Rite Aid reported results for its fourth quarter ended February 26, 2022.
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For the fourth quarter, the company reported net loss from continuing operations of $389.1 million, or $7.18 loss per share, Adjusted Net Loss from continuing operations of $88.6 million, or $1.63 loss per share, and Adjusted EBITDA from continuing operations of $106.1 million, or 1.8 percent of revenues.
Revenues from continuing operations increased 2.5 percent and 2.2 percent for the thirteen and fifty-two week periods ended February 26, 2022, respectively, compared to the prior year driven by growth at the Retail Pharmacy Segment, partially offset by a decline at the Pharmacy Services Segment.
Fourth quarter net loss from continuing operations was $389.1 million, or $7.18 per share, compared to last year’s fourth quarter net loss from continuing operations of $18.5 million, or $0.34 per share.
The increase in net loss is due primarily to a current year charge of $229.0 million for the impairment of goodwill related to the Pharmacy Services Segment.
Other variance drivers include higher facility exit and impairment charges driven by the Company’s store closure decisions, a gain on sale of assets in the prior year fourth quarter resulting from the sale leasebacks of stores and distribution centers, a gain on the acquisition of Bartell Drugs in the prior year fourth quarter, and a LIFO charge in the current quarter compared to a LIFO credit in the prior year fourth quarter.
These items were partially offset by an increase in Adjusted EBITDA.
Net loss from continuing operations for the fiscal year ended February 26, 2022, was $538.5 million, or $9.96 loss per share, compared to last year’s net loss of $100.1 million, or $1.87 loss per share.
The increase in net loss is due primarily to goodwill impairment related to the Pharmacy Services Segment, higher facility exit and impairment charges, a LIFO charge in the current year compared to a LIFO credit in the prior year, higher litigation settlements, and a gain on the acquisition of Bartell Drugs in the prior year. These items were partially offset by an increase in Adjusted EBITDA and lower restructuring-related costs. ■