• Second Quarter Net Income of $170.7 Million or $0.16 Per Diluted Share, Compared to the Prior Year Second Quarter Net Income of $14.8 Million or $0.01 Per Diluted Share
• Second Quarter Adjusted Net Loss Per Diluted Share of $0.01, Compared to the Prior Year Second Quarter Adjusted Net Income Per Diluted Share of $0.03
• Adjusted EBITDA of $213.3 Million for the Second Quarter, Compared to the Prior Year Second Quarter Adjusted EBITDA of $312.7 Million
Rite Aid Corporation (NYSE: RAD) today reported operating results for its second fiscal quarter ended September 2, 2017.
For the second quarter, the company reported revenues of $7.7 billion, net income of $170.7 million, or $0.16 per diluted share, Adjusted net loss of $15.6 million, or $0.01 per diluted share and Adjusted EBITDA of $213.3 million, or 2.8 percent of revenues.
“While our performance for the quarter reflects a challenging reimbursement rate environment and the effects of an extended merger and asset sale process, securing regulatory clearance for the amended asset sale agreement with Walgreens Boots Alliance gives us a clear path forward to realize the benefits of the transaction and implement our plans to deliver improved results. In addition, we’ve announced this morning that Kermit Crawford – a proven leader with extensive retail pharmacy experience – is joining Rite Aid as president and chief operating officer to further strengthen our leadership team,” said Rite Aid Chairman and CEO John Standley.
“As we work to complete the asset sale, which will reduce our leverage and provide greater financial flexibility to invest in our business, we’ll also focus on generating momentum for our business by meeting the health and wellness needs of our customers and patients while delivering an outstanding experience in our stores.”
Second Quarter Summary
Revenues for the quarter were $7.7 billion compared to revenues of $8.0 billion in the prior year’s second quarter, a decrease of $350.9 million or 4.4 percent. Retail Pharmacy Segment revenues were $6.3 billion and decreased 3.4 percent compared to the prior year period primarily as a result of a decrease in same store sales and reimbursement rates. Revenues in the company’s Pharmacy Services Segment were $1.5 billion and decreased 8.7 percent compared to the prior year period, due to an election to participate in fewer Medicare Part D regions.
Same store sales for the quarter decreased 3.4 percent over the prior year, consisting of a 4.6 percent decrease in pharmacy sales and a 0.9 percent decrease in front-end sales. Pharmacy sales included an approximate 189 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, decreased 1.8 percent over the prior year period due in part, to exclusion from certain pharmacy networks that Rite Aid participated in the prior year. Prescription sales accounted for 67.8 percent of total drugstore sales, and third party prescription revenue was 98.3 percent of pharmacy sales.
Net income was $170.7 million or $0.16 per diluted share compared to last year’s second quarter net income of $14.8 million or $0.01 per diluted share. The improvement in operating results was due primarily to receipt of the $325.0 million merger termination fee from Walgreens Boots Alliance, Inc. (Nasdaq: WBA) for the termination of the merger agreement, effective June 28, 2017, partially offset by a decline in Adjusted EBITDA and higher income tax expense.
Adjusted net loss was $15.6 million or $0.01 per diluted share compared to last year’s second quarter adjusted net income of $36.4 million or $0.03 per diluted share. The decline in Adjusted net income was due to a decline in Adjusted EBITDA, partially offset by a reduction in adjusted income tax expense and depreciation and amortization expense.
more detail at: https://www.riteaid.com/corporate/news?p_p_id=riteaidpressreleases_WAR_riteaidpressreleasesportlet&p_p_lifecycle=0&p_p_state=normal&p_p_mode=view&p_p_col_id=column-3&p_p_col_pos=2&p_p_col_count=3&_riteaidpressreleases_WAR_riteaidpressreleasesportlet_action=getNewsRoomDetail&itemNumber=2063