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News Room

Governance: we're dedicated to providing value to both our customers and our investors

To reach a member of the corporate communications department directly, members of the press are invited to call either (717) 975-5718 or (717) 975-5713. You can also find recent Rite Aid press releases below.

Rite Aid Reports Net Income of $89.7 Million and Adjusted EBITDA of $344.8 Million for First Quarter Fiscal 2014

First Quarter Net Income of $0.09 per Diluted Share, Compared to Prior First Quarter
 Net Loss of $0.03 per Diluted Share

First Quarter Adjusted EBITDA of $344.8 Million Compared to Adjusted EBITDA
 of $274.2 Million in Prior First Quarter

Expects Combined Annual Cash Interest Savings of $85 Million from the Completed February Refinancing and the Two Recently Announced Refinancings

Rite Aid Updates Fiscal 2014 Guidance to Reflect Recent Senior Notes Offer

Camp Hill, Pa. (June 20, 2013) - Rite Aid Corporation (NYSE: RAD) today reported operating results for its fiscal first quarter ended June 1, 2013. The company reported revenues of $6.3 billion, net income of $89.7 million or $0.09 per diluted share, and Adjusted EBITDA of $344.8 million, or 5.5 percent of revenues.

"We kicked off our new fiscal year by posting strong first-quarter results that reflect our continued operational and financial progress," said Rite Aid Chairman, President and CEO John Standley. "During the quarter, we generated net income for a third consecutive quarter and increased Adjusted EBITDA by more than $70 million over last year's first quarter."

"At the same time, our team's success in executing key initiatives like our wellness+ customer loyalty program, wellness store remodeling initiative and expanded pharmacy service offerings continue to drive our progress in transforming Rite Aid stores into true neighborhood destinations for health and wellness. We are pleased with our continued progress and remain focused on delivering the best products, service and care to meet our customers' unique wellness needs."

First Quarter Summary

Revenues for the 13-week quarter were $6.3 billion versus revenues of $6.5 billion in the prior year first quarter. Revenues decreased 2.7 percent primarily due to the impact of lower cost generics on pharmacy same store sales.

Same store sales for the quarter decreased 2.5 percent over the prior year 13-week period, consisting of a 3.8 percent decrease in pharmacy sales, partially offset by a 0.4 percent increase in front end sales. Pharmacy sales included an approximate 458 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores decreased 0.1 percent over the prior year period. Prescription sales accounted for 67.5 percent of total drugstore sales, and third party prescription revenue was 97.0 percent of pharmacy sales.

Net income was $89.7 million or $0.09 per diluted share compared to last year's first quarter net loss of $28.1 million or $0.03 per diluted share. The improvement in net income resulted primarily from an increase in Adjusted EBITDA and decreases in interest and debt retirement expenses.

Adjusted EBITDA (which is reconciled to net income/loss on the attached table) was $344.8 million or 5.5 percent of revenues for the first quarter compared to $274.2 million or 4.2 percent of revenues for the like period last year. The improvement in Adjusted EBITDA was largely driven by the continued benefit of new generic introductions on pharmacy gross margin, improved front-end gross margin and continued strong expense control. Prior-year first-quarter results also included a $20.9 million charge for a settlement of a series of wage and hour class action lawsuits.

In the first quarter, the company remodeled 108 stores, bringing the total number of wellness stores chainwide to 905. The company closed eight stores, resulting in a total store count of 4,615 at the end of the first quarter.

Refinancing Transactions

In February 2013, Rite Aid announced the completion of a refinancing of its revolving credit facility and  certain first and second lien instruments. In June 2013, Rite Aid commenced the refinancing of its 7.5% second lien notes due 2017, which is expected to close on June 21 and its 9.5% senior notes due 2017, which is expected to close on July 2. These refinancings will extend debt maturities to 2018 and beyond and are expected to result in annual cash interest savings of $85 million.

Rite Aid Updates Earnings Guidance to Reflect Recent Senior Notes Offer

Rite Aid has confirmed its fiscal 2014 guidance for sales, same store sales and Adjusted EBITDA, which was updated on June 7, 2013. Sales are expected to be between $24.9 billion and $25.3 billion and same store sales to range from a decrease of 0.75 percent to an increase of 0.75 percent compared to fiscal 2013. Adjusted EBITDA (which is reconciled to net income/loss on the attached table) guidance is expected to be between $1.090 billion and $1.175 billion and net income is expected to be between $22.0 million or $0.01 per diluted share and $162.0 million or $0.16 per diluted share. The net income guidance reflects the anticipated charge from Rite Aid's recently announced refinancing transactions, as well as the interest savings from those transactions. Capital expenditures are expected to be $400 million.

Conference Call Broadcast

Rite Aid will hold an analyst call at 8:30 a.m. EDT today with remarks by Rite Aid's management team. The call will be simulcast via the internet and can be accessed through the websites in the conference call section of investor information and Slides related to materials discussed on the call will be available on both sites. A playback of the call will be available on both sites starting at 12 p.m. EDT today. A playback of the call will also be available by telephone beginning at 12 p.m. EDT today until 11:59 p.m. EDT on June 22, 2013. The playback number is 1-855-859-2056 from within the U.S. and Canada or 1-404-537-3406 from outside the U.S. and Canada with the eight-digit reservation number 91891667.

Rite Aid is one of the nation's leading drugstore chains with 4,615 stores in 31 states and the District of Columbia. Information about Rite Aid, including corporate background and press releases, is available through Rite Aid's website at

Statements, including guidance, 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. 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, our high level of indebtedness and our ability to make interest and principal payments on our debt and satisfy the other covenants contained in our debt agreements, general economic, market and competitive conditions, our ability to improve the operating performance of our stores in accordance with our long term strategy, the efforts of private and public third-party payers to reduce prescription drug reimbursements and encourage mail order, our ability to manage expenses and our investments in working capital, outcomes of legal and regulatory matters and changes in legislation or regulations, including healthcare reform. These and other risks, assumptions and uncertainties are 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, which you are encouraged to read. 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 place undue reliance on these forward-looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention 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.

See the attached table for a reconciliation of a non-GAAP financial measure, Adjusted EBITDA to net income (loss), the most comparable GAAP financial measure. We define Adjusted EBITDA as net income (loss) excluding the impact of income taxes (and any corresponding adjustments to tax indemnification asset), interest expense, depreciation and amortization, LIFO adjustments, charges or credits for facility closing and impairment, inventory write-downs related to store closings, stock-based compensation expense, debt retirements, sale of assets and investments, revenue deferrals related to our customer loyalty program and other items.


 Click Here for 1st Quarter Results Detail



Investors: - - 717-975-3710, Matt Schroeder 717-214-8867 or

Media: Susan Henderson 717-730-7766