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Rite Aid Corporation Reports Fiscal 2023 Fourth Quarter and Full Year Results and Provides Fiscal 2024 Outlook

Fourth Quarter Highlights:

  • Revenues of $6.1 billion, Comparable to Prior Year
  • Retail Comparable Same Store Prescriptions Increased 5.2 Percent – Comparable Same Store Prescriptions, Excluding COVID Impacts, Increased 9.7 Percent
  • Net Loss per Share of $4.39, Compared to Prior Year Net Loss per Share of $7.18
  • Adjusted EBITDA of $128.6 million, Compared to the Prior Year Adjusted EBITDA of $106.1 million
  • Completed Tender Offer for $165 million of our 2025 notes – Reducing Amount Outstanding to $320 million From $600 million at Beginning of Fiscal 2022

Full Year Highlights:

  • Revenues of $24.1 billion, Compared to Prior Year Revenues of $24.6 billion
  • Retail Comparable Same Store Prescriptions Increased 3.5 Percent – Comparable Same Store Prescriptions, Excluding COVID Impacts, Increased 6.9 Percent

Rite Aid Corporation (NYSE: RAD) today reported operating results for its fourteen-week fourth quarter and fifty-three-week fiscal year ended March 4, 2023.

“Our fourth quarter results were at the higher end of our guidance and above consensus, driven by encouraging results in retail pharmacy and year over year improvement for the quarter at Elixir,” said Elizabeth “Busy” Burr, interim chief executive officer. “We are making progress in our turnaround program to drive performance acceleration that we expect will help mitigate fiscal 2024 challenges related to reimbursement, COVID headwinds and enrollment at Elixir, and to drive meaningful Adjusted EBITDA growth in fiscal 2025 and 2026.”

Consolidated Fourth Quarter and Full Year Summary

(dollars in thousands)

     

Fourteen Week

Period Ended

 

   

Thirteen Week

Period Ended

 

   

Fifty-three Week

Period Ended

   

Fifty-two Week

Period Ended

 

     

 

March 4, 2023

   

 

February 26, 2022

   

 

March 4, 2023

   

 

February 26, 2022

Revenues

     

$

6,092,902

   

$

6,065,390

   

$

24,091,899

   

$

24,568,255

Net loss

     

 

(241,311)

   

 

(389,062)

   

 

(749,936)

   

 

(538,478)

Adjusted EBITDA

     

 

128,585

   

 

106,075

   

 

429,180

   

 

505,905

For the fourth quarter, the company reported a net loss of $241.3 million, or $4.39 loss per share, Adjusted net loss of $68.2 million, or $1.24 loss per share, and Adjusted EBITDA of $128.6 million, or 2.1 percent of revenues. For the full year, the company reported a net loss of $749.9 million, or $13.71 loss per share, Adjusted net loss of $174.3 million, or $3.19 loss per share, and Adjusted EBITDA of $429.2 million, or 1.8 percent of revenues. The fiscal 2023 fourth quarter and full year results benefited from an extra week in fiscal 2023.

Revenues for the quarter were $6.09 billion compared to revenues of $6.07 billion in the prior year’s quarter, largely due to an extra week in the fourth quarter and increases in both comparable front-end sales and non-COVID prescriptions, partially offset by a reduction in revenue from COVID vaccines and testing, store closures and the loss of commercial clients at Elixir.

Revenues for the fiscal year ended March 4, 2023, were $24.1 billion compared to $24.6 billion in the prior year, largely due to a reduction in revenue from COVID vaccines and testing, store closures and the loss of commercial clients at Elixir. These items were partially offset by an extra week in the fourth quarter and increases in both comparable front-end sales and non-COVID prescriptions.

Fourth quarter net loss was $241.3 million, or $4.39 per share, compared to last year’s fourth quarter net loss of $389.1 million, or $7.18 per share. The decrease in net loss is primarily due to a reduction in goodwill impairment charges, a gain on the company’s repurchase of certain bonds at a discount, a reduction in facility exit and impairment charges, an increase in Adjusted EBITDA, and a gain on sale of assets resulting from sale leasebacks and script file sales from store closures. These items were partially offset by an increase in restructuring charges and an increase in interest expense.

Net loss for the fiscal year ended March 4, 2023, was $749.9 million, or $13.71 loss per share, compared to last year’s net loss of $538.5 million, or $9.96 loss per share. The increase in net loss is due primarily to increased goodwill and intangible asset impairment charges for the impairment of goodwill related to the Pharmacy Services Segment, a decrease in Adjusted EBITDA, higher restructuring charges, higher interest expense, and increased facility exit and impairment charges. These items were partially offset by a gain on the repurchase of certain bonds at a discount and a gain on sale of assets resulting from sale leasebacks and script file sales from store closures.

Retail Pharmacy Segment

(dollars in thousands)

     

Fourteen Week

Period Ended

 

   

Thirteen Week

Period Ended

   

Fifty-three Week

Period Ended

   

Fifty-two Week

Period Ended

 

     

 

March 4, 2023

   

 

February 26, 2022

   

 

March 4, 2023

   

 

February 26, 2022

Revenues

     

$

4,795,688

   

$

4,433,408

   

$

17,785,067

   

$

17,494,816

Adjusted EBITDA

     

 

101,228

   

 

102,419

   

 

288,077

   

 

392,633

Retail Pharmacy Segment revenues increased 8.2 percent over the prior year quarter driven by an extra week in the fourth quarter and an increase in both acute and maintenance prescriptions, partially offset by a reduction in COVID vaccine and testing revenue as well as store closures. Same store sales for the fourth quarter increased 8.9 percent over the prior year period, consisting of an 11.4 percent increase in pharmacy sales and a 2.3 percent increase in front-end sales. Front-end same store sales, excluding cigarettes and tobacco products, increased 2.8 percent. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, increased 5.2 percent over the prior year period. Total same store prescriptions, excluding COVID immunizations and tests, increased 9.7 percent, with same store maintenance prescriptions increasing 8.2 percent and other same store acute prescriptions increasing 14.9 percent. Prescription sales accounted for 71.5 percent of total drugstore sales. Total store count at the end of the fourth quarter was 2,309.

