Rite Aid — Q4 FY2022 Earnings Presentation
24 slides from Rite Aid's earnings presentation, Apr 14, 2022
Slide 1: 4th Quarter Fiscal 2022 Earnings Conference Call
4th QUARTER FISCAL 2022 Earnings Conference Call Heyward Donigan Chief Executive Officer Matt Schroeder Chief Financial Officer 4/14/2022
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 statements include, but are not limited to, statements regarding
Slide 3: 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 4: FY2022 Financial Review
4 FY2022 FINANCIAL REVIEW
Slide 5: FY2022 at a Glance
FY2022 at a Glance $525M • Increase in total revenues yoy 16% • Growth in Adjusted EBITDA yoy 12% • Growth in pharmacy sales 5 14.3M 3.6M $212M • E nded the year with over $1.9B in liquidity • Received an upgrade to our corporate credit rating by both Moody’s and Standard and Poor’s • No debt maturi
Slide 6: Q4 FY2022 at a Glance
Q4 FY2022 at a Glance • 2.5% Increase in total revenues • $106M Adjusted EBITDA* • 157% Growth in Adjusted EBITDA* • 8.7% Increase in number of prescriptions filled (adjusted to 30 - day equivalents) • 3.2% Increase FE same store sales (excluding tobacco) 6 *Adjusted EBITDA reconciliation located in
Slide 7: Key Fourth Quarter FY2022 Highlights
Key Fourth Quarter FY2022 Highlights 7 Retail Pharmacy: • 7.8 % total growth in retail revenues • $102.4M Adjusted EBITDA • Same store sales increased 8.3% • Acute prescription count increased 9% on a same store basis when excluding COVID - 19 vaccinations • Maintenance prescription count increased
Slide 8: FY2023 Guidance
8 FY2023 GUIDANCE
Slide 9: FY2023 Guidance
9 FY2023 Guidance • $23.1B - $23.5B Total revenues • $460M – $500M Adjusted EBITDA • ($210M) – ($167M) Net loss • ($1.06) – ($0.53) Diluted adjusted net loss per share • ~$250M Capital expenditures
Slide 10: FY2023 Key Takeaways
10 10 FY2023 Key Takeaways • $320M - $350M Adjusted EBITDA retail pharmacy • $140M - $150M Adjusted EBITDA Elixir • $145M Retail pharmacy SG&A savings ▪ 145 store closures will drive an incremental EBITDA contribution of $60M in FY 23 ▪ Corporate admin efficiencies will drive a $40M benefit • $25M E
Slide 11: Appendix
11 APPENDIX
Slide 12: Q4 Fiscal 2022 Summary
12 Q4 Fiscal 2022 Summary ($ in millions, except per share amounts) 13 Weeks Ended February 26, 2022 13 Weeks Ended February 27 , 2021 Revenues $ 6,065.4 $ 5,916.9 Net loss per Diluted Share $ (7.18) $ (0.34) Adjusted net loss per Diluted Share $ (1.63) $ ( 0 .78) Adjusted EBITDA $ 106.1 1.75% $ 41.
