Tag Archives: Rite Aid Corporation

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Albertsons Companies and Rite Aid Corporation announce merger agreement

  • Combination Will Create Strong Local Networks in Attractive Geographies
  • Integrated Platform Will Provide Customers Greater Choice, Convenience, and Access,
    and Accelerate Omni-Channel Strategy to Reach More Customers and Drive Profitable Growth
  • John Standley to Serve as Chief Executive Officer and Bob Miller to Serve as Chairman
    of Combined Company
  • Transaction Expected to Generate Run Rate Cost Synergies of $375 Million and Create
    Incremental Revenue Opportunities of Over $3.6 Billion
  • Combined Company Expected to Generate Pro Forma 2018[1] Revenues of $83 Billion and Adjusted
    Pro Forma EBITDA of $3.7 Billion (Including Run Rate Cost Synergies)

BOISE, Idaho and CAMP HILL, Pa., 2018-Feb-21 — /EPR Retail News/ — Albertsons Companies, one of the nation’s largest grocery retailers, and Rite Aid Corporation (NYSE:RAD), one of the nation’s leading drugstore chains, announced a definitive merger agreement under which privately held Albertsons Companies will merge with publicly traded Rite Aid.

Under the terms of the agreement, in exchange for every 10 shares of Rite Aid common stock, Rite Aid shareholders will have the right to elect to receive either (i) one share of Albertsons Companies common stock plus approximately $1.83 in cash or (ii) 1.079 shares of Albertsons Companies stock. Depending upon the results of cash elections, upon closing of the merger, shareholders of Rite Aid will own a 28.0 percent to 29.6 percent stake in the combined company, and current Albertsons Companies shareholders will own a 70.4 percent to 72.0 percent stake in the combined company on a fully diluted basis. Immediately following completion of the merger and assuming that all Rite Aid shareholders elect to receive shares plus cash, Albertsons Companies will have approximately 392.9 million shares outstanding on a pro forma and fully diluted basis. Following the close of the transaction and the share exchange, Albertsons Companies’ shares are expected to trade on the New York Stock Exchange.

Albertsons Companies is backed by an investment consortium led by Cerberus Capital Management, L.P. (“Cerberus”), which also includes Kimco Realty Corporation (NYSE: KIM), Klaff Realty LP, Lubert-Adler Partners LP, and Schottenstein Stores Corporation.

Current Rite Aid Chairman and Chief Executive Officer John Standley will become Chief Executive Officer of the combined company, with current Albertsons Companies Chairman and Chief Executive Officer Bob Miller serving as Chairman. The combined company is expected to be comprised of leadership from both companies and will be dual headquartered in Boise, Idaho, and Camp Hill, Pennsylvania. The name of the combined company will be determined by transaction close.

The integrated company will operate approximately 4,900 locations, 4,350 pharmacy counters, and 320 clinics across 38 states and Washington, D.C., serving 40+ million customers per week. Most Albertsons Companies pharmacies will be rebranded as Rite Aid, and the company will continue to operate Rite Aid stand-alone pharmacies.

The combination will provide customers with flexible and convenient access to a full range of food, health, and wellness offerings and will deliver significant value to customers, employees, and shareholders by:

• Enhancing Geographic Footprint and Creating Local Networks in Attractive Geographies. The new company will have an expanded footprint and be ranked first or second in 66 percent of the top metropolitan areas in the United States and will be ranked first or second in 70 percent of pharmacy locations[2]. It will establish the leading integrated food, health, and wellness retailer on the West Coast and will have a strong brand position in the Northeast.

• Leveraging Strong Pharmacy Network and Rite Aid’s Pharmacy Benefit Management Company, EnvisionRxOptions, to Drive Customer Growth. The combined company will be positioned to drive incremental growth by deepening existing relationships and expanding reach across higher-value pharmacy customers. This will be achieved through a full suite of health and wellness capabilities, including specialty pharmacy offerings and in-store RediClinics in larger Albertsons Companies stores and stand-alone Rite Aid stores. In addition, investing in preferred relationships with EnvisionRxOptions, other PBMs, and regional payors is expected to drive prescription growth.

• Utilizing Data Analytics and Integrated Loyalty Programs to Drive Growth and Target New Customers. The new company will capitalize on enhanced data and analytics to unlock profitable growth through new customer acquisition, new merchandising programs, and demand forecasting. It will also create cross-branded opportunities for its loyalty programs, improving connections across a combined current base of 25 million active loyalty program participants.

• Combining Strong Own Brand Portfolios with Extensive Manufacturing and Distribution Network to Drive Revenue Growth and Operating Efficiencies. The combination of Albertsons Companies’ billion dollar own brands, including O Organics and Lucerne, and its manufacturing and operating capabilities, with Rite Aid’s own brands in health and wellness, including B4Y and Daylogic, and its pharmacy expertise will allow the combined company to drive growth opportunities and efficiencies across its purchasing, marketing, manufacturing, and merchandising functions.

• Serving Customers When, Where, and How They Want to Shop. The combined company’s expanding omni-channel platform will provide customers with convenience, choice, and flexibility through multiple in-store formats, digital channels, and same-day food and prescription delivery options from stores and via Drive Up & Go.

“This powerful combination enables us to become a truly differentiated leader in delivering value, choice, and flexibility to meet customers’ evolving food, health, and wellness needs,” said Rite Aid Chairman and Chief Executive Officer John Standley. “The combined platform positions Rite Aid to capitalize on our pharmacy expertise and expand and enhance our pharmacy footprint. We are confident that delivering improved customer experiences and value will drive growth and profitability while creating compelling  long-term value for shareholders.”

“The hallmark of Albertsons Companies’ business has been to become the favorite local supermarket of our customers,” said Bob Miller, Albertsons Companies Chairman and Chief Executive Officer. “We have always put our customers first, and our combination with Rite Aid will enable us to even better serve the valuable pharmacy customer by providing a fully integrated one-stop-shop for our customers’ food, health, and wellness needs. I have long known the excellent management team at Rite Aid, and we share a singular focus on superior customer service and a clear vision and strategy to become the favorite local supermarket and pharmacy to shoppers in every neighborhood we serve.”

Lenard Tessler, Vice Chairman and Senior Managing Director at Cerberus, commented, “As a long-term partner to Albertsons Companies’ world-class management team, this transaction highlights Cerberus’s confidence in this team and our conviction in the underlying customer focus driving this combination. As significant shareholders, we are very optimistic about the future of the combined company.”

Financial Details

The combined business will benefit from an enhanced financial profile and solid capital structure, which will support growth and expansion. On a pro forma basis, the combined company is expected to generate year one revenues of approximately $83 billion (excluding potential revenue opportunities) and year one Adjusted Pro Forma EBITDA of approximately $3.7 billion (including run rate cost synergies). The combined company’s pro forma net leverage ratio is expected to be 3.8x at transaction close (including run rate cost synergies).

