Attached files
| file | filename |
|---|---|
| 8-K - 8-K - RITE AID CORP | a11-31665_18k.htm |
Exhibit 99.1
Press Release
For Further Information Contact:
|
INVESTORS: |
|
MEDIA: |
|
Matt Schroeder |
|
Susan Henderson |
|
(717) 214-8867 |
|
(717) 730-7766 |
|
or investor@riteaid.com |
|
|
FOR IMMEDIATE RELEASE
RITE AID REPORTS IMPROVED THIRD QUARTER FISCAL 2012 RESULTS
· Third Quarter Net Loss of $0.06 per Diluted Share Compared to Prior Third Quarter Net Loss of $0.09 per Diluted Share
· Third Quarter Adjusted EBITDA of $221.5 Million Compared to Prior Third Quarter Adjusted EBITDA of $212.5 Million
· Fourth Consecutive Quarter of Comparable Store Sales and Adjusted EBITDA Increases
· Rite Aid Raises Fiscal 2012 Earnings Outlook
CAMP HILL, Pa. (December 15, 2011)—Rite Aid Corporation (NYSE: RAD) today reported improved financial results for its third fiscal quarter ended November 26, 2011.
The company reported revenues of $6.3 billion, a net loss of $52.0 million or $0.06 per diluted share and Adjusted EBITDA of $221.5 million or 3.5 percent of revenues. These results benefited primarily from continued growth in same store sales.
“We remain pleased with the continued improvement in our top-line results, highlighted by same store sales and Adjusted EBITDA increases for the fourth consecutive quarter,” said John Standley, Rite Aid President and CEO. “Our pharmacy sales growth was strong this quarter, with key drivers being our well-planned and executed flu immunization program and continued favorable customer response to our wellness+ loyalty program.”
“With respect to our flu immunization program, through the entire team’s efforts, our more than 11,000 chain wide immunizing pharmacists have already provided more than double the number of flu shots we did last year and are on pace to achieve our goal of administering 1.5 million immunizations for this season. Additionally, we now have more than 47 million enrolled members in our wellness+ program and we will continue to enhance its value to members with even stronger, more compelling offerings in the new year.”
- MORE -
Third Quarter Summary
Revenues for the 13-week quarter were $6.3 billion versus revenues of $6.2 billion in the prior year third quarter. Revenues increased 1.8 percent primarily as a result of an increase in same store sales, which were partially offset by store closings.
Same store sales for the quarter increased 2.0 percent over the prior 13-week period, with flat front end sales and a 2.9 percent increase in the pharmacy. Pharmacy sales included an approximate 163 basis point negative impact from new generic introductions. The number of prescriptions filled in comparable stores increased 0.5 percent over the prior-year period. Prescription sales accounted for 68.7 percent of total drugstore sales, and third party prescription revenue was 96.4 percent of pharmacy sales.
Net loss was $52.0 million or $0.06 per diluted share compared to last year’s third quarter net loss of $79.1 million or $0.09 per diluted share. An increase in gross profit and decreases in depreciation and amortization, lease termination and impairment charges, interest expense and lower deferred revenue related to the company’s customer loyalty program contributed to the decrease in net loss. Partially offsetting these improvements was an increase in operating expenses and LIFO charges.
Adjusted EBITDA (which is reconciled to net loss on the attached table) was $221.5 million or 3.5 percent of revenues for the third quarter compared to $212.5 million or 3.4 percent of revenues for the like period last year.
In the third quarter, the company relocated 2 stores, remodeled 119 Wellness stores and closed 18 stores. Stores in operation at the end of the quarter totaled 4,679.
Rite Aid Updates Sales, Adjusted EBITDA and Net Loss Guidance for Fiscal 2012.
Rite Aid has updated its fiscal 2012 guidance with sales expected to be between $25.85 billion and $26.0 billion, same store sales to range from an increase of 1.15 percent to an increase of 1.75 percent over fiscal 2011 and Adjusted EBITDA (which is reconciled to net loss in the attached table) to be between $865 million and $910 million. Net loss is expected to be between $325 million and $440 million or a loss per diluted share of $0.37 to $0.50. Capital expenditures are expected to be $250 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 simulcast via the internet and can be accessed through the websites www.riteaid.com in the conference call section of investor information and www.StreetEvents.com. Slides related to materials discussed on the call will be available on both sites. A playback of the call will be available on both sites starting at 12 p.m. Eastern Time today. A playback of the call will also be available by telephone beginning at 12 p.m. Eastern Time today until 11:59 p.m. Eastern Time on December 17, 2011. The playback number is 1-855-859-2056 from within the U.S. and Canada or 1-404-537-3406 from outside the U.S. and Canada with the eight-digit reservation number 32572382.
