Rite Aid Reports Fiscal 2017 Fourth Quarter and Full Year Results

•   Fourth Quarter Net Loss Per Diluted Share of $0.02, Compared to the Prior Year Net Income Per Diluted Share of $0.06; Full Year
•   Net Income Per Diluted Share of $0.00, Compared to the Prior Year of $0.16
•   Fourth Quarter Adjusted Net Loss Per Diluted Share of $0.00, Compared to the Prior Year Adjusted Net Income Per Diluted Share of $0.07;
•   Full Year Adjusted Net Income Per Diluted Share of $0.06, Compared to the Prior Year of $0.24
•   Adjusted EBITDA of $264.3 Million for the Fourth Quarter, Compared to the Prior Year Adjusted EBITDA of $383.0 Million;
•   Full Year Adjusted EBITDA of $1,137.1 Million, Compared to the Prior Year of $1,402.3 Million

Rite Aid Corporation (NYSE: RAD) today reported operating results for its fourteen week fourth quarter and fifty-three week fiscal year ended March 4, 2017.

For the fourth quarter, the company reported revenues of $8.5 billion, net loss of $21.1 million, or $0.02 per diluted share, Adjusted net loss of $3.2 million, or $0.00 per diluted share and Adjusted EBITDA of $264.3 million, or 3.1 percent of revenues. For the full year, the company reported revenues of $32.8 billion, net income of $4.1 million, or $0.00 per diluted share, Adjusted net income of $66.8 million or $0.06 per diluted share and Adjusted EBITDA of $1,137.1 million, or 3.5 percent of revenues. The fiscal 2017 fourth quarter and full year results benefited from the extra week in fiscal 2017.

Commenting on Rite Aid’s fourth-quarter and full-year results, Chairman and CEO John Standley said: “We remain confident that the completion of our proposed merger with Walgreens Boots Alliance is in the best interest of Rite Aid shareholders, customers and associates. However, despite our team’s continued focus on growing our business, the extended duration of the merger process is having a negative impact on our results. In addition, we continue to face reimbursement rate challenges that we have been unable to offset with drug cost reductions. As we remain actively engaged in discussions with the Federal Trade Commission to gain regulatory approval for the merger, we are also taking steps to review our ongoing strategy, reduce costs and make necessary changes to our business to improve our performance going forward.”

Fourth Quarter Summary
Revenues for the quarter were $8.5 billion compared to revenues of $8.3 billion in the prior year’s fourth quarter, an increase of $271.2 million or 3.3 percent. Retail Pharmacy Segment revenues were $7.1 billion and increased 4.3 percent compared to the prior year period primarily as a result of the extra week in the fourth quarter, partially offset by a decrease in same store sales. Revenues in the company’s Pharmacy Services Segment were $1.5 billion and decreased 1.3 percent compared to the prior year period.

Same store sales for the quarter decreased 3.0 percent over the prior year, consisting of a 4.3 percent decrease in pharmacy sales and a 0.3 percent decrease in front-end sales. Pharmacy sales included an approximate 246 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, decreased 0.3 percent over the prior year period. Prescription sales accounted for 67.1 percent of total drugstore sales, and third party prescription revenue was 98.4 percent of pharmacy sales.

Net loss was $21.1 million or $0.02 per diluted share compared to last year’s fourth quarter net income of $65.6 million or $0.06 per diluted share. The decline in operating results is due primarily to a decline in Adjusted EBITDA, partially offset by a higher LIFO credit.

Adjusted EBITDA (which is reconciled to net income in the attached tables) was $264.3 million or 3.1 percent of revenues for the fourth quarter compared to $383.0 million or 4.6 percent of revenues for the same period last year. The decline in Adjusted EBITDA is due to a decrease of $129.1 million in the Retail Pharmacy Segment, resulting primarily from lower pharmacy gross profit, which decreased because of lower reimbursement rates and script count, partially offset by good cost control and the benefit from the extra week in the quarter. The decline in Retail Pharmacy Segment Adjusted EBITDA was partially offset by an increase of $10.4 million of Pharmacy Services Segment Adjusted EBITDA, as a result of higher gross profit in the segment.
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=2034

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