looks good to me
Rite Aid Announces Fourth Quarter Results; Achieves EBITDA of $179.2 Million or 4.4 Percent of Sales; Company Completes Private Exchanges of Common Stock for $219.4 Million of Debt
BUSINESS WIRE - May 08, 2001 09:16
CAMP HILL, Pa., May 8, 2001 (BUSINESS WIRE) -- Rite Aid Corporation (NYSE, PSE:RAD) today announced financial results for its fourth quarter, ended March 3, 2001.
Revenues for the 14-week quarter were $4.1 billion, up from $3.5 billion in the 13-week period a year ago. Compared to the same 14-week period a year ago, sales increased 8.3 percent from $3.8 billion.
Same store sales increased 10.6 percent during the fourth quarter as compared to the year-ago period, reflecting prescription sales growth of 12.7 percent and a 7.7 percent increase in front-end same-store sales. Prescription revenue accounted for 58.8 percent of total drugstore sales, and third party prescription sales represented 90.9 percent of total pharmacy sales.
Fourth quarter earnings before interest, taxes, depreciation, amortization and non-recurring expenses (EBITDA) amounted to $179.2 million. Excluding non-operating income of $7.8 million received in the fourth quarter from the settlement of litigation with certain drug manufacturers, EBITDA was $171.4 million. Excluding non-operating income, EBITDA was 4.2 percent of sales for the fourth quarter as compared to EBITDA of 3.4 percent of sales in the third quarter.
"Our associates have made dramatic improvements in the operation of our stores as part of our turnaround plan," said Mary Sammons, Rite Aid president and chief operating officer. "These improvements have resulted in strong fourth quarter sales gains and continuing increases in EBITDA."
Interest expense for the quarter was $150.1 million, consisting of $140.6 million of interest on indebtedness and capital lease obligations and $9.5 million of non-cash interest from amortization of debt issue costs and the accretion of interest on closed stores and other reserves.
Net loss from continuing operations for the fourth quarter was $362.1 million or a loss per share of $1.07 compared to a net loss from continuing operations of $730.6 million or a loss per share of $2.82 in the year-ago period. The net loss from continuing operations would have been $75.7 million or a loss per share of $0.22 without non-cash and one-time charges of $280.9 million and the $7.8 million litigation settlement received. Non-cash charges included $207.0 million for store closings and impairment, $38.2 million for stock-based compensation, an $18.3 million LIFO charge on inventory, $8.5 million related to debt for equity exchanges and $6.1 million from the company's share of drugstore.com's losses. The company reported a cash charge of $8.7 million for accounting and legal fees resulting from the restatement of the company's historical financial statements.
During the quarter, the Company opened 4 new stores, relocated 4 stores and closed 98 stores. Stores in operation at the end of the quarter totaled 3,648.
Year-End Results
For the fiscal year ended March 3, 2001, Rite Aid had drugstore revenues of $14.5 billion as compared to drugstore revenues of $13.3 billion for the 52 weeks in the year prior.
Same store sales increased 9.1 percent for the 53-week period compared to the prior fiscal year, reflecting prescription sales growth of 10.9 percent and a 6.5 increase in front-end same-store sales. Prescription revenue accounted for 59.6 percent of total drugstore sales, and third party prescription revenue represented 90.3 percent of pharmacy sales.
For the fiscal year ended March 3, 2001, Rite Aid reported a net loss from continuing operations of $1.4 billion or a loss per share of $5.15 compared to a net loss from continuing operations of $1.1 billion or a loss per share of $4.34 for fiscal year 2000. Included in the fiscal 2001 net loss from continuing operations were non-cash charges of $645.8 million, including $415.3 million for store closings and impairment, $100.6 million related to debt for equity exchanges, $48.9 million for stock-based compensation, a $40.7 million LIFO charge on inventory and $36.7 million for the company's share of drugstore.com's losses.
During fiscal year 2001, the Company reported $473.2 million of EBITDA.
Further Debt Reduction
Rite Aid also announced that since fiscal year end, it completed and has contracted to complete private exchanges of its common stock for $219.4 million of its debt, primarily bank debt and 10.5% notes due in 2002. The company also said that it reduced debt by approximately $157.6 million in the fourth quarter of fiscal 2001 by retiring $76.9 million principal amount of its 6.7% notes due in December, 2000; applying $34.5 million received from the final accounting of the sale of PCS Health Systems, Inc.; and from $42.5 million of private exchanges of common stock for debt.
These are in addition to the debt reductions of approximately $763.5 million announced in March. At that time Rite Aid reduced debt with $284.2 million in proceeds from the sale of AdvancePCS common stock and with $200 million from the repayment by AdvancePCS of senior subordinated notes, both of which it received in October, 2000, when PCS was sold, and the exchange of approximately $279.3 million of debt for common stock upon completion of a public tender offer.
"In addition to the improvement in our operations, we are pleased by the substantial reduction in our debt," said Bob Miller, Rite Aid chairman and chief executive officer. "Both have placed the company in a better position to refinance its debt obligations due in August and September 2002."
The company estimated that the debt reductions since the start of the fourth quarter, fiscal 2001 will reduce annual cash interest costs by approximately $85 million. |