Rite Aid is one of the nation’s leading drugstore chains with approximately 4,700 stores in 31 states and the District of Columbia. Information about Rite Aid, including corporate background and press releases, is available through Rite Aid’s website at www.riteaid.com.
Statements, including guidance, 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. 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, our high level of indebtedness and our ability to make interest and principal payments on our debt and satisfy the other covenants contained in our debt agreements, general economic, market and competitive conditions, our ability to improve the operating performance of our stores in accordance with our long term strategy, the efforts of private and public third-party payers to reduce prescription drug reimbursements and encourage mail order, the ability to realize anticipated results from capital expenditures and cost reduction initiatives, outcomes of legal and regulatory matters and changes in legislation or regulations, including healthcare reform. These and other risks, assumptions and uncertainties are described in Item 1A (Risk Factors) of our most recent Annual Report on Form 10-K and in other documents that we file or furnish with the Securities and Exchange Commission, which you are encouraged to read. 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 place undue reliance on these forward-looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention 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.
See the attached table for a reconciliation of a non-GAAP financial measure, Adjusted EBITDA to net income (loss), the most comparable GAAP financial measure. We define Adjusted EBITDA 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, inventory write-downs related to store closings, stock-based compensation expense, debt modifications and retirements, sale of assets and investments, revenue deferrals related to customer loyalty program and other items.
###
RITE AID CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited)
|
|
|
November 26, 2011 |
|
February 26, 2011 |
| ||
|
ASSETS |
|
|
|
|
| ||
|
Current assets: |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
148,474 |
|
$ |
91,116 |
|
|
Accounts receivable, net |
|
970,218 |
|
966,457 |
| ||
|
Inventories, net of LIFO reserve of $942,515 and $875,012 |
|
3,389,054 |
|
3,158,145 |
| ||
|
Prepaid expenses and other current assets |
|
109,358 |
|
195,647 |
| ||
|
Total current assets |
|
4,617,104 |
|
4,411,365 |
| ||
|
Property, plant and equipment, net |
|
1,940,470 |
|
2,039,383 |
| ||
|
Other intangibles, net |
|
560,963 |
|
646,177 |
| ||
|
Other assets |
|
438,497 |
|
458,925 |
| ||
|
Total assets |
|
$ |
7,557,034 |
|
$ |
7,555,850 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
| ||
|
Current maturities of long-term debt and lease financing obligations |
|
$ |
25,313 |
|
$ |
63,045 |
|
|
Accounts payable |
|
1,376,009 |
|
1,307,872 |
| ||
|
Accrued salaries, wages and other current liabilities |
|
1,133,065 |
|
1,049,406 |
| ||
|
Total current liabilities |
|
2,534,387 |
|
2,420,323 |
| ||
|
Long-term debt, less current maturities |
|
6,172,550 |
|
6,034,525 |
| ||
|
Lease financing obligations, less current maturities |
|
113,808 |
|
122,295 |
| ||
|
Other noncurrent liabilities |
|
1,142,134 |
|
1,190,074 |
| ||
|
