Rite Aid Corporation Reports Fiscal 2023 Third Quarter Results

Rite Aid Corporation Reports Fiscal 2023 Third Quarter Results




Rite Aid Corporation Reports Fiscal 2023 Third Quarter Results

Strong Elixir earnings contribute to results

  • Revenues of $6.1 billion, Compared to Prior Year Revenues of $6.2 billion
  • Retail Comparable Same Store Prescriptions Increased 4.4 Percent – Comparable Same Store Acute Prescriptions, Excluding COVID Immunizations, Increased 8.0 Percent
  • Same Store Front-End Sales, Excluding Tobacco, Increased 2.7%
  • Net Loss per Share of $1.23, Compared to the Prior Year Net Loss per Share of $0.67
  • Adjusted Net Loss per Share of $0.14, Compared to the Prior Year Adjusted Net Income of $0.15 per Share
  • Adjusted EBITDA of $121.9 million, Compared to the Prior Year Adjusted EBITDA of $154.8 million, with Elixir growing 39% to $40.2 million from $28.9 million
  • Fiscal 2023 Adjusted EBITDA Outlook Lowered to $410 million to $440 million, and Adjusted Net Loss per Share to be between $2.18 and $1.78

PHILADELPHIA–(BUSINESS WIRE)–Rite Aid Corporation (NYSE: RAD) today reported operating results for its third fiscal quarter ended November 26, 2022.

“Our third quarter beat consensus on top and bottom line, and we’re pleased with our results at Elixir and our accelerated sales growth at retail. However, based on recent trends, we are lowering our full year guidance due to headwinds including pharmacy margin, seasonal markdowns and higher shrink,” said Heyward Donigan, president and chief executive officer. “In addition, we are kicking off a performance acceleration program, which allows us to fast-track initiatives that will improve sales, script volume and operating margins, and free up cash. We look forward to updating you on our progress at year end.”

Consolidated Third Quarter Summary

(dollars in thousands)

 

Thirteen Week Period Ended

 

Thirty-nine Week Period Ended

 

 

 

November 26,

2022

 

 

November 27,

2021

 

 

November 26,

2022

 

 

November 27,

2021

Revenues

 

$

6,083,346

 

$

6,228,880

 

$

17,998,997

 

$

18,502,865

Net loss

 

 

(67,144)

 

 

(36,058)

 

 

(508,625)

 

 

(149,416)

Adjusted EBITDA

 

 

121,916

 

 

154,793

 

 

300,595

 

 

399,830

For the third quarter, the Company reported a net loss of $67.1 million, or $1.23 loss per share, Adjusted net loss of $7.9 million, or $0.14 loss per share, and Adjusted EBITDA of $121.9 million, or 2.0 percent of revenues.

Revenues for the quarter were $6.08 billion compared to revenues of $6.23 billion in the prior year’s quarter, largely due to a reduction in revenue from COVID vaccines and testing, store closures and a planned loss of covered lives at Elixir. These items were partially offset by increases in both comparable front-end sales and non-COVID prescriptions.

Third quarter net loss was $67.1 million, or $1.23 per share, compared to last year’s third quarter net loss of $36.1 million, or $0.67 per share. The increase in net loss is due primarily to a decrease in Adjusted EBITDA, an increase in interest expense and an increase in restructuring charges. These items were partially offset by a reduction in facility exit and impairment charges.

Retail Pharmacy Segment

(dollars in thousands)

 

Thirteen Week Period Ended

 

Thirty-nine Week Period Ended

 

 

 

November 26,

2022

 

 

November 27,

2021

 

 

November 26,

2022

 

 

November 27,

2021

Revenues

 

$

4,412,232

 

$

4,432,508

 

$

12,989,379

 

$

13,061,408

Adjusted EBITDA

 

 

81,683

 

 

125,931

 

 

186,849

 

 

290,214

Retail Pharmacy Segment revenues decreased 0.5 percent over the prior year quarter, driven by a reduction in COVID vaccine and testing revenue as well as store closures, partially offset by an increase in both acute and maintenance prescriptions. Same store sales for the third quarter increased 7.5 percent over the prior year period, consisting of a 9.5 percent increase in pharmacy sales and a 2.2 percent increase in front-end sales. Front-end same store sales, excluding tobacco products, increased 2.7 percent. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, increased 4.4 percent over the prior year period. Total same store prescriptions, excluding COVID immunizations, increased 3.6 percent, with same store maintenance prescriptions increasing 2.1 percent and other same store acute prescriptions increasing 8.0 percent. Prescription sales accounted for 72.0 percent of total drugstore sales. Total store count at the end of the third quarter was 2,324.

