RAD
$17.69
Rite Aid
($1.36)
(7.14%)
Earnings Details
4th Quarter February 2021
Thursday, April 15, 2021 7:00:00 AM
Tweet Share Watch
Summary

Rite Aid Sees Revenue Above Estimates

Rite Aid (RAD) reported a 4th Quarter February 2021 loss of $0.78 per share on revenue of $5.9 billion. The consensus estimate was a loss of $0.79 per share on revenue of $5.8 billion. Revenue grew 3.3% on a year-over-year basis.

The company said it expects first quarter revenue of $6.10 billion to $6.30 billion. The current consensus revenue estimate is $6.05 billion for the quarter ending May 31, 2021.

Rite Aid Corp operates retail drugstore chains in the United States.

Results
Reported Earnings
($0.78)
Earnings Whisper
-
Consensus Estimate
($0.79)
Reported Revenue
$5.92 Bil
Revenue Estimate
$5.80 Bil
Growth
Earnings Growth
Revenue Growth
Guidance
Power Rating
Grade
Earnings Release

Rite Aid Corporation Reports Fiscal 2021 Fourth Quarter and Full Year Results

  • Fourth Quarter Net Loss from Continuing Operations of $18.5 Million or $0.34 Per Share, Compared to the Prior Year Fourth Quarter Net Loss of $343.5 Million or $6.43 Per Share
  • Fourth Quarter Adjusted EBITDA from Continuing Operations of $41.3 Million, Compared to the Prior Year Adjusted EBITDA of $135.6 Million
  • Completed Acquisition of Bartell Drugs
  • Company Provides First Quarter Fiscal 2022 Outlook
  • Over 2 Million COVID-19 Vaccines Administered in March and April to Date

CAMP HILL, Pa.--(BUSINESS WIRE)--Rite Aid Corporation (NYSE: RAD) today reported operating results for its fourth quarter and fiscal year ended February 27, 2021.

For the fourth quarter, the company reported net loss from continuing operations of $18.5 million, or $0.34 loss per share, Adjusted net loss from continuing operations of $41.8 million, or $0.78 loss per share, and Adjusted EBITDA from continuing operations of $41.3 million, or 0.7 percent of revenues.

“We remain very optimistic about the direction of Rite Aid, despite a fourth quarter that was impacted by a historically soft cough, cold and flu season, the deferral of elective procedures and related acute prescription volume and the impact of COVID-19 on selling, general and administrative expenses,” said Heyward Donigan, president and chief executive officer, Rite Aid. “This past year, we made significant progress in bringing our RxEvolution strategy to life. We redefined the role of the pharmacist, rebranded both our retail pharmacy business and Elixir, completed the strategic acquisition of Bartell’s and moved quickly to deliver solutions to meet customer needs for COVID-19 testing and vaccine administration.”

“As we look ahead, our teams are continuing their heroic efforts to serve our communities and customers during this critical time. I am pleased to announce that we have administered over 2 million COVID-19 vaccines so far in the first quarter. We are also seeing prescription count trends, both acute and maintenance, return to positive levels. At Elixir, we are experiencing growth in our sales pipeline, and have recently been awarded over 200,000 new lives and over 6 million annualized scripts, with additional decisions pending in the current sales cycle. I am so proud of our 50,000 associates and the strategic progress we’re making in our journey to revitalize our brand and elevate the crucial role that pharmacy plays in the health of our customers.”

Consolidated Fourth Quarter and Full Year Summary

(dollars in thousands)

Thirteen Week Period Ended

 

Fifty-two Week Period Ended

 

February 27,
2021

 

February 29,
2020

 

February 27,
2021

 

February 29,
2020

Revenues from continuing operations

$

5,916,856

 

$

5,727,242

 

$

24,043,240

 

$

21,928,393

Net loss from continuing operations

 

(18,495)

 

 

(343,461)

 

 

(100,070)

 

 

(469,219)

Adjusted EBITDA from continuing operations

 

41,265

 

 

135,584

 

 

437,665

 

 

538,211

Revenues from continuing operations increased 3.3 percent and 9.6 percent for the thirteen and fifty-two week periods ended February 27, 2021, respectively, compared to the prior year driven by growth at both the Retail Pharmacy and Pharmacy Services segments.

Fourth quarter net loss from continuing operations was $18.5 million, or $0.34 loss per share, compared to last year’s fourth quarter net loss from continuing operations of $343.5 million, or $6.43 loss per share. Income tax expense in the prior year’s fourth quarter was impacted by a $320.6 million charge to increase the valuation allowance against the company’s deferred tax asset. Other items impacting net loss from continuing operations in the current year’s fourth quarter included a decrease in Adjusted EBITDA and a lower LIFO credit, partially offset by a gain on the acquisition of Bartell Drugs and a gain on sale of assets resulting from the sale leasebacks of the company’s Lancaster, CA and Woodland, CA distribution centers.

Net loss from continuing operations for the fiscal year ended February 27, 2021 was $100.1 million, or $1.87 loss per share, compared to last year’s net loss of $469.2 million, or $8.82 loss per share. The reduction in net loss is due to lower income tax expense, a gain on sale of assets compared to a loss on sale of assets in the prior year, and a gain on the acquisition of Bartell Drugs. These items were partially offset by a decrease in Adjusted EBITDA, a lower gain on debt modifications and retirements, higher intangible asset impairment charges, and a lower LIFO credit.

Fourth quarter Adjusted EBITDA from continuing operations was $41.3 million, or 0.7 percent of revenues, compared to last year’s fourth quarter Adjusted EBITDA of $135.6 million, or 2.4 percent of revenues. The decline in Adjusted EBITDA is due to a decrease in gross profit resulting from lower front-end same store sales, weather disruptions that impacted the supply chain and reimbursement rate pressure and an increase in selling, general and administrative (SG&A) expenses due to incremental costs associated with the COVID-19 pandemic.

Adjusted EBITDA from continuing operations for the fiscal year ended February 27, 2021 was $437.7 million, or 1.8 percent of revenues, compared to last year’s Adjusted EBITDA of $538.2 million, or 2.5 percent of revenues. The decline in Adjusted EBITDA is due to a decrease in gross profit resulting from declines in acute scripts related to the pandemic, reimbursement rate pressure and an increase in SG&A expenses due to the impact of the COVID-19 pandemic and the completion of services provided under the Transition Services Agreement with Walgreens.

