Rite Aid — Q1 2023 Earnings Presentation
24 slides from Rite Aid's earnings presentation, Jun 23, 2022
Slide 1: First Quarter Fiscal 2023 Earnings Conference Call
FIRST QUARTER FISCAL 2023 Heyward Donigan Chief Executive Officer Matt Schroeder Chief Financial Officer Earnings Conference Call 6/23/2022
Slide 2: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements 10 Deepen Grow by Driven Initiatives in Core Areas Create Leverage Assets to Develop New Offering 2 Statements in this presentation that are not historical, are forward - looking statements made pursuant to the safe harbor provisions of the P
Slide 3: Non-GAAP Financial Measures
10 Deepen Grow by Driven Initiatives in Core Areas Create Leverage Assets to Develop New Offering 3 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
Slide 4: Q1 FY2023 Financial Review
Q1 FY2023 FINANCIAL REVIEW
Slide 5: First Quarter FY2023 at a Glance
First Quarter FY2023 at a Glance 5 • * Adjusted EBITDA reconciliation located in the Appendix • $6.01B Total revenues • $ 100.1 M Adjusted EBITDA* • 11.9% Acute scripts increased (excluding COVID) • 0.9% Increase in number of prescriptions filled (adjusted to 30 - day equivalents) • Launched $150M t
Slide 6: Key First Quarter FY2023 Highlights
Key First Quarter FY2023 Highlights 10 Create Leverage Assets to Develop New Offering 6 Retail Pharmacy: • $4.35B in retail revenues • $73.7M Adjusted EBITDA • Same store sales increased 4.6% • Same store pharmacy sales increased 6.6% • Same store maintenance scripts increased 1.4% • New beauty asso
Slide 7: Vectors to Drive Growth
DEEPEN our market share and grow our current businesses CREATE new offerings that leverage our portfolio to meet the needs of customers and s takeholders EXPAND our offerings into new markets Vectors to Drive Growth 7
Slide 8: Key Growth Initiatives
Key Growth Initiatives 10 Deepen Grow by Driven Initiatives in Core Areas • Improve adherence: • Goal of 1% increase in key areas such as diabetes, etc. • A 1% increase would drive a $20M improvement in gross profit • Digital: • Expand 3 rd party marketplace, delivery and BOPS • Digital revenue grew
Slide 9: Guidance
GUIDANCE
Slide 10: Updated FY2023 Guidance
Updated FY2023 Guidance • $23.6B - $24.0B Total revenues • $460M – $500M Adjusted EBITDA • ($1.19) – ($0.66) Diluted adjusted net loss per share • ~$250M Capital expenditures • Expect to be free cash flow positive for the year
Slide 11: On the Rite Path For FY2023
11 11 On the Rite Path For FY2023 • Reduced Retail Pharmacy Segment Adjusted EBITDA SG&A expenses by $40M in Q1 • Closed 87 stores ahead of schedule and on track for our targeted $60M FY23 EBITDA benefit • No debt due until 2025 • Tender offer to buy back our bonds at a discounted price, which we ex
Slide 12: Appendix
APPENDIX
Slide 13: Q1 Fiscal 2023 Summary
Q1 Fiscal 2023 Summary 10 Create Leverage Assets to Develop New Offering 13 ($ in millions, except per share amounts) 13 Weeks Ended May 28, 2022 13 Weeks Ended May 29 , 2021 Revenues $ 6,014.6 $ 6,161.0 Net Loss $ (110.2) $ (13.1) Net loss per Diluted Share $ (2.03) $ (0.24) Adjusted net (loss) inc
Slide 14: Reconciliation of Net Loss to Adjusted EBITDA
Q1 - Fiscal 2023 Reconciliation of Net Loss to Adjusted EBITDA 10 Create Leverage Assets to Develop New Offering 14 ($ in thousands) 13 Weeks Ended May 28, 2022 13 Weeks Ended May 29, 2021 Net loss $ (110,191) $ (13,057) Adjustments: • Interest expense 48,119 49,121 • Income tax expense 3,497 780 •
Slide 15: Reconciliation of Net Loss to Adjusted Net (Loss) Income
Q1 - Fiscal 2023 Reconciliation of Net Loss to Adjusted Net (Loss) Income 10 Create Leverage Assets to Develop New Offering 15 ($ in thousands, except per share amounts) 13 Weeks Ended May 28, 2022 13 Weeks Ended May 29, 2021 Net loss $ (110,191) $ (13 ,057) Add back - Income tax expense 3,497 780 L
Slide 16: Q1 Fiscal 2023 Summary – Retail Pharmacy Segment
Q1 - Fiscal 2023 Summary – Retail Pharmacy Segment 10 Create Leverage Assets to Develop New Offering 16 ($ in millions) Revenues $ 4,345.4 $ 4,351.7 Adjusted EBITDA Gross Profit (1) $ 1,106.7 25.47% $ 1,168.3 26.85% Adjusted EBITDA SG&A (1) $ 1,033.0 23.77% $ 1,073.4 24.67% Adjusted EBITDA $ 73.7 1.