For the fiscal year ended March 4, 2023, Retail Pharmacy Segment revenues increased 1.7 percent over the prior year. The increase in revenues is due primarily to an extra week in the fourth quarter and an increase in both acute and maintenance prescriptions, partially offset by a reduction in COVID vaccine and testing revenue as well as store closures. Same store sales for the year increased 6.9 percent over the prior year, consisting of a 9.1 percent increase in pharmacy sales and a 1.1 percent increase in front-end sales. Front-end same store sales, excluding cigarettes and tobacco products, increased 1.6 percent. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, increased 3.5 percent over the prior year period. Total same store prescriptions, excluding COVID immunizations and tests, increased 6.9 percent, with same store maintenance prescriptions increasing 5.9 percent and other same store acute prescriptions increasing 10.1 percent. Prescription sales accounted for 71.2 percent of total drugstore sales.

Retail Pharmacy Segment Adjusted EBITDA was $101.2 million, or 2.1 percent of revenues, for the fourth quarter compared to last year’s fourth quarter Adjusted EBITDA of $102.4 million, or 2.3 percent of revenues. The decline in Adjusted EBITDA was due to an increase in Adjusted EBITDA selling, general and administrative (SG&A) expenses of $2.1 million, partially offset by increased Adjusted EBITDA gross profit. SG&A expenses were negatively impacted by an extra week in the fourth quarter, partially offset by lower payroll, occupancy, and other operating costs due to cost control initiatives and store closures. Gross profit benefited from higher sales due primarily to an extra week and an increase in prescriptions sold, as well as a reduction in markdowns, partially offset by the decline in COVID vaccinations and testing.

For the fiscal year ended March 4, 2023, Retail Pharmacy Segment Adjusted EBITDA was $288.1 million, or 1.6 percent of revenues, compared to $392.6 million, or 2.2 percent of revenues, for the prior year. The decrease in Adjusted EBITDA was due to decreased gross profit, partially offset by a decrease in SG&A expenses of $164.5 million. Gross profit was negatively impacted by the decline in COVID vaccinations and testing, partially offset by the increase in prescriptions sold. SG&A expenses benefitted from lower payroll, occupancy, and other operating costs due to store closures and cost control initiatives, partially offset by an extra week.

Pharmacy Services Segment

(dollars in thousands)

     

Fourteen Week

Period Ended

 

   

Thirteen Week

Period Ended

   

Fifty-three Week

Period Ended

   

Fifty-two Week

Period Ended

 

     

 

March 4, 2023

   

 

February 26, 2022

   

 

March 4, 2023

   

 

February 26, 2022

Revenues

     

$

1,342,268

   

$

1,693,800

   

$

6,522,299

   

$

7,323,125

Adjusted EBITDA

     

 

27,357

   

 

3,656

   

 

141,103

   

 

113,272

Pharmacy Services Segment revenues were $1.3 billion for the quarter, a decrease of 20.8 percent compared to the prior year quarter. For the fiscal year ended March 4, 2023, Pharmacy Services Segment revenues were $6.5 billion, a decrease of 10.9 percent compared to the prior year. The decrease in revenues was primarily the result of a decrease in Elixir Individual Part D Insurance membership due to a change in the Company’s pricing structure and loss of commercial clients, partially offset by increased utilization and higher cost drugs.

Pharmacy Services Segment Adjusted EBITDA was $27.4 million, or 2.0 percent of revenues, for the fourth quarter compared to last year’s fourth quarter Adjusted EBITDA of $3.7 million, or 0.2 percent of revenues. The increase in Adjusted EBITDA resulted from improved procurement economics, improved medical loss ratio at Elixir insurance and reductions in SG&A expense, partially offset by the lower membership, as mentioned above. Our membership mix is more favorable, as it reflects focus on our Commercial target market, while reducing Individual Insurance Part D membership.

For the fiscal year ended March 4, 2023, Pharmacy Services Segment Adjusted EBITDA was $141.1 million, or 2.2 percent of revenues, compared to prior year Adjusted EBITDA of $113.3 million, or 1.6 percent of revenues. The increase in Adjusted EBITDA resulted from improved procurement economics and reductions in SG&A expense.

Outlook for Fiscal 2024

The following fiscal 2024 outlook is forward-looking information, reflecting our expectations as of April 20, 2023, and subject to a range of assumptions and uncertainties described below and in documents that we file or furnish with the Securities and Exchange Commission the (“SEC”).

Our outlook for fiscal 2024 assumes the negative impacts of reimbursement rate declines, a reduction in demand for COVID vaccines and testing and a decrease in revenues at Elixir resulting from the reduction in lives effective January 1, 2023. We expect these headwinds to be partially offset by benefits from our performance acceleration program, which we expect to drive:

  • Mid-single digit increases in both comparable store sales and non-COVID comparable prescriptions
  • Generic purchasing efficiencies
  • Reductions in indirect spend
  • Higher Adjusted EBITDA margins at Elixir due to favorable member mix and continued improvement in procurement economics

We expect our Adjusted EBITDA to be higher in the second half of fiscal 2024 due to timing of our performance acceleration and cost reduction initiatives. We also expect those initiatives to drive Adjusted EBITDA growth in fiscal 2025 and 2026.

Total revenues are expected to be between $21.7 billion and $22.1 billion in fiscal 2024. Retail Pharmacy Segment revenue is expected to be between $17.8 billion and $18.1 billion and Pharmacy Services Segment revenue is expected to be between $3.9 billion and $4.0 billion, net of any intercompany revenues to the Retail Pharmacy Segment.

Net loss is expected to be between $439 million and $466 million.

Adjusted EBITDA is expected to be between $340 million and $370 million. Retail Pharmacy Segment Adjusted EBITDA is expected to be between $240 million and $260 million and Pharmacy Services Segment Adjusted EBITDA is expected to be between $100 million and $110 million.

Adjusted net loss per share is expected to be between $(4.44) and $(4.93).

Capital expenditures are expected to be approximately $225 million, with a focus on investments in digital capabilities, technology, prescription file purchases and distribution center automation.