Retail Pharmacy Segment

(dollars in thousands)

Thirteen Week Period Ended

 

Fifty-two Week Period Ended

 

February 27,
2021

 

February 29,
2020

 

February 27,
2021

 

February 29,
2020

Revenues from continuing operations

$

4,114,485

 

$

3,993,328

 

$

16,365,260

 

$

15,616,186

Adjusted EBITDA from continuing operations

6,017

 

 

85,175

 

 

279,896

 

 

370,435

Retail Pharmacy Segment revenues from continuing operations increased 3.0 percent over the prior year quarter due primarily to the acquisition of Bartell Drugs. Same store sales from continuing operations for the fourth quarter decreased 0.3 percent over the prior year period, consisting of a 5.6 percent decrease in front-end sales and a 2.0 percent increase in pharmacy sales. Front-end same store sales, excluding cigarettes and tobacco products, decreased 5.0 percent. The decline in front-end same store sales was driven by a decline of nearly 37 percent in cough, cold and flu related categories. Difficult weather conditions also had a negative impact on same store sales for the quarter. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, decreased 0.9 percent over the prior year period driven by an over 14 percent decline in acute prescriptions, partially offset by increases in maintenance prescriptions, as well as the administration of the company’s first allocations of the COVID-19 vaccine. The company increased its front-end market share in both dollars and in unit sales1.

For the fiscal year ended February 27, 2021, Retail Pharmacy Segment revenues from continuing operations increased 4.8 percent over the prior year. Same store sales from continuing operations for the year increased 3.5 percent over the prior year, consisting of a 3.2 percent increase in pharmacy sales and a 3.1 percent increase in front-end sales. Front-end same store sales, excluding cigarettes and tobacco products, increased 4.2 percent. Front-end sales benefited from increases in immunity, first aid and paper products, offset by decreases in over-the-counter products related to cough, cold and flu. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, increased 1.3 percent over the prior year driven by increases in maintenance prescriptions, supported by personalized Medication Therapy Management interventions and home deliveries, partially offset by a pandemic influenced reduction in acute prescriptions of 9.0 percent. Prescription sales from continuing operations accounted for 66.7 percent of total drugstore sales.

Retail Pharmacy Segment Adjusted EBITDA from continuing operations was $6.0 million, or 0.2 percent of revenues, for the fourth quarter compared to last year’s fourth quarter Adjusted EBITDA from continuing operations of $85.2 million, or 2.1 percent of revenues. The decline in Adjusted EBITDA is largely due to a soft cough, cold and flu season, ongoing impacts related to COVID-19 and challenging weather conditions. The Company estimates the following impacts on fourth quarter adjusted EBITDA:

  • $20 million to $24 million from lower incidence in cough, cold and flu related illnesses;
  • $20 million to $24 million due to difficult weather conditions; and
  • $10 million to $12 million related to continued effects of COVID-19.

The total unanticipated impact on the quarter results was approximately $50 million to $60 million.

For the fiscal year ended February 27, 2021, Retail Pharmacy Segment Adjusted EBITDA from continuing operations was $279.9 million, or 1.7 percent of revenues, compared to $370.4 million, or 2.4 percent of revenues, for the prior year. The decline in Adjusted EBITDA is due to a decrease in gross profit resulting from declines in acute scripts resulting from the pandemic and reimbursement rate pressure and an increase in SG&A expenses due to the impact of the COVID-19 pandemic and the completion of services provided under the Transition Services Agreement with Walgreens.

Pharmacy Services Segment

(dollars in thousands)

Thirteen Week Period Ended

 

Fifty-two Week Period Ended

 

February 27,
2021

 

February 29,
2020

 

February 27,
2021

 

February 29,
2020

Revenues from continuing operations

$

1,870,111

 

$

1,801,090

 

$

7,970,137

 

$

6,559,560

Adjusted EBITDA from continuing operations

 

35,248

 

 

50,409

 

 

157,769

 

 

167,776

Pharmacy Services Segment revenues were $1.9 billion for the quarter, an increase of 3.8 percent compared to the prior year quarter. The increase in revenues was primarily the result of higher claims revenue due to changes in member mix and benefit packages and Medicare Part D revenue with the new calendar year.

For the fiscal year ended February 27, 2021, Pharmacy Services Segment revenues were $8.0 billion, an increase of 21.5 percent compared to the prior year. The increase in revenues was primarily the result of an increase in Medicare Part D membership.

1 – Source: IRI. Excludes tobacco, cigarettes, greeting cards and online sales. For drug store channel during Rite Aid’s fourth fiscal quarter.

Pharmacy Services Segment Adjusted EBITDA from continuing operations was $35.2 million, or 1.9 percent of revenues, for the fourth quarter compared to last year’s fourth quarter Adjusted EBITDA from continuing operations of $50.4 million, or 2.8 percent of revenues. The decline in Adjusted EBITDA is due to a decrease in gross profit associated with contract renewals on our small group business. Going forward, the company expects margins to stabilize across the book of business along with membership growth in target segments.

For the fiscal year ended February 27, 2021, Pharmacy Services Segment Adjusted EBITDA from continuing operations was $157.8 million, or 2.0 percent of revenues, compared to $167.8 million, or 2.6 percent of revenues, for the prior year. The decline in Adjusted EBITDA is due to increased drug costs within Medicare Part D, a decrease in gross profit within the segment’s small group business and SG&A spend related to an increase in Medicare Part D members.

Outlook for First Quarter 2022

The pandemic will continue to have an impact on several factors in Fiscal 2022. Those factors include the number of individuals that receive a COVID-19 vaccine, demand for COVID-19 testing, the timing and extent to which elective procedures increase to pre-pandemic levels, the demand for flu and other immunizations and the length and severity of this year’s cough cold and flu season. As a result, the company is currently only providing guidance for its first quarter of fiscal 2022.

