Rite Aid Reports Fiscal 2019 Fourth Quarter and Full Year Results

Fourth Quarter Net Loss from Continuing Operations of $255.6 Million or $0.24 Per Share, Compared to the Prior Year Fourth Quarter Net Loss of $483.7 Million or $0.46 Per Share
Fourth Quarter Net Loss from Continuing Operations Includes $197 Million, or $0.19 Per Share of Income Tax Expense Related to an Increase in the Valuation Allowance Against the Company’s Deferred Tax Assets
Fourth Quarter Adjusted Net Loss from Continuing Operations of $13.3 Million or $0.01 Per Share, Compared to the Prior Year Fourth Quarter Adjusted Net Loss of $7.8 Million or $0.01 Per Share
Fourth Quarter Adjusted EBITDA from Continuing Operations of $134.1 Million, Compared to the Prior Year Fourth Quarter Adjusted EBITDA of $154.8 Million
Completed Refinancing of Senior Secured Credit Facility in the Fourth Quarter Which Extends Debt Maturities and Improves Liquidity
Provides Outlook for Fiscal 2020
Rite Aid Board Approves 1-for-20 Stock Split Ratio

Rite Aid Corporation (NYSE: RAD) today reported operating results for its fourth quarter and fiscal year ended March 2, 2019.

For the fourth quarter, the company reported net loss from continuing operations of $255.6 million, or $0.24 per share, Adjusted net loss from continuing operations of $13.3 million, or $0.01 per share, and Adjusted EBITDA from continuing operations of $134.1 million, or 2.5 percent of revenues.

“In the fourth quarter, we continued generating critical momentum in key areas of our business while taking important steps to position Rite Aid for future growth” said Rite Aid CEO John Standley. “Despite a mild flu season, we delivered our third consecutive quarter of same-store pharmacy sales and prescription count growth thanks to a record number of immunizations and other script growth initiatives. We also increased Medicare Part D membership within our EnvisionRxOptions PBM, which helped drive revenue growth and a $4.5 million increase in Pharmacy Services Segment Adjusted EBITDA. As we begin our new fiscal year, we’ll look to build on this momentum as we continue transforming our business to better align with our new operational footprint and deliver greater value in the emerging value-based care marketplace. These efforts will include a strong focus on driving positive patient health outcomes, evolving our front-end business, expanding our omni-channel capabilities and controlling costs to become a more efficient and profitable company.”

Revenues from continuing operations for the fourth quarter were $5.38 billion compared to revenues from continuing operations of $5.39 billion in the prior year’s fourth quarter. Retail Pharmacy Segment revenues were $3.97 billion and were flat compared to the prior year period. Revenues in the Pharmacy Services Segment were $1.46 billion, an increase of 1.2 percent compared to the prior year period, which was due to an increase in Medicare Part D membership.

Same store sales from Retail Pharmacy continuing operations for the fourth quarter increased 0.7 percent over the prior year, consisting of a 2.1 percent increase in pharmacy sales and a 1.9 percent decrease in front-end sales. Pharmacy sales were negatively impacted by approximately 100 basis points as a result of new generic introductions. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, increased 0.8 percent over the prior year period as the company’s initiatives to drive script growth more than offset the benefit of last year’s strong flu season. Prescription sales from continuing operations accounted for 65.9 percent of total drugstore sales.

Net loss from continuing operations was $255.6 million or $0.24 per share compared to last year’s fourth quarter net loss from continuing operations of $483.7 million or $0.46 per share. The improvement in operating results was due primarily to a prior year charge of $191.0 million, net of tax, for the impairment of goodwill related to the Pharmacy Services Segment and lower income tax expense.

For the fiscal year ended March 2, 2019, revenues from continuing operations were $21.6 billion compared to revenues of $21.5 billion in the prior year, an increase of $0.1 billion or 0.5 percent. Retail Pharmacy Segment revenues were $15.8 billion and were flat compared to the prior year period. Revenues in the Pharmacy Services Segment were $6.1 billion, an increase of 3.3 percent compared to the prior year, which was due to an increase in Medicare Part D membership.

Same store sales from continuing operations for the year increased 0.6 percent, consisting of a 1.7 percent increase in pharmacy sales and a 1.4 percent decrease in front end sales. Pharmacy sales were negatively impacted by approximately 112 basis points as a result of new generic introductions. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, increased 0.7 percent over the prior year due to an increase in immunizations and other initiatives to drive prescription growth. Prescription sales from continuing operations accounted for 66.6 percent of total drugstore sales.

Net loss from continuing operations for fiscal 2019 was $667.0 million or $0.63 per share compared to last year’s net loss from continuing operations of $349.5 million or $0.33 per share. The increase in net loss is due to increased goodwill and intangible asset charges, increased lease termination and impairment charges, increased LIFO expense and a prior year gain caused by the receipt of a merger termination fee from WBA. These items were partially offset by a decrease in income tax expense.
more detail at source: https://www.riteaid.com/corporate/news/-/pressreleases/news-room/2019/rite-aid-reports-fiscal-2019-fourth-quarter-and-full-year-results

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