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Rite Aid updates FY19 outlook

Rite Aid has updated its outlook for fiscal year 2019 — but the new figures don’t include the expected impact of its proposed merger. The Camp Hill, Pa.-based company revised the outlook it issued in April based on a more stable reimbursement rate environment, fees under the Walgreens Boots Alliance transition services agreement, generic drug purchasing and other factors.

Rite Aid said it expects its generics purchasing efficiencies to come in $80 million less than expected in April, which has an effect on its adjusted EBITDA, net loss and adjusted net loss per diluted share estimates. It now expects adjusted EBITDA to stand between $540 million and $590 million, down from the range of $625 million to $675 million it had expected earlier this year.

The company projects its net loss to be between $125 million and $170 million, despite initially projecting a net loss of between $40 million and $95 million. Adjusted net loss per diluted share is projected to be between $0.00 and -$0.04. The company had previously projected net income per diluted share to range from $0.02 to $0.06.
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