Retail Pharmacy Segment Adjusted EBITDA was $81.7 million, or 1.9 percent of revenues, for the third quarter compared to last year’s third quarter Adjusted EBITDA of $125.9 million, or 2.8 percent of revenues. The decline in Adjusted EBITDA was due to decreased gross profit, partially offset by a decrease in selling, general and administrative (SG&A) expenses of $81.2 million. Gross profit was negatively impacted by the decline in COVID vaccinations and testing and increased shrink expense, partially offset by the increase in prescriptions filled. SG&A expenses benefited from lower payroll, occupancy, and other operating costs due to store closures and cost control initiatives.

Pharmacy Services Segment

(dollars in thousands)

 

Thirteen Week Period Ended

 

Thirty-nine Week Period Ended

 

 

 

November 26,

2022

 

 

November 27,

2021

 

 

November 26,

2022

 

 

November 27,

2021

Revenues

 

$

1,726,933

 

$

1,858,830

 

$

5,180,031

 

$

5,629,325

Adjusted EBITDA

 

 

40,233

 

 

28,862

 

 

113,746

 

 

109,616

Pharmacy Services Segment revenues were $1.7 billion for the quarter, a decrease of 7.1 percent compared to the prior year quarter. The decrease in revenues was primarily the result of a planned decrease in Elixir Insurance membership and a previously announced client loss due to industry consolidation, partially offset by increased utilization of higher cost drugs.

Pharmacy Services Segment Adjusted EBITDA was $40.2 million, or 2.3 percent of revenues, for the third quarter compared to last year’s third quarter Adjusted EBITDA of $28.9 million, or 1.6 percent of revenues. The current quarter benefitted from increased gross profit resulting from procurement economics, and reductions in SG&A expense, partially offset by the decline in revenues associated with lost clients, as mentioned above.

Outlook for Fiscal 2023

Rite Aid Corporation is narrowing its outlook for Fiscal 2023 revenues and lowering its outlook for net loss and Adjusted EBITDA.

Total revenues are expected to be between $23.7 billion and $24.0 billion in fiscal 2023. Retail Pharmacy Segment revenue is expected to be between $17.4 billion and $17.6 billion and Pharmacy Services Segment revenue is expected to be between $6.3 billion and $6.4 billion (net of any intercompany revenues to the Retail Pharmacy Segment).

Net loss is expected to be between $584 million and $551 million.

Adjusted EBITDA is expected to be between $410 million and $440 million versus prior guidance of between $450 million and $490 million, due to expectations of lower pharmacy margins, cautious consumer demand and the related impact on seasonal markdowns and continued shrink expense. Retail Pharmacy Segment Adjusted EBITDA is expected to be between $265 million and $285 million and Pharmacy Services Segment Adjusted EBITDA is expected to be between $145 million and $155 million.

Adjusted net loss per share is expected to be between $2.18 and $1.78.

Capital expenditures are expected to be approximately $225 million, with a focus on investments in digital capabilities, technology, prescription file purchases and distribution center automation.

We expect to generate positive free cash flow in Fiscal 2023.

Conference Call Broadcast

Rite Aid will hold an analyst call at 8:30 a.m. Eastern Time today with remarks by Rite Aid’s management team. The call will be broadcast via the Internet at https://investors.riteaid.com. The telephone replay will be available beginning at 12:00 p.m. Eastern Time on Wednesday, Dec. 21, 2022 and ending at 11:59 p.m. Eastern Time on Jan. 21, 2023. To access the replay of the call, telephone (800) 770-2030 or (647) 362-9199 and enter the seven-digit reservation number 9029129. The webcast replay of the call will also be available at https://investors.riteaid.com starting at 12 p.m. Eastern Time today. The playback will be available until the company’s next conference call.

