- First Quarter Retail Pharmacy Segment Same Store Sales
Increased 1.4 Percent
- Same Store 30-Day Equivalent Prescription Count Grew 3.7
Percent
- Front End Same Store Sales, Excluding Cigarettes and Tobacco
Products, Grew 0.3 Percent
- First Quarter Net Loss from Continuing Operations of $99.3
Million or $1.88 Per Share, Compared to the Prior Year First
Quarter Net Loss of $41.7 Million or $0.79 Per Share
- Current Quarter Net Loss from Continuing Operations Includes
$43.4 Million in Pre-Tax Restructuring-Related Costs
- First Quarter Adjusted Net Loss from Continuing Operations
of $7.5 Million or $0.14 Per Share, Compared to the Prior Year
First Quarter Adjusted Net Income of $1.0 Million or $0.02 Per
Share
- First Quarter Adjusted EBITDA from Continuing Operations of
$110.3 Million, Compared to the Prior Year First Quarter Adjusted
EBITDA of $138.0 Million
- Rite Aid Confirms Fiscal 2020 Outlook
Rite Aid Corporation (NYSE: RAD) today reported operating
results for its first fiscal quarter ended June 1, 2019.
For the first quarter, the company reported net loss from
continuing operations of $99.3 million, or $1.88 per share,
Adjusted net loss from continuing operations of $7.5 million, or
$0.14 per share, and Adjusted EBITDA from continuing operations of
$110.3 million, or 2.1 percent of revenues.
“While first quarter results did not meet our expectations due
to prescription reimbursement rate pressure in the Retail Pharmacy
Segment and margin compression in the Pharmacy Services Segment, we
are pleased with the improvements in our top-line growth and
operating efficiency in the Retail Pharmacy Segment and Medicare
Part D revenue growth in the Pharmacy Services Segment,” said Rite
Aid CEO John Standley. “Looking forward, enhancements made to the
McKesson supply agreement, generic purchasing improvements, revenue
growth and the benefits of actions we have taken to reduce costs
should drive improved results in both segments for the remainder of
the year. We expect to meet our full-year guidance. In addition,
through our ‘Path to the Future’ transformation initiative, we are
identifying significant opportunities to drive further growth and
operating efficiency in fiscal 2021, with a focus on reducing our
reliance on traditional pharmacy reimbursement rate models.”
First Quarter Summary
Revenues from continuing operations for the quarter were $5.37
billion compared to revenues from continuing operations of $5.39
billion in the prior year’s quarter. Retail Pharmacy Segment
revenues were $3.86 billion and decreased 0.8 percent compared to
the prior year period due to a reduction in store count, partially
offset by an increase in same store sales. Revenues in the Pharmacy
Services Segment were $1.57 billion, an increase of 1.5 percent
compared to the prior year period, which was due to an increase in
Medicare Part D revenue.
Same store sales from Retail Pharmacy continuing operations for
the first quarter increased 1.4 percent over the prior year,
consisting of a 2.3 percent increase in pharmacy sales and a 0.3
percent decrease in front-end sales. Front-end same store sales,
excluding cigarettes and tobacco products, increased 0.3 percent.
Pharmacy sales were negatively impacted by approximately 207 basis
points as a result of new generic introductions. The number of
prescriptions filled in same stores, adjusted to 30-day
equivalents, increased 3.7 percent over the prior year period
resulting primarily from the company’s initiatives to drive
medication adherence and script growth. Prescription sales from
continuing operations accounted for 66.9 percent of total drugstore
sales.
Net loss from continuing operations was $99.3 million or $1.88
per share compared to last year’s first quarter net loss from
continuing operations of $41.7 million or $0.79 per share. The
increase in net loss was due primarily to higher
restructuring-related costs, a decrease in Adjusted EBITDA, and
higher income tax expense, partially offset by a reduction in
depreciation and amortization expense and lease termination and
impairment charges.
Adjusted EBITDA from continuing operations was $110.3 million or
2.1 percent of revenues for the first quarter compared to Adjusted
EBITDA from continuing operations of $138.0 million or 2.6 percent
of revenues for the same period last year, a decrease of $27.7
million. The Retail Pharmacy Segment Adjusted EBITDA from
continuing operations decreased $20.1 million compared to the prior
year due primarily to weaker pharmacy gross profit caused by
prescription reimbursement rate pressure that the company was not
able to fully offset with both generic drug purchasing efficiencies
and increases in prescriptions filled in comparable stores. The
reduction in reimbursement rates was partially caused by a $12.5
million charge for a change in estimated exposure for a retroactive
billing from a state Medicaid agency. These negative variances were
partially offset by an improvement in Adjusted EBITDA selling,
general and administrative (“SG&A”) expense of $23.7 million.
