Rite Aid — Q3 2019 Earnings Presentation
18 slides from Rite Aid's earnings presentation, Dec 19, 2018
Slide 1: 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, stat
Slide 2: Cautionary Note Regarding Pro Forma Information
Cautionary Note Regarding Pro Forma Information The following presentation provides certain pro forma information regarding the impact of Rite Aid’s pending sale of distribution centers and assets to WBA on Rite Aid’s results of operations and capital structure. The pro forma information is for illu
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES The following presentation includes the non-GAAP financial measures, Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share, Pro Forma Adjusted EBITDA, Adjusted EBITDA Gross Profit and Adjusted EBITDA SG&A. Rite Aid defines Adjusted EBIT
Slide 4: Q3 - Fiscal 2019 Summary
Q3 - FISCAL 2019 SUMMARY 5 ($ in millions, except per share amounts) Note: Data on this slide and throughout the presentation is on a continuing operations basis.
Slide 5: Q3 - Fiscal 2019 Reconciliation of Net Loss to Adjusted Net Income
Q3 - FISCAL 2019 RECONCILIATION OF NET LOSS TO ADJUSTED NET INCOME 7 ($ in thousands, except per share amounts) ($ in thousands) 13 Weeks Ended Dec. 1, 2018 13 Weeks Ended Dec. 2, 2017 Net Loss $ (17,250) $ (18,182) Add back - Income tax benefit (1,471) (16,061) Loss before income taxes $ (18,721) $
Slide 6: Q3 - Fiscal 2019 Summary - Retail Pharmacy Segment
Q3 - FISCAL 2019 SUMMARY - RETAIL PHARMACY SEGMENT 8 ($ in millions) (1) Refer to slides 10 and 11 for the reconciliations of these non-GAAP measures to their applicable GAAP measures. Q2 - Fiscal 2017 Summary RETAIL PHARMACY SEGMENT ($ in millions) 13 Weeks Ended Dec. 1, 2018 13 Weeks Ended Dec. 2,
Slide 7: Q3 - Fiscal 2019 Summary – Retail Pharmacy Segment
Retail Pharmacy Segment revenue increased $17.7 million. Same store sales increased 1.6%, driven primarily by a 2.4% increase in same store script count. Adjusted EBITDA Gross Profit decreased $10.7 million and Adjusted EBITDA Gross Margin decreased by 40 bps. Pharmacy gross profit increased due to
Slide 8: Reconciliation of Adjusted EBITDA Gross Profit - Retail Pharmacy Segment
RECONCILIATION OF ADJUSTED EBITDA GROSS PROFIT - RETAIL PHARMACY SEGMENT 10 ($ in thousands)
Slide 9: Reconciliation of Adjusted EBITDA SG&A - Retail Pharmacy Segment
RECONCILIATION OF ADJUSTED EBITDA SG&A - RETAIL PHARMACY SEGMENT 11 ($ in thousands) Reconciliation of Adjusted EBITDA SG&A Retail Pharmacy Segment ($ in thousands) 13 Weeks Ended Dec. 1, 2018 13 Weeks Ended Dec. 2, 2017 Total Revenues $ 3,976,719 $ 3,959,002 Selling, general and administrative expe
Slide 10: Pharmacy Services Segment Results
PHARMACY SERVICES SEGMENT RESULTS 12 ($ in millions) Pharmacy Services Segment Results ($ in millions) 13 Weeks Ended Dec. 1, 2018 13 Weeks Ended Dec. 2, 2017 Revenues $ 1,525.8 $ 1,445.1 Cost of Revenues 1,423.3 1,346.3 Gross Profit 102.5 98.8 Selling, General and Administrative Expense (80.0) (79.
Slide 11: Q3 - FY 2019 Summary – Pharmacy Services Segment
Revenues increased $80.7 million, primarily due to an increase in our Medicare Part D membership Adjusted EBITDA increased $1.2 million, primarily due to our increased Medicare Part D membership, partially offset by margin compression in our commercial business and SG&A investments we have made to s
Slide 12: Comparable Store Sales Growth
FY 2018 FY 2016 FY 2017 Front End Sales Rx Sales COMPARABLE STORE SALES GROWTH 14 Script Count (1) (1) Script count growth shown on a 30-day equivalent basis. FY 2019 5.0% 3.3% 1.8% 0.5% 0.4% - 3.4% - 4.0% - 4.7% - 5.5% - 4.9% - 3.5% - 2.3% - 0.1% 1.6% 3.1% 0.9% 0.8% 0.7% 0.1% 1.5% 0.5% 0.1% 0.1% -
Slide 13: Capitalization Table
CAPITALIZATION TABLE 15 ($ in thousands) Note: Debt in the capitalization table is shown net of unamortized debt issuance costs. Capitalization Table & Leverage ($ in thousands) December 1, 2018 March 3, 2018 Secured Debt: Senior secured revolving credit facility due January 2020 $ 1,237,993 $ (13,0
Slide 14: Pro Forma Leverage Ratio
PRO FORMA LEVERAGE RATIO 16 ($ in thousands) FY 2018 Debt Table (Dollars in thousands) December 2, 2017 Secured Debt: Senior secured revolving credit facility due January 2020 ($1,925,000 and $2,430,000 face value less unamortized debt issuance costs of $18,308 and $24,918) $ 1,906,692 Tranche 1 Ter
Slide 15: FY 2019 Guidance
FY 2019 GUIDANCE 17 ($ in thousands) RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RECONCILIATION OF NET LOSS GUIDANCE TO ADJUSTED EBITDA GUIDANCE YEAR ENDING MARCH 2, 2019 (In thousands, except per share amounts) (unaudited) Guidance Range Low High Total Revenues $ 21,800,000 $ 21,
Slide 16: FY 2019 Guidance (cont.)
FY 2019 GUIDANCE (cont.) 18 ($ in thousands, except per share amounts) RITE AID CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION RECONCILIATION OF NET LOSS GUIDANCE TO ADJUSTED NET INCOME GUIDANCE YEAR ENDING MARCH 2, 2019 (In thousands, except per share amounts) (unaudited) Guidance Range Low
Slide 17: FY 2019 Guidance (cont.)
FY 2019 GUIDANCE (cont.) (Sin thousands, except per share amounts) Guidance Range Low High Net loss $ (485,000) $_~—_(465,000) ‘Add back - Income tax benefit (240,000) (235,000) ‘Loss before income taxes (625,000) (600,000) Adjustments: ‘Amortization expense 120,000 120,000 UFO charge 35,000 35,000,
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