Conference Call Broadcast

Rite Aid will hold an analyst call at 8:30 a.m. Eastern Time today with remarks by Rite Aid's management team.

The call will be broadcast via the Internet at https://investors.riteaid.com. The telephone replay will be available beginning at 12:00 p.m. Eastern Time on April 20, 2023, and ending at 11:59 p.m. Eastern Time on May 21, 2023. To access the replay of the call, telephone (800) 770-2030 or (647) 362-9199 and enter the seven-digit reservation number 9029129. The webcast replay of the call will also be available at https://investors.riteaid.com starting at 12 p.m. Eastern Time today. The playback will be available until the company’s next conference call.

About Rite Aid Corporation

Rite Aid Corporation is on the front lines of delivering healthcare services and retail products to Americans 365 days a year. Our pharmacists are uniquely positioned to engage with customers and improve their health outcomes. We provide an array of whole being health products and services for the entire family through over 2,300 retail pharmacy locations across 17 states. Through Elixir, we provide pharmacy benefits and services to millions of members nationwide. For more information, visit www.riteaid.com.

Cautionary Statement Regarding Forward-Looking Statements

Statements in this release 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, statements regarding Rite Aid's outlook and guidance for fiscal 2024; the continued impact of the global coronavirus (COVID-19) pandemic on Rite Aid’s business; our key growth initiatives, including the timing and plans to (i) grow our pharmacy business and our Elixir business and (ii) deepen our customer loyalty and engagement;and any assumptions underlying any of the foregoing. Words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," and "will" and variations of such words and similar expressions are intended to identify such forward-looking statements.

These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to: risks related to the prolonged impact of the COVID-19 global pandemic and the emerging new variants, including the government responses thereto; the impact of COVID-19 on our workforce, operations, stores, expenses, and supply chain, and the operations or behaviors of our customers, suppliers and business partners; our ability to successfully implement our store closure program and other strategies; the impact of our high level of indebtedness, the ability to refinance such indebtedness on acceptable terms (including the impact of rising interest rates, market volatility, and continuing actions by the United States Federal Reserve) and our ability to satisfy our obligations and the other covenants contained in our debt agreements; outcome of pending or new litigation and government investigations, including, without limitation, those related to opioids, “usual and customary” pricing, government payer programs or other matters; our ability to monetize (and on reasonably available terms) the CMS receivable created in our Part D business; general competitive, economic, industry, market, political (including healthcare reform) and regulatory conditions (including changes to laws or regulations relating to labor or wages), including continued impacts of inflation or other pricing environment factors on our costs, liquidity and our ability to pass on price increases to our customers, including as a result of inflationary and deflationary pressures, a decline in consumer financial position, whether due to inflation or other factors, as well as other factors specific to the markets in which we operate; the impact of private and public third-party payers continued reduction in prescription drug reimbursements, new or disruptive business models or practices, and efforts to encourage mail order; our ability to manage expenses and our investments in working capital; our ability to achieve the benefits of our efforts to reduce the costs of our generic and other drugs; our ability to achieve cost savings and other benefits of our restructuring efforts within our anticipated timeframe, if at all; the outcome of our continuing efforts to monitor and comply with applicable laws, orders, regulations, policies and procedures; and our ability to partner and have relationships with health plans and health systems.

These and other risks, assumptions and uncertainties are more fully described in Item 1A (Risk Factors) of our most recent Annual Report on Form 10-K and in other documents that we file or furnish with the Securities and Exchange Commission (the “SEC”), which you are encouraged to read. To the extent that COVID-19 adversely affects our business and financial results, it may also have the effect of heightening many of such risk factors.

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to rely on these forward-looking statements, which speak only as of the date they are made.

The degree to which COVID-19 may adversely affect Rite Aid’s results and operations, including its ability to achieve its outlook for fiscal 2024 guidance, will depend on numerous evolving factors and future developments, which are highly uncertain. As a result, the impact on Rite Aid’s financial and operating results cannot be reasonably estimated with specificity at this time, but the impact could be material. Rite Aid expressly disclaims any current intention, and assumes no duty, to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

All references to “Company” and “Rite Aid” as used throughout this release refer to Rite Aid Corporation and its affiliates.

Reconciliation of Non-GAAP Financial Measures

Rite Aid separately reports financial results on the basis of Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share, Adjusted EBITDA, Adjusted EBITDA Gross Profit and Adjusted EBITDA SG&A, which are non-GAAP financial measures. See the attached tables for a reconciliation of Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share and Adjusted EBITDA to net income (loss), and net income (loss) per diluted share, which are the most directly comparable GAAP financial measures. Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share exclude amortization expense, merger and acquisition-related costs, non-recurring litigation and other contractual settlements, gains or losses on debt modifications and retirements, LIFO adjustments, goodwill and intangible asset impairment charges, restructuring-related costs, the gain or loss on Bartell acquisition, and the change in estimate related to manufacturer rebate receivables. Rite Aid believes Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share serve as appropriate measures to be used in evaluating the performance of its business and help its investors better compare its operating performance over multiple periods.

Adjusted EBITDA is defined as net income (loss) excluding the impact of income taxes, interest expense, depreciation and amortization, LIFO adjustments, charges or credits for facility exit and impairment, goodwill and intangible asset impairment charges, inventory write-downs related to store closings, gains or losses on debt modifications and retirements, and other items (including stock-based compensation expense, merger and acquisition-related costs, non-recurring litigation and other contractual settlements, severance, restructuring-related costs, costs related to facility closures, gain or loss on sale of assets, the gain or loss on Bartell acquisition, and the change in estimate related to manufacturer rebate receivables). The add back of LIFO (credit) charge when calculating Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share removes the entire impact of LIFO (credits) charges, and effectively reflects Rite Aid's results as if the company was on a FIFO inventory basis. Rite Aid believes Adjusted EBITDA serves as an appropriate measure in evaluating the performance of its business and helps its investors better compare its operating performance with its competitors.

