Rite Aid — Q1 FY2022 Earnings Presentation
25 slides from Rite Aid's earnings presentation, Jun 24, 2021
Slide 1: First Quarter Fiscal 2022
FIRST QUARTER FISCAL 2022 6/24/21
Slide 2: Earnings Conference Call
2 2 EARNINGS CONFERENCE CALL Heyward Donigan Chief Executive Officer Jim Peters Chief Operating Officer Matt Schroeder Chief Financial Officer
Slide 3: 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 4: 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 5: Q1 FY2022 Financial Review
5 Q1 FY2022 FINANCIAL REVIEW
Slide 6: Q1 FY2022 at a Glance
Q1 FY2022 at a Glance • $60M Improvement in n et loss • $139M Adjusted EBITDA* • 2.2% Increase in total revenues • 8% Increase in inventory turns • Administered nearly 4.7 million vaccines during first quarter of fiscal 2022 6 *Adjusted EBITDA reconciliation located in the Appendix
Slide 7: Key First Quarter FY2022 Highlights
Key First Quarter FY2022 Highlights Revenue increased 2.2% Retail Pharmacy: • 5.5% growth in retail pharmacy revenues • Pharmacy comparable sales increased 8.2% • Acute prescription sales increased 2.8%, excluding benefit from COVID vaccines • Maintenance prescription sales increased 2% on a same st
Slide 8: Continued Progress On Our Key Strategic Pillars
Continued Progress On Our Key Strategic Pillars • New clinical and analytical capabilities powered by Rite Aid and health dialog • Pushing forward with PBM market innovation • Offering virtual care rooms at Rite Aid locations for essential consultations • Refining our Go - to - Market strategies for
Slide 9: ESG Initiatives
9 ESG Initiatives Thriving Community • Diverting more than 50 K tons of recyclable materials from landfills • Second year in a row, recognized in the “Who’s Minding the Store?” retailer report card as the # 1 traditional drug store chain for its efforts to reduce or eliminate toxic chemicals from pr
Slide 10: COVID-Vaccine Update
10 COVID - 19 Vaccine Update • Administered over 6M vaccines since late last year • Continuing to address the needs of underserved communities and deliver health equity through community partnerships with schools, businesses and jurisdictional partners • Accommodating walk - ins for COVID vaccines t
Slide 11: FY 2022 Guidance at a Glance
FY 2022 Guidance at a Glance • $ 25.1B - $25.5B Total revenues • ($138M ) – ($ 175M ) Net loss • $440M - $480M Adjusted EBITDA • ($0.79) – ($0.24) Adjusted net loss • $ 300M Capital expenditures 11
Slide 12: Appendix
APPENDIX & ¢
Slide 13: Q1 Fiscal 2022 Summary
13 Q1 Fiscal 2022 Summary ($ in millions, except per share amounts) 13 Weeks Ended May 29, 2021 13 Weeks Ended May 30, 2020 Revenues $ 6,161.0 $ 6,027.4 Net loss $ (13.1) $ (72.7) Net loss per Diluted Share $ ( 0.24) $ (1.36) Adjusted Net Income (Loss) per Diluted Share $ 0 .38 $ (0 .04) Adjusted EB
Slide 14: Reconciliation of Net Loss to Adjusted EBITDA
14 13 Weeks Ended May 29, 2021 13 Weeks Ended May 30, 2020 Net loss $ (13,057) $ (72,702) Adjustments: • Interest expense 49,121 50,547 • Income tax expense (benefit) 780 (8,018) • Depreciation and amortization 75,859 79,103 • LIFO credit (3,993) (12,066) • Lease termination and impairment charges 8
Slide 15: Reconciliation of Net Loss to Adjusted Net Income (Loss)