About Rite Aid Corporation

Rite Aid Corporation is on the front lines of delivering healthcare services and retail products to Americans 365 days a year. Our pharmacists are uniquely positioned to engage with customers and improve their health outcomes. We provide an array of whole being health products and services for the entire family through over 2,300 retail pharmacy locations across 17 states. Through Elixir, we provide pharmacy benefits and services to millions of members nationwide. For more information, www.riteaid.com.

Cautionary Statement Regarding Forward-Looking Statements

Statements in this release 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, statements regarding Rite Aid’s outlook and guidance for fiscal 2023, including our expectation to generate positive free cash flow in fiscal 2023; the continued impact of the global coronavirus (COVID-19) pandemic on Rite Aid’s business; and any assumptions underlying any of the foregoing. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” and “will” and variations of such words and similar expressions are intended to identify such forward-looking statements.

These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to: risks related to the prolonged impact of the COVID-19 global pandemic and the emerging new variants, including the government responses thereto; the impact of COVID-19 on our workforce, operations, stores, expenses, and supply chain, and the operations or behaviors of our customers, suppliers and business partners; our ability to successfully implement our store closure program and other strategies; the impact of our high level of indebtedness, the ability to refinance such indebtedness on acceptable terms (including the impact of rising interest rates, market volatility, and continuing actions by the United States Federal Reserve) and our ability to satisfy our obligations and the other covenants contained in our debt agreements; outcome of pending or new litigation and government investigations, including related to Opioids, “usual and customary” pricing, government payer programs or other matters; our ability to monetize (and on reasonably available terms) the CMS receivable created in our Part D business; general competitive, economic, industry, market, political (including healthcare reform) and regulatory conditions (including changes to laws or regulations relating to labor or wages), including continued impacts of inflation or other pricing environment factors on our costs, liquidity and our ability to pass on price increases to our customers, including as a result of inflationary and deflationary pressures, a decline in consumer financial position, whether due to inflation or other factors, as well as other factors specific to the markets in which we operate; the impact of private and public third-party payers continued reduction in prescription drug reimbursements, new or disruptive business models or practices, and efforts to encourage mail order; our ability to manage expenses and our investments in working capital; our ability to achieve the benefits of our efforts to reduce the costs of our generic and other drugs; our ability to achieve cost savings and other benefits of our restructuring efforts within our anticipated timeframe, if at all; the outcome of our continuing efforts to monitor and comply with applicable laws, orders, regulations, policies and procedures; and our ability to partner and have relationships with health plans and health systems.

These and other risks, assumptions and uncertainties are more fully described in Item 1A (Risk Factors) of our most recent Annual Report on Form 10-K and in other documents that we file or furnish with the Securities and Exchange Commission (the “SEC”), which you are encouraged to read. To the extent that COVID-19 adversely affects our business and financial results, it may also have the effect of heightening many of such risk factors.

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to rely on these forward-looking statements, which speak only as of the date they are made.

The degree to which COVID-19 may adversely affect Rite Aid’s results and operations, including its ability to achieve its outlook for fiscal 2023 guidance, will depend on numerous evolving factors and future developments, which are highly uncertain, including, but not limited to, federal, state and local governmental policies and initiatives designed to reduce the transmission of COVID-19 and emerging new variants and how quickly and to what extent normal economic and operating conditions can resume. As a result, the impact on Rite Aid’s financial and operating results cannot be reasonably estimated with specificity at this time, but the impact could be material. Rite Aid expressly disclaims any current intention, and assumes no duty, to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

All references to “Company” and “Rite Aid” as used throughout this release refer to Rite Aid Corporation and its affiliates.

Reconciliation of Non-GAAP Financial Measures

Rite Aid separately reports financial results on the basis of 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 attached tables for a reconciliation of Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share and Adjusted EBITDA to net income (loss), and net income (loss) per diluted share, which are the most directly comparable GAAP financial measures. Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share exclude amortization expense, merger and acquisition-related costs, non-recurring litigation and other contractual settlements, gains or losses on debt modifications and retirements, LIFO adjustments, goodwill and intangible asset impairment charges, restructuring-related costs, the gain or loss on Bartell acquisition, and the change in estimate related to manufacturer rebate receivables. Rite Aid believes Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share serve as appropriate measures to be used in evaluating the performance of its business and help its investors better compare its operating performance over multiple periods.