Adjusted EBITDA Gross Profit includes LIFO adjustments, depreciation and amortization (COGS portion only) and other items. See the attached tables for a reconciliation of Adjusted EBITDA Gross Profit to Revenue, which is the most directly

comparable GAAP financial measure. Adjusted EBITDA SG&A excludes depreciation and amortization (SG&A portion only), stock-based compensation expense, merger and acquisition-related costs, non-recurring litigation and other contractual settlements, and other items. See the attached tables for a reconciliation of Adjusted EBITDA SG&A to Revenue, which is the most directly comparable GAAP financial measure. The Company believes Adjusted EBITDA Gross Profit and Adjusted EBITDA SG&A serve as appropriate measures in evaluating the performance of its business and helps its investors better compare its operating performance with its competitors.

The Company presents these non-GAAP financial measures in order to provide transparency to its investors because they are measures that management uses to assess both management performance and the financial performance of its operations and to allocate resources. In addition, management believes that these measures may assist investors with understanding and evaluating the Company’s initiatives to drive improved financial performance and enables investors to supplementally compare its operating performance with the operating performance of its competitors including with those of its competitors having different capital structures. While the Company has excluded certain of these items from historical non-GAAP financial measures, there is no guarantee that the items excluded from non-GAAP financial measures will not continue into future periods. For instance, the Company expects to continue to experience charges for facility exit and impairment charges and inventory write-downs related to store closures as the Company continues to complete a multi-year strategic initiative designed to improve overall performance. The Company also expects to continue to experience and report restructuring-related charges associated with continued execution of its strategic initiatives.

Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share or other non-GAAP measures should not be considered in isolation from, and are not intended to represent an alternative measure of, operating results or of cash flows from operating activities, as determined in accordance with GAAP. The Company’s definition of these non-GAAP measures may not be comparable to similarly titled measurements reported by other companies, including companies in its industry.

 
RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited)
 
 
 
March 4, 2023 February 26, 2022
ASSETS
Current assets:
Cash and cash equivalents

$

157,151

 

$

39,721

 

Accounts receivable, net

 

1,149,958

 

 

1,343,496

 

Inventories, net of LIFO reserve of $539,932 and $487,173

 

1,900,744

 

 

1,959,389

 

Prepaid expenses and other current assets

 

93,194

 

 

106,749

 

Total current assets

 

3,301,047

 

 

3,449,355

 

Property, plant and equipment, net

 

907,771

 

 

989,167

 

Operating lease right-of-use assets

 

2,497,206

 

 

2,813,535

 

Goodwill

 

507,936

 

 

879,136

 

Other intangibles, net

 

250,112

 

 

291,196

 

Deferred tax assets

 

12,368

 

 

20,071

 

Other assets

 

50,922

 

 

86,543

 

Total assets

$

7,527,362

 

$

8,529,003

 

 
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities:
Current maturities of long-term debt and lease financing obligations

$

6,332

 

$

5,544

 

Accounts payable

 

1,494,611

 

 

1,571,261

 

Accrued salaries, wages and other current liabilities

 

724,529

 

 

780,632

 

Current portion of operating lease liabilities

 

502,403

 

 

575,651

 

Total current liabilities

 

2,727,875

 

 

2,933,088

 

Long-term debt, less current maturities

 

2,925,258

 

 

2,732,986

 

Long-term operating lease liabilities

 

2,372,943

 

 

2,597,090

 

Lease financing obligations, less current maturities

 

12,580

 

 

14,830

 

Other noncurrent liabilities

 

130,482

 

 

151,976

 

Total liabilities

 

8,169,138

 

 

8,429,970

 

 
Commitments and contingencies

 

-

 

 

-

 

Stockholders' (deficit) equity:
Common stock

 

56,629

 

 

55,752

 

Additional paid-in capital

 

5,917,964

 

 

5,910,299

 

Accumulated deficit

 

(6,601,517

)

 

(5,851,581

)

Accumulated other comprehensive loss

 

(14,852

)

 

(15,437

)

Total stockholders' (deficit) equity

 

(641,776

)

 

99,033

 

Total liabilities and stockholders' (deficit) equity

$

7,527,362

 

$

8,529,003

 

RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(unaudited)
 
 
 

Fourteen weeks ended

March 4, 2023

Thirteen weeks ended

February 26, 2022

Revenues

$

6,092,902

 

$

6,065,390

 

Costs and expenses:
Cost of revenues

 

4,843,938

 

 

4,824,077

 

Selling, general and administrative expenses

 

1,296,059

 

 

1,243,841

 

Facility exit and impairment charges

 

76,430

 

 

112,551

 

Goodwill and intangible asset impairment charges

 

119,000

 

 

229,000

 

Interest expense

 

66,331

 

 

46,094

 

Gain on debt modifications and retirements, net

 

(38,830

)

 

-

 

(Gain) loss on sale of assets, net

 

(7,294

)

 

5,584

 

 

 

6,355,634

 

 

6,461,147

 

 
Loss before income taxes

 

(262,732

)

 

(395,757

)

Income tax benefit

 

(21,421

)

 

(6,695

)

Net loss

$

(241,311

)

$

(389,062

)

 
 
 
Basic and diluted loss per share:
 
Numerator for loss per share:
Net loss attributable to common stockholders - basic and diluted

$

(241,311

)

$

(389,062

)

 
 
 
Denominator:
Basic and diluted weighted average shares

 

54,993

 

 

54,208

 

 
 
Basic and diluted loss per share

$

(4.39

)

$

(7.18

)

RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(unaudited)
 
 
 

Fifty-three weeks ended

March 4, 2023

Fifty-two weeks ended

February 26, 2022

Revenues

$

24,091,899

 

$

24,568,255

 

Costs and expenses:
Cost of revenues

 

19,287,959

 

 

19,461,760

 

Selling, general and administrative expenses

 

4,902,087

 

 

5,033,876

 

Facility exit and impairment charges

 

211,385

 

 

180,190

 

Goodwill and intangible asset impairment charges

 

371,200

 

 

229,000

 

Interest expense

 

224,399

 

 

191,601

 

(Gain) loss on debt modifications and retirements, net

 

(80,142

)

 

3,235

 

