Inside This Issue - News
Rite Aidís results show improvement
April 23rd, 2012
CAMP HILL, Pa. – Continuing its financial recovery, Rite Aid Corp. turned in improved results for its fiscal 2012 fourth quarter and full year.
In the 13-week quarter ended March 3, revenue totaled $7.1 billion, up 10.7% from the prior-year period. Same-store sales grew 3%, reflecting gains of 1.6% in the front end and 3.8% in the pharmacy.
Meanwhile, the quarterly net loss decreased 21.3% to $161.3 million, or 18 cents per diluted share. That fell short of the average analyst estimate of a loss of 14 cents per share, according to Thomson Financial.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the fourth quarter was $274.3 million, compared with $215.4 million in the preceding year.
Rite Aid attributed the sales and earnings improvements to continued growth in same-store sales and an extra week in the quarter.
For the 53-week fiscal year, revenue rose 3.6% to $26.1 billion from $25.2 billion in the 52-week fiscal 2011. Same-store sales edged up 2%, including gains of 1.1% in the front end and 2.4% in the pharmacy.
The fiscal 2012 net loss was $368.6 million, or 43 cents per diluted share, down from a net loss of $555.4 million, or 64 cents per diluted share, a year earlier. Analysts, on average, had projected a loss of 38 cents per share. Adjusted EBITDA for fiscal 2012 was $942.9 million, up from $859 million in 2011.
“We made strong progress in fiscal year 2012 and feel positive about our improved business results, highlighted by same-store sales and adjusted EBITDA increases for the fifth consecutive quarter,” stated Rite Aid president and chief executive officer John Standley. “We achieved these outstanding results by more than doubling the number of flu shots we administered last year, completing 274 wellness remodels, significantly growing our Rite Aid brand program and achieving continued success with our award-winning wellness+ customer loyalty program. While there is still hard work ahead, I am pleased we are beginning our new fiscal year with positive momentum.”
As of March 3, Rite Aid had 4,667 drug stores, including 280 “wellness store” locations. In fiscal 2012 the retailer relocated 15 stores, remodeled 278 stores and closed 47 stores.
For fiscal 2013, Rite Aid projects sales of $25.4 billion to $25.8 billion and same-store sales growth ranging from flat to an increase of 1.5%. The company forecasts a net loss of $103 million to $267 million, or 13 cents to 31 cents per diluted share. Analysts forecast, on average, a loss of 25 cents per share.
Rite Aid expects capital expenditures in fiscal 2013 to come in at about $300 million, including more wellness store remodels and prescription file buys.
*Editor's Note: Russell Redman contributed to this article.