Adjusted EBITDA is defined as net income (loss) excluding the impact of income taxes, interest expense, depreciation and amortization, LIFO adjustments, charges or credits for facility exit and impairment, goodwill and intangible asset impairment charges, inventory write-downs related to store closings, gains or losses on debt modifications and retirements, and other items (including stock-based compensation expense, merger and acquisition-related costs, non-recurring litigation and other contractual settlements, severance, restructuring-related costs, costs related to facility closures, gain or loss on sale of assets, the gain or loss on Bartell acquisition, and the change in estimate related to manufacturer rebate receivables). The add back of LIFO (credit) charge when calculating Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share removes the entire impact of LIFO (credits) charges, and effectively reflects Rite Aid’s results as if the company was on a FIFO inventory basis. Rite Aid believes Adjusted EBITDA serves as an appropriate measure in evaluating the performance of its business and helps its investors better compare its operating performance with its competitors.

Adjusted EBITDA Gross Profit includes LIFO adjustments, depreciation and amortization (COGS portion only) and other items. See the attached tables for a reconciliation of Adjusted EBITDA Gross Profit to Revenue, which is the most directly comparable GAAP financial measure. Adjusted EBITDA SG&A excludes depreciation and amortization (SG&A portion only), stock-based compensation expense, merger and acquisition-related costs, non-recurring litigation and other contractual settlements, and other items. See the attached tables for a reconciliation of Adjusted EBITDA SG&A to Revenue, which is the most directly comparable GAAP financial measure. The Company believes Adjusted EBITDA Gross Profit and Adjusted EBITDA SG&A serve as appropriate measures in evaluating the performance of its business and helps its investors better compare its operating performance with its competitors.

RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited)
 
 
November 26, 2022 February 26, 2022
ASSETS
Current assets:
Cash and cash equivalents

$

103,054

 

$

39,721

 

Accounts receivable, net

 

1,473,997

 

 

1,343,496

 

Inventories, net of LIFO reserve of $512,540 and $487,173

 

1,981,335

 

 

1,959,389

 

Prepaid expenses and other current assets

 

119,836

 

 

106,749

 

Total current assets

 

3,678,222

 

 

3,449,355

 

Property, plant and equipment, net

 

939,648

 

 

989,167

 

Operating lease right-of-use assets

 

2,622,969

 

 

2,813,535

 

Goodwill

 

626,936

 

 

879,136

 

Other intangibles, net

 

259,954

 

 

291,196

 

Deferred tax assets

 

13,938

 

 

20,071

 

Other assets

 

68,107

 

 

86,543

 

Total assets

$

8,209,774

 

$

8,529,003

 

 
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Current maturities of long-term debt and lease financing obligations

$

6,107

 

$

5,544

 

Accounts payable

 

1,454,988

 

 

1,571,261

 

Accrued salaries, wages and other current liabilities

 

799,555

 

 

780,632

 

Current portion of operating lease liabilities

 

563,490

 

 

575,651

 

Total current liabilities

 

2,824,140

 

 

2,933,088

 

Long-term debt, less current maturities

 

3,189,013

 

 

2,732,986

 

Long-term operating lease liabilities

 

2,427,836

 

 

2,597,090

 

Lease financing obligations, less current maturities

 

12,970

 

 

14,830

 

Other noncurrent liabilities

 

159,549

 

 

151,976

 

Total liabilities

 

8,613,508

 

 

8,429,970

 

 
Commitments and contingencies

 

 

 

 

Stockholders’ (deficit) equity:
Common stock

 

56,526

 

 

55,752

 

Additional paid-in capital

 

5,915,383

 

 

5,910,299

 

Accumulated deficit

 

(6,360,206

)

 

(5,851,581

)

Accumulated other comprehensive loss

 

(15,437

)

 

(15,437

)

Total stockholders’ (deficit) equity

 

(403,734

)

 

99,033

 