The company’s results for the first quarter of fiscal 2022 will be significantly impacted by the number of COVID-19 vaccinations administered during the quarter, and the related benefit to revenues and gross profit, partially offset by incremental costs to administer these vaccines. Also included in our guidance assumptions are a meaningful reduction in front-end sales compared to last year’s pandemic driven surge and continued deferral of elective procedures and the related impact on acute scripts. The company also expects continued reimbursement rate pressure at retail, and a return of Elixir EBITDA to recent run rate levels due to good network management and expense control initiatives.

Total revenues are projected to be between $6.1 billion and $6.3 billion in the first quarter with Retail Pharmacy Segment same store sales expected to range from a decrease of 9.0 percent to a decrease of 7.0 percent compared to fiscal 2021.

Net income/loss is projected to be between a loss of $10 million and income of $10 million.

Adjusted EBITDA is projected to be between $115 million and $140 million.

Conference Call Broadcast

Rite Aid will hold an analyst call at 8:30 a.m. Eastern Time today with remarks by Rite Aid's management team. The call will be broadcast via the Internet at https://www.riteaid.com//investor-relations/presentations. The telephone replay will be available beginning at 12:30 p.m. Eastern Time on Thursday, April 15, 2021 and ending at 11:59 p.m. Eastern Time on May 5, 2021. To access the replay of the call, telephone (800) 585-8367 or (416) 621-4642 and enter the seven-digit reservation number 2368577. The webcast replay of the call will also be available at https://www.riteaid.com/corporate/investor-relations/presentations starting at 12 p.m. Eastern Time today. The playback will be available until the company’s next conference call.

About Rite Aid Corporation

Rite Aid Corporation is on the front lines of delivering healthcare services and retail products to Americans 365 days a year. Our pharmacists are uniquely positioned to engage with customers and improve their health outcomes. We provide an array of whole being health products and services for the entire family through over 2,500 retail pharmacy locations across 17 states. Through Elixir, we provide pharmacy benefits and services to millions of members nationwide. For more information, www.riteaid.com.

Cautionary Statement Regarding Forward-Looking Statements

Statements in this release that are not historical, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding Rite Aid's outlook and guidance for fiscal 2022 including under the heading “Outlook for First Quarter 2022”, the ability to generate positive free cash flows in fiscal 2022; the impact of the global coronavirus (COVID-19) pandemic on Rite Aid’s business; the ability to accelerate key initiatives and improve the operating performance of our stores; and any assumptions underlying any of the foregoing. Words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," and "will" and variations of such words and similar expressions are intended to identify such forward-looking statements.

These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to: risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, and other impacts to the business, or on the Company’s ability to execute business continuity plans, as a result of the COVID-19 pandemic; the impact of COVID-19 on our workforce, operations, stores, expenses, and supply chain, and the operations or behaviors of our customers, suppliers and business partners; our ability to successfully implement our RxEvolution and other strategies; the impact of our high level of indebtedness, the ability to refinance such indebtedness on acceptable terms and our ability to satisfy our obligations and the other covenants contained in our debt agreements; outcome of pending or new litigation including related to Opioids, “usual and customary” pricing or other matters; our ability to monetize the CMS receivable created in our Part D business; general competitive, economic, industry, market, political (including healthcare reform) and regulatory conditions (including changes to laws or regulations relating to labor or wages), civil unrest (including any resulting store closures, damage, or loss of inventory), as well as other factors that impact the markets in which we operate; the impact of private and public third-party payers continued reduction in prescription drug reimbursements and efforts to encourage mail order; our ability to manage expenses and our investments in working capital; our ability to achieve the benefits of our efforts to reduce the costs of our generic and other drugs; our ability to achieve cost savings and other benefits of our organizational restructuring within our anticipated timeframe, if at all; the outcome of our continuing efforts to monitor and comply with applicable laws, regulations, policies and procedures; and our ability to partner and have relationships with health plans and health systems.

These and other risks, assumptions and uncertainties are more fully described in Item 1A (Risk Factors) of our most recent Annual Report on Form 10-K, in Item 1A (Risk Factors) of our Quarterly Report on Form 10-Q filed on July 2, 2020 and in other documents that we file or furnish with the Securities and Exchange Commission (the “SEC”), which you are encouraged to read. To the extent that COVID-19 adversely affects our business and financial results, it may also have the effect of heightening many of such risk factors.

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to rely on these forward-looking statements, which speak only as of the date they are made.

The degree to which COVID-19 may adversely affect Rite Aid’s results and operations, including its ability to achieve its outlook for the first fiscal quarter of 2022 or fiscal 2022 guidance, will depend on numerous evolving factors and future developments, which are highly uncertain, including, but not limited to, the duration and spread of the COVID-19 outbreak, its severity, the actions to contain the virus or treat its impact (such as travel bans and restrictions, quarantines, shelter-in-place orders and shutdowns), including the reinstitution of more stringent regulations (including mandatory stay at home orders, the availability and rollout of vaccines to treat the virus), and how quickly and to what extent normal economic and operating conditions can resume. As a result, the impact on Rite Aid’s financial and operating results cannot be reasonably estimated with specificity at this time, but the impact could be material. Rite Aid expressly disclaims any current intention, and assumes no duty, to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

All references to “Company” and “Rite Aid” as used throughout this release refer to Rite Aid Corporation and its affiliates.

Reconciliation of Non-GAAP Financial Measures

Rite Aid separately reports financial results on the basis of Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share and Adjusted EBITDA which are non-GAAP financial measures. See the attached tables for a reconciliation of Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share and Adjusted EBITDA to net income (loss), and net income (loss) per diluted share, which are the most directly comparable GAAP financial measures. Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share exclude amortization expense, merger and acquisition-related costs, non-recurring litigation settlement, gains or losses on debt modifications and retirements, LIFO adjustments, goodwill and intangible asset impairment charges, restructuring-related costs, gain on Bartell acquisition, and the WBA merger termination fee.

