Rite Aid — Q4 FY2019 Earnings Presentation
21 slides from Rite Aid's earnings presentation, Apr 11, 2019
Slide 1: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Statements in this presentation that are not historical, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, stat
Slide 2: Cautionary Note Regarding Pro Forma Information
Cautionary Note Regarding Pro Forma Information The following presentation provides certain pro forma information regarding the impact of Rite Aid’s pending sale of distribution centers and assets to WBA on Rite Aid’s results of operations and capital structure. The pro forma information is for illu
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES The following presentation includes the non-GAAP financial measures, Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share, Adjusted EBITDA Gross Profit and Adjusted EBITDA SG&A. Rite Aid defines Adjusted EBITDA as net income (loss) exc
Slide 4: Refinancing Completed
On December 20, 2018, we completed the refinancing of our $2.7 billion revolving credit facility with: $2.7 billion revolving credit facility $450 million FILO term loan Refinancing extends our maturities out to 2023 and provides additional liquidity No significant changes in the facility covenants
Slide 5: Reverse Stock Split
On March 21, 2019, Rite Aid stockholders approved a reverse stock split of the Company's common stock On April 10, 2019, Rite Aid's Board of Directors approved a reverse stock split ratio of 1:20 The stock split will be effective as of the opening of trading on Monday, April 22, 2019 REVERSE STOCK S
Slide 6: Q4 - Fiscal 2019 Summary
Q4 - FISCAL 2019 SUMMARY 7 ($ in millions, except per share amounts) Note: Data on this slide and throughout the presentation is on a continuing operations basis.
Slide 7: Q4 - Fiscal 2019 Reconciliation of Net Loss to Adjusted EBITDA
Q4 - FISCAL 2019 RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA 8 ($ in thousands)
Slide 8: Q4 - Fiscal 2019 Reconciliation of Net Loss to Adjusted Net Loss
Q4 - FISCAL 2019 RECONCILIATION OF NET LOSS TO ADJUSTED NET LOSS 9 ($ in thousands, except per share amounts)
Slide 9: Q4 - Fiscal 2019 Summary - Retail Pharmacy Segment
Q4 - FISCAL 2019 SUMMARY - RETAIL PHARMACY SEGMENT 10 ($ in millions) (1) Refer to slides 12 and 13 for the reconciliations of these non-GAAP measures to their applicable GAAP measures.
Slide 10: Retail Pharmacy Segment revenue decreased $28.2 million
Retail Pharmacy Segment revenue decreased $28.2 million. Same store sales increased 0.7%, driven primarily by a 0.8% increase in same store script count. The increase in same store sales was offset by the closure of 82 stores in Fiscal 2019. Adjusted EBITDA Gross Profit decreased $54.5 million and A
Slide 11: Reconciliation of Adjusted EBITDA Gross Profit - Retail Pharmacy Segment
RECONCILIATION OF ADJUSTED EBITDA GROSS PROFIT - RETAIL PHARMACY SEGMENT 12 ($ in millions)
Slide 12: Reconciliation of Adjusted EBITDA SG&A - Retail Pharmacy Segment
RECONCILIATION OF ADJUSTED EBITDA SG&A - RETAIL PHARMACY SEGMENT 13 ($ in millions)
Slide 13: Pharmacy Services Segment Results
PHARMACY SERVICES SEGMENT RESULTS 14 ($ in millions)
Slide 14: Q4 - FY 2019 Summary - Pharmacy Services Segment
Revenues increased $17.8 million, primarily due to an increase in our Medicare Part D membership Adjusted EBITDA increased $4.5 million year-over-year, primarily due to growth in our Medicare Part D membership, partially offset by SG&A investments we have made to support our current year and future
Slide 15: Comparable Store Sales Growth
Front End Sales Rx Sales COMPARABLE STORE SALES GROWTH 16 Script Count (1) (1) Script count growth shown on a 30-day equivalent basis. FY 2016 FY 2017 FY 2018 FY 2019
Slide 16: Capitalization Table
CAPITALIZATION TABLE 17 ($ in thousands) Note: Debt in the capitalization table is shown net of unamortized debt issuance costs.
Slide 17: Pro Forma Leverage Ratio
PRO FORMA LEVERAGE RATIO 18 ($ in thousands)
Slide 18: FY 2020 Guidance
FY 2020 GUIDANCE 19 ($ in thousands)
Slide 19: FY 2020 Guidance (cont.)
FY 2020 GUIDANCE (cont.) 20 ($ in thousands, except per share amounts)
Slide 20: FY 2020 Guidance (cont.)
Y 2020 GUIDANCE (cont.) (Sin thousands, except per share amounts) jance Range High Net loss $ (170,000) ‘Add back- Income tax expense 15,000 Loss before income taxes (155,000) Adjustments: ‘Amortization expense 120,000 120,000 UFO charge 30,000 30,000 Restructuring-related costs 55,000, 35,000, ‘Adj
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