Total liabilities and stockholders’ (deficit) equity

$

8,209,774

 

$

8,529,003

 

RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(unaudited)
 
 
Thirteen weeks ended
November 26, 2022
Thirteen weeks ended
November 27, 2021
Revenues

$

6,083,346

 

$

6,228,880

 

Costs and expenses:
Cost of revenues

 

4,879,594

 

 

4,894,497

 

Selling, general and administrative expenses

 

1,194,546

 

 

1,276,920

 

Facility exit and impairment charges

 

22,539

 

 

47,455

 

Interest expense

 

57,416

 

 

47,794

 

Gain on sale of assets, net

 

(3,095

)

 

(5,899

)

Loss on Bartell acquisition

 

 

 

5,346

 

 

 

6,151,000

 

 

6,266,113

 

 
Loss before income taxes

 

(67,654

)

 

(37,233

)

Income tax benefit

 

(510

)

 

(1,175

)

Net loss

$

(67,144

)

$

(36,058

)

 
 
 
Basic and diluted loss per share:
 
Numerator for loss per share:
Net loss attributable to common stockholders – basic and diluted

$

(67,144

)

$

(36,058

)

 
 
 
Denominator:
Basic and diluted weighted average shares

 

54,792

 

 

54,168

 

 
 
Basic and diluted loss per share

$

(1.23

)

$

(0.67

)

RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(unaudited)
 
 
Thirty-nine weeks ended
November 26, 2022
Thirty-nine weeks ended
November 27, 2021
Revenues

$

17,998,997

 

$

18,502,865

 

Costs and expenses:
Cost of revenues

 

14,444,021

 

 

14,637,683

 

Selling, general and administrative expenses

 

3,606,028

 

 

3,790,035

 

Facility exit and impairment charges

 

134,955

 

 

67,639

 

Goodwill and intangible asset impairment charges

 

252,200

 

 

 

Interest expense

 

158,068

 

 

145,507

 

(Gain) loss on debt modifications and retirements, net

 

(41,312

)

 

3,235

 

Gain on sale of assets, net

 

(61,292

)

 

(79

)

Loss on Bartell acquisition

 

 

 

5,346

 

 

 

18,492,668

 

 

18,649,366

 

 
Loss before income taxes

 

(493,671

)

 

(146,501

)

Income tax expense

 

14,954

 

 

2,915

 

Net loss

$

(508,625

)

$

(149,416

)

 
 
 
Basic and diluted loss per share:
 
Numerator for loss per share:
Net loss attributable to common stockholders – basic and diluted

$

(508,625

)

$

(149,416

)

 
 
 
Denominator:
Basic and diluted weighted average shares

 

54,567

 

 

54,004

 

 
 
Basic and diluted loss per share

$

(9.32

)

$

(2.77

)

RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(unaudited)
 
 
Thirteen weeks ended
November 26, 2022
Thirteen weeks ended
November 27, 2021
 
 
OPERATING ACTIVITIES:
Net loss

$

(67,144

)

$

(36,058

)

Adjustments to reconcile to net cash provided by (used in) operating activities:
Depreciation and amortization

 

69,496

 

 

72,973

 

Facility exit and impairment charges

 

22,539

 

 

47,455

 

LIFO charge

 

15,246

 

 

8,886

 

Change in allowances for uncollectible accounts receivable

 

9,082

 

 

 

Gain on sale of assets, net

 

(3,095

)

 

(5,899

)

Loss on Bartell acquisition

 

 

 

5,346

 

Stock-based compensation expense

 

566

 

 

217

 

Changes in deferred taxes

 

 

 

(1,602

)

Changes in operating assets and liabilities:
Accounts receivable

 

62,041

 

 

(185,224

)

Inventories

 

29,634

 

 

(68,054

)

Accounts payable

 

(55,762

)

 

38,112

 

Operating lease right-of-use assets and operating lease liabilities

 

(22,838

)

 

(7,208

)

Other assets

 

1,935

 

 

9,761

 

Other liabilities

 

70,909

 

 

118,257

 

Net cash provided by (used in) operating activities

 

132,609

 

 

(3,038

)

