Rite Aid Corporation (NYSE: RAD) today reported financial results for the first quarter ended May 29, 2010.
“We increased adjusted EBITDA as a percent of sales while at the same time improved customer satisfaction ratings on both the front end and in the pharmacy. Our liquidity position remained strong, which is critically important if the economy continues to be slow to recover.”
The company reported revenues of $6.4 billion, a net loss of $73.7 million or $0.09 per diluted share and adjusted EBITDA of $249.8 million or 3.9 percent of revenues. Results benefited from a decrease in selling, general and administrative (SG&A) expenses as a percent of sales, partially offset by a decline in sales and gross margin.
"We accomplished a lot in the first quarter. Our team continued to improve operational efficiency to help offset the challenging economic and competitive environment impacting sales and margin," said Mary Sammons, Rite Aid Chairman and CEO. "We increased adjusted EBITDA as a percent of sales while at the same time improved customer satisfaction ratings on both the front end and in the pharmacy. Our liquidity position remained strong, which is critically important if the economy continues to be slow to recover."
"During the quarter, we made excellent progress on our initiatives. We nationally launched our new wellness + customer loyalty program, began immunization training that will more than triple the number of Rite Aid pharmacists able to provide vaccinations and introduced the first products in our revamped private brand program into the stores," said John Standley, Rite Aid President and Chief Operating Officer. "We expect these sales initiatives, along with the continued roll-out of our segmentation strategy, to have a significant positive impact on our business long term."
As previously announced, Standley will become Rite Aid President and CEO following the company's annual stockholder meeting today. Sammons will remain Chairman of the Board until the company's annual meeting in June 2012.
First Quarter Summary
Revenues for the 13-week quarter were $6.4 billion versus revenues of $6.5 billion in the prior year first quarter. Revenues decreased 2.1 percent as a result of store closings and a decline in same store sales.