This improvement was driven by lower salaries and benefit expense
relating to the recent corporate restructuring that more than
offset the reduction in Transition Services Agreement (“TSA”) fee
income from Walgreens Boots Alliance (“WBA”) and strong labor and
expense control at the stores. The Pharmacy Services Segment
Adjusted EBITDA decreased $7.5 million over the prior year due to
margin compression in the company’s commercial business and other
operating investments to support current year and future
growth.
In the first quarter, the company remodeled 27 stores, bringing
the total number of wellness stores chainwide to 1,787.
Additionally, the company opened 1 store and closed 4 stores,
resulting in a total store count of 2,466 at the end of the first
quarter.
Outlook for Fiscal 2020
Rite Aid is confirming its fiscal 2020 outlook. The company’s
outlook assumes a continued decline in prescription reimbursement
rates, partially offset by continued prescription count growth,
improvements in drug costs and continued strong SG&A expense
control. The company expects the quarterly run rate of Adjusted
EBITDA for fiscal 2020 to improve given expectations for same store
prescription growth, the timing of drug purchasing improvements and
actions we are taking to reduce costs.
Rite Aid said it expects sales to be between $21.5 billion and
$21.9 billion in fiscal 2020 with same store sales expected to
range from an increase of 0.0 percent to an increase of 1.0 percent
over fiscal 2019.
Net loss is expected to be between $170.0 million and $220.0
million.
Adjusted EBITDA is expected to be between $500.0 million and
$560.0 million.
Adjusted net (loss) income per share is expected to be between a
loss of $0.14 and income of $0.72.
Capital expenditures are expected to be approximately $250
million.
Conference Call Broadcast
Rite Aid will hold an analyst call at 5:00 p.m. Eastern Time
today with remarks by Rite Aid's management team. The call will be
simulcast via the internet and can be accessed at www.riteaid.com
in the conference call section of investor information. A playback
of the call will also be available by telephone beginning at 8:00
p.m. Eastern Time today until 11:59 p.m. Eastern Time on June 28,
2019. The playback number is 1-855-859-2056 from within the U.S.
and Canada or 1-404-537-3406 from outside the U.S. and Canada with
the reservation number 4580936.
Rite Aid is one of the nation’s leading drugstore chains with
2,466 stores in 18 states. 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, 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 outlook for fiscal 2020; Rite Aid’s
competitive position and ability to realize its growth initiatives
and operating efficiencies; 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, 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, industry, market, competitive, regulatory and
political 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; our ability to achieve the benefits of our
efforts to reduce the costs of our generic and other drugs; risks
related to the pending sale of the remaining Rite Aid distribution
centers and related assets to Walgreens Boots Alliance, Inc.
("WBA"), including the possibility that the transactions may not
close, or the business of Rite Aid may suffer as a result of
uncertainty surrounding the pending transactions; our ability to
successfully execute and achieve benefits from our leadership
transition plan and organizational restructuring, including our
chief executive officer search process, and to manage the
transition to a new chief executive officer and other management;
the potential for operational disruptions due to, among other
things, concerns of management, employees, current and potential
customers, other third parties with whom we do business and
shareholders; the success of any changes to our business strategy
that may be implemented under our new chief executive officer and
other management; our ability to achieve cost savings through the
organizational restructurings within the anticipated timeframe, if
at all; possible changes in the size and components of the expected
costs and charges associated with the organizational restructuring
plan; and the outlook for and future growth of the Company. 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, 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. 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
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,
loss 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, loss 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.
In addition to Adjusted EBITDA, Adjusted Net (Loss) Income and
Adjusted Net (Loss) Income per Diluted Share, we occasionally refer
to several other Non-GAAP measures, on a less frequent basis, in
order to describe certain components of our business and how we
utilize them to describe our results. Adjusted EBITDA Gross Profit
includes LIFO adjustments, depreciation and amortization (COGS
portion only) and other items. The presentation includes a
reconciliation of Adjusted EBITDA Gross Profit to Revenue, which is
the most directly comparable GAAP financial measure. Adjusted
EBITDA SG&A excludes depreciation and amortization (SG&A
portion only), stock-based compensation expense, merger and
acquisition-related costs, litigation settlement,
restructuring-related costs and other items. The presentation
includes a reconciliation of Adjusted EBITDA SG&A to Revenue,
which is the most directly comparable GAAP financial measure.