Total liabilities |
|
9,962,879 |
|
9,767,217 |
| ||
|
|
|
|
|
|
| ||
|
Commitments and contingencies |
|
— |
|
— |
| ||
|
Stockholders’ deficit: |
|
|
|
|
| ||
|
Preferred stock - Series G |
|
1 |
|
1 |
| ||
|
Preferred stock - Series H |
|
169,034 |
|
161,650 |
| ||
|
Common stock |
|
898,400 |
|
890,297 |
| ||
|
Additional paid-in capital |
|
4,277,215 |
|
4,281,623 |
| ||
|
Accumulated deficit |
|
(7,722,124 |
) |
(7,514,796 |
) | ||
|
Accumulated other comprehensive loss |
|
(28,371 |
) |
(30,142 |
) | ||
|
Total stockholders’ deficit |
|
(2,405,845 |
) |
(2,211,367 |
) | ||
|
Total liabilities and stockholders’ deficit |
|
$ |
7,557,034 |
|
$ |
7,555,850 |
|
RITE AID CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(unaudited)
|
|
|
Thirteen weeks ended |
|
Thirteen weeks ended |
| ||
|
Revenues |
|
$ |
6,312,584 |
|
$ |
6,202,353 |
|
|
Costs and expenses: |
|
|
|
|
| ||
|
Cost of goods sold |
|
4,641,204 |
|
4,561,200 |
| ||
|
Selling, general and administrative expenses |
|
1,583,098 |
|
1,578,142 |
| ||
|
Lease termination and impairment charges |
|
11,540 |
|
17,003 |
| ||
|
Interest expense |
|
129,927 |
|
133,742 |
| ||
|
Gain on sale of assets, net |
|
(2,172 |
) |
(7,050 |
) | ||
|
|
|
|
|
|
| ||
|
|
|
6,363,597 |
|
6,283,037 |
| ||
|
|
|
|
|
|
| ||
|
Loss before income taxes |
|
(51,013 |
) |
(80,684 |
) | ||
|
Income tax expense (benefit) |
|
972 |
|
(1,613 |
) | ||
|
Net loss |
|
$ |
(51,985 |
) |
$ |
(79,071 |
) |
|
|
|
|
|
|
| ||
|
Basic and diluted loss per share: |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Numerator for loss per share: |
|
|
|
|
| ||
|
Net loss |
|
$ |
(51,985 |
) |
$ |
(79,071 |
) |
|
Accretion of redeemable preferred stock |
|
(26 |
) |
(26 |
) | ||
|
Cumulative preferred stock dividends |
|
(2,498 |
) |
(2,354 |
) | ||
|
Loss attributable to common stockholders - basic and diluted |
|
$ |
(54,509 |
) |
$ |
(81,451 |
) |
|
|
|
|
|
|
| ||
|
Basic and diluted weighted average shares |
|
886,629 |
|
883,515 |
| ||
|
|
|
|
|
|
| ||
|
Basic and diluted loss per share |
|
$ |
(0.06 |
) |
$ |
(0.09 |
) |
RITE AID CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(unaudited)
|
|
|
Thirty-nine weeks |
|
Thirty-nine weeks |
| ||
|
Revenues |
|
$ |
18,974,468 |
|
$ |
18,758,441 |
|
|
Costs and expenses: |
|
|
|
|
| ||
|
Cost of goods sold |
|
13,963,208 |
|
13,766,924 |
| ||
|
Selling, general and administrative expenses |
|
4,773,086 |
|
4,827,780 |
| ||
|
Lease termination and impairment charges |
|
43,748 |
|
56,820 |
| ||
|
Interest expense |
|
391,516 |
|
415,077 |
| ||
|
Loss on debt modifications and retirements, net |
|
17,510 |
|
44,003 |
| ||
|
Gain on sale of assets, net |
|
(7,812 |
) |
(10,786 |
) | ||
|
|
|
|
|
|
| ||
|
|
|
19,181,256 |
|
19,099,818 |
| ||
|
|
|
|
|
|
| ||
|
Loss before income taxes |
|
(206,788 |
) |
(341,377 |
) | ||
|
Income tax expense |
|
533 |
|
8,354 |
| ||
|
Net loss |
|
$ |
(207,321 |
) |
$ |
(349,731 |
) |
|
|
|
|
|
|
| ||
|
Basic and diluted loss per share: |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Numerator for loss per share: |
|
|
|
|
| ||
|
Net loss |
|
$ |
(207,321 |
) |
$ |
(349,731 |
) |
|
Accretion of redeemable preferred stock |
|
(77 |
) |
(77 |
) | ||
|
Cumulative preferred stock dividends |
|
(7,384 |
) |
(6,957 |
) | ||
|
Loss attributable to common stockholders - basic and diluted |
|
$ |
(214,782 |
) |
$ |