Adjusted EBITDA is defined as net income (loss) excluding the impact of income taxes, interest expense, depreciation and amortization, LIFO adjustments, charges or credits for facility closing and impairment, goodwill and intangible asset impairment charges, inventory write-downs related to store closings, gains or losses on debt modifications and retirements, the WBA merger termination fee, and other items (including stock-based compensation expense, merger and acquisition-related costs, non-recurring litigation settlement, severance, restructuring-related costs and costs related to facility closures, gain or loss on sale of assets, and gain on Bartell acquisition). The add back of LIFO (credit) charge when calculating Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share removes the entire impact of LIFO (credits) charges, and effectively reflects Rite Aid's results as if the company was on a FIFO inventory basis.

RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited)
 
 
 
February 27, 2021February 29, 2020
ASSETS
Current assets:
Cash and cash equivalents

$

160,902

 

$

218,180

 

Accounts receivable, net

 

1,462,441

 

 

1,286,785

 

Inventories, net of LIFO reserve of $485,859 and $539,640

 

1,864,890

 

 

1,921,604

 

Prepaid expenses and other current assets

 

106,941

 

 

181,794

 

Current assets held for sale

 

-

 

 

92,278

 

Total current assets

 

3,595,174

 

 

3,700,641

 

Property, plant and equipment, net

 

1,080,499

 

 

1,215,838

 

Operating lease right-of-use assets

 

3,064,077

 

 

2,903,256

 

Goodwill

 

1,108,136

 

 

1,108,136

 

Other intangibles, net

 

340,519

 

 

359,491

 

Deferred tax assets

 

14,964

 

 

16,680

 

Other assets

 

132,035

 

 

148,327

 

Total assets

$

9,335,404

 

$

9,452,369

 

 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt and lease financing obligations

$

6,409

 

$

8,840

 

Accounts payable

 

1,437,421

 

 

1,484,081

 

Accrued salaries, wages and other current liabilities

 

642,364

 

 

746,318

 

Current portion of operating lease liabilities

 

516,752

 

 

490,161

 

Current liabilities held for sale

 

-

 

 

37,063

 

Total current liabilities

 

2,602,946

 

 

2,766,463

 

Long-term debt, less current maturities

 

3,063,087

 

 

3,077,268

 

Long-term operating lease liabilities

 

2,829,293

 

 

2,710,347

 

Lease financing obligations, less current maturities

 

16,711

 

 

19,326

 

Other noncurrent liabilities

 

208,213

 

 

204,438

 

Total liabilities

 

8,720,250

 

 

8,777,842

 

 
Commitments and contingencies

 

-

 

 

-

 

Stockholders' equity:
Common stock

 

55,143

 

 

54,716

 

Additional paid-in capital

 

5,897,168

 

 

5,890,903

 

Accumulated deficit

 

(5,313,103

)

 

(5,222,194

)

Accumulated other comprehensive loss

 

(24,054

)

 

(48,898

)

Total stockholders' equity

 

615,154

 

 

674,527

 

Total liabilities and stockholders' equity

$

9,335,404

 

$

9,452,369

 

RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(unaudited)
 
 
 
Thirteen weeks ended
February 27, 2021
Thirteen weeks ended
February 29, 2020
Revenues

$

5,916,856

 

$

5,727,242

 

Costs and expenses:
Cost of revenues

 

4,774,297

 

 

4,460,621

 

Selling, general and administrative expenses

 

1,187,541

 

 

1,154,300

 

Lease termination and impairment charges

 

35,669

 

 

40,728

 

Interest expense

 

49,999

 

 

53,429

 

(Gain) loss on sale of assets, net

 

(51,827

)

 

9,896

 

Gain on Bartell acquisition

 

(47,705

)

 

-

 

 

 

5,947,974

 

 

5,718,974

 

 
(Loss) income from continuing operations before income taxes

 

(31,118

)

 

8,268

 

Income tax (benefit) expense

 

(12,623

)

 

351,729

 

Net loss from continuing operations

 

(18,495

)

 

(343,461

)

Net income from discontinued operations, net of tax

 

-

 

 

18,740

 

Net loss

$

(18,495

)

$

(324,721

)

 
 
 
Basic and diluted loss per share:
 
Numerator for loss per share:
Net loss from continuing operations attributable to common
stockholders - basic and diluted

$

(18,495

)

$

(343,461

)

Net income from discontinued operations attributable to
common stockholders - basic and diluted

 

-

 

 

18,740

 

Loss attributable to common stockholders - basic and diluted

$

(18,495

)

$

(324,721

)

 
 
 
Denominator:
Basic and diluted weighted average shares

 

53,812

 

 

53,434

 

 
Basic and diluted loss per share
Continuing operations

$

(0.34

)

$

(6.43

)

Discontinued operations

$

-

 

$

0.35

 

Net basic and diluted loss per share

$

(0.34

)

$

(6.08

)

 
RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(unaudited)
 
 
 
Fifty-two weeks ended
February 27, 2021
Fifty-two weeks ended
February 29, 2020
Revenues

$

24,043,240

 

$

21,928,393

 

Costs and expenses:
Cost of revenues

 

19,338,918

 

 

17,201,635

 

Selling, general and administrative expenses

 

4,657,185

 

 

4,587,336

 

Lease termination and impairment charges

 

58,403

 

 

42,843

 

Intangible asset impairment charges

 

29,852

 

 

-

 

Interest expense

 

201,388

 

 

229,657

 

Gain on debt modifications and retirements, net

 

(5,274

)

 

(55,692

)

(Gain) loss on sale of assets, net

 

(69,300

)

 

4,226

 

Gain on Bartell acquisition

 

(47,705

)

 

-

 

 

 

24,163,467

 

 

22,010,005

 

 
Loss from continuing operations before income taxes

 

(120,227

)

 

(81,612

)

Income tax (benefit) expense

 

(20,157

)

 

387,607

 

Net loss from continuing operations

 

(100,070

)

 

(469,219

)

Net income from discontinued operations, net of tax

 

9,161

 

 

17,045

 

Net loss

$

(90,909

)

$

(452,174

)

 
 
 
Basic and diluted loss per share:
 
Numerator for loss per share:
Net loss from continuing operations attributable to common
stockholders - basic and diluted

$

(100,070

)

$

(469,219

)

Net income from discontinued operations attributable to
common stockholders - basic and diluted

 

9,161

 

 

17,045

 

Loss attributable to common stockholders - basic and diluted

$

(90,909

)

$

(452,174

)

