Rite Aid Corporation (NYSE: RAD) today reported financial results for the fourth quarter and fiscal year ended February 26, 2011.
For the fourth quarter, the company reported revenues of $6.5 billion, a net loss of $205.7 million or $0.24 per diluted share and adjusted EBITDA of $215.4 million or 3.3 percent of revenues. Results were positively impacted by improving same store sales trends, a lower LIFO charge and reduced SG&A costs offset by higher lease termination and impairment charges.
"We made solid progress this quarter as our initiatives to grow sales and improve customer satisfaction gained momentum. We increased same store sales both in the front end and pharmacy and grew prescriptions in comparable stores. At the same time, our team continued to do a good job of controlling costs," said John Standley, Rite Aid president and CEO. "We are especially pleased with the growth of our wellness+ loyalty program, which now has over 36 million members. Customers and patients tell us they appreciate the great value and benefits it provides."
Fourth Quarter Summary
Revenues for the thirteen-week fourth quarter were $6.5 billion, flat to last year's fourth quarter revenues of $6.5 billion. Same store sales for the quarter increased 0.9 percent over the prior-year period, consisting of a 1.0 percent increase in the front end and a 0.8 percent increase in the pharmacy. Pharmacy sales included an approximate 226 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores increased 0.8 percent over the prior year period. Prescription sales accounted for 66.7 percent of total drugstore sales and third party prescription revenue was 96.3 percent of pharmacy sales.
The fourth quarter net loss was $205.7 million or $0.24 per diluted share compared to last year's fourth quarter net loss of $208.4 million or $0.24 per diluted share.
Adjusted EBITDA (which is reconciled to net loss on the attached table) was $215.4 million or 3.3 percent of revenues compared to $205.1 million or 3.2 percent of revenues for the like period last year.
In the fourth quarter, the company relocated 4 stores, remodeled 2 stores and closed 17 stores. Stores in operation at the end of the fourth quarter totaled 4,714.
Full Year Results
For the 52-week fiscal year ended February 26, 2011, Rite Aid had revenues of $25.2 billion compared to $25.7 billion for the 52-week prior year. Revenues declined by 1.8 percent, primarily driven by 66 net fewer stores and a decline in same store sales during the first three quarters of the year.
Same store sales for the year decreased 0.7 percent over the prior 52-week comparable period. This decrease consisted of a 0.3 percent front-end same store sales decrease and a 0.9 percent decrease in pharmacy same store sales. Pharmacy sales included an approximate 200 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores decreased 1.2 percent. Prescription sales accounted for 67.8 percent of total drugstore sales, and third party prescription revenue was 96.2 percent of pharmacy sales.