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Rite Aid Reports Net Income Of $89.7 Million And Adjusted EBITDA Of $344.8 Million For First Quarter Fiscal 2014

Stocks in this article: RAD

Rite Aid Corporation (NYSE: RAD) today reported operating results for its fiscal first quarter ended June 1, 2013. The company reported revenues of $6.3 billion, net income of $89.7 million or $0.09 per diluted share, and Adjusted EBITDA of $344.8 million, or 5.5 percent of revenues.

“We kicked off our new fiscal year by posting strong first-quarter results that reflect our continued operational and financial progress,” said Rite Aid Chairman, President and CEO John Standley. “During the quarter, we generated net income for a third consecutive quarter and increased Adjusted EBITDA by more than $70 million over last year’s first quarter.”

“At the same time, our team’s success in executing key initiatives like our wellness+ customer loyalty program, wellness store remodeling initiative and expanded pharmacy service offerings continue to drive our progress in transforming Rite Aid stores into true neighborhood destinations for health and wellness. We are pleased with our continued progress and remain focused on delivering the best products, service and care to meet our customers’ unique wellness needs.”

First Quarter Summary

Revenues for the 13-week quarter were $6.3 billion versus revenues of $6.5 billion in the prior year first quarter. Revenues decreased 2.7 percent primarily due to the impact of lower cost generics on pharmacy same store sales.

Same store sales for the quarter decreased 2.5 percent over the prior year 13-week period, consisting of a 3.8 percent decrease in pharmacy sales, partially offset by a 0.4 percent increase in front end sales. Pharmacy sales included an approximate 458 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores decreased 0.1 percent over the prior year period. Prescription sales accounted for 67.5 percent of total drugstore sales, and third party prescription revenue was 97.0 percent of pharmacy sales.

Net income was $89.7 million or $0.09 per diluted share compared to last year’s first quarter net loss of $28.1 million or $0.03 per diluted share. The improvement in net income resulted primarily from an increase in Adjusted EBITDA and decreases in interest and debt retirement expenses.

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