The combined company expects to deliver annual run-rate cost synergies of $375 million in approximately three years and access potential annual revenue opportunities of $3.6 billion. Over 60 percent of the cost synergies are expected to be realized within the first two years post-close. Identified revenue opportunities primarily include partnering with payors, including Rite Aid’s PBM, EnvisionRx, through preferred networks to drive additional high-value customers, connecting Rite Aid’s reliable pharmacy customer base to Albertsons Companies through loyalty programs and targeted marketing, leveraging Albertsons Companies’ grocery capabilities and Rite Aid’s pharmacy expertise to enhance the customer offering, and driving traffic through the omni-channel experience. Cost synergies will be achieved primarily through procurement savings, leveraging efficiencies realized by a combined supply chain, combined distribution and fulfillment channels, and leveraging manufacturing capabilities.

Governance

The board of directors will be comprised of nine directors, four of whom will be named by Albertsons Companies (including Bob Miller and Lenard Tessler), four of whom will be named by Rite Aid (including John Standley), and one of whom will be a jointly selected director. A majority of the Board will be independent. Lenard Tessler will serve as Lead Director.

Approvals and Timing

The transaction has been approved unanimously by the boards of directors of both companies. The merger is expected to close early in the second half of calendar year 2018, subject to the approval of Rite Aid’s shareholders, regulatory approvals, and other customary closing conditions.

Advisors

Credit Suisse and Goldman Sachs & Co. LLC served as lead financial advisors to Albertsons Companies and Schulte Roth & Zabel LLP acted as legal advisor. Bank of America Merrill Lynch also served as financial advisor to Albertsons Companies and is providing committed financing for the proposed transaction together with Credit Suisse and Goldman Sachs.

Citi served as exclusive financial advisor to Rite Aid, and Skadden, Arps, Slate, Meagher and Flom LLP acted as legal advisor.

Investor Call

An analyst call will be conducted at 8:30 a.m. Eastern Time today with remarks by both management teams. The call will be simulcast via the internet and can be accessed in the Investor Relations sections of www.riteaid.com and www.albertsonscompanies.com, along with an accompanying investor presentation. You may participate in the call by dialing (877) 654-4425 within the U.S. and Canada or (706) 679-0005 outside of the U.S. and Canada. The reservation number is: 9687728.

A playback of the call will also be available by telephone beginning at 12 p.m. Eastern Time today until 11:59 p.m. Eastern Time on March 6, 2018. The playback number is 1-855-859-2056 from within the U.S. and Canada or 1-404-537-3406 from outside the U.S. and Canada with the reservation number 9687728.

About Albertsons Companies

Albertsons Companies is one of the largest food and drug retailers in the United States, with both a strong local presence and national scale. We operate stores across 35 states and the District of Columbia under 20 well-known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs, as well as meal kit company Plated based in New York City. Albertsons Companies is committed to helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood. In 2016 alone, along with the Albertsons Companies Foundation, the company gave nearly $300 million in food and financial support. These efforts helped millions of people in the areas of hunger relief, education, cancer research and treatment, programs for people with disabilities and veterans outreach.

About Rite Aid Corporation

Rite Aid Corporation (NYSE: RAD) is one of the nation’s leading drugstore chains with fiscal 2017 annual revenues of $32.8 billion. The Company also owns EnvisionRxOptions, a multi-faceted healthcare and pharmacy benefit management (PBM) company supporting a membership base of more than 22 million members; RediClinic, a convenient care clinic operator with locations in Delaware, New Jersey, Pennsylvania, Texas and Washington; and Health Dialog, a leading provider of population health management solutions including analytics, a multi-channel coaching platform and shared decision-making tools. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

About Cerberus Capital Management, L.P.

Established in 1992, Cerberus Capital Management, L.P. is a global leader in alternative investing with more than US $34 billion under management across complementary credit, private equity, and real estate strategies. From its headquarters in New York City and network of affiliate and advisory offices in the United States, Europe, and Asia, Cerberus has the on-the-ground presence to invest in multiple asset classes globally.

Important Notice Regarding Forward-Looking Statements and Non-GAAP Measures

This press release contains certain “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the pending merger between Albertsons Companies Inc. (“Albertsons Companies”) and Rite Aid Corporation (“Rite Aid”) and the transactions contemplated thereby, and the parties perspectives and expectations, are forward looking statements. Such statements include, but are not limited to, statements regarding the benefits of the proposed merger, integration plans, expected synergies and revenue opportunities, anticipated future financial and operating performance and results, including estimates for growth, the expected management and governance of the combined company, and the expected timing of the transactions contemplated by the merger agreement. The words “expect,” “believe,” “estimate,” “intend,” “plan” and similar expressions indicate forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to various risks and uncertainties, assumptions (including assumptions about general economic, market, industry and operational factors), known or unknown, which could cause the actual results to vary materially from those indicated or anticipated. Such risks and uncertainties include, but are not limited to, risks related to the expected timing and likelihood of completion of the pending merger, including the risk that the transaction may not close due to one or more closing conditions to the transaction not being satisfied or waived, such as regulatory approvals not being obtained, on a timely basis or otherwise, or that a governmental entity prohibited, delayed or refused to grant approval for the consummation of the transaction or required certain conditions, limitations or restrictions in connection with such approvals, or that the required approval of the merger agreement by the stockholders of Rite Aid was not obtained; risks related to the ability of Albertsons Companies and Rite Aid to successfully integrate the businesses; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement (including circumstances requiring a party to pay the other party a termination fee pursuant to the merger agreement); the risk that there may be a material adverse change of Rite Aid or Albertsons Companies; risks related to disruption of management time from ongoing business operations due to the proposed transaction; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of Rite Aid’s common stock, and the risk that the proposed transaction and its announcement could have an adverse effect on the ability of Albertsons Companies and Rite Aid to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally; risks related to successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected; the risk that the combined company may be unable to achieve cost-cutting synergies or it may take longer than expected to achieve those synergies; and risks associated with the financing of the proposed transaction. A further list and description of risks and uncertainties can be found in Rite Aid’s Annual Report on Form 10-K for the fiscal year ending March 4, 2017 filed with the Securities and Exchange Commission (“SEC”), in Albertsons Companies, LLC’s Form S-4 registration statement filed with the SEC on June 28, 2017, in Albertsons Companies, LLC’s quarterly reports on Form 10-Q filed with the SEC on August 1, 2017, October 23, 2017 and January 1, 2018 and in the Form S-4 that will be filed with the SEC by Albertsons Companies in connection with the proposed merger, and other documents that the parties may file or furnish with the SEC, which you are encouraged to read. 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 place undue reliance on these forward-looking statements. Forward-looking statements relate only to the date they were made, and Albertsons Companies, Rite Aid, and their subsidiaries undertake no obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation.

