Rite Aid — Q4 FY2021 Earnings Presentation
24 slides from Rite Aid's earnings presentation, Apr 15, 2021
Slide 1: Q4 FY21 Financial Review
April 15, 2021 Heyward Donigan Chief Executive Officer Jim Peters Chief Operating Officer Matt Schroeder Chief Financial Officer
Slide 2: Cautionary Statement Regarding Forward Looking Statements
2 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,
Slide 3: Non-GAAP financial measures notice
3 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 . The Company defines Adjusted EBITDA as net income (loss) excluding the impact o
Slide 4: Slide 4
Slide 5: Q4 FY2021 at a Glance
5 $41.3M Adjusted EBITDA* 3.8% Increase in revenues at Elixir 3.3% Increase in total revenues 3.0% Growth in retail pharmacy revenues 2.0% Increase in RX same store sales *Adjusted EBITDA reconciliation located in the Appendix Q4 FY2021 at a Glance
Slide 6: Key Fourth Quarter FY2021 Highlights
6 Key Fourth Quarter FY2021 Highlights Revenue increased 3.3% Retail Pharmacy: x Increased front - end market share in both dollars and units x Digitally enabled sales increased approximately 170% x Pharmacy comparable sales increased 2.0% x Front end comparable sales decreased 5.0% (excluding tobac
Slide 7: FY2021 at a Glance
7 FY2021 at a Glance $437.7M Adjusted EBITDA 9.6% Increase in total revenues Increase in RX same store sales 21.5% Increase in revenues at Elixir 4.8% Growth in retail pharmacy revenues 3.2%
Slide 8: FY2021 Highlights
8 FY2021 Highlights x Redefined the role of the pharmacist, our customers’ expectations of them, and even their daily work flows x Rebranded our pharmacy services segment, Elixir x Introduced the new Rite Aid brand to showcase the company’s focus on delivering whole health x Implemented extensive ch
Slide 9: Continued Progress On Our Key Strategic Pillars
9 • Restructured the executive team to more closely align with an integrated Rite Aid product offering • Won a marquis health plan account with over 200,000 lives and 6 million annualized scripts • Experiencing a significant increase in the number of proposals that fall within our target market segm
Slide 10: COVID-19 Vaccine Administration
10 • Administered 500K vaccines in the fourth quarter of fiscal 2021 • Working with Pfizer, Moderna and J&J • Under the directive from the Biden Administration to prioritize educators during the month of March, Rite Aid provided more vaccinations to educators, childcare workers and support staff tha
Slide 11: FY2021 Quarterly Milestones
11 FY2021 Q1 - Hosted analyst day - Launched bond exchange offer - Introduced Rxevolution strategy - COVID testing 97 sites 48k tests per week - Hero pay program initiated - $6m donated through Rite Aid Foundation for healthcare and first responders - Created new store policies for COVID pandemic FY
Slide 12: FY 2022 First Quarter Guidance
12 Total Revenues $6.1B – $6.3B Same Store Sales (9%) – (7%) Adjusted EBITDA $115M - $140M Net (Loss)/Income ($10M) - $10M FY 2022 First Quarter Guidance
Slide 13: Appendix
APPENDIX “1.49
Slide 14: Q4 Fiscal 2021 Summary
($ in millions, except per share amounts) Q4 Fiscal 2021 Summary 14 Note: Data on this slide and throughout the presentation is on a continuing operations basis. 13 Weeks Ended February 27, 2021 13 Weeks Ended February 29, 2020 Revenues $ 5,916.9 $ 5,727.2 Net loss $ (18.5) $ (343.5) Net loss per Di
Slide 15: Reconciliation of Net Loss to Adjusted EBITDA
($ in thousands) Q 4 - Fiscal 2021 Reconciliation of Net Loss to Adjusted EBITDA 15 13 Weeks Ended February 27, 2021 13 Weeks Ended February 29, 2020 Net loss $ (18,495) $ (343,461) Adjustments: • Interest expense 49,999 53,429 • Income tax (benefit) expense (12,623) 3 51,729 • Depreciation and amor
Slide 16: Reconciliation of Net Loss to Adjusted Net Loss
($ in thousands, except per share amounts) Q4 - Fiscal 2021 Reconciliation of Net Loss to Adjusted Net Loss 16 13 Weeks Ended February 27, 2021 13 Weeks Ended February 29, 2020 Net loss $ (18,495) $ (343 ,461) Add back - Income tax (benefit) expense (12,623) 351, 729 (Loss) income before income taxe
Slide 17: Q4 Fiscal 2021 Summary – Retail Pharmacy Segment
Q4 - Fiscal 2021 Summary – Retail Pharmacy Segment 17 (1) Refer to slides 18 and 19 for the reconciliations of these non - GAAP measures to their applicable GAAP measures. ($ in millions) 13 Weeks Ended February 27, 2021 13 Weeks Ended February 29, 2020 Revenues $ 4,114.5 $ 3,993.3 Adjusted EBITDA G
Slide 18: Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment
($ in millions) Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment 18 13 Weeks Ended February 27, 2021 13 Weeks Ended February 29, 2020 Revenues $ 4,114.5 $ 3,993.3 Gross Profit 1,032.6 1,141.0 Addback: LIFO credit (21.4) (72.4) Depreciation and amortization (COGS portion only) 2.0
Slide 19: Reconciliation of Adj. EBITDA SG&A – Retail Pharmacy Segment
($ in millions) Reconciliation of Adj. EBITDA SG&A - Retail Pharmacy Segment 19 13 Weeks Ended February 27, 2021 13 Weeks Ended February 29, 2020 Revenues $ 4,114.5 $ 3,993.3 Selling, general and administrative expenses 1,093.1 1,060.5 Less: Depreciation and amortization (SG&A portion only) 61.9 62.
Slide 20: Pharmacy Services Segment Results
Pharmacy Services Segment Results 20 13 Weeks Ended February 27, 2021 13 Weeks Ended February 29, 2020 Revenues $ 1,870.1 $ 1,801.1 Cost of Revenues 1,760.2 1,675.5 Gross Profit 109 .9 125.6 Selling, General and Administrative Expenses (94.5) (93.8) Loss on sale of assets, net (9.6) (18.4) Addback:
Slide 21: Comparable Store Sales Growth, Script Count, Rx and Front End Sales
21 2.7% 2.8% 5.0% 0.4% 2.6% 3.1% - 0.9% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 SCRIPT COUNT (1) Excluding cigarette and tobacco products Comparable Store Sales Growth Q2 2020 Q4 2020 Q3 2020 (1) Script count growth shown on a 30 - day equivalent basis. Q1 2021 Q2 2021 Q3 2021 1.5% 0
Slide 22: Capitalization Table
($ in thousands) Capitalization Table 22 February 27, 2021 February 29, 2020 Secured Debt: Senior secured revolving credit facility due December 2023 835,897$ 630,833$ FILO Term Loan due December 2023 447,770 446,954 1,283,667 1,077,787 Second Lien Secured Debt: 7.5% senior secured notes due July 20
Slide 23: Leverage Ratio
($ in thousands) Leverage Ratio 23 Total Debt: $ 3,086,207 Less: Cash and cash equivalents (160,902) Net Debt $ 2,925,305 LTM Adjusted EBITDA: Retail Pharmacy Segment 279,896 Pharmacy Services Segment 157,769 LTM Adjusted EBITDA $ 437,665 Leverage Ratio 6.68 February 27, 2021
Slide 24: Crafted Rx Solutions
CRAFTED Rx SOLUTIONS