(Gain) loss on sale of assets, net

 

(68,586

)

 

5,505

 

Loss on Bartell acquisition

 

-

 

 

5,346

 

 

 

24,848,302

 

 

25,110,513

 

 
Loss before income taxes

 

(756,403

)

 

(542,258

)

Income tax benefit

 

(6,467

)

 

(3,780

)

Net loss

$

(749,936

)

$

(538,478

)

 
 
 
Basic and diluted loss per share:
 
Numerator for loss per share:
Net loss attributable to common stockholders - basic and diluted

$

(749,936

)

$

(538,478

)

 
 
 
Denominator:
Basic and diluted weighted average shares

 

54,680

 

 

54,055

 

 
 
Basic and diluted loss per share

$

(13.71

)

$

(9.96

)

RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(unaudited)
 
 
 

Fourteen weeks ended

March 4, 2023

Thirteen weeks ended

February 26, 2022

 
 
OPERATING ACTIVITIES:
Net loss

$

(241,311

)

$

(389,062

)

Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization

 

68,450

 

 

72,995

 

Facility exit and impairment charges

 

76,430

 

 

112,551

 

Goodwill and intangible asset impairment charges

 

119,000

 

 

229,000

 

LIFO charge

 

27,661

 

 

414

 

Change in allowances for uncollectible accounts receivable

 

7,856

 

 

1,019

 

(Gain) loss on sale of assets, net

 

(7,294

)

 

5,584

 

Stock-based compensation expense

 

2,902

 

 

4,230

 

Gain on debt modifications and retirements, net

 

(38,830

)

 

-

 

Changes in deferred taxes

 

1,570

 

 

(5,107

)

Changes in operating assets and liabilities:
Accounts receivable

 

301,242

 

 

473,157

 

Inventories

 

52,929

 

 

(9,962

)

Accounts payable

 

2,535

 

 

9,792

 

Operating lease right-of-use assets and operating lease liabilities

 

(31,582

)

 

(9,858

)

Other assets

 

45,413

 

 

(1,209

)

Other liabilities

 

(120,558

)

 

(150,832

)

Net cash provided by operating activities

 

266,413

 

 

342,712

 

INVESTING ACTIVITIES:
Payments for property, plant and equipment

 

(42,722

)

 

(49,089

)

Intangible assets acquired

 

(7,463

)

 

(2,334

)

Proceeds from dispositions of assets and investments

 

18,552

 

 

10,885

 

Proceeds from sale-leaseback transactions

 

17,450

 

 

17,708

 

Net cash used in investing activities

 

(14,183

)

 

(22,830

)

FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt

 

50,000

 

 

-

 

Net payments to revolver

 

(150,000

)

 

(441,000

)

Principal payments on long-term debt

 

(124,873

)

 

(1,016

)

Change in zero balance cash accounts

 

30,473

 

 

6,802

 

Financing fees paid for early debt redemption

 

(852

)

 

-

 

Payments for taxes related to net share settlement of equity awards

 

(556

)

 

(236

)

Deferred financing costs paid

 

(2,325

)

 

-

 

Net cash used in financing activities

 

(198,133

)

 

(435,450

)

Increase (decrease) in cash and cash equivalents

 

54,097

 

 

(115,568

)

Cash and cash equivalents, beginning of period

 

103,054

 

 

155,289

 

Cash and cash equivalents, end of period

$

157,151

 

$

39,721

 

RITE AID CORPORATION AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(unaudited)
 
 
 

Fifty-three weeks ended

March 4, 2023

Fifty-two weeks ended

February 26, 2022

 
 
OPERATING ACTIVITIES:
Net loss

$

(749,936

)

$

(538,478

)

Adjustments to reconcile to net cash (used in) provided by operating activities:
Depreciation and amortization

 

276,583

 

 

295,686

 

Facility exit and impairment charges

 

211,385

 

 

180,190

 

Goodwill and intangible asset impairment charges

 

371,200

 

 

229,000

 

LIFO charge

 

53,028

 

 

1,314

 

Change in allowances for uncollectible accounts receivable

 

15,267

 

 

22,011

 

(Gain) loss on sale of assets, net

 

(68,586

)

 

5,505

 

Loss on Bartell acquisition

 

-

 

 

5,346

 

Stock-based compensation expense

 

11,537

 

 

13,050

 

(Gain) loss on debt modifications and retirements, net

 

(80,142

)

 

3,235

 

Changes in deferred taxes

 

7,703

 

 

(6,709

)

Changes in operating assets and liabilities:
Accounts receivable

 

151,610

 

 

54,086

 

Inventories

 

5,158

 

 

(97,112

)

Accounts payable

 

(96,570

)

 

139,228

 

Operating lease right-of-use assets and operating lease liabilities

 

(86,133

)

 

(29,375

)

Other assets

 

36,478

 

 

33,737

 

Other liabilities

 

(111,021

)

 

68,558

 

Net cash (used in) provided by operating activities

 

(52,439

)

 

379,272

 

INVESTING ACTIVITIES:
Payments for property, plant and equipment

 

(215,285

)

 

(194,090

)

Intangible assets acquired

 

(32,400

)

 

(26,623

)

Proceeds from insured loss

 

-

 

 

10,436

 

Proceeds from dispositions of assets and investments

 

69,582

 

 

18,706

 

Proceeds from sale-leaseback transactions

 

73,344

 

 

57,498

 

Net cash used in investing activities

 

(104,759

)

 

(134,073

)

FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt

 

50,000

 

 

350,000

 

Net proceeds from (payments to) revolver

 

491,000

 

 

(141,000

)

Principal payments on long-term debt

 

(277,941

)

 

(545,036

)

Change in zero balance cash accounts

 

18,289

 

 

(8,285

)

Financing fees paid for early debt redemption

 

(1,733

)

 

(833

)

Payments for taxes related to net share settlement of equity awards

 

(2,662

)

 

(2,588

)

Deferred financing costs paid

 

(2,325

)

 

(18,638

)

Net cash provided by (used in) financing activities

 

274,628

 

 

(366,380

)

Increase (decrease) in cash and cash equivalents

 