Adjusted EBITDA (the “Non-GAAP Measure”) is a performance measure that provides supplemental information that Albertsons Companies and Rite Aid believe is useful to analysts and investors to evaluate ongoing results of operations, when considered alongside other GAAP measures such as net income, operating income and gross profit. This Non-GAAP Measure excludes the financial impact of items management does not consider in assessing the ongoing operating performance of Albertsons Companies, Rite Aid, or the combined company, and thereby facilitates review of its operating performance on a period-to-period basis. Other companies may have different capital structures or different lease terms, and comparability to the results of operations of Albertsons Companies, Rite Aid, or the combined company may be impacted by the effects of acquisition accounting on its depreciation and amortization. As a result of the effects of these factors and factors specific to other companies, Albertsons Companies and Rite Aid believe Adjusted EBITDA provides helpful information to analysts and investors to facilitate a comparison of their operating performance to that of other companies. The presentation of the Non-GAAP Measure in this press release should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. A reconciliation of the Non-GAAP Measure has not been provided because such reconciliation could not be produced without unreasonable effort.

Additional Information and Where to Find It

In connection with the proposed strategic combination involving Rite Aid and Albertsons Companies Inc., Rite Aid and Albertsons Companies Inc. intend to file relevant materials with the SEC, including that Albertsons Companies Inc. will file a registration statement on Form S-4 that will include a proxy statement/prospectus to be distributed to Rite Aid stockholders. Rite Aid will mail the proxy statement/prospectus and a proxy card to each stockholder entitled to vote at the special meeting relating to the proposed merger. INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. RITE AID’S EXISTING PUBLIC FILINGS WITH THE SEC SHOULD ALSO BE READ, INCLUDING THE RISK FACTORS CONTAINED THEREIN.

Investors and security holders may obtain copies of the Form S-4, including the proxy statement/prospectus, as well as other filings containing information about Rite Aid, free of charge, from the SEC’s Web site (www.sec.gov). Investors and security holders may also obtain Rite Aid’s SEC filings in connection with the transaction, free of charge, from Rite Aid’s Web site (www.RiteAid.com) under the link “Investor Relations” and then under the tab “SEC Filings,” or by directing a request to Rite Aid, Byron Purcell, Attention: Senior Director, Treasury Services & Investor Relations. Copies of documents filed with the SEC by Albertsons Companies Inc. will be made available, free of charge, on Albertsons Companies’ website atwww.albertsonscompanies.com.

Participants in Solicitation

Rite Aid, Albertsons Companies Inc. and their respective directors, executive officers and employees and other persons may be deemed to be participants in the solicitation of proxies from the holders of Rite Aid common stock in respect of the proposed transaction. Information regarding Rite Aid’s directors and executive officers is available in its definitive proxy statement for Rite Aid’s 2017 annual meeting of stockholders filed with the SEC on June 7, 2017, as modified or supplemented by any Form 3 or Form 4 filed with the SEC since the date of such definitive proxy statement. Information about the directors and executive officers of Albertsons Companies will be set forth in the Form S-4. Other information regarding the interests of the participants in the proxy solicitation will be included in the proxy statement/prospectus when it becomes available. These documents can be obtained free of charge from the sources indicated above.

This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Media and Investor Contacts:

For Albertsons Companies
INVESTORS:                                     MEDIA:
Melissa Plaisance                               Christine Wilcox
(925) 226-5115                                 (208) 395-4163
melissa.plaisance@albertsons.com      christine.wilcox@albertsons.com

For Rite Aid
INVESTORS:                                     MEDIA:
Byron Purcell                                     Ashley Flower
(717) 975-5809                                 (717) 975-5718
investor@riteaid.com                         aflower@riteaid.com

For Cerberus Capital Management L.P.

MEDIA:
Andrew Johnson
(646) 495-2700
ajohnson@gpg.com

Contact:

Investors: 
Byron Purcell
717-975-5809
investor@riteaid.com

Media: 
Ashley Flower
717-975-5718

Source: RiteAid

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Walgreens Boots Alliance to purchase 2,186 stores, three distribution centers and related inventory from Rite Aid

New agreement replaces previous merger agreement with Rite Aid and proposed divestiture transaction with Fred’s

DEERFIELD, Ill., 2017-Jul-02 — /EPR Retail News/ — Walgreens Boots Alliance, Inc. (Nasdaq: WBA) announced today (June 29, 2017) a new definitive agreement with Rite Aid Corporation under which Walgreens Boots Alliance will purchase 2,186 stores, three distribution centers and related inventory from Rite Aid.

The consideration for the transaction will be $5.175 billion in cash, the assumption by Walgreens Boots Alliance of the related real estate leases and the grant of an option to Rite Aid, exercisable through May 2019 and subject to certain conditions, to become a member of Walgreens Boots Alliance’s group purchasing organization, Walgreens Boots Alliance Development GmbH. Walgreens Boots Alliance will also assume certain limited store-related liabilities as part of the new transaction.

This new agreement replaces the previous merger agreement with Rite Aid, announced in October 2015 and amended in January 2017, and the agreement to divest certain Rite Aid stores to Fred’s, Inc. announced in December 2016. Both of these agreements have been terminated, and Walgreens Boots Alliance will pay Rite Aid the $325 million termination fee with respect to their merger agreement.

The new transaction is subject to the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions. The initial closing of the new transaction is expected to occur within the next six months.

Upon the initial closing of the new transaction, Walgreens Boots Alliance will begin acquiring the stores and related assets on a phased basis over a period of approximately six months, and intends to convert acquired stores to the Walgreens brand over time.

Walgreens Boots Alliance expects the new transaction to be modestly accretive to its adjusted diluted net earnings per share in the first full year after the initial closing of the new transaction, and expects to realize synergies from the new transaction in excess of $400 million. These synergies are expected to be fully realized within three to four years of the initial closing of the new transaction and derived primarily from procurement, cost savings and other operational matters.

“This new transaction extends our growth strategy and offers additional operational and financial benefits,” said Walgreens Boots Alliance Executive Vice Chairman and CEO Stefano Pessina. “It will allow us to expand and optimize our retail pharmacy network in key markets in the U.S., including the Northeast, and provide customers and patients with greater access to convenient, affordable care. We believe this new transaction addresses competitive concerns previously raised with respect to the prior transaction and will streamline and simplify the transition for customers, team members and other stakeholders.”

Notes to Editors:

About Walgreens Boots Alliance

Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led, health and wellbeing enterprise.

The company was created through the combination of Walgreens and Alliance Boots in December 2014, bringing together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years.

Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the USA and Europe. Walgreens Boots Alliance and the companies in which it has equity method investments together have a presence in more than 25* countries and employ more than 400,000* people. The company is a global leader in pharmacy-led, health and wellbeing retail and, together with the companies in which it has equity method investments, has over 13,200* stores in 11* countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with over 390* distribution centers delivering to more than 230,000** pharmacies, doctors, health centers and hospitals each year in more than 20* countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products.