 
 
 
Denominator:
Basic and diluted weighted average shares

 

53,653

 

 

53,228

 

 
Basic and diluted loss per share
Continuing operations

$

(1.87

)

$

(8.82

)

Discontinued operations

$

0.18

 

$

0.32

 

Net basic and diluted loss per share

$

(1.69

)

$

(8.50

)

 
RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(unaudited)
 
 
 
Thirteen weeks ended
February 27, 2021
Thirteen weeks ended
February 29, 2020
 
 
OPERATING ACTIVITIES:
Net loss

$

(18,495

)

$

(324,721

)

Net income from discontinued operations, net of tax

 

-

 

 

18,740

 

Net loss from continuing operations

$

(18,495

)

$

(343,461

)

Adjustments to reconcile to net cash provided by operating activities of continuing operations:
Depreciation and amortization

 

77,568

 

 

79,300

 

Lease termination and impairment charges

 

35,669

 

 

40,728

 

LIFO credit

 

(21,389

)

 

(72,357

)

(Gain) loss on sale of assets, net

 

(51,827

)

 

9,896

 

Gain on Bartell acquisition

 

(47,705

)

 

-

 

Stock-based compensation expense

 

4,326

 

 

2,489

 

Changes in deferred taxes

 

(10,633

)

 

358,925

 

Changes in operating assets and liabilities:
Accounts receivable

 

325,374

 

 

387,065

 

Inventories

 

196,795

 

 

107,798

 

Accounts payable

 

(36,832

)

 

(53,817

)

Operating lease right-of-use assets and operating lease liabilities

 

(2,725

)

 

(8,691

)

Other assets

 

5,710

 

 

4,364

 

Other liabilities

 

(96,814

)

 

(95,057

)

Net cash provided by operating activities of continuing operations

 

359,022

 

 

417,182

 

INVESTING ACTIVITIES:
Payments for property, plant and equipment

 

(67,752

)

 

(42,570

)

Intangible assets acquired

 

(1,097

)

 

(9,246

)

Acquisition of business, net of cash acquired

 

(86,230

)

 

-

 

Proceeds from dispositions of assets and investments

 

2,358

 

 

3,687

 

Proceeds from sale-leaseback transactions

 

88,880

 

 

4,879

 

Net cash used in investing activities of continuing operations

 

(63,841

)

 

(43,250

)

FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt

 

-

 

 

600,000

 

Net payments to revolver

 

(141,000

)

 

(485,000

)

Principal payments on long-term debt

 

(1,161

)

 

(601,401

)

Change in zero balance cash accounts

 

(42,008

)

 

24,420

 

Net proceeds from the issuance of common stock

 

53

 

 

-

 

Payments for taxes related to net share settlement of equity awards

 

(921

)

 

(348

)

Deferred financing costs paid

 

(55

)

 

(5,466

)

Net cash used in financing activities of continuing operations

 

(185,092

)

 

(467,795

)

Cash flows from discontinued operations:
Operating activities of discontinued operations

 

-

 

 

(16,688

)

Investing activities of discontinued operations

 

-

 

 

39,233

 

Net cash provided by discontinued operations

 

-

 

 

22,545

 

Increase (decrease) in cash and cash equivalents

 

110,089

 

 

(71,318

)

Cash and cash equivalents, beginning of period

 

50,813

 

 

289,498

 

Cash and cash equivalents, end of period

$

160,902

 

$

218,180

 

 
RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(unaudited)
 
 
 
Fifty-two weeks ended
February 27, 2021
Fifty-two weeks ended
February 29, 2020
 
 
OPERATING ACTIVITIES:
Net loss

$

(90,909

)

$

(452,174

)

Net income from discontinued operations, net of tax

 

9,161

 

 

17,045

 

Net loss from continuing operations

$

(100,070

)

$

(469,219

)

Adjustments to reconcile to net cash provided by operating activities of continuing operations:
Depreciation and amortization

 

327,124

 

 

328,277

 

Lease termination and impairment charges

 

58,403

 

 

42,843

 

Intangible asset impairment charges

 

29,852

 

 

-

 

LIFO credit

 

(51,692

)

 

(64,804

)

(Gain) loss on sale of assets, net

 

(69,300

)

 

4,226

 

Gain on Bartell acquisition

 

(47,705

)

 

-

 

Stock-based compensation expense

 

13,003

 

 

16,087

 

Gain on debt modifications and retirements, net

 

(5,274

)

 

(55,692

)

Changes in deferred taxes

 

(10,633

)

 

385,904

 

Changes in operating assets and liabilities:
Accounts receivable

 

(182,404

)

 

486,563

 

Inventories

 

177,263

 

 

15,141

 

Accounts payable

 

(35,372

)

 

(92,062

)

Operating lease right-of-use assets and operating lease liabilities

 

(28,044

)

 

14,112

 

Other assets

 

80,975

 

 

(38,351

)

Other liabilities

 

(50,947

)

 

(62,168

)

Net cash provided by operating activities of continuing operations

 

105,179

 

 

510,857

 

INVESTING ACTIVITIES:
Payments for property, plant and equipment

 

(195,141

)

 

(171,705

)

Intangible assets acquired

 

(29,800

)

 

(42,681

)

Acquisition of business, net of cash acquired

 

(86,230

)

 

-

 

Proceeds from insured loss

 

12,500

 

 

-

 

Proceeds from dispositions of assets and investments

 

11,444

 

 

59,658

 

Proceeds from sale-leaseback transactions

 

177,892

 

 

4,879

 

Net cash used in investing activities of continuing operations

 

(109,335

)

 

(149,849

)

FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt

 

849,918

 

 

600,000

 

Net proceeds from (payments to) revolver

 

200,000

 

 

(225,000

)

Principal payments on long-term debt

 

(1,058,537

)

 

(706,103

)

Change in zero balance cash accounts

 

(36,463

)

 

12,671

 

Net proceeds from the issuance of common stock

 

53

 

 

-

 

Payments for taxes related to net share settlement of equity awards

 

(3,086

)

 

(1,921

)

Financing fees paid for early debt redemption

 

(2,399

)

 

(518

)

Deferred financing costs paid

 

