Rite Aid — Q1 2021 Earnings Presentation
20 slides from Rite Aid's earnings presentation, Jun 25, 2020
Slide 1: Supplemental Presentation First Quarter Fiscal 2021
June 25, 2020 Supplemental Presentation First Quarter Fiscal 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
The following presentation includes the non - GAAP financial measures, Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share, Adjusted EBITDA Gross Profit and Adjusted EBITDA SG&A . Rite Aid defines Adjusted EBITDA as net income (loss) excluding the impact of inco
Slide 4: First Quarter Adjusted EBITDA of $107.4 million
First Quarter Adjusted EBITDA of $107.4 million, lower than the prior year by $2.9 million Retail Pharmacy: • Front end comparable sales increased 16.0% ( excluding tobacco related products) • Pharmacy comparable sales increased 2.2% • Same store 30 - day equivalent prescription count grew 0.4% • Ac
Slide 5: Q1 Fiscal 2021 Summary
($ in millions, except per share amounts) Q1 Fiscal 2021 Summary 5 13 Weeks Ended May 30, 2020 13 Weeks Ended June 1, 2019 Revenues $ 6,027.4 $ 5,372.6 Net Loss $ (72.7) $ (99.3) Net Loss per Diluted Share $ (1.36) $ (1.88) Adjusted Net Loss per Diluted Share $ (0.04) $ (0.14) Adjusted EBITDA $ 107.
Slide 6: Reconciliation of Net Loss to Adjusted EBITDA
($ in thousands) Q 1 - Fiscal 2021 Reconciliation of Net Loss to Adjusted EBITDA 6 13 Weeks Ended May 30, 2020 13 Weeks Ended June 1, 2019 Net Loss $ (72,702) $ (99,339) Adjustments: Interest expense 50,547 58,270 Income tax (benefit) expense (8,018) 7,374 Depreciation and amortization 79,103 83,926
Slide 7: Reconciliation of Net Loss to Adjusted Net Loss
($ in thousands, except per share amounts) Q1 - Fiscal 2021 Reconciliation of Net Loss to Adjusted Net Loss 7 13 Weeks Ended May 30, 2020 13 Weeks Ended June 1, 2019 Net Loss $ (72,702) $ (99,339) Add back - Income tax (benefit) expense (8,018) 7,374 Loss before income taxes $ (80,720) $ (91,965) Ad
Slide 8: Q1 Fiscal 2021 Summary – Retail Pharmacy Segment
Q1 - Fiscal 2021 Summary – Retail Pharmacy Segment 8 (1) Refer to slides 10 and 11 for the reconciliations of these non - GAAP measures to their applicable GAAP measures. ($ in millions) 13 Weeks Ended May 30, 2020 13 Weeks Ended June 1, 2019 Revenues $ 4,123.3 $ 3,864.8 Adjusted EBITDA Gross Profit
Slide 9: Retail Pharmacy Segment revenue and gross profit commentary
• Retail pharmacy segment revenue was $ 258 million higher than last year’s first quarter, driven by an increase in same store sales . Same store sales increased 6 . 6 % with front end same store sales up 16 . 0 % , after excluding cigarette and tobacco sales, driven by strong results in core catego
Slide 10: Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment
($ in millions) Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment 10 13 Weeks Ended May 30, 2020 13 Weeks Ended June 1, 2019 Revenues $ 4,123.3 $ 3,864.8 Gross Profit 1,081.5 1,030.5 Addback: LIFO (credit) charge (12.1) 7.5 Depreciation and amortization (COGS portion only) 2.7 2.3
Slide 11: Reconciliation of Adj. EBITDA SG&A - Retail Pharmacy Segment
($ in millions) Reconciliation of Adj. EBITDA SG&A - Retail Pharmacy Segment 11 13 Weeks Ended May 30, 2020 13 Weeks Ended June 1, 2019 Revenues $ 4,123.3 $ 3,864.8 Selling, general and administrative expenses 1,109.0 1,071.3 Less: Depreciation and amortization (SG&A portion only) 60.9 65.0 Stock -
Slide 12: Pharmacy Services Segment Results
($ in millions) Pharmacy Services Segment Results 12 13 Weeks Ended May 30, 2020 13 Weeks Ended June 1, 2019 Revenues $ 1,977.2 $ 1,566.3 Cost of Revenues 1,860.4 1,470.1 Gross Profit 116.8 96.2 Selling, General and Administrative Expenses (88.2) (91.3) Addback: Depreciation and Amortization 15.5 16
Slide 13: Q1 FY 2021 Summary – Pharmacy Services Segment
• R evenues of $2.0 billion, which was an increase of $411 million, or 26%, due to an increase in our Medicare Part D revenues as we continue to grow our membership. • Adjusted EBITDA of $44.4 million was $ 18.1 million better than last year’s first quarter adjusted EBITDA of $26.3 million. Pharmacy
Slide 14: Comparable Store Sales Growth
Comparable Store Sales Growth 14 FRONT END SALES - 0.1% - 1.5% - 1.9% - 0.3% - 1.8% - 0.5% 0.3% - 0.6% 1.0% 1.5% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0.1% 16.0% 1.6% 3.1% 2.1% 2.3% 1.5% 0.1% 1.6% 2.2% 1.1% 2.4% 0.8% 3.7% 2.7% 2.8% 5.0% 0.4% Excluding cigarette and tobacco products (1) Script count growth shown o
Slide 15: Capitalization Table
($ in thousands) Capitalization Table 15 May 30, 2020 February 29, 2020 Secured Debt: Senior secured revolving credit facility due December 2023 $ 874,099 $ 630,833 FILO term loan due December 2023 447,158 446,954 1,321,257 1,077,787 Second Lien Secured Debt: 7.5% senior secured notes due July 2025
Slide 16: Leverage Ratio
($ in thousands) Leverage Ratio 16 May 30, 2020 Total Debt: $ 3,348,628 Less: Cash and cash equivalents (288,316) Net Debt $ 3,060,312 LTM Adjusted EBITDA: Retail Pharmacy Segment 349,409 Pharmacy Services Segment 185,847 LTM Adjusted EBITDA $ 535,256 Leverage Ratio 5.72
Slide 17: COVID Crisis Response
• Worked with the U.S. Department of Health and Human Services to be early adopters of COVID - 19 testing, launching 97 sites with the capacity to conduct more than 48,000 tests each week . • Provided additional support specific to associate pay and safety, including our Hero Pay program that ran fr
Slide 18: COVID Crisis (cont.)
COVID - 19 CRISIS (cont.) 18 • Ensured contact - less capabilities at our stores for prescription pickup and payment . • Expanded home delivery of front - end items through a new partnership with Instacart . • Launched a new telehealth service Rite Aid Virtual Care to better serve patient needs . •
Slide 19: June Update
• Increase in same store front end sales of 7.2 percent excluding cigarettes and tobacco products in the first three weeks of June due to demand for personal care, paper products and OTC medications • Same store prescription counts during the first three weeks of June increased 80 basis points over
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