Rite Aid — Q4 FY2017 Earnings Presentation
17 slides from Rite Aid's earnings presentation, Apr 25, 2017
Slide 1: Q4 Fiscal 2017 Supplemental Information
PHARMACY With us, its personal. 4*n QUARTER FISCAL 2017 SUPPLEMENTAL INFORMATION April 25, 2017
Slide 2: Safe Harbor Statement
Investors are urged to review Rite Aid’s SEC filings. Statements, estimates, targets and other information included herein might be considered forward-looking. These statements and estimates are based upon various assumptions that may not prove to be correct. Such assumptions are inherently subject
Slide 3: Reconciliation of Non-GAAP Financial Measures
The company separately reports financial results on the basis of Adjusted Net Income, Adjusted Net Income per diluted share, and Adjusted EBITDA, which are non-GAAP financial measures. The company uses these non-GAAP measures in assessing its performance in addition to net income, the most directly
Slide 4: Q4 Fiscal 2017 Summary
Revenue $ 8,541.4 $ 8,270.1 Net (Loss) / Income $ (21.1) $ 65.6 Net (Loss) / Income per Diluted Share $ (0.02) $ 0.06 Adjusted Net (Loss) / Income $ (3.2) $ 73.8 Adjusted Net (Loss) / Income per Diluted Share $ (0.00) $ 0.07 Adjusted EBITDA $ 264.3 3.09% $ 383.0 4.63% 14 Weeks Ended March 4, 2017 13
Slide 5: Q4 Fiscal 2017 Reconciliation of Net Income to Adjusted EBITDA
Q4 - Fiscal 2017 Reconciliation of Net Income to Adjusted EBITDA ($ in thousands) 14 Weeks Ended March 4, 2017 13 Weeks Ended February 27, 2016 Net (Loss) / Income $ (21,142) $ 65,617 Adjustments: Interest expense 115,181 103,678 Income tax expense 33,157 61,925 Income tax valuation allowance increa
Slide 6: Q4 Fiscal 2017 Reconciliation of Net Income to Adjusted Net Income
Q4 - Fiscal 2017 Reconciliation of Net Income to Adjusted Net Income ($ in thousands, except per share amounts) 14 Weeks Ended March 4, 2017 13 Weeks Ended February 27, 2016 Net (Loss) / Income $ (21,142) $ 65,617 Add back - Income tax expense 47,860 35,567 Income before income taxes 26,718 101,184
Slide 7: Q4 Fiscal 2017 Summary Retail Pharmacy Segment
Q4 - Fiscal 2017 Summary RETAIL PHARMACY SEGMENT ($ in millions) Revenue $ 7,120.4 $ 6,827.0 Adjusted EBITDA Gross Profit(1) $ 1,920.0 26.96% $ 1,955.7 28.65% Adjusted EBITDA SG&A(1) $ 1,700.3 23.88% $ 1,606.9 23.54% Adjusted EBITDA $ 219.7 3.09% $ 348.8 5.11% 14 Weeks Ended March 4, 2017 13 Weeks E
Slide 8: Q4 Fiscal 2017 Summary Retail Pharmacy Segment
Q4 - Fiscal 2017 Summary RETAIL PHARMACY SEGMENT Retail Pharmacy Segment revenue increased $293.4 million or 4.3%, due to the extra week in Q4 Fiscal 2017, partially offset by a 0.3% decrease in comparable script growth, a decrease in reimbursement rates and a 0.3% decrease in same store front end s
Slide 9: Reconciliation of Adjusted EBITDA Gross Profit Retail Pharmacy Segment
Reconciliation of Adjusted EBITDA Gross Profit RETAIL PHARMACY SEGMENT ($ in thousands) 14 Weeks Ended March 4, 2017 13 Weeks Ended February 27, 2016 Revenues $ 7,120,364 $ 6,826,984 Gross Profit 1,964,814 1,953,500 Addback: LIFO credit (47,881) (6,796) Customer loyalty card program revenue deferral
Slide 10: Reconciliation of Adjusted EBITDA SG&A Retail Pharmacy Segment
Reconciliation of Adjusted EBITDA SG&A RETAIL PHARMACY SEGMENT ($ in thousands) 14 Weeks Ended March 4, 2017 13 Weeks Ended February 27, 2016 Total Revenues $ 7,120,364 $ 6,826,984 Selling, general and administrative expenses 1,815,699 1,737,759 Less: Depreciation and amortization (SG&A portion only
Slide 11: Pharmacy Services Segment Results
Pharmacy Services Segment Results ($ in millions) 14 Weeks Ended March 4, 2017 13 Weeks Ended February 27, 2016 Revenues $ 1,510.8 $ 1,530.7 Cost of Revenues 1,407.5 1,442.7 Gross Profit 103.3 88.0 Selling, General and Administrative Expense (81.3) (72.5) Addback: Depreciation and Amortization 22.6
Slide 12: Q4 FY 2017 Summary Pharmacy Services Segment
Q4 - FY 2017 Summary PHARMACY SERVICES SEGMENT Revenues decreased $19.9 million – increases in PBM covered lives were offset by a decrease in covered lives at Envision Insurance Company Gross profit increased $15.3 million due to increases in rebate income Selling, general and administrative expense
Slide 13: Comparable Store Sales Growth
FY 16 FY 17 FRONT END SALES RX SALES SCRIPT COUNT FY 15 0.0% 1.1% 1.6% 2.0% 0.6% 0.3% 0.3% -0.4% 1.2% 0.1% -0.4% -0.3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 4.6% 5.6% 7.2% 5.7% 3.9% 2.8% 1.2% -0.8% 0.1% -3.6% -4.7% -4.3% Comparable Store Sales Growth 2.3% 3.7% 4.5% 3.5% 1.6% 0.2% 0.2% 0.1% 2.1% -0.4%
Slide 14: Wellness Store Renovations
Wellness Store Renovations Comp results for Wellness stores continue to exceed the chain average(1) .. Front-end sales growth outperformance of 142 bps in Q4 of Fiscal 2017 .. Script count growth outperformance of 143 bps in Q4 of Fiscal 2017 274 797 1,215 1,634 2,042 2,418 FY 2012 FY 2013 FY 2014 F
Slide 15: Capitalization Table & Leverage
Capitalization Table & Leverage ($ in thousands) Note: Debt in the capitalization table is shown net of unamortized debt issuance costs. March 4, 2017 February 27, 2016 Secured Debt: Senior secured revolving credit facility due January 2020 $ 2,405,082 $ 2 ,066,097 Tranche 1 Term Loan (second lien)
Slide 16: Debt Maturity Profile
Debt Maturity Profile Maturity table as of March 4, 2017. Note: Maturities reflect calendar year. $2,405 $1,295 $295 $128 $470 $500 $902 $810 $1,800 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 2016 2017 2018 2019 2020 2021 2022 2023 . . . . . . 2027 2028 ($ in milli
Slide 17: Pharmacy: With us, it's personal
PHARMACY With us, its personal.