(356,765 |
) |
|
|
|
|
|
|
| ||
|
Basic and diluted weighted average shares |
|
885,388 |
|
882,668 |
| ||
|
|
|
|
|
|
| ||
|
Basic and diluted loss per share |
|
$ |
(0.24 |
) |
$ |
(0.40 |
) |
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL OPERATING AND CASH FLOW INFORMATION
(Dollars in thousands, except per share amounts)
(unaudited)
|
|
|
Thirteen weeks ended |
|
Thirteen weeks ended |
| ||
|
|
|
|
|
|
| ||
|
SUPPLEMENTAL OPERATING INFORMATION |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Revenues |
|
$ |
6,312,584 |
|
$ |
6,202,353 |
|
|
Cost of goods sold |
|
4,641,204 |
|
4,561,200 |
| ||
|
Gross profit |
|
1,671,380 |
|
1,641,153 |
| ||
|
LIFO charge |
|
27,501 |
|
3,024 |
| ||
|
FIFO gross profit |
|
1,698,881 |
|
1,644,177 |
| ||
|
|
|
|
|
|
| ||
|
Gross profit as a percentage of revenues |
|
26.48 |
% |
26.46 |
% | ||
|
LIFO charge as a percentage of revenues |
|
0.44 |
% |
0.05 |
% | ||
|
FIFO gross profit as a percentage of revenues |
|
26.91 |
% |
26.51 |
% | ||
|
|
|
|
|
|
| ||
|
Selling, general and administrative expenses |
|
1,583,098 |
|
1,578,142 |
| ||
|
Selling, general and administrative expenses as a percentage of revenues |
|
25.08 |
% |
25.44 |
% | ||
|
|
|
|
|
|
| ||
|
Cash interest expense |
|
121,321 |
|
123,489 |
| ||
|
Non-cash interest expense |
|
8,606 |
|
10,253 |
| ||
|
Total interest expense |
|
129,927 |
|
133,742 |
| ||
|
|
|
|
|
|
| ||
|
Adjusted EBITDA |
|
221,460 |
|
212,499 |
| ||
|
Adjusted EBITDA as a percentage of revenues |
|
3.51 |
% |
3.43 |
% | ||
|
|
|
|
|
|
| ||
|
Net loss |
|
(51,985 |
) |
(79,071 |
) | ||
|
Net loss as a percentage of revenues |
|
-0.82 |
% |
-1.27 |
% | ||
|
|
|
|
|
|
| ||
|
Total debt |
|
6,311,671 |
|
6,249,094 |
| ||
|
Invested cash |
|
1,258 |
|
1,371 |
| ||
|
Total debt net of invested cash |
|
6,310,413 |
|
6,247,723 |
| ||
|
|
|
|
|
|
| ||
|
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Payments for property, plant and equipment |
|
55,852 |
|
31,864 |
| ||
|
Intangible assets acquired |
|
11,643 |
|
5,849 |
| ||
|
Total cash capital expenditures |
|
67,495 |
|
37,713 |
| ||
|
Equipment received for noncash consideration |
|
1,358 |
|
222 |
| ||
|
Equipment financed under capital leases |
|
4,095 |
|
772 |
| ||
|
Gross capital expenditures |
|
$ |
72,948 |
|
$ |
38,707 |
|
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL OPERATING AND CASH FLOW INFORMATION
(Dollars in thousands, except per share amounts)
(unaudited)
|
|
|
Thirty-nine weeks |
|
Thirty-nine weeks |
| ||
|
|
|
|
|
|
| ||
|
SUPPLEMENTAL OPERATING INFORMATION |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Revenues |
|
$ |
18,974,468 |
|
$ |
18,758,441 |
|
|
Cost of goods sold |
|
13,963,208 |
|
13,766,924 |
| ||
|
Gross profit |
|
5,011,260 |
|
4,991,517 |
| ||
|
LIFO charge |
|
67,503 |
|
44,080 |
| ||
|
FIFO gross profit |
|
5,078,763 |
|
5,035,597 |
| ||
|
|
|
|
|
|
| ||
|
Gross profit as a percentage of revenues |
|
26.41 |
% |
26.61 |
% | ||
|
LIFO charge as a percentage of revenues |
|
0.36 |
% |
0.23 |
% | ||
|
FIFO gross profit as a percentage of revenues |
|
26.77 |
% |
26.84 |
% | ||
|
|
|
|
|
|
| ||
|
Selling, general and administrative expenses |
|
4,773,086 |
|
4,827,780 |
| ||
|
Selling, general and administrative expenses as a percentage of revenues |
|
25.16 |
% |
25.74 |
% | ||
|
|
|
|
|
|
| ||
|
Cash interest expense |
|
365,744 |
