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Rite Aid Corporation (NYSE: RAD) today announced sales results for May. The Company also provided preliminary estimated financial results for the quarter ended May 31, 2014 and updated its outlook for 2015 fiscal year.
For the five weeks ended May 31, 2014, same store sales increased 3.5 percent over the prior-year period. May front-end same store sales increased 0.5 percent. Pharmacy same store sales, which included an approximate 156 basis points negative impact from new generic introductions, increased 5.0 percent. Prescription count at comparable stores increased 3.2 percent over the prior-year period.
Total drugstore sales for the five-week period increased 2.5 percent to $2.484 billion compared to $2.423 billion for the same period last year. Prescription sales accounted for 68.0 percent of drugstore sales, and third party prescription sales represented 97.4 percent of pharmacy sales.
Same store sales for the 13-week period ended May 31, 2014 increased 3.1 percent over the prior-year period. Front-end same store sales were flat compared to the prior-year period while pharmacy same store sales increased 4.6 percent. Prescription count at comparable stores increased 2.3 percent over the prior-year period.
Total drugstore sales for the 13 weeks ended May 31, 2014 increased 2.6 percent with sales of $6.425 billion compared to $6.264 billion for the same period last year. Prescription sales represented 68.4 percent of total drugstore sales, and third party prescription sales represented 97.4 percent of pharmacy sales.
Preliminary Financial Results
Although results for the quarter ended May 31, 2014 will not be released until June 19, 2014, the Company expects Adjusted EBITDA (which is reconciled to net income on the attached table) for the quarter to be between $275 million and $285 million, net income to be between $35 million and $45 million and income per diluted share to be $.04. Based on pharmacy margin trends, particularly in May, the Company expects its results for Adjusted EBITDA to trail the results for the previous year’s first quarter due primarily to higher-than-expected drug costs resulting from a delay in realizing the level of expected generic purchase price reductions and a greater-than-expected reduction in reimbursement rates. Rite Aid’s actual financial results for the quarter ended May 31, 2014 have not been finalized by management, and as a result, Rite Aid’s actual results may differ from the estimates above. The Company undertakes no obligation to update future quarterly periods prior to its regularly scheduled earnings release.