The company’s portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as increasingly global health and beauty product brands such as No7, Botanics, Liz Earle and Soap & Glory.

In October 2016 Walgreens Boots Alliance received the United Nations Foundation Global Leadership Award for its commitment to the UN’s Sustainable Development Goals. The company also ranks No. 1 in the Food and Drug Stores industry of Fortune magazine’s 2017 list of the World’s Most Admired Companies.

More company information is available at www.walgreensbootsalliance.com.

* As of 31 August 2016, using publicly available information for AmerisourceBergen.

** For 12 months ending 31 August 2016, using publicly available information for AmerisourceBergen.

(WBA-GEN)

Cautionary Note Regarding Forward-Looking Statements

All statements in this release that are not historical statements, which include, without limitation, those regarding the pending asset purchase agreement between Walgreens Boots Alliance and Rite Aid and the transactions contemplated thereby and the termination of the merger agreement with Rite Aid and the transactions contemplated thereby and the possible effects thereof, 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 the expected timing of the closing of the transactions contemplated by the pending asset purchase agreement between Walgreens Boots Alliance and Rite Aid and the transactions contemplated thereby, the ability of the parties to complete the transactions considering the various closing conditions, and the outcome of legal and regulatory matters, the termination of the merger agreement with Rite Aid and the transactions contemplated thereby (including the termination of the divestiture agreement to sell certain Rite Aid assets and stores to Fred’s, Inc.) and their possible effect. Words such as “expect,” “pending,” “potential”, “likely,” “preliminary,” “would,” “could,” “should,” “can,” “will,” “project,” “intend,” “plan,” “goal,” “continue,” “synergy,” “on track,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “possible,” “assume,” 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 are subject to risks, uncertainties and assumptions, known or unknown, which could cause actual results to vary materially from those indicated or anticipated. Such risks include, but are not limited to, risks related to the proposed transactions and acquisitions generally, including the risk that the transactions may not close due to one or more closing conditions to the transactions not being satisfied or waived, such as certain regulatory approvals not being obtained, on a timely basis or otherwise, or that a governmental entity prohibited, delayed or refused to grant approval for the consummation of the transactions or required certain conditions, limitations or restrictions in connection with such approvals, risk that the business of Walgreens Boots Alliance or the Rite Aid stores proposed to be sold to Walgreens Boots Alliance may suffer as a result of uncertainty surrounding the transactions, risks related to the ability to realize the anticipated benefits of the proposed transactions, the outcome of legal and regulatory matters, including with respect to the outcome of discussions with the U.S. Federal Trade Commission and otherwise in connection with the pending acquisition of certain Rite Aid assets by Walgreens Boots Alliance, the risk of unexpected costs, liabilities or delays, changes in management’s assumptions, the risks associated with the integration of complex businesses, and risks associated with changes in laws, regulations or interpretations thereof. These and other risks, assumptions and uncertainties are described in Item 1A (Risk Factors) of Walgreens Boots Alliance’s Annual Report on Form 10-K for the fiscal year ended August 31, 2016, which is incorporated herein by reference, and in other documents that Walgreens Boots Alliance files or furnishes with the Securities and Exchange Commission. 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 place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except to the extent required by law, Walgreens Boots Alliance does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking statement after the date of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

SOURCE: Walgreens Boots Alliance, Inc.

Contacts:

Walgreens Boots Alliance, Inc.
Media Relations
USA / Michael Polzin
+1 847 315 2935

International / Laura Vergani
+44 (0)207 980 8585

Investor Relations
Gerald Gradwell and Ashish Kohli
+1 847 315 2922

 

 

 

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Walgreens Boots Alliance and Rite Aid Corporation certified substantial compliance with Request for Additional Information

Deerfield, Ill. and Camp Hill, Pa., 2017-May-09 — /EPR Retail News/ — Walgreens Boots Alliance, Inc. (Nasdaq: WBA) and Rite Aid Corporation (NYSE: RAD) today announced that they have certified substantial compliance with the Request for Additional Information (the “Second Request”) from the United States Federal Trade Commission (FTC) regarding their merger agreement under which Walgreens Boots Alliance proposes to acquire all outstanding shares of Rite Aid.

In January 2016, Walgreens Boots Alliance and Rite Aid entered into a timing agreement with the FTC pursuant to which the two companies have agreed not to close the proposed merger until at least 60 full calendar days after both companies have certified substantial compliance with the Second Request.  The transaction remains subject to the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, approval by the holders of Rite Aid’s common stock and other closing conditions, and there can be no assurance that these conditions to closing will be satisfied.

“We are pleased to have certified completion of our submission of documents and information to the FTC in connection with the Second Request,” said Stefano Pessina, executive vice chairman and chief executive officer of Walgreens Boots Alliance. “We will continue to work closely with the FTC regarding the pending transaction.”

“Our teams did a tremendous amount of work to deliver to the FTC the information to substantially comply with the Second Request,” said Rite Aid Chairman and CEO John Standley.

Notes to Editors:

About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led, health and wellbeing enterprise.

The company was created through the combination of Walgreens and Alliance Boots in December 2014, bringing together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years.

Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the USA and Europe. Walgreens Boots Alliance and the companies in which it has equity method investments together have a presence in more than 25* countries and employ more than 400,000* people. The company is a global leader in pharmacy-led, health and wellbeing retail and, together with the companies in which it has equity method investments, has over 13,200* stores in 11* countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with over 390* distribution centers delivering to more than 230,000** pharmacies, doctors, health centers and hospitals each year in more than 20* countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products.

The company’s portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as increasingly global health and beauty product brands such as No7, Botanics, Liz Earle and Soap & Glory.

In October 2016 Walgreens Boots Alliance received the United Nations Foundation Global Leadership Award for its commitment to the UN’s Sustainable Development Goals.

More company information is available at www.walgreensbootsalliance.com.

* As of 31 August 2016, using publicly available information for AmerisourceBergen.
** For 12 months ending 31 August 2016, using publicly available information for AmerisourceBergen.

