Third Quarter Overview • Comparable store sales decreased 2.6% in the third quarter as compared with the prior year period. • Gross margin rate decreased 286 basis points as compared with last year to 33.4% of net sales in the current year period. • Selling, general and administrative ("SG&A") expense decreased $0.7 million in the third quarter compared with the prior year period. • Adjusted EBITDA was $5.7 million in the third quarter of fiscal 2015. (Adjusted EBITDA is not a measure recognized under generally accepted accounting principles - see Note 1.) Adjusted EBITDA was $28.4 million in the third quarter of fiscal 2014. • Net loss in the third quarter of fiscal 2015 was $34.0 million, or $1.72 per diluted share, compared with net loss of $11.0 million, or $0.57 per diluted share, in the third quarter of fiscal 2014.
Walgreens Boots Alliance, Inc. (Nasdaq: WBA) and Rite Aid Corporation (NYSE: RAD) today announced that they have entered into an amendment and extension of their previously announced definitive merger agreement under which Walgreens Boots Alliance will acquire all outstanding shares of Rite Aid, a U.S. retail pharmacy chain.
Under the terms of the amendment, the parties have agreed to reduce the price for each share of Rite Aid common stock to be paid by Walgreens Boots Alliance. The revised price will be a maximum of $7.00 per share and a minimum of $6.50 per share. In addition, Walgreens Boots Alliance will be required to divest up to 1,200 Rite Aid stores and certain additional related assets if required to obtain regulatory approval. The exact price per share will be determined based on the number of required store divestitures, with the price set at $7.00 per share if 1,000 stores or fewer are required for divestiture and at $6.50 per share if 1,200 stores are required for divestiture. If the required divestitures fall between 1,000 and 1,200 stores, then there will be a pro-rata adjustment of the price per share. Walgreens Boots Alliance agreement to divest up to 1,200 Rite Aid stores represents an increase of up to 200 stores over the 1,000 stores that Walgreens Boots Alliance had agreed to divest under the terms of the original agreement.
Additionally, Walgreens Boots Alliance and Rite Aid agreed to extend the end date under the previously announced agreement from 27 January 2017 to 31 July 2017 in order to allow the parties additional time to obtain regulatory approval.