INVESTING ACTIVITIES:
Payments for property, plant and equipment

 

(50,320

)

 

(39,645

)

Intangible assets acquired

 

(9,581

)

 

(9,810

)

Proceeds from dispositions of assets and investments

 

10,027

 

 

3,145

 

Proceeds from sale-leaseback transactions

 

9,908

 

 

25,605

 

Net cash used in investing activities

 

(39,966

)

 

(20,705

)

FINANCING ACTIVITIES:
Net (payments to) proceeds from revolver

 

(36,000

)

 

50,000

 

Principal payments on long-term debt

 

(1,057

)

 

(1,032

)

Change in zero balance cash accounts

 

747

 

 

(14,243

)

Payments for taxes related to net share settlement of equity awards

 

(87

)

 

(131

)

Deferred financing costs paid

 

 

 

(2,126

)

Net cash (used in) provided by financing activities

 

(36,397

)

 

32,468

 

Increase in cash and cash equivalents

 

56,246

 

 

8,725

 

Cash and cash equivalents, beginning of period

 

46,808

 

 

146,564

 

Cash and cash equivalents, end of period

$

103,054

 

$

155,289

 

RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(unaudited)
 
 
Thirty-nine weeks ended
November 26, 2022
Thirty-nine weeks ended
November 27, 2021
 
 
OPERATING ACTIVITIES:
Net loss

$

(508,625

)

$

(149,416

)

Adjustments to reconcile to net cash (used in) provided by operating activities:
Depreciation and amortization

 

208,133

 

 

222,691

 

Facility exit and impairment charges

 

134,955

 

 

67,639

 

Goodwill and intangible asset impairment charges

 

252,200

 

 

 

LIFO charge

 

25,367

 

 

900

 

Change in allowances for uncollectible accounts receivable

 

7,411

 

 

 

Gain on sale of assets, net

 

(61,292

)

 

(79

)

Loss on Bartell acquisition

 

 

 

5,346

 

Stock-based compensation expense

 

8,635

 

 

8,820

 

(Gain) loss on debt modifications and retirements, net

 

(41,312

)

 

3,235

 

Changes in deferred taxes

 

6,133

 

 

(1,602

)

Changes in operating assets and liabilities:
Accounts receivable

 

(149,632

)

 

(398,079

)

Inventories

 

(47,771

)

 

(87,150

)

Accounts payable

 

(99,105

)

 

129,436

 

Operating lease right-of-use assets and operating lease liabilities

 

(54,551

)

 

(19,517

)

Other assets

 

(8,935

)

 

34,946

 

Other liabilities

 

9,537

 

 

219,390

 

Net cash (used in) provided by operating activities

 

(318,852

)

 

36,560

 

INVESTING ACTIVITIES:
Payments for property, plant and equipment

 

(172,563

)

 

(145,001

)

Intangible assets acquired

 

(24,937

)

 

(24,289

)

Proceeds from insured loss

 

 

 

10,436

 

Proceeds from dispositions of assets and investments

 

51,030

 

 

7,821

 

Proceeds from sale-leaseback transactions

 

55,894

 

 

39,790

 

Net cash used in investing activities

 

(90,576

)

 

(111,243

)

FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt

 

 

 

350,000

 

Net proceeds from revolver

 

641,000

 

 

300,000

 

Principal payments on long-term debt

 

(153,068

)

 

(544,020

)

Change in zero balance cash accounts

 

(12,184

)

 

(15,087

)

Financing fees paid for early debt redemption

 

(881

)

 

(833

)

Payments for taxes related to net share settlement of equity awards

 

(2,106

)

 

(2,352

)

Deferred financing costs paid

 

 

 

(18,638

)

Net cash provided by financing activities

 

472,761

 

 

69,070

 

Increase (decrease) in cash and cash equivalents

 

63,333

 

 

(5,613

)

Cash and cash equivalents, beginning of period

 

39,721

 

 

160,902

 

Cash and cash equivalents, end of period

$

103,054

 

$

155,289

 

Contacts

INVESTORS:

Byron Purcell

(717) 975-3710

investor@riteaid.com

MEDIA:

Joy Errico Seusing

(203) 970-5559

press@riteaid.com

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