realized. Accordingly, you
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made. 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
The company separately reports financial results on the basis of
Adjusted Net Income, Adjusted Net Income per diluted share, and
Adjusted EBITDA, which are non-GAAP financial measures. See the
attached tables for a reconciliation of Adjusted Net Income,
Adjusted Net Income per diluted share and Adjusted EBITDA to net
income, which is a comparable GAAP financial measure. Adjusted Net
Income and Adjusted Net Income per diluted share excludes
amortization of EnvisionRx intangible assets, acquisition-related
costs, loss on debt retirements and LIFO adjustments. Adjusted
EBITDA is defined as net income excluding the impact of income
taxes (and any corresponding adjustments to tax indemnification
asset), interest expense, depreciation and amortization, LIFO
adjustments, charges or credits for facility closing and
impairment, inventory write-downs related to store closings, debt
retirements and other items (including stock-based compensation
expense, sale of assets and investments and revenue deferrals
related to our customer loyalty program).
RITE AID CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (unaudited)
February 27, 2016 February 28, 2015 ASSETS Current assets:
Cash and cash equivalents $ 124,471 $ 115,899 Accounts receivable,
net 1,601,008 980,904 Inventories, net of LIFO reserve of
$1,006,396 and $997,528 2,697,104 2,882,980 Deferred tax assets -
17,823 Prepaid expenses and other current assets 128,144
224,152 Total current assets 4,550,727
4,221,758 Property, plant and equipment, net 2,255,398 2,091,369
Goodwill 1,713,475 76,124 Other intangibles, net 1,004,379 421,480
Deferred tax assets 1,539,141 1,766,349 Other assets 213,890
200,345 Total assets $ 11,277,010 $
8,777,425 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Current maturities of long-term debt and lease
financing obligations $ 26,848 $ 100,376 Accounts payable 1,542,797
1,133,520 Accrued salaries, wages and other current liabilities
1,427,250 1,193,419 Deferred tax liabilities -
57,685 Total current liabilities 2,996,895 2,485,000
Long-term debt, less current maturities 6,914,393 5,397,588 Lease
financing obligations, less current maturities 52,895 61,152 Other
noncurrent liabilities 731,399 776,629
Total liabilities 10,695,582 8,720,369 Commitments and
contingencies - - Stockholders' equity: Common stock 1,047,754
988,558 Additional paid-in capital 4,822,665 4,521,023 Accumulated
deficit (5,241,210 ) (5,406,675 ) Accumulated other comprehensive
loss (47,781 ) (45,850 ) Total stockholders' equity
581,428 57,056 Total liabilities and
stockholders' equity $ 11,277,010 $ 8,777,425
RITE AID CORPORATION AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS (Dollars in thousands, except per share
amounts) (unaudited)
Thirteen weeks endedFebruary 27, 2016
Thirteen weeks endedFebruary 28, 2015
Revenues $ 8,270,136 $ 6,847,929 Costs and expenses: Cost of
revenues 6,228,581 4,892,068 Selling, general and administrative
expenses 1,810,288 1,718,327 Lease termination and impairment
charges 26,753 21,284 Interest expense 103,678 98,442 Gain on sale
of assets, net (348 ) (1,259 )
8,168,952 6,728,862 Income before
income taxes 101,184 119,067 Income tax expense (benefit)
35,567 (1,715,965 ) Net income $ 65,617 $
1,835,032 Basic and diluted earnings per share:
Numerator for earnings per share: Net income $ 65,617 $
1,835,032 Add back - Interest on convertible notes -
1,364 Income attributable to common stockholders -
diluted $ 65,617 $ 1,836,396
Denominator: Basic weighted average shares 1,041,157 977,716
Outstanding options and restricted shares, net 17,357 22,097
Convertible notes - 24,792
Diluted weighted average shares 1,058,514
1,024,605 Basic income per share $ 0.06 $ 1.88
Diluted income per share $ 0.06 $ 1.79 RITE AID CORPORATION
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Dollars in thousands, except per share amounts)
(unaudited)
Fifty-two weeks endedFebruary 27, 2016
Fifty-two weeks endedFebruary 28, 2015
Revenues $ 30,736,657 $ 26,528,377 Costs and expenses: Cost of
revenues 22,910,402 18,951,645 Selling, general and administrative
expenses 7,013,346 6,695,642 Lease termination and impairment
charges 48,423 41,945 Interest expense 449,574 397,612 Loss on debt