RITE AID CORPORATION AND SUBSIDIARIES CONSOLIDATED
BALANCE SHEETS (Dollars in thousands) (unaudited)
June 1, 2019 March 2, 2019 ASSETS Current assets: Cash and cash
equivalents
$
190,453
$
144,353
Accounts receivable, net
1,803,778
1,788,712
Inventories, net of LIFO reserve of $611,933 and $604,444
1,875,917
1,871,941
Prepaid expenses and other current assets
104,784
179,132
Current assets held for sale
153,811
117,581
Total current assets
4,128,743
4,101,719
Property, plant and equipment, net
1,284,680
1,308,514
Operating lease right-of-use assets
2,985,213
-
Goodwill
1,108,136
1,108,136
Other intangibles, net
400,084
448,706
Deferred tax assets
409,084
409,084
Other assets
213,749
215,208
Total assets
$
10,529,689
$
7,591,367
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Current maturities of long-term debt and lease financing
obligations
$
11,751
$
16,111
Accounts payable
1,556,425
1,618,585
Accrued salaries, wages and other current liabilities
782,205
808,439
Current portion of operating lease liabilities
450,933
-
Current liabilities held for sale
43,829
-
Total current liabilities
2,845,143
2,443,135
Long-term debt, less current maturities
3,582,037
3,454,585
Long-term operating lease liabilities
2,790,738
-
Lease financing obligations, less current maturities
22,679
24,064
Other noncurrent liabilities
253,875
482,893
Total liabilities
9,494,472
6,404,677
Commitments and contingencies
-
-
Stockholders' equity: Common stock
53,833
54,016
Additional paid-in capital
5,882,363
5,876,977
Accumulated deficit
(4,869,679
)
(4,713,244
)
Accumulated other comprehensive loss
(31,300
)
(31,059
)
Total stockholders' equity
1,035,217
1,186,690
Total liabilities and stockholders' equity
$
10,529,689
$
7,591,367
RITE AID CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except
per share amounts) (unaudited)
Thirteen weeks ended
June 1, 2019
Thirteen weeks ended
June 2, 2018
Revenues
$
5,372,589
$
5,388,490
Costs and expenses: Cost of revenues
4,245,866
4,219,741
Selling, general and administrative expenses
1,162,652
1,152,627
Lease termination and impairment charges
478
9,859
Interest expense
58,270
62,792
Loss on debt retirements, net
-
554
Gain on sale of assets, net
(2,712
)
(5,859
)
5,464,554
5,439,714
Loss from continuing operations before income taxes
(91,965
)
(51,224
)
Income tax expense (benefit)
7,374
(9,497
)
Net loss from continuing operations
(99,339
)
(41,727
)
Net (loss) income from discontinued operations, net of tax
(320
)
256,143
Net (loss) income
$
(99,659
)
$
214,416
Basic and diluted (loss) income per share:
Numerator for (loss) income per share: Net loss from
continuing operations attributable to common stockholders - basic
and diluted
$
(99,339
)
$
(41,727
)
Net (loss) income from discontinued operations attributable to
common stockholders - basic and diluted
(320
)
256,143
(Loss) income attributable to common stockholders - basic and
diluted
$
(99,659
)
$
214,416
Denominator: Basic and diluted weighted
average shares
52,976
52,719
Basic and diluted (loss) income per share Continuing
operations
$
(1.88
)
$
(0.79
)
Discontinued operations
$
0.00
$
4.86
Net basic and diluted (loss) income per share
$
(1.88
)
$
4.07
RITE AID CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands)
(unaudited)
Thirteen weeks ended
June 1, 2019
Thirteen weeks ended
June 2, 2018
OPERATING ACTIVITIES: Net (loss) income
$
(99,659
)
$
214,416
Net (loss) income from discontinued operations, net of tax
(320
)
256,143
Net loss from continuing operations
$
(99,339
)
$
(41,727
)
Adjustments to reconcile to net cash used in operating activities
of continuing operations:
Depreciation and amortization
83,926
94,529
Lease termination and impairment
charges
478
9,859
LIFO charge
7,489
9,966
Gain on sale of assets, net
(2,712
)
(5,859
)
Stock-based compensation
expense
5,380
5,031
Loss on debt retirements, net
-
554
Changes in deferred taxes
-
(12,355
)
Changes in operating assets and
liabilities:
Accounts receivable
(17,565
)
(194,159
)
Inventories
(11,454
)
31,101
Accounts payable
(75,893
)
207,960
Operating lease right-of-use
assets and operating lease liabilities
(11,893
)
-
Other assets
22,513
7,102
Other liabilities
47,831
(128,316
)
Net cash used in operating
activities of continuing operations
