Rite Aid (RAD) Tops Q1 EPS by 34c, Revenues Beat; Withdraws FY21 Outlook Due to COVID-19 Uncertainty

Rite Aid (NYSE: RAD) reported Q1 EPS of ($0.04), $0.34 better than the analyst estimate of ($0.38). Revenue for the quarter came in at $6.11 billion versus the consensus estimate of $5.61 billion.

• First Quarter Net Loss from Continuing Operations of $72.7 Million, or $1.36 Per Share, Compared to the Prior Year First Quarter Net Loss of $99.3 Million, or $1.88 Per Share
• First Quarter Adjusted Net Loss from Continuing Operations of $2.0 Million, or $0.04 Per Share, Compared to the Prior Year First Quarter Adjusted Net Loss of $7.5 Million, or $0.14 Per Share
• First Quarter Adjusted EBITDA from Continuing Operations of $107.4 Million, Compared to the Prior Year First Quarter Adjusted EBITDA of $110.3 Million
• COVID-19 had a $30 million net negative impact on First Quarter Adjusted EBITDA
• First Quarter Revenues Increased 12.2 Percent - Strong Growth in Both Retail Pharmacy and Pharmacy Services Segments
• Launches Offer to Exchange up to $750,000,000 Aggregate Principal Amount of Outstanding 6.125% Senior Notes Due 2023 for Newly Issued 8.0% Senior Secured Notes Due 2026 and Cash
• Withdraws Fiscal 2021 Outlook Due to Uncertainty Around Ultimate Impact of COVID-19
• Expects to Generate Positive Free Cash Flow in Fiscal 2021

“I couldn’t be more proud of how our teams have worked tirelessly to support and care for our communities during these unprecedented times, while continuing to push forward in achieving our vision for the future,” said Heyward Donigan, president and chief executive officer, Rite Aid. “Our Retail Pharmacy teams responded to the COVID-19 crisis by taking immediate action to maintain our supply chain and stay in stock, enhance our digital experience, quickly implement safety measures, keep our stores open and provide outstanding service, all of which helped us drive double-digit front-end sales growth and gain retail market share. In the Pharmacy Services Segment, our full leadership team is now in place, and our team has made excellent progress in integrating the assets of EnvisionRxOptions, soon to be renamed Elixir, as we continue the integration with Rite Aid.

“There are certainly challenges brought about by COVID-19, including the decline in acute prescriptions and increased costs incurred to assure the safety of our associates and customers. No matter the challenge, we can execute our strategy and deliver day-to-day operational excellence in the face of a pandemic. I am amazed by the passion and spirit of our more than 50,000 associates, who have come to work every day driven by a desire to help customers stay healthy and demonstrating the essential role of pharmacy in our communities. Thanks to their hard work, the fundamentals of our business are strong, and we are right on track with the launch of our new RxEvolution strategy. I am excited to continue this important work as we look to become a leading mid-market PBM, unlock the value of our pharmacists and revitalize our retail and digital experiences.”

For earnings history and earnings-related data on Rite Aid (RAD) click here.

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