Slide 13: Q4 Fiscal 2022 Reconciliation of Net Loss to Adjusted EBITDA
13 13 Weeks Ended February 26, 2022 13 Weeks Ended February 27, 2021 Net loss $ (389,062) $ (18,495) Adjustments: • Interest expense 46,094 49,999 • Income tax benefit (6,695) (12,623) • Depreciation and amortization 72,995 77,568 • LIFO charge ( credit) 414 (21,389) • Facility exit and impairment c
Slide 14: Q4 Fiscal 2022 Reconciliation of Net Loss to Adjusted Net Loss
14 13 Weeks Ended February 26, 2022 13 Weeks Ended February 27, 2021 Net loss $ (389,062) $ (18 ,495) Add back - Income tax benefit (6,695) (12,623) Loss before income taxes $ (395,757) $ (31,118) Adjustments: Amortization expense 18,854 20,669 LIFO charge (credit) 414 (21,389) Goodwill and intangib
Slide 15: Q4 Fiscal 2022 Summary – Retail Pharmacy Segment
15 Revenues $ 4,433.4 $ 4,114.5 Adjusted EBITDA Gross Profit (1) $ 1,185.1 26.73% $ 1,009.0 24.52% Adjusted EBITDA SG&A (1) $ 1,082 .7 24.42% $ 1,003.0 24.38% Adjusted EBITDA $ 102.4 2.31% $ 6.0 0.15% Q4 - Fiscal 2022 Summary – Retail Pharmacy Segment ($ in millions) (1) Refer to slides 16 and 17 fo
Slide 16: Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment
16 Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment ($ in millions) 13 Weeks Ended February 26, 2022 13 Weeks Ended February 27, 2021 Revenues $ 4,433.4 $ 4,114.5 Gross Profit 1,178.5 1,032.6 Addback: LIFO charge (credit) 0.4 (21.4) Depreciation and amortization (COGS portion onl
Slide 17: Reconciliation of Adj. EBITDA SG&A – Retail Pharmacy Segment
17 Reconciliation of Adj. EBITDA SG&A - Retail Pharmacy Segment ($ in millions) 13 Weeks Ended February 26, 2022 13 Weeks Ended February 27 , 2021 Revenues $ 4,433.4 $ 4,114.5 Selling, general and administrative expenses 1,151.4 1,093.1 Less: Depreciation and amortization (SG&A portion only) 57.3 61
Slide 18: Pharmacy Services Segment Results
Revenues $ 1,693.8 $ 1,870.1 Cost of Revenues 1,631.0 1,760.2 Gross Profit 62 .8 109.9 Selling, General and Administrative Expenses (92.4) (94.5) Addback: Change in estimate related to manufacturer rebate receivables 15.1 - Depreciation and Amortization 12.3 13.8 Restructuring - related costs 5.7 5.
Slide 19: Comparable Store Sales Growth
19 Comparable Store Sales Growth - 0.9% 11.2% 7.1% 7.9% 8.7% Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 SCRIPT COUNT (1) Q4 2021 Q1 2022 Q2 2022 2.0% 8.2% 5.0% 5.9% 10.7% Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 RX SALES - 5.6% - 12% - 2.8% 0.4% 2.7% - 5.0% - 11.5% - 2.4% 1.0% 3.2% Q3 2022 FY2021 FY2022
Slide 20: Capitalization Table
Capitalization Table 20 ($ in thousands) February 26, 2022 February 27, 2021 Secured Debt: Senior secured revolving credit facility due December 2023 -$ 835,897$ FILO Term Loan due December 2023 - 447,770 Senior secured revolving credit facility due August 2026 690,990 - FILO Term Loan due August 20
Slide 21: Leverage Ratio
21 Leverage Ratio ($ in thousands) Total Debt: $ 2,753,360 Less: Cash and cash equivalents (39,721) Net Debt $ 2,713,639 LTM Adjusted EBITDA: Retail Pharmacy Segment 392,633 Pharmacy Services Segment 113,272 LTM Adjusted EBITDA $ 505,905 Leverage Ratio 5.36 February 26, 2022
Slide 22: FY 2023 Guidance
22 FY 2023 Guidance ($ in thousands) Total Revenues $ 23,100,000 $ 23,500,000 Pharmacy Services Segment Revenues $ 5,450,000 $ 5,550,000 Gross Capital Expenditures $ 250,000 $ 250,000 Reconciliation of net loss to adjusted EBITDA: Net loss $ (210,000) $ (167,000) Adjustments: Interest expense 200,00
Slide 23: FY 2023 Guidance (cont.)
23 FY 2023 Guidance (cont.) ($ in thousands) Guidance Range Low High Net loss $ (210,000) $ (167,000) Add back - income tax benefit (15,000) (18,000) Loss before income taxes (225,000) (185,000) Adjustments: Amortization expense 71,000 71,000 LIFO charge 15,000 15,000 Restructuring - related costs 5
Slide 24: FY RITE
FY RITE as hitd elixir CRAFTED Rx SOLUTIONS eo