Slide 17: Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment
Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment 10 Create Leverage Assets to Develop New Offering 17 ($ in millions) 13 Weeks Ended May 28, 2022 13 Weeks Ended May 29, 2021 Revenues $ 4,345.4 $ 4,351.7 Gross Profit 1,097.4 1,169.9 Addback: LIFO credit - (4.0) Depreciation and am
Slide 18: Reconciliation of Adj. EBITDA SG&A – Retail Pharmacy Segment
Reconciliation of Adj. EBITDA SG&A – Retail Pharmacy Segment 10 Create Leverage Assets to Develop New Offering 18 ($ in millions) 13 Weeks Ended May 28, 2022 13 Weeks Ended May 29 , 2021 Revenues $ 4,345.4 $ 4,351.7 Selling, general and administrative expenses 1,117.2 1,156.0 Less: Depreciation and
Slide 19: Pharmacy Services Segment Results
Pharmacy Services Segment Results 10 Create Leverage Assets to Develop New Offering 19 ($ in millions) Revenues $ 1,725.9 $ 1,872.3 Cost of Revenues 1,626.5 1,757.4 Gross Profit 99 .4 114.9 Selling, General and Administrative Expenses (100.7) (89.3) Addback: Depreciation and Amortization 14.0 14.0 R
Slide 20: Comparable Store Sales Growth
Comparable Store Sales Growth 10 Create Leverage Assets to Develop New Offering 20 FY2022 FY2023 Excluding cigarette and tobacco products Q1 2022 Q2 2022 Q3 2022 8.2% 5.0% 5.9% 10.7% 6.6% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 RX SALES - 12% - 2.8% 0.4% 2.7% - 0.5% - 11.5% - 2.4% 1.0% 3.2% 0.0% Q4
Slide 21: Capitalization Table
Capitalization Table 10 Create Leverage Assets to Develop New Offering 21 ($ in thousands) May 28, 2022 February 26, 2022 Secured Debt: Senior secured revolving credit facility due August 2026 983,008$ 690,990$ FILO Term Loan due August 2026 347,789 347,656 1,330,797 1,038,646 Second Lien Secured De
Slide 22: FY 2023 Guidance
10 Expand Growth in New Markets 22 FY 2023 Guidance ($ in thousands) Total Revenues $ 23,600,000 $ 24,000,000 Pharmacy Services Segment Revenues $ 6,250,000 $ 6,350,000 Gross Capital Expenditures $ 250,000 $ 250,000 Reconciliation of net loss to adjusted EBITDA: Net loss $ (246,300) $ (203,300) Adju
Slide 23: FY 2023 Guidance (cont.)
FY 2023 Guidance (cont.) 10 Expand Growth in New Markets 23 FY 2023 Guidance ($ in thousands) Guidance Range Low High Net loss $ (246,300) $ (203,300) Add back - income tax benefit (15,000) (18,000) Loss before income taxes (261,300) (221,300) Adjustments: Amortization expense 79,000 79,000 LIFO cha
Slide 24: PARTE Oli xir
PARTE Oli xir