(14,729

)

 

(5,781

)

Net cash used in financing activities of continuing operations

 

(65,243

)

 

(326,652

)

Cash flows from discontinued operations:
Operating activities of discontinued operations

 

(82,189

)

 

(23,836

)

Investing activities of discontinued operations

 

94,310

 

 

63,307

 

Net cash provided by discontinued operations

 

12,121

 

 

39,471

 

(Decrease) increase in cash and cash equivalents

 

(57,278

)

 

73,827

 

Cash and cash equivalents, beginning of period

 

218,180

 

 

144,353

 

Cash and cash equivalents, end of period

$

160,902

 

$

218,180

 

 
RITE AID CORPORATION AND SUBSIDIARIES
 
SUPPLEMENTAL SEGMENT OPERATING INFORMATION
(Dollars in thousands)
(unaudited)
 
 
Thirteen weeks ended
February 27, 2021
Thirteen weeks ended
February 29, 2020
 
Retail Pharmacy Segment
Revenues from continuing operations (a)

$

4,114,485

 

$

3,993,328

 

Cost of revenues from continuing operations (a)

 

3,081,851

 

 

2,852,283

 

Gross profit from continuing operations

 

1,032,634

 

 

1,141,045

 

LIFO credit from continuing operations

 

(21,389

)

 

(72,357

)

FIFO gross profit from continuing operations

 

1,011,245

 

 

1,068,688

 

Adjusted EBITDA gross profit from continuing operations

 

1,009,004

 

 

1,070,890

 

 
Gross profit as a percentage of revenues - continuing operations

 

25.10

%

 

28.57

%

LIFO credit as a percentage of revenues - continuing operations

 

-0.52

%

 

-1.81

%

FIFO gross profit as a percentage of revenues - continuing operations

 

24.58

%

 

26.76

%

Adjusted EBITDA gross profit as a percentage of revenues - continuing operations

 

24.52

%

 

26.82

%

 
Selling, general and administrative expenses from continuing operations

 

1,093,074

 

 

1,060,472

 

Adjusted EBITDA selling, general and administrative expenses from continuing operations

 

1,002,987

 

 

985,715

 

Selling, general and administrative expenses as a percentage of
revenues - continuing operations

 

26.57

%

 

26.56

%

Adjusted EBITDA selling, general and administrative expenses as a percentage of
revenues - continuing operations

 

24.38

%

 

24.68

%

 
Cash interest expense

 

46,671

 

 

49,607

 

Non-cash interest expense

 

3,328

 

 

3,822

 

Total interest expense

 

49,999

 

 

53,429

 

Interest expense - continuing operations

 

49,999

 

 

53,429

 

Interest expense - discontinued operations

 

-

 

 

-

 

 
Adjusted EBITDA - continuing operations

 

6,017

 

 

85,175

 

Adjusted EBITDA as a percentage of revenues - continuing operations

 

0.15

%

 

2.13

%

 
 
Pharmacy Services Segment
Revenues (a)

$

1,870,111

 

$

1,801,090

 

Cost of revenues (a)

 

1,760,186

 

 

1,675,514

 

Gross profit

 

109,925

 

 

125,576

 

 
Gross profit as a percentage of revenues

 

5.88

%

 

6.97

%

 
Adjusted EBITDA

 

35,248

 

 

50,409

 

Adjusted EBITDA as a percentage of revenues

 

1.88

%

 

2.80

%

 

(a) -

Revenues and cost of revenues include $67,740 and $67,176 of inter-segment activity for the thirteen weeks ended

February 27, 2021 and February 29, 2020, respectively, that is eliminated in consolidation.

 
RITE AID CORPORATION AND SUBSIDIARIES
 
SUPPLEMENTAL SEGMENT OPERATING INFORMATION
(Dollars in thousands)
(unaudited)
 
 
Fifty-two weeks ended
February 27, 2021
Fifty-two weeks ended
February 29, 2020
 
Retail Pharmacy Segment
Revenues from continuing operations (a)

$

16,365,260

 

$

15,616,186

 

Cost of revenues from continuing operations (a)

 

12,109,469

 

 

11,341,350

 

Gross profit from continuing operations

 

4,255,791

 

 

4,274,836

 

LIFO credit from continuing operations

 

(51,692

)

 

(64,804

)

FIFO gross profit from continuing operations

 

4,204,099

 

 

4,210,032

 

Adjusted EBITDA gross profit from continuing operations

 

4,236,200

 

 

4,221,933

 

 
Gross profit as a percentage of revenues - continuing operations

 

26.01

%

 

27.37

%

LIFO credit as a percentage of revenues - continuing operations

 

-0.32

%

 

-0.41

%

FIFO gross profit as a percentage of revenues - continuing operations

 

25.69

%

 

26.96

%

Adjusted EBITDA gross profit as a percentage of revenues - continuing operations

 

25.89

%

 

27.04

%

 
Selling, general and administrative expenses from continuing operations

 

4,299,152

 

 

4,220,851

 

Adjusted EBITDA selling, general and administrative expenses from continuing operations

 

3,956,304

 

 

3,851,498

 

Selling, general and administrative expenses as a percentage of
revenues - continuing operations

 

26.27

%

 

27.03

%

Adjusted EBITDA selling, general and administrative expenses as a percentage of
revenues - continuing operations

 

24.18

%

 

24.66

%

 
Cash interest expense

 

188,306

 

 

214,589

 

Non-cash interest expense

 

13,082

 

 

15,068

 

Total interest expense

 

201,388

 

 

229,657

 

Interest expense - continuing operations

 

201,388

 

 

229,657

 

Interest expense - discontinued operations

 

-

 

 

-

 

 
Adjusted EBITDA - continuing operations

 

279,896

 

 

370,435

 

Adjusted EBITDA as a percentage of revenues - continuing operations

 

1.71

%

 

2.37

%

 
 
Pharmacy Services Segment
Revenues (a)

$

7,970,137

 

$

6,559,560

 

Cost of revenues (a)

 

7,521,606

 

 

6,107,638

 

Gross profit

 

448,531

 

 

451,922

 

 
Gross profit as a percentage of revenues

 

5.63

%

 

6.89

%

 
Adjusted EBITDA

 

157,769

 

 

167,776

 

Adjusted EBITDA as a percentage of revenues

 

1.98

%

 

2.56

%

 

(a) -

Revenues and cost of revenues include $292,157 and $247,353 of inter-segment activity for the fifty-two weeks ended

February 27, 2021 and February 29, 2020, respectively, that is eliminated in consolidation.

RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(In thousands)
(unaudited)
 
 
 
Thirteen weeks ended
February 27, 2021
Thirteen weeks ended
February 29, 2020
 
 
Reconciliation of net loss to adjusted EBITDA:
Net loss - continuing operations

$

(18,495

)

$

(343,461

)

Adjustments:
Interest expense

 

49,999

 

 

53,429

 

Income tax (benefit) expense

 

(12,623

)

 

351,729

 

Depreciation and amortization

 

77,568

 

 

79,300

 

LIFO credit

 

(21,389

)

 

(72,357

)

Lease termination and impairment charges

 

35,669

 

 

40,728

 

Merger and Acquisition-related costs

 

9,413

 

 

-

 

Stock-based compensation expense

 

4,326

 

 

2,489

 

Restructuring-related costs

 

13,456

 

 

11,872

 

Inventory write-downs related to store closings

 

1,113

 

 

569

 

(Gain) loss on sale of assets, net

 

(51,827

)

 

9,896

 

Gain on Bartell acquisition

 

(47,705

)

 

-

 

Other

 

1,760

 

 

1,390

 

Adjusted EBITDA - continuing operations

$

41,265

 

$

135,584

 

Percent of revenues - continuing operations

 

0.70

%

 

2.37

%

 
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(In thousands)
(unaudited)
 
 
 
Fifty-two weeks ended
February 27, 2021
Fifty-two weeks ended
February 29, 2020
 
 
Reconciliation of net loss to adjusted EBITDA:
Net loss - continuing operations

$

(100,070

)

$

(469,219

)

Adjustments:
Interest expense

 

201,388

 

 

229,657

 

Income tax (benefit) expense

 

(20,157

)

 

387,607

 

Depreciation and amortization

 

327,124

 

 

328,277

 

LIFO credit

 

(51,692

)

 

(64,804

)

Lease termination and impairment charges

 

58,403

 

 

42,843

 

Intangible asset impairment charges

 

29,852

 

 

-

 

Gain on debt modifications and retirements, net

 

(5,274

)

 

(55,692

)

Merger and Acquisition-related costs

 

10,549

 

 

3,599

 

Stock-based compensation expense

 

13,003

 

 

16,087

 

Restructuring-related costs

 

84,552

 

 

105,642

 

Inventory write-downs related to store closings

 

3,709

 

 

4,652

 

(Gain) loss on sale of assets, net

 

(69,300

)

 

4,226

 

Gain on Bartell acquisition

 

(47,705

)

 

-

 

Other

 

3,283

 

 

5,336

 

Adjusted EBITDA - continuing operations

$

437,665

 

$

538,211

 

Percent of revenues - continuing operations

 

1.82

%

 

2.45

%

 
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
ADJUSTED NET LOSS
(Dollars in thousands, except per share amounts)
(unaudited)
 
 
Thirteen weeks ended
February 27, 2021
Thirteen weeks ended
February 29, 2020
 
Net loss from continuing operations

$

(18,495

)

$

(343,461

)

Add back - Income tax (benefit) expense

 

(12,623

)

 

351,729

 

(Loss) income before income taxes - continuing operations

 

(31,118

)

 

8,268

 

 
Adjustments:
Amortization expense

 

20,669

 

 

24,765

 

LIFO credit

 

(21,389

)

 

(72,357

)

Merger and Acquisition-related costs

 

9,413

 

 

-

 

Restructuring-related costs

 

13,456

 

 

11,872

 

Gain on Bartell acquisition

 

(47,705

)

 

-

 

 
Adjusted loss before income taxes - continuing operations

 

(56,674

)

 

(27,452

)

 
Adjusted income tax benefit (a)

 

(14,905

)

 

(7,588

)

Adjusted net loss from continuing operations

$

(41,769

)

$

(19,864

)

 
Adjusted net loss per diluted share - continuing operations:
 
Numerator for adjusted net loss per diluted share:
Adjusted net loss from continuing operations

$

(41,769

)

$

(19,864

)

 
 
 
Denominator:
Basic and diluted weighted average shares

 

53,812

 

 

53,434

 

 
Net loss from continuing operations per diluted
share - continuing operations

$

(0.34

)

$

(6.43

)

 
 
Adjusted net loss per diluted share - continuing operations

$

(0.78

)

$

(0.37

)

 
 
 
(a) The fiscal year 2021 and 2020 annual effective tax rates, calculated using a federal rate plus a net state rate that excluded the impact of
state NOL's, state credits and valuation allowance, was used for the thirteen weeks ended February 27, 2021 and
February 29, 2020, respectively.
 
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
ADJUSTED NET (LOSS) INCOME
(Dollars in thousands, except per share amounts)
(unaudited)
 
 
Fifty-two weeks ended
February 27, 2021
Fifty-two weeks ended
February 29, 2020
 
Net loss from continuing operations

$

(100,070

)

$

(469,219

)

Add back - Income tax (benefit) expense

 

(20,157

)

 

387,607

 

Loss before income taxes - continuing operations

 

(120,227

)

 

(81,612

)

 
Adjustments:
Amortization expense

 

89,020

 

 

103,941

 

LIFO credit

 

(51,692

)

 

(64,804

)

Intangible asset impairment charges

 

29,852

 

 

-

 

Gain on debt modifications and retirements, net

 

(5,274

)

 

(55,692

)

Merger and Acquisition-related costs

 

10,549

 

 

3,599

 

Restructuring-related costs

 

84,552

 

 

105,642

 

Gain on Bartell acquisition

 

(47,705

)

 

-

 

 
Adjusted (loss) income before income taxes - continuing operations

 

(10,925

)

 

11,074

 

 
Adjusted income tax (benefit) expense (a)

 

(2,873

)

 

3,061

 

Adjusted net (loss) income from continuing operations

$

(8,052

)