(51,239
)
(16,314
)
INVESTING ACTIVITIES: Payments for property, plant and equipment
(40,981
)
(47,971
)
Intangible assets acquired
(8,210
)
(13,655
)
Proceeds from dispositions of assets and investments
658
9,916
Proceeds from sale-leaseback transactions
-
2,587
Net cash used in investing activities of continuing operations
(48,533
)
(49,123
)
FINANCING ACTIVITIES: Net proceeds from revolver
125,000
190,000
Principal payments on long-term debt
(1,780
)
(431,106
)
Change in zero balance cash accounts
36,387
1,083
Net proceeds from the issuance of common stock
-
910
Payments for taxes related to net share settlement of equity awards
(195
)
-
Financing fees paid for early debt redemption
-
(13
)
Deferred financing costs paid
(186
)
-
Net cash provided by (used in) financing activities of continuing
operations
159,226
(239,126
)
Cash flows from discontinued operations: Operating activities of
discontinued operations
(13,877
)
(74,050
)
Investing activities of discontinued operations
523
603,402
Financing activities of discontinued operations
-
(525,031
)
Net cash (used in) provided by discontinued operations
(13,354
)
4,321
Increase (decrease) in cash and cash equivalents
46,100
(300,242
)
Cash and cash equivalents, beginning of period
144,353
447,334
Cash and cash equivalents, end of period
$
190,453
$
147,092
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL SEGMENT OPERATING INFORMATION (Dollars in thousands)
(unaudited)
Thirteen weeks ended
June 1, 2019
Thirteen weeks ended
June 2, 2018
Retail Pharmacy Segment Revenues from continuing
operations (a)
$
3,864,808
$
3,897,765
Cost of revenues from continuing operations (a)
2,834,313
2,828,308
Gross profit from continuing operations
1,030,495
1,069,457
LIFO charge from continuing operations
7,489
9,966
FIFO gross profit from continuing operations
1,037,984
1,079,423
Adjusted EBITDA gross profit from continuing operations
1,040,263
1,084,038
Gross profit as a percentage of revenues - continuing
operations
26.66
%
27.44
%
LIFO charge as a percentage of revenues - continuing operations
0.19
%
0.26
%
FIFO gross profit as a percentage of revenues - continuing
operations
26.86
%
27.69
%
Adjusted EBITDA gross profit as a percentage of revenues -
continuing operations
26.92
%
27.81
%
Selling, general and administrative expenses from continuing
operations
1,071,325
1,064,387
Adjusted EBITDA selling, general and administrative expenses from
continuing operations
956,255
979,909
Selling, general and administrative expenses as a percentage of
revenues - continuing operations
27.72
%
27.31
%
Adjusted EBITDA selling, general and administrative expenses as a
percentage of revenues - continuing operations
24.74
%
25.14
%
Cash interest expense
54,610
62,901
Non-cash interest expense
3,660
4,506
Total interest expense
58,270
67,407
Interest expense - continuing operations
58,270
62,792
Interest expense - discontinued operations
0
4,615
Adjusted EBITDA - continuing operations
84,008
104,129
Adjusted EBITDA as a percentage of revenues - continuing operations
2.17
%
2.67
%
Pharmacy Services Segment Revenues (a)
$
1,566,292
$
1,542,762
Cost of revenues (a)
1,470,064
1,443,470
Gross profit
96,228
99,292
Gross profit as a percentage of revenues
6.14
%
6.44
%
Adjusted EBITDA
26,339
33,863
Adjusted EBITDA as a percentage of revenues
1.68
%
2.19
%
(a) -
Revenues and cost of revenues
include $58,511 and $52,037 of inter-segment activity for the
thirteen weeks ended June 1, 2019 and June 2, 2018, 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 ended
June 1, 2019
Thirteen weeks ended
June 2, 2018
Reconciliation of net loss to adjusted EBITDA: Net
loss - continuing operations
$
(99,339
)
$
(41,727
)
Adjustments: Interest expense
58,270
62,792
Income tax expense (benefit)
7,374
(9,497
)
Depreciation and amortization
83,926
94,529
LIFO charge
7,489
9,966
Lease termination and impairment charges
478
9,859
Loss on debt retirements, net
-
554
Merger and Acquisition-related costs
3,085
7,188
Stock-based compensation expense
5,380
5,031
Restructuring-related costs
43,350
-
Inventory write-downs related to store closings
841
3,833
Gain on sale of assets, net
(2,712
)
(5,859
)
Other
2,205
1,323
Adjusted EBITDA - continuing operations
$
110,347