(WBA-GEN)

Media Relations                                Contact
USA / Michael Polzin                       +1 847 315 2935
International / Laura Vergani           +44 (0)207 980 8585

Investor Relations                            Contact
Gerald Gradwell and Ashish Kohli   +1 847 315 2922

About Rite Aid

Rite Aid Corporation (NYSE: RAD) is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2016 annual revenues of $30.7 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

Media Relations                              Contact
Ashley Flower                                 +1 717 975 5718

Investor Relations                          Contact
Matt Schroeder                              +1 717 214 8867

Cautionary Statement Regarding Forward-Looking Statements

All statements in this release that are not historical statements, which include, without limitation, those regarding the pending merger agreement between Walgreens Boots Alliance, Inc. (“Walgreens Boots Alliance”) and Rite Aid Corporation (“Rite Aid”) and the transactions contemplated thereby and their possible timing and effects, 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 the expected timing of the closing of the transactions contemplated by the pending merger agreement between Walgreens Boots Alliance and Rite Aid; the ability of the parties to complete the transactions considering the various closing conditions; and the outcome of legal and regulatory matters, including with respect to the outcome of discussions with the Federal Trade Commission and otherwise in connection with the pending acquisition of Rite Aid by WBA. Words such as “expect,” “pending,” “potential”, “likely,” “preliminary,” “would,” “could,” “should,” “can,” “will,” “project,” “intend,” “plan,” “goal,” “continue,” “synergy,” “on track,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “possible,” “assume,” 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 are subject to risks, uncertainties and assumptions, known or unknown, which could cause actual results to vary materially from those indicated or anticipated. Such risks include, but are not limited to, risks related to the proposed transactions and acquisitions generally, including the risk that the transactions may not close due to one or more closing conditions to the transactions not being satisfied or waived, such as certain regulatory approvals not being obtained, on a timely basis or otherwise, or that a governmental entity prohibited, delayed or refused to grant approval for the consummation of the transactions or required certain conditions, limitations or restrictions in connection with such approvals, or that the required approval of the amended merger agreement by the stockholders of Rite Aid was not obtained; the risk that Rite Aid stockholders may receive the bottom of the price range for the per share merger consideration; the risk that the merger agreement may be terminated in certain circumstances that require a party to pay the other party a termination fee pursuant to the merger agreement; the risk that there may be a material adverse change of Rite Aid or the stores proposed to be sold to Fred’s, Inc. (“Fred’s”) pursuant to that certain Asset Purchase Agreement, dated as of 19 December 2016, by and among Rite Aid, Walgreens Boots Alliance, Fred’s, and AFAE, LLC, or the business of Rite Aid or the stores proposed to be sold to Fred’s may suffer as a result of uncertainty surrounding the transactions; risks related to the ability to realize the anticipated benefits of the proposed transactions; risks associated with the financing of the proposed transactions; the outcome of legal and regulatory matters, including with respect to the outcome of discussions with the FTC and otherwise in connection with the pending acquisition of Rite Aid by Walgreens Boots Alliance; the number of stores divested in connection with such pending acquisition and the terms, timing and consummation of such transactions; the risk of unexpected costs, liabilities or delays, changes in management’s assumptions; the risks associated with the integration of complex businesses; and the other risks and uncertainties described in the reports that Walgreens Boots Alliance and Rite Aid have filed with the Securities and Exchange Commission (“SEC”). A further list and description of risks and uncertainties can be found in Item 1A (Risk Factors) in Walgreens Boots Alliance’s Annual Report on Form 10-K for the fiscal year ending 31 August 2016, in Rite Aid’s Annual Report on Form 10-K for the fiscal year ending 4 March 2017, in the preliminary proxy statement, as it may be amended, that Rite Aid filed with the SEC on 3 March 2017 in connection with the proposed merger, and in other documents that the parties may file or furnish with the SEC, which you are encouraged to read. 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 place undue reliance on these forward-looking statements, which speak only as of the date they are made. Walgreens Boots Alliance and Rite Aid expressly disclaim any current intention 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.

Additional Information and Where to Find It

In connection with the proposed transaction with Walgreens Boots Alliance, as amended, Rite Aid prepared a preliminary proxy statement on Schedule 14A that has been filed with the SEC on 3 March 2017. The preliminary proxy statement is not yet final and will be amended. Following the filing of the definitive proxy statement with the SEC, Rite Aid will mail the definitive proxy statement and a proxy card to each stockholder entitled to vote at the special meeting relating to the proposed merger. INVESTORS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Investors may obtain the proxy statement, as well as other filings containing information about Rite Aid, free of charge, from the SEC’s Web site (www.sec.gov). Investors may also obtain Rite Aid’s SEC filings in connection with the transaction, free of charge, from Rite Aid’s Web site (www.RiteAid.com) under the link “Investor Relations” and then under the tab “SEC Filings,” or by directing a request to Rite Aid, Byron Purcell, Attention: Senior Director, Treasury Services & Investor Relations.

Participants in Solicitation

The directors, executive officers and employees of Rite Aid and other persons may be deemed to be participants in the solicitation of proxies in respect of the transaction. Information regarding Rite Aid’s directors and executive officers is available in its definitive proxy statement for its 2016 annual meeting of stockholders filed with the SEC on 13 May 2016. This document can be obtained free of charge from the sources indicated above. Other information regarding the interests of the participants in the proxy solicitation is set forth in the preliminary proxy statement, as it may be amended, that has been filed with the SEC on 3 March 2017. This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

SOURCE: Rite Aid Corp.

Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Ashley Flower 717-975-5718

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Rite Aid Corporation appoints Ken Black SVP and chief human resources officer

CAMP HILL, Pa., 2017-Jan-25 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) today (Jan. 23, 2017) announced that Ken Black, Rite Aid’s current group vice president of compensation, benefits and shared services, has been named senior vice president and chief human resources officer, effective immediately. He is succeeding Dedra N. Castle, who is leaving the company for personal health reasons.

“On behalf of the entire Rite Aid team, I thank Dedra for her many significant contributions to our company,” said Rite Aid Chairman and CEO John Standley. “Since joining our team, Dedra has been a passionate leader who was always focused on making Rite Aid a better place to work and a better place to shop. She has played a key role in launching initiatives that support an outstanding associate and customer experience while also providing new ways for our associates to recognize each other.”

“Ken is a strong, experienced Rite Aid leader and a valuable asset to our team,” said Standley. “Our company will continue to benefit from his extensive knowledge and expertise as he takes on this new role within our organization.”

In this position, Black will report to Standley and be responsible for all aspects of human resources, including training, recruitment, talent management, compensation and benefits, labor relations, leadership development and diversity.

Black joined Rite Aid in 2003 as the company’s vice president of tax. He held various positions within the finance department throughout his career at Rite Aid before being named group vice president of compensation and benefits in 2010. In 2014, he earned a master’s degree in human resources development from Villanova University in Villanova, Pa.

Prior to joining Rite Aid, Black was a senior tax manager for Deloitte. He also held various corporate tax positions for Union Pacific Corporation and NBC.

Black, a certified public accountant, earned a bachelor’s degree in accounting from Bloomsburg University in Bloomsburg, Pa.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2016 annual revenues of $30.7 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

Contact:
Investors:
Matt Schroeder
717-214-8867
investor@riteaid.com

Media:
Susan Henderson
717-730-7766

Source: Rite Aid Corporation

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Rite Aid Corporation announces operating results for its second fiscal quarter ended August 27, 2016

CAMP HILL, Pa., 2016-Sep-23 — /EPR Retail News/ — For the second quarter, the company reported revenues of $8.0 billion, net income of $14.8 million, or $0.01 per diluted share, Adjusted net income of $35.5 million, or $0.03 per diluted share and Adjusted EBITDA of $312.7 million, or 3.9 percent of revenues.