15 13 Weeks Ended May 29, 2021 13 Weeks Ended May 30, 2020 Net loss $ (13,057) $ (72 ,702) Add back - Income tax expense ( benefit ) 780 (8,018) Loss before income taxes $ (12,277) $ (80,720) Adjustments: Amortization expense 20,460 24,420 LIFO credit (3,993) (12,066) Intangible asset impairment cha
Slide 16: Q1 Fiscal 2022 Summary – Retail Pharmacy Segment
16 Revenues $ 4,351.7 $ 4,123.3 Adjusted EBITDA Gross Profit (1) $ 1,168.3 26.85% $ 1,098.4 26.64% Adjusted EBITDA SG&A (1) $ 1,073 .4 24.67% $ 1,035.4 25.11% Adjusted EBITDA $ 94.9 2.18% $ 63.0 1.53 % Q1 - Fiscal 2022 Summary – Retail Pharmacy Segment ($ in millions) (1) Refer to slides 17 and 18 f
Slide 17: Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment
17 Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment ($ in millions) 13 Weeks Ended May 29, 2021 13 Weeks Ended May 30, 2020 Revenues $ 4,351.7 $ 4,123.3 Gross Profit 1,169.9 1,081.5 Addback: LIFO credit (4.0) (12.1) Depreciation and amortization (COGS portion only) 2.1 2.7 Restru
Slide 18: Reconciliation of Adj. EBITDA SG&A – Retail Pharmacy Segment
18 Reconciliation of Adj. EBITDA SG&A - Retail Pharmacy Segment ($ in millions) 13 Weeks Ended May 29, 2021 13 Weeks Ended May 30, 2020 Revenues $ 4,351.7 $ 4,123.3 Selling, general and administrative expenses 1,156.0 1,109.0 Less: Depreciation and amortization (SG&A portion only) 59.8 60.9 Stock -
Slide 19: Pharmacy Services Segment Results
Revenues $ 1,872.3 $ 1,977.2 Cost of Revenues 1,757.4 1,860.4 Gross Profit 114 .9 116.8 Selling, General and Administrative Expenses (89.3) (88.2) Loss on sale of assets, net (0.2) (0.6) Addback: Depreciation and Amortization 14.0 15.5 Loss on sale of assets, net 0.2 0.6 Restructuring - related cost
Slide 20: Comparable Store Sales Growth
20 Comparable Store Sales Growth 0.4% 2.6% 3.1% - 0.9% 11.2% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 SCRIPT COUNT (1) Q1 2021 Q2 2021 Q3 2021 2.2% 2.3% 6.1% 2.0% 8.2% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 RX SALES 14.2% 4.6% - 0.7% - 5.6% - 12% 16.0% 6.1% 0.3% - 5.0% - 11.5% Q4 2021 FY2021 FY2022
Slide 21: Capitalization Table
Capitalization Table 21 ($ in thousands) May 29, 2021 February 27, 2021 Secured Debt: Senior secured revolving credit facility due December 2023 876,163$ 835,897$ FILO Term Loan due December 2023 447,974 447,770 1,324,137 1,283,667 Second Lien Secured Debt: 7.5% senior secured notes due July 2025 59
Slide 22: Leverage Ratio
22 Leverage Ratio ($ in thousands) Total Debt: $ 3,037,940 Less: Cash and cash equivalents ( 118,480) Net Debt $ 2,919,460 LTM Adjusted EBITDA: Retail Pharmacy Segment 311,828 Pharmacy Services Segment 157,322 LTM Adjusted EBITDA $ 469,150 Leverage Ratio 6.22 May 29, 2021
Slide 23: FY 2022 Guidance
23 FY 2022 Guidance ($ in thousands) Total Revenues $ 25,100,000 $ 25,500,000 PBM Revenues $ 7,850,000 $ 7,950,000 Gross Capital Expenditures $ 300,000 $ 300,000 Reconciliation of net loss to adjusted EBITDA: Net loss $ ( 175,000 ) $ (138,000 ) Adjustments: Interest expense 202,000 202,000 Income ta
Slide 24: FY 2022 Guidance (cont.)
24 FY 2022 Guidance (cont.) ($ in thousands) Guidance Range Low High Net loss $ ( 175,000 ) $ (138,000 ) Add back - income tax expense - 3,000 Loss before income taxes (175,000 ) (135,000 ) Adjustments: Amortization expense 79,000 79,000 LIFO credit (16,000 ) (16,000 ) Loss on debt retirements, net
Slide 25: Crafted Rx Solutions
————-S CRAFTED Rx SOLUTIONS