Second-quarter fiscal 2010 results announced by Rite Aid

Rite Aid Corporation (NYSE: RAD) today reported revenues of $6.3 billion and a net loss of $116.0 million or $.14 per diluted share for its fiscal second quarter ended August 29, 2009. Adjusted EBITDA was $216.5 million or 3.4 percent of revenues.

Second Quarter Highlights

• Both pharmacy same store sales and the number of prescriptions filled continued to increase, by 0.8 percent and 1.4 percent respectively. A 274 basis point increase in generic dispensing year over year negatively impacted sales.
• Significant reduction in selling, general and administrative expenses as a percent of sales continued with SG&A 135 basis points lower than last year’s second quarter.
• Significant progress made in reducing inventory continued with FIFO inventory $351.1 million lower year over year.
• Liquidity remained strong with $822.3 million of availability on the company’s credit and accounts receivable facilities at quarter end.

“We again made significant progress on many of our key initiatives, reducing both SG&A and controlling inventory, and finished the quarter with strong liquidity. We increased the number of prescriptions filled, but our pharmacy results were negatively impacted by additional pressure on pharmacy margins. A more discount-driven customer buying more items on sale continued to have a negative impact on front end results.

“Because we expect these negative trends and a tough economy to continue throughout the second half of the year, we have lowered our outlook for fiscal 2010. We’re focusing on growing profitable sales and will continue to control expenses. We expect liquidity to remain strong,” she said.