“In the second quarter, we continued to drive positive results in our Pharmacy Services Segment, which includes our EnvisionRx PBM, and had strong performance in our front-end business,” said Chairman and CEO John Standley. “We also saw improvements in prescription drug costs, but these improvements were more than offset by the challenging reimbursement rate environment, which we expect to continue through the remainder of the fiscal year. Heading forward, we will remain focused on operating our business as efficiently as possible while pursuing key growth opportunities such as our flu immunization campaign and converting additional stores to the Wellness format, which continue to perform well and now represent nearly half of our chain.”

Second Quarter Summary

Revenues for the quarter were $8.0 billion compared to revenues of $7.7 billion in the prior year’s second quarter, an increase of $365.0 million or 4.8 percent. Retail Pharmacy Segment revenues were $6.5 billion and decreased  2.4 percent compared to the prior year period primarily as a result of a decrease in same store sales. Revenues in the company’s Pharmacy Services Segment, which was acquired on June 24, 2015, were $1.6 billion.

Same store sales for the quarter decreased 2.5 percent over the prior year, consisting of a 3.6 percent decrease in pharmacy sales, partially offset by a 0.1 percent increase in front-end sales. Pharmacy sales included an approximate 101 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores decreased 1.8 percent over the prior year period. Prescription sales accounted for 68.5 percent of total drugstore sales, and third party prescription revenue was 98.1 percent of pharmacy sales.

Net income was $14.8 million or $0.01 per diluted share compared to last year’s second quarter net income of $21.5 million or $0.02 per diluted share. The decline in operating results is due primarily to a higher LIFO charge, and a decline in Adjusted net income, partially offset by a $33.2 million loss on debt retirement in the prior year related to the redemption of the company’s 8.00% senior secured notes.

Adjusted net income and Adjusted net income per diluted share (which is reconciled to net income on the attached table) was $35.5 million or $0.03 per diluted share compared to last year’s second quarter Adjusted net income of $58.7 million or $0.06 per diluted share. The decline in Adjusted net income and Adjusted net income per share is due to a decrease in Adjusted EBITDA, partially offset by lower income tax and interest expenses.

Adjusted EBITDA (which is reconciled to net income on the attached table) was $312.7 million or 3.9 percent of revenues for the second quarter compared to $346.8 million or 4.5 percent of revenues for the same period last year. The decline in Adjusted EBITDA is due to a decrease of $51.0 million in the Retail Pharmacy Segment, resulting from lower gross profit and higher SG&A expense. Gross profit declined due to lower pharmacy gross profit partially offset by an increase in front end gross profit. Pharmacy gross profit decreased because of lower reimbursement rates and script count, partially offset by improvements in prescription drug costs. SG&A expense increased due to a shift in the timing of Memorial Day holiday pay and increased benefit costs. The decline in Retail Pharmacy Segment Adjusted EBITDA was partially offset by an increase of $16.8 million of Pharmacy Services Segment Adjusted EBITDA. This increase was due to strong operating results in the current year and the fact that prior year’s Pharmacy Services Segment results do not reflect a full quarter’s ownership of Envision Rx.

In the second quarter, the company opened 3 stores, relocated 6 stores, and remodeled 85 stores, bringing the total number of wellness stores chainwide to 2,214. The company also acquired 1 store and closed 14 stores, resulting in a total store count of 4,550 at the end of the second quarter. The company also opened 10 clinics in the second quarter, bringing the total to 90.

As previously announced on October 27, 2015, Rite Aid and Walgreens Boots Alliance, Inc. (“WBA”) entered into a definitive agreement under which WBA will acquire all outstanding shares of Rite Aid for $9.00 per share in cash. The board of directors of both companies and Rite Aid’s shareholders have approved the transaction, which is subject to certain conditions, including, among others, the receipt of approval under applicable antitrust laws and other customary closing conditions. The company continues to believe that the transaction will close in the second half of calendar year 2016.

Rite Aid is one of the nation’s leading drugstore chains with 4,550 stores in 31 states and the District of Columbia. Information about Rite Aid, including corporate background and press releases, is available through Rite Aid’s website at www.riteaid.com.

Cautionary Statement Regarding Forward Looking Statements

Statements in this release that are not historical and statements regarding the expected timing of the closing of the proposed merger with WBA and the ability of the parties to complete such transaction considering the various closing conditions and any assumptions underlying any of the foregoing, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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, our high level of indebtedness and our ability to make interest and principal payments on our debt and satisfy the other covenants contained in our debt agreements, general economic, market and competitive conditions, our ability to improve the operating performance of our stores in accordance with our long term strategy, the impact of private and public third-party payers continued reduction in prescription drug reimbursements and efforts to encourage mail order, our ability to manage expenses and our investments in working capital, outcomes of legal and regulatory matters, changes in legislation or regulations, including healthcare reform, our ability to achieve the benefits of our efforts to reduce the costs of our generic and other drugs and risks related to the proposed merger. 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, in the definitive proxy statement that we filed with the Securities and Exchange Commission on December 21, 2015 in connection with the proposed merger, and in other documents that we file or furnish with the Securities and Exchange Commission, which you are encouraged to read. 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. Additionally, there can be no assurance that the proposed merger will be completed, or if it is completed, that it will close within the anticipated time period or that the expected benefits of the proposed merger will be realized. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention 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.

Reconciliation of Non-GAAP Financial Measures

The company separately reports financial results on the basis of Adjusted Net Income, Adjusted Net Income per diluted share, and Adjusted EBITDA, which are non-GAAP financial measures. See the attached tables for a reconciliation of Adjusted Net Income, Adjusted Net Income per diluted share and Adjusted EBITDA to net income, and net income per diluted share, which are the most directly comparable GAAP financial measures. Adjusted Net Income and Adjusted Net Income per diluted share exclude amortization of EnvisionRx intangible assets, merger and acquisition-related costs, loss on debt retirements and LIFO adjustments. Adjusted EBITDA is defined as net income excluding the impact of income taxes, interest expense, depreciation and amortization, LIFO adjustments, charges or credits for facility closing and impairment, inventory write-downs related to store closings, debt retirements and other items (including stock-based compensation expense, merger and acquisition-related costs, severance and costs related to distribution center closures, gain or loss on sale of assets and revenue deferrals related to our customer loyalty program).

