Net loss was $38.8 million or $0.05 per diluted share compared to last year’s second quarter net loss of $92.3 million or $0.11 per diluted share. The decrease in net loss year over year resulted from an increase in Adjusted EBITDA and decreases in LIFO, store closing and impairment and depreciation and amortization charges.
Adjusted EBITDA (which is reconciled to net loss on the attached table) was $218.7 million or 3.5 percent of revenues for the second quarter compared to $184.3 million or 2.9 percent of revenues for the like period last year. Adjusted EBITDA improved due to increases in front end sales and script count as well as an improvement in pharmacy gross margin resulting from new generic introductions.
In the second quarter, the company relocated four stores, remodeled 147 stores and closed nine stores. Completed wellness remodels at the end of the second quarter totaled 570. Stores in operation at the end of the second quarter totaled 4,643.
Rite Aid Updates Sales, Adjusted EBITDA and Net Loss Guidance for Fiscal 2013Rite Aid has updated its fiscal 2013 guidance with sales expected to be between $25.1 billion and $25.4 billion and same store sales to range from a decrease of 1.0 percent to an increase of 0.25 percent compared to fiscal 2012. The reduction in the company’s sales and same store sales guidance is driven by a projected 650 basis points negative impact of new generic introductions on pharmacy same store sales and continued reimbursement rate pressure. Rite Aid has also raised the lower end of its Adjusted EBITDA (which is reconciled to net loss on the attached table) guidance to be between $965 million and $1.025 billion and its net loss guidance to be between $69 million and $196 million or a loss per diluted share of $0.09 to $0.23. Capital expenditures are expected to be approximately $300 million.