|
381,442 |
| ||
|
Non-cash interest expense |
|
25,772 |
|
33,635 |
| ||
|
Total interest expense |
|
391,516 |
|
415,077 |
| ||
|
|
|
|
|
|
| ||
|
Adjusted EBITDA |
|
668,570 |
|
643,533 |
| ||
|
Adjusted EBITDA as a percentage of revenues |
|
3.52 |
% |
3.43 |
% | ||
|
|
|
|
|
|
| ||
|
Net loss |
|
(207,321 |
) |
(349,731 |
) | ||
|
Net loss as a percentage of revenues |
|
-1.09 |
% |
-1.86 |
% | ||
|
|
|
|
|
|
| ||
|
Total debt |
|
6,311,671 |
|
6,249,094 |
| ||
|
Invested cash |
|
1,258 |
|
1,371 |
| ||
|
Total debt net of invested cash |
|
6,310,413 |
|
6,247,723 |
| ||
|
|
|
|
|
|
| ||
|
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
|
|
| ||
|
|
|
|
|
|
| ||
|
Payments for property, plant and equipment |
|
146,138 |
|
104,383 |
| ||
|
Intangible assets acquired |
|
28,090 |
|
16,071 |
| ||
|
Total cash capital expenditures |
|
174,228 |
|
120,454 |
| ||
|
Equipment received for noncash consideration |
|
3,092 |
|
2,428 |
| ||
|
Equipment financed under capital leases |
|
6,476 |
|
2,836 |
| ||
|
Gross capital expenditures |
|
$ |
183,796 |
|
$ |
125,718 |
|
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(In thousands)
|
|
|
Thirteen weeks ended |
|
Thirteen weeks ended |
| ||
|
|
|
|
|
|
| ||
|
Reconciliation of net loss to adjusted EBITDA: |
|
|
|
|
| ||
|
Net loss |
|
$ |
(51,985 |
) |
$ |
(79,071 |
) |
|
Adjustments: |
|
|
|
|
| ||
|
Interest expense |
|
129,927 |
|
133,742 |
| ||
|
Income tax expense (benefit) |
|
972 |
|
(1,613 |
) | ||
|
Depreciation and amortization |
|
107,579 |
|
124,985 |
| ||
|
LIFO charges |
|
27,501 |
|
3,024 |
| ||
|
Lease termination and impairment charges |
|
11,540 |
|
17,003 |
| ||
|
Stock-based compensation expense |
|
4,089 |
|
4,167 |
| ||
|
Gain on sale of assets, net |
|
(2,172 |
) |
(7,050 |
) | ||
|
Closed facility liquidation expense |
|
1,527 |
|
2,386 |
| ||
|
Severance costs |
|
— |
|
2,019 |
| ||
|
Customer loyalty card program revenue deferral (a) |
|
(5,846 |
) |
13,807 |
| ||
|
Other |
|
(1,672 |
) |
(900 |
) | ||
|
Adjusted EBITDA |
|
$ |
221,460 |
|
$ |
212,499 |
|
|
Percent of revenues |
|
3.51 |
% |
3.43 |
% | ||
Notes:
(a) Relates to deferral of revenues for our customer loyalty program.
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(In thousands)
|
|
|
Thirty-nine weeks |
|
Thirty-nine weeks |
| ||
|
|
|
|
|
|
| ||
|
Reconciliation of net loss to adjusted EBITDA: |
|
|
|
|
| ||
|
Net loss |
|
$ |
(207,321 |
) |
$ |
(349,731 |
) |
|
Adjustments: |
|
|
|
|
| ||
|
Interest expense |
|
391,516 |
|
415,077 |
| ||
|
Income tax expense |
|
533 |
|
8,354 |
| ||
|
Depreciation and amortization |
|
333,381 |
|
378,998 |
| ||
|
LIFO charges |
|
67,503 |
|
44,080 |
| ||
|
Lease termination and impairment charges |
|
43,748 |
|
56,820 |
| ||
|
Stock-based compensation expense |
|
11,612 |
|
13,902 |
| ||
|
Gain on sale of assets, net |
|
(7,812 |
) |
(10,786 |
) | ||
|
Loss on debt modifications and retirements, net |
|
17,510 |
|
44,003 |
| ||
|
Closed facility liquidation expense |
|
5,159 |
|
6,619 |
| ||
|
Severance costs |
|
256 |
|
2,029 |
| ||
|
Customer loyalty card program revenue deferral (a) |
|
22,905 |
|
34,238 |
| ||
|
Other |
|
(10,420 |
) |
(70 |
) | ||
|
Adjusted EBITDA |
|
$ |
668,570 |
|
$ |
643,533 |
|
|
Percent of revenues |
|
3.52 |
% |
3.43 |
% | ||
Notes:
(a) Relates to deferral of revenues for our customer loyalty program.
