4 th Quarter 2010 Earnings Supplemental Information. March 31, 2010

Transcription

1 4 th Quarter 2010 Earnings Supplemental Information March 31, 2010

2 Safe Harbor Statement Investors are urged to review Rite Aid s SEC filings. Statements, estimates, targets, projections and other information included herein might be considered forward-looking. These statements and estimates are based upon various assumptions that may not prove to be correct. Such assumptions are inherently subject to significant uncertainties and contingencies, many of which are beyond the company s control. No representation is made, and no assurance can be given, that such results can or will be attained. The risk factors associated with those uncertainties are described in Rite Aid s most recent Form 10-K, Form 10-Q and other filings with the SEC. Rite Aid assumes no obligation to update the information or the forwardlooking statements contained herein, whether as a result of new information or otherwise. Also included herein are non-gaap financial measures. The definition and purpose for using these measures are in Rite Aid s Form 8-K furnished to the SEC. 1

3 Supplemental Operating Information ($ s in thousands) Thirteen weeks ended February 27, 2010 Thirteen weeks ended February 28, 2009 Revenues $ 6,463,786 $ 6,707,567 Cost of goods sold 4,788,449 4,983,847 Gross profit 1,675,337 1,723,720 LIFO charge 44,140 94,569 FIFO gross profit 1,719,477 1,818,289 Gross profit as a percentage of revenues 25.92% 25.70% LIFO charge as a percentage of revenues 0.68% 1.41% FIFO gross profit as a percentage of revenues 26.60% 27.11% Selling, general and administrative expenses 1,641,574 1,699,889 Selling, general and administrative expenses as a percentage of revenues 25.40% 25.34% Cash interest expense 130, ,245 Non-cash interest expense 11,545 7,962 Total interest expense 141, ,207 Securitization costs (included in SG&A) - 9,142 Total interest expense and securitization costs 141, ,349 Adjusted EBITDA 205, ,523 Adjusted EBITDA as a percentage of revenues 3.17% 4.03% Net loss (208,356) (2,293,658) Net loss as a percentage of revenues -3.22% % Total debt 6,370,899 6,011,709 Accounts receivable securitization facility - 548,379 Total debt including accounts receivable facility 6,370,899 6,560,088 2

4 Supplemental Operating Information ($ s in thousands) Fifty-two weeks ended February 27, 2010 Fifty-two weeks ended February 28, 2009 Revenues $ 25,669,117 $ 26,289,268 Cost of goods sold 18,845,027 19,253,616 Gross profit 6,824,090 7,035,652 LIFO charge 88, ,569 FIFO gross profit 6,912,540 7,220,221 Gross profit as a percentage of revenues 26.58% 26.76% LIFO charge as a percentage of revenues 0.34% 0.70% FIFO gross profit as a percentage of revenues 26.93% 27.46% Selling, general and administrative expenses 6,603,372 6,985,367 Selling, general and administrative expenses as a percentage of revenues 25.72% 26.57% Cash interest expense 475, ,896 Non-cash interest expense 40,542 26,731 Total interest expense 515, ,627 Securitization costs (included in SG&A) 36,862 26,064 Total interest expense and securitization costs 552, ,691 Adjusted EBITDA 924, ,147 Adjusted EBITDA as a percentage of revenues 3.60% 3.77% Net loss (506,676) (2,915,420) Net loss as a percentage of revenues -1.97% % Total debt 6,370,899 6,011,709 Accounts receivable securitization facility - 548,379 Total debt including accounts receivable facility 3 6,370,899 6,560,088

5 Reconciliation of Adjusted EBITDA SG&A ($ s in thousands) Thirteen Weeks Ended February 27, 2010 February 28, 2009 Selling, general and administrative expenses $ 1,641,574 $ 1,699,899 Less: Depreciation & amoritization (SG&A portion only) 124, ,669 Accounts receivable securitization costs 9,142 Stock based compensation expense 5,459 5,527 Other (9,828) (9,901) Adjusted EBITDA SG&A $ 1,520,978 $ 1,556, % 23.20% 4

6 SG&A ¹ Expense Trend Q1 Q2 Q3 Q4 FY 08 FY 09 FY 10 ¹ SG&A on an adjusted EBITDA basis 5

7 SG&A Growth/Decline (1) $60.0 $40.0 $42.2 $20.0 $9.5 $0.0 Q2 FY'09 Q3 FY'09 Q4 FY'09 Q1 FY'10 Q2 FY'10 Q3 FY'10 Q4 FY'10 ($20.0) ($40.0) ($32.3) ($39.2) ($35.5) ($60.0) ($78.3) ($80.0) ($100.0) ($90.5) FY'09 FY'10 6 (1) Calculated as the change in Adjusted EBITDA SG&A compared to the corresponding prior year quarter.

8 Distribution Expense Trend 1.85% 1.80% 1.75% 1.70% 1.65% 1.60% 1.55% 1.50% 1.45% 1.40% 1.80% 1.79% 1.79% 1.80% Q3 FY'08 Q4 FY'08 Q1 FY'09 Q2 FY' % Q3 FY' % Q4 FY'09 Distribution Costs % of Sales 1.48% Q1 FY' % 1.53% 1.55% Q2 FY'10 Q3 FY'10 Q4 FY'10 Note: Represents total EBITDA distribution expense which is partially classified in SG&A in the external financial statements. 7

9 FIFO Inventory Comparison ( $ s in millions) $4,450 $4,367 $4,300 $4,256 $4,150 $4,070 $4,000 FY'09 Q4 FY'10 Q3 FY'10 Q4 8

10 Fiscal 2011 Guidance Recap Low Guidance High Sales $25.2 billion $25.6 billion Comp % -1.00% 1.00% Adjusted EBITDA $875 million $975 million Net Loss $(570) million $(355) million Diluted Loss per share ($0.65) ($0.41) Gross Capital Expenditures $250 million $250 million 9

11 CapEx Recap ($ in millions) New and relocated stores $79 $52 Remodels and resets Backstage,infrastructure & maintenance Prescription file buys Total capex $194 $ 250 New Stores 17 3 Relocations Total

12 Liquidity Trend Fiscal 2009 and 2010 $1,000 $902 ($ in Millions) $903 $945 Q3 Q4 $822 $800 $724 $600 $549 $430 $400 $340 $200 $0 Q1 Q2 Q3 Q4 Q1 Fiscal 2009 Fiscal Q2