Rite Aid Corporation (NYSE: RAD) announced operating results for its second quarter that ended August 29th, 2020. In the second quarter, net loss from operations fell USD 65.5 Million to USD 13.2 Million at USD0.25 loss per share. Net income from continued operations increased USD 7.2 Million to USD 13.5 Million or USD 0.25 earnings per share as adjusted EBITDA from continued operations rose USD 17.4 Million to USD 151.6 Million.
“We are pleased with our second quarter performance as we delivered another quarter of strong results while making solid progress on our bold, new RxEvolution strategy,” said Heyward Donigan, president and chief executive officer, Rite Aid. “Our retail pharmacists and associates have always been deeply committed to our communities, and they are doing a great job protecting our customers during a global pandemic. Thanks to them, Rite Aid continues to gain retail market share and increase both same store prescription count and front-end sales.”
“And at Elixir, our new leadership team is in place, and we are making progress on modernizing and integrating our many assets. We also officially launched our new Elixir brand and are focused on enhancing our curated solutions, products, clinical and digital capabilities. We grew membership in our Medicare Part D business and benefitted from strong expense control, especially as we continue to integrate Rite Aid and Elixir.”
“I am so proud of our 50,000 associates and how they are working together each and every day to deliver operational excellence and help our customers to not just get healthy, but get thriving. Together, we are building a strong foundation for sustainable growth and setting the stage to engage with consumers in ways never before seen in health care. A whole new Rite Aid is coming to life, and I’m excited to continue our journey to become a dominant mid-market PBM, unlock the value of our pharmacists and revitalize our retail and digital experiences.”
Revenues from continued operations amounted to USD 5.98 Billion compared to USD 5.37 Billion in the same period a year ago. The revenue increase was primarily due to growth at the Retail Pharmacy and Pharmacy Services segments.
The company has issued fiscal 2021 guidance adjusted due to the strong demand for flu immunizations and improvement in pharmacy network manager at Elixir and savings from its previously announced cost reduction initiatives. This was partially offset by continued reimbursement rate pressure. The company expects revenues to be between USD 23.5 Billion and USD 24 Billion in fiscal 2021 as same store sales are expected to range from an increase of 3-4% over fiscal 2020. Free cash flow is expected to range from USD 110 Million to USD 160 Million.
Written by Bryan Shin.
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