Contact:

Investors:
Matt Schroeder
717-214-8867
investor@riteaid.com

Media:
Susan Henderson
717-730-7766

Source:  Rite Aid Corporation

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Rite Aid Corporation to release Q2 FY2017 financial results on Sept. 22, 2016

CAMP HILL, Pa., 2016-Sep-15 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) said today (Sept. 14, 2016) that it will release financial results for its Fiscal 2017 Second Quarter at 7 a.m. Eastern time Thursday, Sept. 22, 2016. Given the company’s pending merger with Walgreens Boots Alliance, Inc. (Nasdaq: WBA), Rite Aid will not be holding a conference call. The text of the earnings release, along with the corresponding charts and supplemental information slides, will be made available immediately after the release in the Investor Relations section of the company’s website at www.riteaid.com.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2016 annual revenues of $30.7 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

Contact:

Investors:
Matt Schroeder
717-214-8867
investor@riteaid.com

Media:
Susan Henderson
717-730-7766

Source: Rite Aid Corporation

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Walgreens Boots Alliance updates on its pending acquisition of Rite Aid Corporation

DEERFIELD, Ill., 2016-Sep-09 — /EPR Retail News/ — Walgreens Boots Alliance, Inc. (Nasdaq: WBA) today (8 September 2016 ) provided the following update on its pending acquisition of Rite Aid Corporation (NYSE: RAD).

Walgreens Boots Alliance and Rite Aid remain actively engaged with the Federal Trade Commission (FTC) regarding its review of the pending acquisition. As a result of the progress of these discussions with the FTC staff, Walgreens Boots Alliance is exploring potential divestiture remedies to address certain issues raised in those discussions.

In order to expedite that process, Walgreens Boots Alliance now expects that the most likely outcome will be that the parties will be required to divest more than the 500 stores previously communicated, but still continues to expect that fewer than 1,000 stores will be required to be divested.  In addition, the company continues to believe that the acquisition will close in the second half of calendar 2016.

Taking into account its current expectation of store divestitures, Walgreens Boots Alliance continues to expect that the acquisition will be accretive to its adjusted earnings per share in the first full year after closing of the transaction. The company also continues to expect that it will realize synergies from the acquisition in excess of $1 billion, to be fully realized within three to four years of closing. These synergies have been updated where practicable and, as previously disclosed, are expected to be derived primarily from procurement, cost savings and other operational matters.

Notes to Editors:

About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led, health and wellbeing enterprise.

The company was created through the combination of Walgreens and Alliance Boots in December 2014, bringing together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years.

Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination in the USA and Europe and, together with its equity method investments*, employs more than 370,000* people and has a presence in more than 25* countries. Walgreens Boots Alliance is a global leader in pharmacy-led, health and wellbeing retail with over 13,100* stores in 11* countries. The company includes one of the largest global pharmaceutical wholesale and distribution networks with over 350* distribution centers delivering to more than 200,000** pharmacies, doctors, health centers and hospitals each year in 19* countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products.

The company’s portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as increasingly global health and beauty product brands, such as No7, Botanics, Liz Earle and Soap & Glory.

* As at 31 August 2015 (without subsequent adjustment for business acquisitions or dispositions), including equity method investments
** For 12 months ended 31 August 2015 (without subsequent adjustment for business acquisitions or dispositions), including equity method investments

Cautionary Note Regarding Forward-Looking Statements: All statements in this release that are not historical statements, which include, without limitation, those regarding our pending agreement with Rite Aid and the transactions contemplated thereby and their possible effects and estimates of and goals for future financial and operating performance, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “pending,” “potential”, “likely,” “preliminary,” “would,” “could,” “should,” “can,” “will,” “project,” “intend,” “plan,” “goal,” “continue,” “synergy,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “possible,” “assume,” 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 are subject to risks, uncertainties and assumptions, known or unknown, which could cause actual results to vary materially from those indicated or anticipated. These include, but are not limited to, the outcome of legal and regulatory matters, including with respect to the outcome of discussions with the Federal Trade Commission and otherwise in connection with the pending acquisition of Rite Aid; the number of stores divested in connection with the pending acquisition of Rite Aid and the terms, timing and consummation of such transactions; our ability to realize synergies and achieve adjusted earnings per share and other financial, tax and operating results in the amounts and at the times anticipated; the risk of unexpected costs, liabilities or delays, risks associated with acquisitions, including those relating to our ability to satisfy the closing conditions and consummate the pending acquisition of Rite Aid and related matters on a timely basis or at all; the risks associated with the integration of complex businesses; and those other risks and uncertainties described in Item 1A (Risk Factors) of our Form 10-K for the fiscal year ending 31 August 2015 and Form 10-Q for the fiscal quarter ended 31 May 2016, which are incorporated herein by reference, and in other documents that we file or furnish with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially. These forward-looking statements speak only as of the date they are made. Except to the extent required by law, we do not undertake, and expressly disclaim, any duty or obligation to update publicly any forward-looking statement after the date of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

Media Relations:
USA / Michael Polzin
+1 847 315 2920

International / Laura Vergani
+44 (0)207 980 8585

Investor Relations:
Gerald Gradwell and Ashish Kohli
+1 847 315 2922

Source: Walgreens Boots Alliance

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Rite Aid announces availability of naloxone without prescription in 13 states

CAMP HILL, Pa., 2016-Aug-30 — /EPR Retail News/ — Rite Aid announced today (Aug. 29, 2016) that naloxone, a medication that can be used to reverse the effects of an opioid overdose, is now available at their pharmacies in 13 states without a prescription, subject to state regulations. Previously, naloxone, which can be administered by injection or nasal spray, was only available with a physician’s prescription.

Naloxone is now available for purchase without patient specific prescriptions at Rite Aid pharmacies in 13 states including: Alabama, California, Colorado, Connecticut, Idaho, Indiana, Massachusetts, Maryland, North Carolina, New Hampshire, New York, Pennsylvania and Rhode Island.

“As a community healthcare provider, we have a responsibility to do our part in the fight against opioid abuse and that’s why Rite Aid has made it a priority to expand access to this life-saving medication in the communities we serve,” said Jocelyn Konrad, Rite Aid executive vice president of pharmacy. “By making naloxone available without a prescription at our pharmacies, we are doing our part to help save lives and address the issue of opioid abuse in our country.”

Opioid misuse and abuse continues to be an in issue in the United States; according to the Centers for Disease Control and Prevention, in 2014, opioid overdoses were involved in 28,647 deaths, more than any year on record.

Rite Aid is committed to making naloxone more accessible in the communities it serves. To date, the Company has trained more than 10,000 pharmacists on naloxone dispensing. Rite Aid is also working to expand its naloxone dispensing program in other states served by the Company where naloxone is currently only available with a prescription.

Rite Aid Corporation (NYSE: RAD) is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2016 annual revenues of $30.7 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

Media Contact:

Kristin Kellum
717-975-5713

Source:Rite Aid Corporation

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Rite Aid Corporation to release its Fiscal 2017 First Quarter financial results on Thursday, June 16, 2016

CAMP HILL, Pa., 2016-Jun-07 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) said today that it will release financial results for its Fiscal 2017 First Quarter at 7 a.m. Eastern time Thursday, June 16, 2016. Given the company’s pending merger with Walgreens Boots Alliance, Inc. (Nasdaq: WBA), Rite Aid will not be holding a conference call. The text of the earnings release, along with the corresponding charts and supplemental information slides, will be made available immediately after the release in the Investor Relations section of the company’s website at www.riteaid.com.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2016 annual revenues of $30.7 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

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Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Susan Henderson 717-730-7766

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Rite Aid Corporation opens its new distribution center in Spartanburg, S.C.