retirements, net 33,205 18,512 Loss (gain) on sale of assets, net
3,303 (3,799 ) 30,458,253
26,101,557 Income before income taxes 278,404
426,820 Income tax expense (benefit) 112,939
(1,682,353 ) Net income $ 165,465
$ 2,109,173 Basic and diluted earnings per share:
Numerator for earnings per share: Net income $ 165,465 $
2,109,173 Add back - Interest on convertible notes -
5,456 Income attributable to common stockholders -
diluted $ 165,465 $ 2,114,629
Denominator: Basic weighted average shares 1,024,377 971,102
Outstanding options and restricted shares, net 17,985 21,967
Convertible notes - 24,792
Diluted weighted average shares 1,042,362
1,017,861 Basic income per share $ 0.16 $ 2.17
Diluted income per share $ 0.16 $ 2.08 RITE AID CORPORATION
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (In thousands) (unaudited) Thirteen
weeks ended Thirteen weeks ended February 27, 2016 February 28,
2015 Net income $ 65,617 $ 1,835,032 Other comprehensive loss:
Defined benefit pension plans: Amortization of prior service cost,
net transition obligation and net actuarial losses included in net
periodic pension cost, net of $2,875 and $6,042 tax benefit
(3,723 ) (10,495 ) Total other comprehensive loss
(3,723 ) (10,495 ) Comprehensive income $ 61,894 $
1,824,537 RITE AID CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In
thousands) (unaudited) Fifty-two weeks ended Fifty-two weeks
ended February 27, 2016 February 28, 2015 Net income $ 165,465 $
2,109,173 Other comprehensive loss: Defined benefit pension plans:
Amortization of prior service cost, net transition obligation and
net actuarial losses included in net periodic pension cost, net of
$1,681 and $6,042 tax benefit (1,931 ) (8,516 ) Total
other comprehensive loss (1,931 ) (8,516 )
Comprehensive income $ 163,534 $ 2,100,657
RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL
SEGMENT OPERATING INFORMATION (Dollars in thousands) (unaudited)
Thirteen weeks endedFebruary 27, 2016
Thirteen weeks endedFebruary 28, 2015
Retail Pharmacy Segment Revenues (a) $ 6,826,984 $
6,847,929 Cost of revenues (a) 4,873,484
4,892,068 Gross profit 1,953,500 1,955,861 LIFO credit
(6,796 ) (23,489 ) FIFO gross profit 1,946,704
1,932,372 Gross profit as a percentage of revenues 28.61 %
28.56 % LIFO credit as a percentage of revenues -0.10 % -0.34 %
FIFO gross profit as a percentage of revenues 28.51 % 28.22 %
Selling, general and administrative expenses 1,737,759
1,718,327 Selling, general and administrative expenses as a
percentage of revenues 25.45 % 25.09 % Cash interest expense
98,081 86,774 Non-cash interest expense 5,342
11,668 Total interest expense 103,423 98,442 Adjusted
EBITDA 348,785 343,295 Adjusted EBITDA as a percentage of revenues
5.11 % 5.01 %
Pharmacy Services Segment
Revenues (a) $ 1,530,729 Cost of revenues (a) 1,442,674
Gross profit 88,055 Gross profit as a percentage of
revenues 5.75 % Adjusted EBITDA 34,224 Adjusted EBITDA as a
percentage of revenues 2.24 % (a) - Revenues and cost of
revenues include $87,577 of inter-segment activity that is
eliminated in consolidation. RITE AID CORPORATION AND
SUBSIDIARIES SUPPLEMENTAL SEGMENT OPERATING
INFORMATION (Dollars in thousands) (unaudited)
Fifty-two weeks endedFebruary 27, 2016
Fifty-two weeks endedFebruary 28, 2015
Retail Pharmacy Segment Revenues (a) $ 26,865,931 $
26,528,377 Cost of revenues (a) 19,270,502
18,951,645 Gross profit 7,595,429 7,576,732 LIFO charge
(credit) 11,163 (18,857 ) FIFO gross profit
7,606,592 7,557,875 Gross profit as a percentage of revenues
28.27 % 28.56 % LIFO charge (credit) as a percentage of revenues
0.04 % -0.07 % FIFO gross profit as a percentage of revenues 28.31
% 28.49 % Selling, general and administrative expenses
6,824,698 6,695,642 Selling, general and administrative expenses as
a percentage of revenues 25.40 % 25.24 % Cash interest
expense 412,133 372,909 Non-cash interest expense 37,170
24,703 Total interest expense 449,303 397,612
Adjusted EBITDA 1,300,905 1,322,843 Adjusted EBITDA as a
percentage of revenues 4.84 % 4.99 %
Pharmacy
Services Segment Revenues (a) $ 4,103,513 Cost of revenues (a)
3,872,687 Gross profit 230,826 Gross profit as
a percentage of revenues 5.63 % Adjusted EBITDA 101,357
Adjusted EBITDA as a percentage of revenues 2.47 %
(a) - Revenues and cost of revenues
include $232,787 of inter-segment activity that is eliminated in
consolidation.
RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL
INFORMATION RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (In
thousands) (unaudited)
Thirteen weeks endedFebruary 27, 2016
Thirteen weeks endedFebruary 28, 2015
Reconciliation of net income to adjusted EBITDA: Net income
$ 65,617 $ 1,835,032 Adjustments: Interest expense 103,678 98,442
Income tax expense 61,925 125,339 Income tax valuation allowance
reduction (26,358 ) (1,841,304 ) Depreciation and amortization
135,430 107,425 LIFO credit (6,796 ) (23,489 ) Lease termination
and impairment charges 26,753 21,284 Other 22,760
20,566 Adjusted EBITDA $ 383,009 $ 343,295
Percent of revenues 4.63 % 5.01 % RITE AID
CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (In thousands)
(unaudited)
Fifty-two weeks endedFebruary 27, 2016
Fifty-two weeks endedFebruary 28, 2015
Reconciliation of net income to adjusted EBITDA: Net income
$ 165,465 $ 2,109,173 Adjustments: Interest expense 449,574 397,612
Income tax expense 139,297 158,951 Income tax valuation allowance
reduction (26,358 ) (1,841,304 ) Depreciation and amortization
509,212 416,628 LIFO charge (credit) 11,163 (18,857 ) Lease
termination and impairment charges 48,423 41,945 Loss on debt
retirements, net 33,205 18,512 Other 72,281
40,183 Adjusted EBITDA $ 1,402,262 $ 1,322,843
Percent of revenues 4.56 % 4.99 % RITE AID CORPORATION AND
SUBSIDIARIES SUPPLEMENTAL INFORMATION ADJUSTED NET INCOME (Dollars
in thousands, except per share amounts) (unaudited)
Thirteen weeks endedFebruary 27, 2016
Thirteen weeks endedFebruary 28, 2015
Net income $ 65,617 $ 1,835,032 Add back - Income tax
expense (benefit) 35,567 (1,715,965 ) Income
before income taxes 101,184 119,067 Adjustments:
Amortization of EnvisionRx intangible assets 17,310 - LIFO credit
(6,796 ) (23,489 ) Acquisition-related costs 5,686
8,309 Adjusted income before income taxes
117,384 103,887 Adjusted income tax expense (a)
41,319 38,646 Adjusted net income $ 76,065
$ 65,241 Adjusted net income per diluted share
$ 0.07 $ 0.06
(a)
The fiscal year 2015 annual effective tax
rate, adjusted for the income tax valuation reduction of $1.841
billion, is used for the thirteen weeks ended February 28,
2015.
RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL
INFORMATION ADJUSTED NET INCOME (Dollars in thousands, except per
share amounts) (unaudited)
Fifty-two weeks endedFebruary 27, 2016
Fifty-two weeks endedFebruary 28, 2015
Net income $ 165,465 $ 2,109,173 Add back - Income tax
expense (benefit) 112,939 (1,682,353 ) Income
before income taxes 278,404 426,820 Adjustments:
Amortization of EnvisionRx intangible assets 55,527 - LIFO charge
(credit) 11,163 (18,857 ) Loss on debt retirements, net 33,205
18,512 Acquisition-related costs 27,482 8,309
Adjusted income before income taxes 405,781 434,784
Adjusted income tax expense (a) 164,747
161,740 Adjusted net income $ 241,034 $ 273,044
Adjusted net income per diluted share $ 0.23 $ 0.27
(a)
The estimated annualized effective tax
rate used for the fifty-two weeks ended February 28, 2015 is
adjusted for the income tax valuation allowance reduction of $1.841
billion.