117,430

 

 

(121,181

)

Cash and cash equivalents, beginning of period

 

39,721

 

 

160,902

 

Cash and cash equivalents, end of period

$

157,151

 

$

39,721

 

RITE AID CORPORATION AND SUBSIDIARIES
 
SUPPLEMENTAL SEGMENT OPERATING INFORMATION
(Dollars in thousands)
(unaudited)
 
 

Fourteen weeks ended

March 4, 2023

Thirteen weeks ended

February 26, 2022

 
Retail Pharmacy Segment
Revenues (a)

$

4,795,688

 

$

4,433,408

 

Cost of revenues (a)

 

3,640,510

 

 

3,254,866

 

Gross profit

 

1,155,178

 

 

1,178,542

 

LIFO charge

 

27,661

 

 

414

 

FIFO gross profit

 

1,182,839

 

 

1,178,956

 

Adjusted EBITDA gross profit

 

1,186,102

 

 

1,185,144

 

 
Gross profit as a percentage of revenues

 

24.09

%

 

26.58

%

LIFO charge as a percentage of revenues

 

0.58

%

 

0.01

%

FIFO gross profit as a percentage of revenues

 

24.66

%

 

26.59

%

Adjusted EBITDA gross profit as a percentage of revenues

 

24.73

%

 

26.73

%

 
Selling, general and administrative expenses

 

1,207,436

 

 

1,151,411

 

Adjusted EBITDA selling, general and administrative expenses

 

1,084,874

 

 

1,082,725

 

Selling, general and administrative expenses as a percentage of revenues

 

25.18

%

 

25.97

%

Adjusted EBITDA selling, general and administrative expenses as a percentage of revenues

 

22.62

%

 

24.42

%

 
Cash interest expense

 

63,260

 

 

43,721

 

Non-cash interest expense

 

3,071

 

 

2,373

 

Total interest expense

 

66,331

 

 

46,094

 

 
Adjusted EBITDA

 

101,228

 

 

102,419

 

Adjusted EBITDA as a percentage of revenues

 

2.11

%

 

2.31

%

 
 
Pharmacy Services Segment
Revenues (a)

$

1,342,268

 

$

1,693,800

 

Cost of revenues (a)

 

1,248,482

 

 

1,631,029

 

Gross profit

 

93,786

 

 

62,771

 

 
Gross profit as a percentage of revenues

 

6.99

%

 

3.71

%

 
Adjusted EBITDA

 

27,357

 

 

3,656

 

Adjusted EBITDA as a percentage of revenues

 

2.04

%

 

0.22

%

 
(a) - Revenues and cost of revenues include $45,054 and $61,818 of inter-segment activity for the fourteen weeks ended March 4, 2023 and thirteen weeks ended February 26, 2022, respectively, that is eliminated in consolidation.
RITE AID CORPORATION AND SUBSIDIARIES
 
SUPPLEMENTAL SEGMENT OPERATING INFORMATION
(Dollars in thousands)
(unaudited)
 
 

Fifty-three weeks ended

March 4, 2023

Fifty-two weeks ended

February 26, 2022

 
Retail Pharmacy Segment
Revenues (a)

$

17,785,067

 

$

17,494,816

 

Cost of revenues (a)

 

13,390,217

 

 

12,772,741

 

Gross profit

 

4,394,850

 

 

4,722,075

 

LIFO charge

 

53,028

 

 

1,314

 

FIFO gross profit

 

4,447,878

 

 

4,723,389

 

Adjusted EBITDA gross profit

 

4,467,980

 

 

4,737,032

 

 
Gross profit as a percentage of revenues

 

24.71

%

 

26.99

%

LIFO charge as a percentage of revenues

 

0.30

%

 

0.01

%

FIFO gross profit as a percentage of revenues

 

25.01

%

 

27.00

%

Adjusted EBITDA gross profit as a percentage of revenues

 

25.12

%

 

27.08

%

 
Selling, general and administrative expenses

 

4,544,217

 

 

4,656,776

 

Adjusted EBITDA selling, general and administrative expenses

 

4,179,903

 

 

4,344,399

 

Selling, general and administrative expenses as a percentage of revenues

 

25.55

%

 

26.62

%

Adjusted EBITDA selling, general and administrative expenses as a percentage of revenues

 

23.50

%

 

24.83

%

 
Cash interest expense

 

212,701

 

 

180,197

 

Non-cash interest expense

 

11,698

 

 

11,404

 

Total interest expense

 

224,399

 

 

191,601

 

 
Adjusted EBITDA

 

288,077

 

 

392,633

 

Adjusted EBITDA as a percentage of revenues

 

1.62

%

 

2.24

%

 
 
Pharmacy Services Segment
Revenues (a)

$

6,522,299

 

$

7,323,125

 

Cost of revenues (a)

 

6,113,209

 

 

6,938,705

 

Gross profit

 

409,090

 

 

384,420

 

 
Gross profit as a percentage of revenues

 

6.27

%

 

5.25

%

 
Adjusted EBITDA

 

141,103

 

 

113,272

 

Adjusted EBITDA as a percentage of revenues

 

2.16

%

 

1.55

%

 
(a) - Revenues and cost of revenues include $215,467 and $249,686 of inter-segment activity for the fifty-three weeks ended March 4, 2023 and fifty-two weeks ended February 26, 2022, respectively, that is eliminated in consolidation.
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(In thousands)
(unaudited)
 
 
 

Fourteen weeks ended

March 4, 2023

Thirteen weeks ended

February 26, 2022

 
 
Reconciliation of net loss to adjusted EBITDA:
Net loss

$

(241,311

)

$

(389,062

)

Adjustments:
Interest expense

 

66,331

 

 

46,094

 

Income tax benefit

 

(21,421

)

 

(6,695

)

Depreciation and amortization

 

68,450

 

 

72,995

 

LIFO charge

 

27,661

 

 

414

 

Facility exit and impairment charges

 

76,430

 

 

112,551

 

Goodwill and intangible asset impairment charges

 

119,000

 

 

229,000

 

Gain on debt modifications and retirements, net

 