RITE AID CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(unaudited)
|
|
|
Thirteen weeks ended |
|
Thirteen weeks ended |
| ||
|
|
|
|
|
|
| ||
|
OPERATING ACTIVITIES: |
|
|
|
|
| ||
|
Net loss |
|
$ |
(51,985 |
) |
$ |
(79,071 |
) |
|
Adjustments to reconcile to net cash provided by (used in) operating activities: |
|
|
|
|
| ||
|
Depreciation and amortization |
|
107,579 |
|
124,985 |
| ||
|
Lease termination and impairment charges |
|
11,540 |
|
17,003 |
| ||
|
LIFO charges |
|
27,501 |
|
3,024 |
| ||
|
Gain on sale of assets, net |
|
(2,172 |
) |
(7,050 |
) | ||
|
Stock-based compensation expense |
|
4,089 |
|
4,167 |
| ||
|
Changes in operating assets and liabilities: |
|
|
|
|
| ||
|
Accounts receivable |
|
(21,190 |
) |
(27,633 |
) | ||
|
Inventories |
|
(126,646 |
) |
(76,330 |
) | ||
|
Accounts payable |
|
28,800 |
|
(38,648 |
) | ||
|
Other assets and liabilities, net |
|
24,466 |
|
33,146 |
| ||
|
Net cash provided by (used in) operating activities |
|
1,982 |
|
(46,407 |
) | ||
|
INVESTING ACTIVITIES: |
|
|
|
|
| ||
|
Payments for property, plant and equipment |
|
(55,852 |
) |
(31,864 |
) | ||
|
Intangible assets acquired |
|
(11,643 |
) |
(5,849 |
) | ||
|
Proceeds from sale-leaseback transactions |
|
2,428 |
|
— |
| ||
|
Proceeds from dispositions of assets and investments |
|
7,592 |
|
8,345 |
| ||
|
Net cash used in investing activities |
|
(57,475 |
) |
(29,368 |
) | ||
|
FINANCING ACTIVITIES: |
|
|
|
|
| ||
|
Net proceeds from revolver |
|
118,000 |
|
58,000 |
| ||
|
Principal payments on long-term debt |
|
(4,392 |
) |
(6,147 |
) | ||
|
Change in zero balance cash accounts |
|
11,934 |
|
13,789 |
| ||
|
Net proceeds from the issuance of common stock |
|
62 |
|
7 |
| ||
|
Deferred financing costs paid |
|
— |
|
(244 |
) | ||
|
Net cash provided by financing activities |
|
125,604 |
|
65,405 |
| ||
|
Increase (decrease) in cash and cash equivalents |
|
70,111 |
|
(10,370 |
) | ||
|
Cash and cash equivalents, beginning of period |
|
78,363 |
|
132,412 |
| ||
|
Cash and cash equivalents, end of period |
|
$ |
148,474 |
|
$ |
122,042 |
|
RITE AID CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(unaudited)
|
|
|
Thirty-nine weeks |
|
Thirty-nine weeks |
| ||
|
|
|
|
|
|
| ||
|
OPERATING ACTIVITIES: |
|
|
|
|
| ||
|
Net loss |
|
$ |
(207,321 |
) |
$ |
(349,731 |
) |
|
Adjustments to reconcile to net cash provided by operating activities: |
|
|
|
|
| ||
|
Depreciation and amortization |
|
333,381 |
|
378,998 |
| ||
|
Lease termination and impairment charges |
|
43,748 |
|
56,820 |
| ||
|
LIFO charges |
|
67,503 |
|
44,080 |
| ||
|
Gain on sale of assets, net |
|
(7,812 |
) |
(10,786 |
) | ||
|
Stock-based compensation expense |
|
11,612 |
|
13,902 |
| ||
|
Loss on debt modifications and retirements, net |
|
17,510 |
|
44,003 |
| ||
|
Changes in operating assets and liabilities: |
|
|
|
|
| ||
|
