Rite Aid Corp. Posts Adj. Loss In Q2; Revenue Up 2.2%

(RTTNews) - Rite Aid Corp. (RAD) reported a wider loss in second-quarter due primarily to a decrease in adjusted EBITDA, higher litigation settlements, a higher loss on sale of assets resulting from the accelerated sale of CMS receivable in the current year which provided increased liquidity, and a loss on debt modifications and retirements compared to a gain on debt modifications and retirements in the prior year second quarter. The company said adjusted EBITDA for the quarter exceeded its expectations, and increased fiscal 2022 adjusted EBITDA guidance.

Net loss from continuing operations was $100.3 million, or $1.86 per share, compared to a loss of $13.2 million, or $0.25 per share, previous year. Adjusted net loss per share from continuing operations was $0.41, compared to profit of $0.25, last year. On average, three analysts polled by Thomson Reuters expected the company to report a loss per share of $0.48, for the quarter. Analysts' estimates typically exclude special items.

Adjusted EBITDA from continuing operations was $106.2 million, compared to $151.6 million, previous year.

Revenues from continuing operations were $6.11 billion compared to $5.98 billion, last year. The company said 2.2 percent increase in revenues was driven by growth at the Retail Pharmacy Segment, partially offset by a decline at the Pharmacy Services Segment. Analysts expected revenue of $6.21 billion, for the quarter.

Retail Pharmacy Segment revenues from continuing operations increased 6.5 percent over the prior year quarter, driven by an increase in same store sales and the inclusion of Bartell's results this quarter. Same store sales from continuing operations rose 2.6 percent.

For fiscal 2022, the company projects: adjusted net loss per share to be between $0.90 and $0.53; adjusted EBITDA to be between $460 million and $500 million; and total revenues to be between $25.1 billion and $25.5 billion. Analysts expect the company to report a loss per share of $0.63 on revenue of $25.13 billion for fiscal year.