Rite Aid Corporation (RAD) saw its loss widen to $75.35 million in the quarter ended compared with $4.59 million a year ago. On an adjusted basis, net loss for the quarter stood at $52.44 million, or $0.05 a share compared with a net profit of $16.34 million, or $0.02 a share in the last year period. Revenue during the quarter dropped 4.92 percent to $7,781.45 million from $8,184.18 million in the previous year period. Gross margin for the quarter contracted 54 basis points over the previous year period to 22.61 percent. Operating margin for the quarter stood at negative 0.01 percent as compared to a positive 1.15 percent for the previous year period.
Operating loss for the quarter was $0.62 million, compared with an operating income of $94.22 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $192.56 million compared with $286 million in the prior year period. At the same time, adjusted EBITDA margin contracted 102 basis points in the quarter to 2.47 percent from 3.49 percent in the last year period.
“While we believe that pursuing the merger with WBA was the right thing to do for our investors and customers, this new agreement provides a clear path forward and positions Rite Aid as a strong, independent, multi-regional drugstore chain and pharmacy benefits manager with a compelling footprint in key markets,” said Rite Aid Chairman and Chief executive officer John Standley. “The transaction offers clear solutions to assist us in addressing our pharmacy margin challenges and allows us to significantly reduce debt, resulting in a strong balance sheet and improved financial flexibility moving forward.”
Operating cash flow drops significantly
Rite Aid Corp has generated cash of $92.73 million from operating activities during the quarter, down 42.04 percent or $ 67.27 million, when compared with the last year period. The company has spent $58.20 million cash to meet investing activities during the quarter as against cash outgo of $119.37 million in the last year period.
The company has spent $65.50 million cash to carry out financing activities during the quarter as against cash outgo of $20.26 million in the last year period.
Cash and cash equivalents stood at $214.45 million as on Jun. 03, 2017, up 1,380.59 percent or $199.96 million from $14.48 million on May 28, 2016.
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