$
137,992
Percent of revenues - continuing operations
2.05
%
2.56
%
RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL
INFORMATION ADJUSTED NET (LOSS) INCOME (Dollars in thousands,
except per share amounts) (unaudited)
Thirteen weeks ended
June 1, 2019
Thirteen weeks ended
June 2, 2018
Net loss from continuing operations
$
(99,339
)
$
(41,727
)
Add back - Income tax expense (benefit)
7,374
(9,497
)
Loss before income taxes - continuing operations
(91,965
)
(51,224
)
Adjustments: Amortization expense
27,660
35,400
LIFO charge
7,489
9,966
Merger and Acquisition-related costs
3,085
7,188
Restructuring-related costs
43,350
-
Adjusted (loss) income before income taxes - continuing
operations
(10,381
)
1,330
Adjusted income tax (benefit) expense (a)
(2,862
)
306
Adjusted net (loss) income from continuing operations
$
(7,519
)
$
1,024
Adjusted net (loss) income per diluted share - continuing
operations: Numerator for adjusted net (loss) income per
diluted share: Adjusted net (loss) income from continuing
operations
$
(7,519
)
$
1,024
Denominator: Basic weighted average shares
52,976
52,719
Outstanding options and restricted shares, net
-
200
Diluted weighted average shares
52,976
52,919
Net loss from continuing operations per diluted share -
continuing operations
$
(1.88
)
$
(0.79
)
Adjusted net (loss) income per diluted share -
continuing operations
$
(0.14
)
$
0.02
(a) The fiscal year 2020 and 2019 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 June 1, 2019 and
June 2, 2018, 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 ended
June 1, 2019
Thirteen weeks ended
June 2, 2018
Reconciliation of adjusted EBITDA gross profit:
Revenues
$
3,864,808
$
3,897,765
Gross Profit
1,030,495
1,069,457
Addback: LIFO charge
7,489
9,966
Depreciation and amortization (cost of goods sold portion only)
2,263
2,367
Other
16
2,248
Adjusted EBITDA gross profit - continuing operations
$
1,040,263
$
1,084,038
Percent of revenues - continuing operations
26.92
%
27.81
%
Reconciliation of adjusted EBITDA selling,
general and administrative expenses: Revenues
$
3,864,808
$
3,897,765
Selling, general and administrative expenses
1,071,325
1,064,387
Less: Depreciation and amortization (SG&A portion only)
65,039
69,666
Stock-based compensation expense
5,265
5,031
Merger and Acquisition-related costs
2,314
7,188
Restructuring-related costs
39,381
-
Other
3,071
2,593
Adjusted EBITDA selling, general and administrative expenses -
continuing operations
$
956,255
$
979,909
Percent of revenues - continuing operations
24.74
%
25.14
%
Adjusted EBITDA - continuing operations
$
84,008
$
104,129
RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL
INFORMATION RECONCILIATION OF NET LOSS GUIDANCE TO ADJUSTED EBITDA
GUIDANCE YEAR ENDING FEBRUARY 29, 2020 (In thousands) (unaudited)
Guidance Range Low High
Total Revenues
$
21,500,000
$
21,900,000
Same store sales
0.00
%
1.00
%
Gross Capital Expenditures
$
250,000
$
250,000
Reconciliation of net loss to adjusted EBITDA: Net
loss
$
(220,000
)
$
(170,000
)
Adjustments: Interest expense
240,000
240,000
Income tax expense
5,000
15,000
Depreciation and amortization
340,000
340,000
LIFO charge
30,000
30,000
Lease termination and impairment charges
25,000
25,000
Restructuring-related costs
55,000
55,000
Other
25,000
25,000
Adjusted EBITDA
$
500,000
$
560,000
RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL
INFORMATION RECONCILIATION OF NET LOSS GUIDANCE TO ADJUSTED NET
(LOSS) INCOME GUIDANCE YEAR ENDING FEBRUARY 29, 2020 (In thousands)
(unaudited)
Guidance Range Low
High Net loss
$
(220,000
)
$
(170,000
)
Add back - income tax expense
5,000
15,000
Loss before income taxes
(215,000
)
(155,000
)
Adjustments: Amortization expense
120,000
120,000
LIFO charge
30,000
30,000
Restructuring-related costs
55,000
55,000
Adjusted (loss) income before adjusted income taxes
(10,000
)
50,000
Adjusted income tax (benefit) expense
(3,000
)
14,000
Adjusted net (loss) income
$
(7,000
)
$
36,000
Diluted adjusted net (loss) income per share
$
(0.14
)
$
0.72
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190626005702/en/
INVESTORS: Byron Purcell (717) 975-5809 Or
investor@riteaid.com
MEDIA: Christopher Savarese (717) 975-5718
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