RITE AID CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands)
(unaudited)
Thirteen weeks endedFebruary 27, 2016
Thirteen weeks endedFebruary 28, 2015
OPERATING ACTIVITIES: Net income $ 65,617 $ 1,835,032
Adjustments to reconcile to net cash provided by operating
activities: Depreciation and amortization 135,430 107,425 Lease
termination and impairment charges 26,753 21,284 LIFO credit (6,796
) (23,489 ) Gain on sale of assets, net (348 ) (1,259 ) Stock-based
compensation expense 11,419 6,458 Changes in deferred taxes 28,793
(1,726,487 ) Excess tax benefit on stock options and restricted
stock (1,448 ) (13,916 ) Changes in operating assets and
liabilities: Accounts receivable (24,239 ) 15,591 Inventories
181,619 138,023 Accounts payable (110,817 ) (124,905 ) Other assets
and liabilities, net 21,882 (58,757 ) Net cash
provided by operating activities 327,865 175,000 INVESTING
ACTIVITIES: Payments for property, plant and equipment (127,009 )
(101,890 ) Intangible assets acquired (31,036 ) (32,949 ) Proceeds
from sale-leaseback transactions 36,732 - Proceeds from
dispositions of assets and investments 1,085
4,935 Net cash used in investing activities (120,228 )
(129,904 ) FINANCING ACTIVITIES: Net (payments to) proceeds from
revolver (280,000 ) 945,000 Principal payments on long-term debt
(5,750 ) (1,151,897 ) Change in zero balance cash accounts (27,867
) 41,015 Net proceeds from the issuance of common stock 2,751 8,594
Excess tax benefit on stock options and restricted stock 1,448
13,916 Deferred financing costs paid - (18,779
) Net cash used in financing activities (309,418 )
(162,151 ) Decrease in cash and cash equivalents (101,781 )
(117,055 ) Cash and cash equivalents, beginning of period
226,252 232,954 Cash and cash equivalents, end
of period $ 124,471 $ 115,899
SUPPLEMENTAL CASH FLOW INFORMATION Payments for
property, plant and equipment $ 127,009 $ 101,890 Intangible assets
acquired 31,036 32,949 Total cash
capital expenditures 158,045 134,839 Equipment received for noncash
consideration 1,000 - Equipment financed under capital leases
6,115 1,408 Gross capital expenditures
$ 165,160 $ 136,247 RITE AID CORPORATION AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars
in thousands) (unaudited)
Fifty-two weeks endedFebruary 27, 2016
Fifty-two weeks endedFebruary 28, 2015
OPERATING ACTIVITIES: Net income $ 165,465 $ 2,109,173
Adjustments to reconcile to net cash provided by operating
activities: Depreciation and amortization 509,212 416,628 Lease
termination and impairment charges 48,423 41,945 LIFO charge
(credit) 11,163 (18,857 ) Loss (gain) on sale of assets, net 3,303
(3,799 ) Stock-based compensation expense 37,948 23,390 Loss on
debt retirements, net 33,205 18,512 Changes in deferred taxes
79,488 (1,726,487 ) Excess tax benefit on stock options and
restricted stock (22,884 ) (41,563 ) Changes in operating assets
and liabilities:
Accounts receivable
291,659 (25,902 ) Inventories 181,958 129,985 Accounts payable
(21,187 ) (169,952 ) Other assets and liabilities, net
(320,351 ) (104,114 ) Net cash provided by operating
activities 997,402 648,959 INVESTING ACTIVITIES: Payments for
property, plant and equipment (541,347 ) (426,828 ) Intangible
assets acquired (128,648 ) (112,558 ) Acquisition of businesses,
net of cash acquired (1,778,377 ) (69,793 ) Proceeds from
sale-leaseback transactions 36,732 - Proceeds from dispositions of
assets and investments 9,782 15,494 Net
cash used in investing activities (2,401,858 ) (593,685 ) FINANCING
ACTIVITIES: Proceeds from issuance of long-term debt 1,800,000
1,152,293 Net proceeds from revolver 375,000 1,325,000 Principal
payments on long-term debt (672,717 ) (2,595,709 ) Change in zero
balance cash accounts (62,878 ) 1,081 Net proceeds from the
issuance of common stock 11,376 24,117 Financing fees paid for
early debt redemption (26,003 ) (13,841 ) Excess tax benefit on
stock options and restricted stock 22,884 41,563 Deferred financing
costs paid (34,634 ) (20,285 ) Net cash provided by
(used in) financing activities 1,413,028
(85,781 ) Increase (decrease) in cash and cash equivalents 8,572
(30,507 ) Cash and cash equivalents, beginning of period
115,899 146,406 Cash and cash equivalents, end
of period $ 124,471 $ 115,899
SUPPLEMENTAL CASH FLOW INFORMATION Payments for
property, plant and equipment $ 541,347 $ 426,828 Intangible assets
acquired 128,648 112,558 Total cash
capital expenditures 669,995 539,386 Equipment received for noncash
consideration 3,011 1,600 Equipment financed under capital leases
9,614 6,157 Gross capital expenditures
$ 682,620 $ 547,143
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version on businesswire.com: http://www.businesswire.com/news/home/20160407005640/en/
Rite Aid CorporationINVESTORS:Matt Schroeder,
717-214-8867investor@riteaid.comorMEDIA:Susan Henderson,
717-730-7766
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