(38,830

)

 

-

 

Merger and Acquisition-related costs

 

-

 

 

678

 

Stock-based compensation expense

 

2,902

 

 

4,230

 

Restructuring-related costs

 

46,675

 

 

9,948

 

Inventory write-downs related to store closings

 

2,136

 

 

3,942

 

Litigation and other contractual settlements

 

18,059

 

 

-

 

(Gain) loss on sale of assets, net

 

(7,294

)

 

5,584

 

Change in estimate related to manufacturer rebate receivables

 

-

 

 

15,068

 

Other

 

9,797

 

 

1,328

 

Adjusted EBITDA

$

128,585

 

$

106,075

 

Percent of revenues

 

2.11

%

 

1.75

%

RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(In thousands)
(unaudited)
 
 
 

Fifty-three weeks ended

March 4, 2023

Fifty-two weeks ended

February 26, 2022

 
 
Reconciliation of net loss to adjusted EBITDA:
Net loss

$

(749,936

)

$

(538,478

)

Adjustments:
Interest expense

 

224,399

 

 

191,601

 

Income tax benefit

 

(6,467

)

 

(3,780

)

Depreciation and amortization

 

276,583

 

 

295,686

 

LIFO charge

 

53,028

 

 

1,314

 

Facility exit and impairment charges

 

211,385

 

 

180,190

 

Goodwill and intangible asset impairment charges

 

371,200

 

 

229,000

 

(Gain) loss on debt modifications and retirements, net

 

(80,142

)

 

3,235

 

Merger and Acquisition-related costs

 

-

 

 

12,797

 

Stock-based compensation expense

 

11,537

 

 

13,050

 

Restructuring-related costs

 

108,626

 

 

35,121

 

Inventory write-downs related to store closings

 

14,270

 

 

5,298

 

Litigation and other contractual settlements

 

53,882

 

 

50,212

 

(Gain) loss on sale of assets, net

 

(68,586

)

 

5,505

 

Loss on Bartell acquisition

 

-

 

 

5,346

 

Change in estimate related to manufacturer rebate receivables

 

-

 

 

15,068

 

Other

 

9,401

 

 

4,740

 

Adjusted EBITDA

$

429,180

 

$

505,905

 

Percent of revenues

 

1.78

%

 

2.06

%

RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
ADJUSTED NET LOSS
(Dollars in thousands, except per share amounts)
(unaudited)
 
 

Fourteen weeks ended

March 4, 2023

Thirteen weeks ended

February 26, 2022

 
Net loss

$

(241,311

)

$

(389,062

)

Add back - Income tax benefit

 

(21,421

)

 

(6,695

)

Loss before income taxes

 

(262,732

)

 

(395,757

)

 
Adjustments:
Amortization expense

 

17,356

 

 

18,854

 

LIFO charge

 

27,661

 

 

414

 

Goodwill and intangible asset impairment charges

 

119,000

 

 

229,000

 

Gain on debt modifications and retirements, net

 

(38,830

)

 

-

 

Merger and Acquisition-related costs

 

-

 

 

678

 

Restructuring-related costs

 

46,675

 

 

9,948

 

Litigation and other contractual settlements

 

18,059

 

 

-

 

Change in estimate related to manufacturer rebate receivables

 

-

 

 

15,068

 

 
Adjusted loss before income taxes

 

(72,811

)

 

(121,795

)

 
Adjusted income tax benefit (a)

 

(4,583

)

 

(588

)

Adjusted net loss

$

(68,228

)

$

(121,207

)

 
Adjusted net loss per diluted share:
 
Numerator for adjusted net loss per diluted share:
Adjusted net loss

$

(68,228

)

$

(121,207

)

 
 
 
Denominator:
Basic and diluted weighted average shares

 

54,993

 

 

54,208

 

 
Net loss per diluted share

$

(4.39

)

$

(7.18

)

 
Adjusted net loss per diluted share

$

(1.24

)

$

(2.24

)

 
 
 
(a) The fiscal year 2023 and 2022 adjustments to the income tax provision include adjustments to the GAAP basis tax provision commensurate with non-GAAP adjustments and certain discrete tax items, when applicable, was used for the fourteen weeks ended March 4, 2023 and thirteen weeks ended February 26, 2022.
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
ADJUSTED NET LOSS
(Dollars in thousands, except per share amounts)
(unaudited)
 
 

Fifty-three weeks ended

March 4, 2023

Fifty-two weeks ended

February 26, 2022

 
Net loss

$

(749,936

)

$

(538,478

)

Add back - Income tax benefit

 

(6,467

)

 

(3,780

)

Loss before income taxes

 

(756,403

)

 

(542,258

)

 
Adjustments:
Amortization expense

 

74,024

 

 

78,047

 

LIFO charge

 

53,028

 

 

1,314

 

Goodwill and intangible asset impairment charges

 

371,200

 

 

229,000

 

(Gain) loss on debt modifications and retirements, net

 

(80,142

)

 

3,235

 

Merger and Acquisition-related costs

 

-

 

 

12,797

 

Restructuring-related costs

 

108,626

 

 

35,121

 

Litigation and other contractual settlements

 

53,882

 

 

50,212

 

Loss on Bartell acquisition

 

-

 

 

5,346

 

Change in estimate related to manufacturer rebate receivables

 

-

 

 

15,068

 

 
Adjusted loss before income taxes

 

(175,785

)

 

(112,118

)

 
Adjusted income tax benefit (a)

 

(1,494

)

 

(782

)

Adjusted net loss

$

(174,291

)

$

(111,336

)

 
Adjusted net loss per diluted share:
 
Numerator for adjusted net loss per diluted share:
Adjusted net loss

$

(174,291

)

$

(111,336

)

 
 
 
Denominator:
Basic and diluted weighted average shares

 

54,680

 

 

54,055

 

 
Net loss per diluted share

$

(13.71

)

$

(9.96

)

 
Adjusted net loss per diluted share

$

(3.19

)

$

(2.06

)

 
 