$

8,013

 

 
Adjusted net (loss) income per diluted share - continuing operations:
 
Numerator for adjusted net (loss) income per diluted share:
Adjusted net (loss) income from continuing operations

$

(8,052

)

$

8,013

 

 
 
 
Denominator:
Basic weighted average shares

 

53,653

 

 

53,228

 

Outstanding options and restricted shares, net

 

-

 

 

778

 

Diluted weighted average shares

 

53,653

 

 

54,006

 

 
Net loss from continuing operations per diluted
share - continuing operations

$

(1.87

)

$

(8.82

)

 
 
Adjusted net (loss) income per diluted share - continuing operations

$

(0.15

)

$

0.15

 

 
 
 
(a) The fiscal year 2021 and 2020 annual effective tax rates, calculated using a federal rate plus a net state rate that excluded the impact of
state NOL's, state credits and valuation allowance, was used for the fifty-two weeks ended February 27, 2021 and
February 29, 2020, respectively.
 
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF ADJUSTED EBITDA GROSS PROFIT AND RECONCILIATION OF ADJUSTED EBITDA SELLING,
GENERAL AND ADMINISTRATIVE EXPENSES- RETAIL PHARMACY SEGMENT
(In thousands)
(unaudited)
 
 
 
Thirteen weeks ended
February 27, 2021
Thirteen weeks ended
February 29, 2020
 
 
Reconciliation of adjusted EBITDA gross profit:
Revenues

$

4,114,485

 

$

3,993,328

 

Gross Profit

 

1,032,634

 

 

1,141,045

 

Addback:
LIFO credit

 

(21,389

)

 

(72,357

)

Depreciation and amortization (cost of goods sold portion only)

 

1,915

 

 

1,758

 

Restructuring-related costs - SKU optimization charges

 

(4,824

)

 

-

 

Other

 

668

 

 

444

 

Adjusted EBITDA gross profit - continuing operations

$

1,009,004

 

$

1,070,890

 

Percent of revenues - continuing operations

 

24.52

%

 

26.82

%

 
 
 
Reconciliation of adjusted EBITDA selling, general and administrative expenses:
Revenues

$

4,114,485

 

$

3,993,328

 

Selling, general and administrative expenses

 

1,093,074

 

 

1,060,472

 

Less:
Depreciation and amortization (SG&A portion only)

 

61,861

 

 

62,109

 

Stock-based compensation expense

 

3,809

 

 

2,191

 

Merger and Acquisition-related costs

 

9,413

 

 

-

 

Restructuring-related costs

 

12,641

 

 

8,887

 

Other

 

2,363

 

 

1,570

 

Adjusted EBITDA selling, general and administrative
expenses - continuing operations

$

1,002,987

 

$

985,715

 

Percent of revenues - continuing operations

 

24.38

%

 

24.68

%

 
 
 
Adjusted EBITDA - continuing operations

$

6,017

 

$

85,175

 

 
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF ADJUSTED EBITDA GROSS PROFIT AND RECONCILIATION OF ADJUSTED EBITDA SELLING,
GENERAL AND ADMINISTRATIVE EXPENSES- RETAIL PHARMACY SEGMENT
(In thousands)
(unaudited)
 
 
 
Fifty-two weeks ended
February 27, 2021
Fifty-two weeks ended
February 29, 2020
 
 
Reconciliation of adjusted EBITDA gross profit:
Revenues

$

16,365,260

 

$

15,616,186

 

Gross Profit

 

4,255,791

 

 

4,274,836

 

Addback:
LIFO credit

 

(51,692

)

 

(64,804

)

Depreciation and amortization (cost of goods sold portion only)

 

8,690

 

 

8,296

 

Restructuring-related costs - SKU optimization charges

 

20,939

 

 

-

 

Other

 

2,472

 

 

3,605

 

Adjusted EBITDA gross profit - continuing operations

$

4,236,200

 

$

4,221,933

 

Percent of revenues - continuing operations

 

25.89

%

 

27.04

%

 
 
 
Reconciliation of adjusted EBITDA selling, general and administrative expenses:
Revenues

$

16,365,260

 

$

15,616,186

 

Selling, general and administrative expenses

 

4,299,152

 

 

4,220,851

 

Less:
Depreciation and amortization (SG&A portion only)

 

261,295

 

 

257,390

 

Stock-based compensation expense

 

11,594

 

 

14,864

 

Merger and Acquisition-related costs

 

10,549

 

 

2,828

 

Restructuring-related costs

 

54,633

 

 

87,738

 

Other

 

4,777

 

 

6,533

 

Adjusted EBITDA selling, general and administrative
expenses - continuing operations

$

3,956,304

 

$

3,851,498

 

Percent of revenues - continuing operations

 

24.18

%

 

24.66

%

 
 
 
Adjusted EBITDA - continuing operations

$

279,896

 

$

370,435

 

 
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET (LOSS) INCOME GUIDANCE TO ADJUSTED EBITDA GUIDANCE
QUARTER ENDING MAY 29, 2021
(In thousands)
(unaudited)
 
 
Guidance Range
LowHigh
 
Total Revenues

$

6,100,000

 

$

6,300,000

 

 
Same store sales

 

-9.00

%

 

-7.00

%

 
 
Reconciliation of net (loss) income to adjusted EBITDA:
Net (loss) income

$

(10,000

)

$

10,000

 

Adjustments:
Interest expense

 

46,000

 

 

46,000

 

Income tax expense

 

3,000

 

 

4,000

 

Depreciation and amortization

 

78,000

 

 

78,000

 

LIFO credit

 

(12,000

)

 

(12,000

)

Lease termination and impairment charges

 

1,000

 

 

1,000

 

Merger and Acquisition-related costs

 

3,000

 

 

3,000

 

Restructuring-related costs

 

3,000

 

 

7,000

 

Other

 

3,000

 

 

3,000

 

Adjusted EBITDA

$

115,000

 

$

140,000

 

 

INVESTORS:
Trent Kruse
(717) 975-3710
investor@riteaid.com

MEDIA:
Christopher Savarese
(717) 975-5718
Christopher.Savarese@riteaid.com

Source: Rite Aid Corporation