Accounts receivable |
|
(7,636 |
) |
(18,970 |
) | ||
|
Inventories |
|
(298,936 |
) |
(136,496 |
) | ||
|
Accounts payable |
|
179,925 |
|
272,730 |
| ||
|
Other assets and liabilities, net |
|
124,067 |
|
172,852 |
| ||
|
Net cash provided by operating activities |
|
256,041 |
|
467,402 |
| ||
|
INVESTING ACTIVITIES: |
|
|
|
|
| ||
|
Payments for property, plant and equipment |
|
(146,138 |
) |
(104,383 |
) | ||
|
Intangible assets acquired |
|
(28,090 |
) |
(16,071 |
) | ||
|
Proceeds from sale-leaseback transactions |
|
2,428 |
|
— |
| ||
|
Proceeds from dispositions of assets and investments |
|
16,955 |
|
17,266 |
| ||
|
Net cash used in investing activities |
|
(154,845 |
) |
(103,188 |
) | ||
|
FINANCING ACTIVITIES: |
|
|
|
|
| ||
|
Proceeds from issuance of long-term debt |
|
341,285 |
|
650,000 |
| ||
|
Net proceeds from (repayments to) revolver |
|
163,000 |
|
(22,000 |
) | ||
|
Principal payments on long-term debt |
|
(439,553 |
) |
(775,236 |
) | ||
|
Change in zero balance cash accounts |
|
(106,347 |
) |
(144,693 |
) | ||
|
Net proceeds from the issuance of common stock |
|
566 |
|
101 |
| ||
|
Financing fees paid for early debt redemption |
|
— |
|
(19,666 |
) | ||
|
Deferred financing costs paid |
|
(2,789 |
) |
(34,272 |
) | ||
|
Net cash used in financing activities |
|
(43,838 |
) |
(345,766 |
) | ||
|
Increase in cash and cash equivalents |
|
57,358 |
|
18,448 |
| ||
|
Cash and cash equivalents, beginning of period |
|
91,116 |
|
103,594 |
| ||
|
Cash and cash equivalents, end of period |
|
$ |
148,474 |
|
$ |
122,042 |
|
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS GUIDANCE TO ADJUSTED EBITDA GUIDANCE
YEAR ENDING MARCH 3, 2012
(In thousands, except per share amounts)
|
|
|
Guidance Range |
| ||||
|
|
|
Low |
|
High |
| ||
|
|
|
|
|
|
| ||
|
Sales |
|
$ |
25,850,000 |
|
$ |
26,000,000 |
|
|
|
|
|
|
|
| ||
|
Same store sales |
|
1.15 |
% |
1.75 |
% | ||
|
|
|
|
|
|
| ||
|
Gross capital expenditures |
|
$ |
250,000 |
|
$ |
250,000 |
|
|
|
|
|
|
|
| ||
|
Reconciliation of net loss to adjusted EBITDA: |
|
|
|
|
| ||
|
Net loss |
|
$ |
(440,000 |
) |
$ |
(325,000 |
) |
|
Adjustments: |
|
|
|
|
| ||
|
Interest expense |
|
535,000 |
|
530,000 |
| ||
|
Income tax benefit |
|
(10,000 |
) |
(15,000 |
) | ||
|
Depreciation and amortization |
|
445,000 |
|
440,000 |
| ||
|
LIFO charge |
|
110,000 |
|
90,000 |
| ||
|
Store closing and impairment charges |
|
150,000 |
|
140,000 |
| ||
|
Stock-based compensation expense |
|
16,000 |
|
15,000 |
| ||
|
Customer loyalty card program revenue deferral (a) |
|
35,000 |
|
25,000 |
| ||
|
Loss on debt modification |
|
17,000 |
|
17,000 |
| ||
|
Other |
|
7,000 |
|
(7,000 |
) | ||
|
Adjusted EBITDA |
|
$ |
865,000 |
|
$ |
910,000 |
|
|
|
|
|
|
|
| ||
|
Diluted loss per share |
|
$ |
(0.50 |
) |
$ |
(0.37 |
) |
(a) Relates to deferral of revenues for our customer loyalty program.