Rite Aid Corporation (RAD) Surges On Strong Financial Results

Rite Aid Corporation (RAD) Surges On Strong Financial Results

The stock price of Rite Aid Corporation (NYSE:RAD) increased by almost 19 percent to $2.13 per share on Thursday afternoon trading after the pharmacy reported strong results for the fourth quarter and fiscal 2013 that ended March 2, 2013.

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During the fourth quarter, Rite Aid Corporation (NYSE:RAD) posted $0.13 net income per diluted share compared with the $0.18 net loss it recorded during the same period a year earlier. The pharmacy’s 4Q adjusted EBITDA was $340 million, up from $274.3 million adjusted EBITDA in the same quarter the previous year.

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According to the company, its fourth quarter revenues decreased by 9.7 percent from $7.1 billion to $6.5 billion because this year is one week less and due to the impact of lower cost generics on pharmacy sales. Its same-store sales also decreased by 2 percent while the number of its prescriptions filled increased by 3 percent.

During the period, Rite Aid Corporation (NYSE:RAD) relocated four stores, remodeled 112 stores and shut down 10 stores. It has 4,624 stores operating by the end of the fourth quarter.

For the full year, Rite Aid Corporation (NYSE:RAD) posted $0.12 net income per diluted share compared with its $0.43 net loss a year ago. Its adjusted EBITDA increased from $942.9 million to $1.128 billion. The pharmacy recorded $25.4 billion in revenues.

In a statement, John Standley, chairman, president, & CEO of Rite Aid Corporation (NYSE:RAD) expressed his gratitude to the entire team of the pharmacy for their hard work, which generated outstanding results in the fourth quarter, and delivered one of the best full-year performances.  Standley said, “In addition to setting a new company record for full year adjusted EBITDA, we generated full-year net income for the first time since fiscal 2007.”

In addition, Standley said, “For Rite Aid, being able to report these results is a great moment that has been many years in the making. I’m very proud of our nearly 90,000 associates, who have worked together to execute key initiatives, grow sales, manage expenses and serve our customers like never before. Together, we are successfully transforming Rite Aid into a true neighborhood destination for health and wellness. As a result, our company is stronger and better equipped to meet the individual wellness needs of our valued customers and patients.”

For the fiscal 2012, Rite Aid Corporation (NYSE:RAD) expects to achieve $24.9 billion to $25.3 billion sales. The pharmacy estimates that its same store sales might experience a 0.75 percent sales decrease to 0.75 percent sales increase.

The pharmacy expects its adjusted EBITDA to be around $1.075 billion to $1.175 billion and net income at approximately $45 million to $200 million or $0.04 to $0.20 per diluted share. Its capital expenditures will be around $400 million.

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