Rite Aid — Q3 FY2022 Earnings Presentation
23 slides from Rite Aid's earnings presentation, Dec 21, 2021
Slide 1: 3rd Quarter Fiscal 2022 Earnings Conference Call
3rd QUARTER FISCAL 2022 Earnings Conference Call Heyward Donigan Chief Executive Officer Jim Peters Chief Operating Officer Matt Schroeder Chief Financial Officer 12/21/2021
Slide 2: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Statements in this presentation 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, s
Slide 3: Non-GAAP Financial Measures
Non - GAAP Financial Measures The following presentation includes the non - GAAP financial measures Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share, Adjusted EBITDA, Adjusted EBITDA Gross Profit and Adjusted EBITDA SG&A, which are non - GAAP financial measures . See the atta
Slide 4: Q3 FY2022 Financial Review
4 4 Q3 FY2022 FINANCIAL REVIEW
Slide 5: Q3 FY2022 at a Glance
Q3 FY2022 at a Glance • 1.8% Increase in total revenues • $155M Adjusted EBITDA* • 12.7 % Growth in Adjusted EBITDA* • 7.9% Increase in number of prescriptions filled (adjusted to 30 day equivalents) • Increased Adjusted EBITDA Guidance to $500M – $520M 5 *Adjusted EBITDA reconciliation located in t
Slide 6: Key Third Quarter FY2022 Highlights
Key Third Quarter FY2022 Highlights Retail Pharmacy: • 7.9 % total growth in retail revenues • Same store sales increased 4.4% • Acute prescription count increased 3.9%, excluding benefit from COVID - 19, flu and other ancillary vaccinations • Maintenance prescription count increased 1.7% on a same
Slide 7: Continued Progress On Our Key Strategic Pillars
Continued Progress On Our Key Strategic Pillars • Converted 300K new customers from our COVID vaccine administration who are now filling 800K new prescriptions at Rite Aid • Administered 278K ancillary vaccines up 43% from last quarter • Increasing adherence through first fill, courtesy refill, 90 -
Slide 8: COVID Update
8 COVID - 19 Update • Approximately 4M COVID - 19 vaccines administered in t hird quarter • Administered 11.6M vaccinations total since program inception • Conducted over 1.1M COVID tests in third quarter • Administered 4.5M COVID tests total since program inception Rite Aid continues to play leadin
Slide 9: FY 2022 Guidance at a Glance
FY 2022 Guidance at a Glance 9 • $24.4B – $24.7B Total revenues • ($ 230M ) – ($ 189M ) Net loss • $500M – $520M Adjusted EBITDA • ($0.49) – ($0.04) Diluted adjusted net loss per share • ~ $ 275M Capital expenditures
Slide 10: Appendix
10 10 APPENDIX
Slide 11: Q3 Fiscal 2022 Summary
11 Q3 Fiscal 2022 Summary ($ in millions, except per share amounts) 13 Weeks Ended November 27, 2021 13 Weeks Ended November 28 , 2020 Revenues $ 6,228.9 $ 6,117.0 Net (loss) income per Diluted Share $ (0.67) $ 0.08 Adjusted net income per Diluted Share $ 0 .15 $ 0 .40 Adjusted EBITDA $ 154.8 2.49%
Slide 12: Reconciliation of Net (Loss) Income to Adjusted EBITDA
12 13 Weeks Ended November 27, 2021 13 Weeks Ended November 28, 2020 Net ( loss) income $ (36,058) $ 4,324 Adjustments: • Interest expense 47,794 50,835 • Income tax (benefit) expense (1,175) 437 • Depreciation and amortization 72,973 83,336 • LIFO charge ( credit) 8,886 (9,487) • Facility exit and
Slide 13: Reconciliation of Net (Loss) Income to Adjusted Net Income
