Rite Aid reported operating results for its third fiscal quarter ended November 26, 2022.
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For the third quarter, Rite Aid reported a net loss of $67.1 million, or $1.23 loss per share, Adjusted net loss of $7.9 million, or $0.14 loss per share, and Adjusted EBITDA of $121.9 million, or 2.0 percent of revenues.
Rite Aid revenues for the quarter were $6.08 billion compared to revenues of $6.23 billion in the prior year’s quarter, largely due to a reduction in revenue from COVID vaccines and testing, store closures and a planned loss of covered lives at Elixir. These items were partially offset by increases in both comparable front-end sales and non-COVID prescriptions.
Third quarter net loss was $67.1 million, or $1.23 per share, compared to last year’s third quarter net loss of $36.1 million, or $0.67 per share. The increase in net loss is due primarily to a decrease in Adjusted EBITDA, an increase in interest expense and an increase in restructuring charges. These items were partially offset by a reduction in facility exit and impairment charges.
Retail Pharmacy Segment revenues decreased 0.5 percent over the prior year quarter, driven by a reduction in COVID vaccine and testing revenue as well as store closures, partially offset by an increase in both acute and maintenance prescriptions.
Same store sales for the third quarter increased 7.5 percent over the prior year period, consisting of a 9.5 percent increase in pharmacy sales and a 2.2 percent increase in front-end sales.
Front-end same store sales, excluding tobacco products, increased 2.7 percent.
The number of prescriptions filled in same stores, adjusted to 30-day equivalents, increased 4.4 percent over the prior year period. Total same store prescriptions, excluding COVID immunizations, increased 3.6 percent, with same store maintenance prescriptions increasing 2.1 percent and other same store acute prescriptions increasing 8.0 percent.
Prescription sales accounted for 72.0 percent of total drugstore sales.
Total store count at the end of the third quarter was 2,324.
Retail Pharmacy Segment Adjusted EBITDA was $81.7 million, or 1.9 percent of revenues, for the third quarter compared to last year’s third quarter Adjusted EBITDA of $125.9 million, or 2.8 percent of revenues.
The decline in Adjusted EBITDA was due to decreased gross profit, partially offset by a decrease in selling, general and administrative (SG&A) expenses of $81.2 million.
Gross profit was negatively impacted by the decline in COVID vaccinations and testing and increased shrink expense, partially offset by the increase in prescriptions filled. SG&A expenses benefited from lower payroll, occupancy, and other operating costs due to store closures and cost control initiatives. ■