Rite Aid — Q1 FY2024 Earnings Presentation
21 slides from Rite Aid's earnings presentation, Jun 29, 2023
Slide 1: Earnings conference call First Quarter Fiscal 2024
Earnings conference call Elizabeth “Busy” Burr Interim Chief Executive Officer Matt Schroeder Chief Financial Officer First Quarter Fiscal 2024 June 29, 2023
Slide 2: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Deepen Grow by Driven Initiatives in Core Areas Create Leverage Assets to Develop New Offering 2 Statements in this presentation that are not historical, are forward - looking statements made pursuant to the safe harbor provisions of the Priv
Slide 3: Non-GAAP Financial Measures
Deepen Grow by Driven Initiatives in Core Areas Create Leverage Assets to Develop New Offering Non - GAAP Financial Measures The following presentation includes the non - GAAP financial measures Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share, Adjusted EBITDA, Adjusted EBITD
Slide 4: Q1FY24 Financial Review
Q1FY24 FINANCIAL REVIEW
Slide 5: Q1 FY24 consolidated and Retail Pharmacy highlights
5 * Adjusted EBITDA reconciliation in the Appendix Consolidated : • $5.7B Total revenues • $91.7M Adjusted EBITDA* • $306.7M Net loss • Prescription sales accounted for 73.9% of total drugstore sales • $1.15B in liquidity at end of fiscal quarter • Generated proceeds of $8.2M from the sale of prescr
Slide 6: Moving Forward
Moving Forward 10 • Completed the transition of vendors for perishable consumable items, which should alleviate the pressures we saw in this category in Q1 • Continue to make o wn brands a key area of focus with launches of new products throughout the year • Collaborating with our supplier partners
Slide 7: Guidance
GUIDANCE
Slide 8: Updated FY2024 Guidance
Updated FY2024 Guidance • $22.6B - $23.0B Total revenues • $330M – $360M Adjusted EBITDA • Retail Pharmacy $240M - $260M • Elixir $90M - $100M • ($4.78) – ($4.29) Dil uted adjusted net loss per share • ~$175M Capital expenditures
Slide 9: Appendix
APPENDIX
Slide 10: Q1 Fiscal 2024 Summary
Q1 Fiscal 2024 Summary Create Leverage Assets to Develop New Offering ($ in millions, except per share amounts) 13 Weeks Ended June 3, 2023 13 Weeks Ended May 28 , 2022 Revenues $ 5,653.2 $ 6,014.6 Net Loss $ (306.7) $ (110.2) Net Loss per Diluted Share $ (5.56) $ (2.03) Adjusted Net Loss per Dilute
Slide 11: Q1 Fiscal 2024 Reconciliation of Net Loss to Adjusted EBITDA
Q1 - Fiscal 2024 Reconciliation of Net Loss to Adjusted EBITDA 11 ($ in thousands) 13 Weeks Ended June 3, 2023 13 Weeks Ended May 28, 2022 Net loss $ (306,718) $ (110,191) Adjustments: • Interest expense 65,220 48,119 • Income tax expense 1,493 3,497 • Depreciation and amortization 65,895 70,073 • L
Slide 12: Q1 Fiscal 2024 Reconciliation of Net Loss to Adjusted Net Loss
Q1 - Fiscal 2024 Reconciliation of Net Loss to Adjusted Net Loss Create Leverage Assets to Develop New Offering 12 ($ in thousands, except per share amounts) Net loss $ (306,718) $ ( 110 ,191) Add back - Income tax expense 1,493 3,497 Loss before income taxes $ (305,225) $ ( 106,694) Adjustments: Am
Slide 13: Q1 Fiscal 2024 Summary – Retail Pharmacy Segment
Q1 - Fiscal 2024 Summary – Retail Pharmacy Segment Create Leverage Assets to Develop New Offering 13 ($ in millions) Revenues $ 4,492.3 $ 4,345.4 Adjusted EBITDA Gross Profit (1) $ 1,098.3 24.45% $ 1,106.7 25.47% Adjusted EBITDA SG&A (1) $ 1,028.2 22.89% $ 1,033.0 23.77% Adjusted EBITDA $ 70.0 1.56%
Slide 14: Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment
Reconciliation of Adj. EBITDA Gross Profit – Retail Pharmacy Segment Create Leverage Assets to Develop New Offering 14 ($ in millions) 13 Weeks Ended June 3, 2023 13 Weeks Ended May 28, 2022 Revenues $ 4,492.3 $ 4,345.4 Gross Profit 1,086.9 1,097.4 Addback: LIFO charge 7.5 - Depreciation and amortiz
Slide 15: Reconciliation of Adj. EBITDA SG&A – Retail Pharmacy Segment
Reconciliation of Adj. EBITDA SG&A – Retail Pharmacy Segment Create Leverage Assets to Develop New Offering 15 ($ in millions) 13 Weeks Ended June 3, 2023 13 Weeks Ended May 28 , 2022 Revenues $ 4,492.3 $ 4,345.4 Selling, general and administrative expenses 1,172.6 1,117.2 Less: Depreciation and amo
Slide 16: Pharmacy Services Segment Results
Pharmacy Services Segment Results 16 ($ in millions) Revenues $ 1,196.2 $ 1,725.9 Cost of Revenues 1,104.5 1,626.5 Gross Profit 91 .7 99.4 Selling, General and Administrative Expenses (82.7) (100.7) Addback: Depreciation and Amortization 10.4 14.0 Restructuring - related costs 1.7 5.3 Litigation and
Slide 17: Comparable Store Sales Growth
Comparable Store Sales Growth 10 17 FY2023 FY2024 Excluding cigarette and tobacco products Q1 2023 Q2 2023 Q3 2023 6.6% 8.0% 9.5% 11.4% 13.3% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 RX SALES - 0.5% - 0.3% 2.2% 2.3% - 4.4% 0.0% 0.2% 2.7% 2.8% - 3.8% Q4 2023 FRONT END SALES Q1 2024 0.9% 3.1% 4.4% 5.2%
Slide 18: Capitalization Table
Capitalization Table Create Leverage Assets to Develop New Offering 18 ($ in thousands) June 3, 2023 March 4, 2023 Secured Debt: Senior secured revolving credit facility due August 2026 1,585,374$ 1,183,883$ FILO Term Loan due August 2026 398,064 397,910 1,983,438 1,581,793 Second Lien Secured Debt:
Slide 19: FY 2024 Guidance
Expand Growth in New Markets 19 FY 2024 Guidance ($ in thousands) Total Revenues $ 22,600,000 $ 23,000,000 Pharmacy Services Segment Revenues $ 4,550,000 $ 4,650,000 Gross Capital Expenditures $ 175,000 $ 175,000 Reconciliation of net loss to adjusted EBITDA: Net loss $ (678,500) $ (651,500) Adjustm
Slide 20: FY 2024 Guidance (cont.)
FY 2024 Guidance (cont.) Expand Growth in New Markets 20 FY 2023 Guidance ($ in thousands) Guidance Range Low High Net loss $ (678,500) $ (651,500) Add back - income tax expense 2,000 5,000 Loss before income taxes (676,500) (646,500) Adjustments: Amortization expense 68,000 68,000 LIFO charge 30,00
Slide 21: Elixir
elixir