13 13 Weeks Ended November 27, 2021 13 Weeks Ended November 28, 2020 Net (loss) income $ (36,058) $ 4 ,324 Add back - Income tax (benefit) expense (1,175) 437 (Loss) income before income taxes $ (37,233) $ 4,761 Adjustments: Amortization expense 18,780 21,236 LIFO charge (credit) 8,886 (9,487) Merge
Slide 14: Q3 Fiscal 2022 Summary – Retail Pharmacy Segment
14 Revenues $ 4,432.5 $ 4,109.6 Adjusted EBITDA Gross Profit (1) $ 1,244.6 28.08% $ 1,072.5 26.10% Adjusted EBITDA SG&A (1) $ 1,118 .7 25.24% $ 984.0 23.94% Adjusted EBITDA $ 125.9 2.84% $ 88.6 2.15% Q3 - Fiscal 2022 Summary – Retail Pharmacy Segment ($ in millions) (1) Refer to slides 15 and 16 for
Slide 15: Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment
15 Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment ($ in millions) 13 Weeks Ended November 27, 2021 13 Weeks Ended November 28, 2020 Revenues $ 4,432.5 $ 4,109.6 Gross Profit 1,233.2 1,079.7 Addback: LIFO charge (credit) 8.9 (9.5) Depreciation and amortization (COGS portion only
Slide 16: Reconciliation of Adj. EBITDA SG&A - Retail Pharmacy Segment
16 Reconciliation of Adj. EBITDA SG&A - Retail Pharmacy Segment ($ in millions) 13 Weeks Ended November 27, 2021 13 Weeks Ended November 28 , 2020 Revenues $ 4,432.5 $ 4,109.6 Selling, general and administrative expenses 1,186.0 1,067.0 Less: Depreciation and amortization (SG&A portion only) 58.1 67
Slide 17: Pharmacy Services Segment Results
Revenues $ 1,858.8 $ 2,084.4 Cost of Revenues 1,757.7 1,961.0 Gross Profit 101 .1 123.4 Selling, General and Administrative Expenses (90.9) (89.3) Loss on sale of assets, net (2.0) (19.2) Addback: Depreciation and Amortization 12.4 13.7 Loss on sale of assets, net 2.0 19.2 Restructuring - related co
Slide 18: Comparable Store Sales Growth
18 Comparable Store Sales Growth 3.1% - 0.9% 11.2% 7.1% 7.9% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 SCRIPT COUNT (1) Q 3 2021 Q4 2021 Q1 2022 6.1% 2.0% 8.2% 5.0% 5.9% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 RX SALES - 0.7% - 5.6% - 12% - 2.8% 0.4% 0.3% - 5.0% - 11.5% - 2.4% 1.0% Q2 2022 FY2021 FY20
Slide 19: Capitalization Table
Capitalization Table 19 ($ in thousands) November 27, 2021 February 27, 2021 Secured Debt: Senior secured revolving credit facility due December 2023 -$ 835,897$ FILO Term Loan due December 2023 - 447,770 Senior secured revolving credit facility due August 2026 1,126,516 - FILO Term Loan due August
Slide 20: Leverage Ratio
20 Leverage Ratio ($ in thousands) Total Debt: $ 3,188,449 Less: Cash and cash equivalents (155,289) Net Debt $ 3,033,160 LTM Adjusted EBITDA: Retail Pharmacy Segment 296,231 Pharmacy Services Segment 144,864 LTM Adjusted EBITDA $ 441,095 Leverage Ratio 6.88 November 27, 2021
Slide 21: FY 2022 Guidance
21 FY 2022 Guidance ($ in thousands) Total Revenues $ 24,400,000 $ 24,700,000 Pharmacy Services Segment Revenues $ 7,100,000 $ 7,200,000 Gross Capital Expenditures $ 275,000 $ 275,000 Reconciliation of net loss to adjusted EBITDA: Net loss $ (229,500 ) $ (188,500 ) Adjustments: Interest expense 195,
Slide 22: FY 2022 Guidance (cont.)
22 FY 2022 Guidance (cont.) ($ in thousands) Guidance Range Low High Net loss $ (229,500 ) $ (188,500 ) Add back - income tax expense 3,000 - Loss before income taxes (226,500 ) (188,500 ) Adjustments: Amortization expense 79,000 79,000 LIFO charge 5,000 - Loss on debt modifications and retirements,
Slide 23: Crafted Rx Solutions
—"S CRAFTED Rx SOLUTIONS