Rite Aid reports Q1 results for FY2010

6/24/2009

CAMP HILL, Pa. Rite Aid Corp. reported revenues of $6.5 billion and a net loss of $98.4 million, or 11 cents per diluted share, for its fiscal first quarter ended May 30, 2009.

Adjusted EBITDA was $249.2 million, or 3.8% of revenues.

“We are pleased with our first quarter results as we continued to build on the improvements we made in the last several quarters. We grew pharmacy sales, improved adjusted EBITDA by operating more efficiently and continued to take costs out of the business, while at the same time, our customer satisfaction ratings improved,” said Mary Sammons, Rite Aid chairman and CEO.

Revenues for the 13-week first quarter were $6.5 billion, versus revenues of $6.6 billion in the prior-year first quarter. Revenues declined 1.2%, primarily as a result of store closings.

Same-store sales for the quarter increased 0.6% over the prior year 13-week period, consisting of a 1.6% decrease in front-end and a 1.6% increase in pharmacy. Pharmacy sales included an approximate 448 basis point negative impact from new generic introductions. The number of prescriptions filled increased 2.2%. Prescription sales accounted for 68.2% of total drug store sales and third-party prescription revenue was 96.3% of pharmacy sales.

Excluding the acquired Brooks Eckerd stores, same-store sales for the 13-week first quarter increased 1.5% over the prior-year period, with front-end decreasing 1.4% and pharmacy growing 3.1%.

At the former Brooks Eckerd stores, same-store sales for the 13-week first quarter decreased 1.3% over the prior-year period, with front-end decreasing 2% and pharmacy decreasing 1.1%.

Net loss for the first quarter was $98.4 million, or 11 cents per diluted share, compared with last year’s first-quarter net loss of $156.6 million, or 20 cents per diluted share. Contributing to this quarter’s net loss was a $67 million noncash charge related to store closings partially offset by a $20 million gain on asset sales, including prescription files.

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