 
(a) The fiscal year 2023 and 2022 adjustments to the income tax provision include adjustments to the GAAP basis tax provision commensurate with non-GAAP adjustments and certain discrete tax items, when applicable, was used for the fifty-three weeks ended March 4, 2023 and fifty-two weeks ended February 26, 2022.
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF ADJUSTED EBITDA GROSS PROFIT AND RECONCILIATION OF ADJUSTED EBITDA SELLING,
GENERAL AND ADMINISTRATIVE EXPENSES- RETAIL PHARMACY SEGMENT
(In thousands)
(unaudited)
 
 
 

Fourteen weeks ended

March 4, 2023

Thirteen weeks ended

February 26, 2022

 
 
Reconciliation of adjusted EBITDA gross profit:
Revenues

$

4,795,688

 

$

4,433,408

 

Gross Profit

 

1,155,178

 

 

1,178,542

 

Addback:
LIFO charge

 

27,661

 

 

414

 

Depreciation and amortization (cost of goods sold portion only)

 

2,025

 

 

3,339

 

Other

 

1,238

 

 

2,849

 

Adjusted EBITDA gross profit

$

1,186,102

 

$

1,185,144

 

Percent of revenues

 

24.73

%

 

26.73

%

 
 
 
Reconciliation of adjusted EBITDA selling, general and administrative expenses:
Revenues

$

4,795,688

 

$

4,433,408

 

Selling, general and administrative expenses

 

1,207,436

 

 

1,151,411

 

Less:
Depreciation and amortization (SG&A portion only)

 

55,868

 

 

57,311

 

Stock-based compensation expense

 

2,550

 

 

3,990

 

Merger and Acquisition-related costs

 

-

 

 

678

 

Restructuring-related costs

 

40,795

 

 

4,286

 

Litigation and other contractual settlements

 

12,654

 

 

-

 

Other

 

10,695

 

 

2,421

 

Adjusted EBITDA selling, general and administrative expenses

$

1,084,874

 

$

1,082,725

 

Percent of revenues

 

22.62

%

 

24.42

%

 
 
 
Adjusted EBITDA

$

101,228

 

$

102,419

 

RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF ADJUSTED EBITDA GROSS PROFIT AND RECONCILIATION OF ADJUSTED EBITDA SELLING,
GENERAL AND ADMINISTRATIVE EXPENSES- RETAIL PHARMACY SEGMENT
(In thousands)
(unaudited)
 
 
 

Fifty-three weeks ended

March 4, 2023

Fifty-two weeks ended

February 26, 2022

 
 
Reconciliation of adjusted EBITDA gross profit:
Revenues

$

17,785,067

 

$

17,494,816

 

Gross Profit

 

4,394,850

 

 

4,722,075

 

Addback:
LIFO charge

 

53,028

 

 

1,314

 

Depreciation and amortization (cost of goods sold portion only)

 

9,151

 

 

9,875

 

Other

 

10,951

 

 

3,768

 

Adjusted EBITDA gross profit

$

4,467,980

 

$

4,737,032

 

Percent of revenues

 

25.12

%

 

27.08

%

 
 
 
Reconciliation of adjusted EBITDA selling, general and administrative expenses:
Revenues

$

17,785,067

 

$

17,494,816

 

Selling, general and administrative expenses

 

4,544,217

 

 

4,656,776

 

Less:
Depreciation and amortization (SG&A portion only)

 

220,229

 

 

234,247

 

Stock-based compensation expense

 

10,604

 

 

12,282

 

Merger and Acquisition-related costs

 

-

 

 

12,797

 

Restructuring-related costs

 

86,484

 

 

12,237

 

Litigation and other contractual settlements

 

34,251

 

 

34,448

 

Other

 

12,746

 

 

6,366

 

Adjusted EBITDA selling, general and administrative expenses

$

4,179,903

 

$

4,344,399

 

Percent of revenues

 

23.50

%

 

24.83

%

 
 
 
Adjusted EBITDA

$

288,077

 

$

392,633

 

RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS GUIDANCE TO ADJUSTED EBITDA GUIDANCE
YEAR ENDING MARCH 2, 2024
(In thousands)
(unaudited)
 
 
Guidance Range
Low High
 
Total Revenues

$

21,700,000

 

$

22,100,000

 

 
Pharmacy Services Segment Revenues

$

3,900,000

 

$

4,000,000

 

 
Gross Capital Expenditures

$

225,000

 

$

225,000

 

 
 
Reconciliation of net loss to adjusted EBITDA:
Net loss

$

(466,000

)

$

(439,000

)

Adjustments:
Interest expense

 

273,000

 

 

273,000

 

Income tax expense

 

2,000

 

 

5,000

 

Depreciation and amortization

 

280,000

 

 

280,000

 

LIFO charge

 

30,000

 

 

30,000

 

Facility exit and impairment charges

 

109,000

 

 

109,000

 

Restructuring-related costs

 

93,000

 

 

93,000

 

Litigation and other contractual settlements

 

4,000

 

 

4,000

 

Loss on sale of assets, net

 

2,000

 

 

2,000

 

Other

 

13,000

 

 

13,000

 

Adjusted EBITDA

$

340,000

 

$

370,000

 

 
RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS GUIDANCE TO ADJUSTED NET LOSS GUIDANCE
YEAR ENDING MARCH 2, 2024
(In thousands)
(unaudited)
 
 
 
Guidance Range
Low High
 
Net loss

$

(466,000

)

$

(439,000

)

Add back - income tax expense

 

2,000

 

 

5,000

 

Loss before income taxes

 

(464,000

)

 

(434,000

)

 
Adjustments:
Amortization expense

 

68,000

 

 

68,000

 

LIFO charge

 

30,000

 

 

30,000

 

Restructuring-related costs

 

93,000

 

 

93,000

 

Litigation and other contractual settlements

 

4,000

 

 

4,000

 

 
Adjusted loss before adjusted income taxes

 

(269,000

)

 

(239,000

)

 
Adjusted income tax expense

 

2,000

 

 

5,000

 

Adjusted net loss

$

(271,000

)

$

(244,000

)

Diluted adjusted net loss per share

$

(4.93

)

$

(4.44

)

 

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