  • Secretary of Commerce Bobby Hitt to Join Rite Aid Officials at Ribbon-Cutting Today at 10 a.m. 
  • Rite Aid Foundation Donates $25,000 to Boys & Girls Clubs of the Upstate as Part of Celebration

CAMP HILL, Pa., 2016-Jun-07 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) announced today (June 1, 2016) the grand opening of its new distribution center in Spartanburg, S.C. Located at 789 Flatwood Industrial Drive in Spartanburg, this is the company’s first new distribution center in 16 years.

South Carolina Secretary of Commerce Bobby Hitt and several other state, city and community officials will join John Standley, Rite Aid chairman and CEO and Ken Martindale, CEO of Rite Aid Stores and president of Rite Aid Corporation for a grand opening event and ribbon-cutting ceremony today at 10 a.m.

“We’re excited to celebrate the grand opening of our newest distribution center in Spartanburg, our first in 16 years.” said Standley. “Featuring highly efficient and advanced technologies, this facility will play a crucial role in our company’s supply chain, supporting more than 1,000 Rite Aid stores across the southeastern United States, and help us deliver a superior customer experience.”

“We were thrilled last year when Rite Aid announced its decision to join the South Carolina family and build this new distribution facility in Spartanburg, but we’re even more excited today to see this world-class facility become a reality. Rite Aid’s Spartanburg County operations and the approximately 600 new jobs it will mean for South Carolinians will have a tremendous impact on the entire state and is a testament to the competitive business environment we have worked so hard to create here,” said South Carolina Governor Nikki Haley.

The 900,000 square foot distribution center sits on 97 acres and is conveniently located near Interstate 85 between Highways 9 and 221 and features:

• High efficiency LED and T5 fluorescent light fixtures and occupancy sensor controlled warehouse lighting
• An on-site truck maintenance facility, including a fueling station, trailer weigh scale and wash area
• High-speed automated palletizers, ergonomically designed manual palletizing stations and automatic label applicators
• State-of-the-art warehouse and labor management system
• Voice pick technology
• 60,000 square feet of office space, including an associate cafeteria, fitness center and other amenities

Added Hitt “As a state with a dynamic transportation, distribution and logistics sector, we’re proud to see yet another nationally recognized company establish distribution operations within our borders. Today, we celebrate the opening of this new Rite Aid facility, as well as the remarkable impact it will have on our Upstate community. I look forward to watching them succeed here for many years to come.”

As part of the grand opening celebration, The Rite Aid Foundation will present a $25,000 donation to Boys & Girls Clubs of the Upstate. The donation will to be used to expand and support the programs and services offered by the Club at Mary H. Wright Elementary School.

Rite Aid worked with Johnson Development Associates, a leading real estate development firm based in Spartanburg, to design and build the new facility.

The Company would also like to thank the following organizations from the state who helped make its Spartanburg distribution center possible through economic development grants, job development credits and other assistance: Spartanburg County; the Spartanburg Economic Futures Group; the South Carolina Department of Commerce; the Coordination Council for Economic Development; the South Carolina Power Team; the Broad River Electric Cooperative; and Spartanburg Community College.

In South Carolina, Rite Aid employs 1,531 at its 91 stores and distribution center.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2016 annual revenues of $30.7 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

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Contact:

Media: Kristin Kellum 717-975-5713

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Winners of Rite Aid’s 2015 Vote for Your Favorite Pharmacy Team Member Contest announced

  • Michigan Pharmacy Technician and Maryland Customer Each Win $2,500 Rite Aid Gift Card in Customer Service Contest

CAMP HILL, Pa. , 2016-Apr-20 — /EPR Retail News/ — Rite Aid is proud to announce the two winners of the 2015 Vote for Your Favorite Pharmacy Team Member Contest. Sharon Balser, a Rite Aid pharmacy technician from Milford, Mich., and Theresa Forrest, a loyal Rite Aid customer from Gwynn Oak, Md., were both selected at random from more than 11,000 unique entries. The contest was designed to recognize Rite Aid pharmacy associates for their commitment to providing excellent customer service.

To enter, customers submitted mail-in nominations and online ballots during American Pharmacists Month in October. The names of one customer and one pharmacy team member were each randomly drawn to receive $2,500 in Rite Aid gift cards. All nominated Rite Aid pharmacy team members will be recognized with a Favorite Pharmacy Team Member lapel pin and a letter of commendation from CEO of Rite Aid Stores and President of Rite Aid Corporation Ken Martindale and Executive Vice President of Pharmacy Jocelyn Konrad.

“We are excited to celebrate the Rite Aid pharmacy teams who are continuing to provide caring moments of service to loyal customers across the country,” said Jocelyn Konrad, Rite Aid executive vice president of pharmacy. “With more than 11,000 entries, it’s phenomenal to see the appreciation our customers have for their local pharmacy associates, and I’d like to thank each nominated team member for championing Rite Aid’s promise to deliver outstanding customer service – With us, it’s personal.”

Sharon Balser, Rite Aid’s winning Pharmacy Team Member, has been a pharmacy technician for nearly 30 years at the store in Milford, Mich. and was nominated six times this year. Balser is known for her kindness and her ability to consistently help customers while making them feel appreciated.

“With more than 30 years at Rite Aid, Sharon is the perfect example of what it means to provide excellent service with a personal touch,” said Rony Foumia, Rite Aid pharmacy district manager. “I’m thrilled that her hard work and dedication are being recognized as she is truly an exceptional pharmacy technician.”

Rite Aid’s winning customer is Theresa Forrest of Gwynn Oak, Md. She participated in the program by nominating a pharmacy technician at her local store in Baltimore.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2016 annual revenues of $30.7 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

Contact:

Media: Kristin Kellum, 717-975-5713

Source: Rite Aid

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Rite Aid Corporation announces operating results for its fourth quarter and fiscal year ended February 27, 2016

  • Revenues of $8.3 Billion for the Fourth Quarter, Up 20.8 Percent Year-Over-Year and $30.7 Billion for the Full Year, Up 15.9 Percent Year-Over-Year 
  • Fourth Quarter Adjusted Net Income Per Diluted Share of $0.07, Compared to the Prior Yearof $0.06; Full Year Adjusted Net Income Per Diluted Share of $0.23, Compared to the Prior Year  of $0.27 
  • Fourth Quarter Net Income Per Diluted Share of $0.06, Compared to the Prior Year of $1.79; Full Year Net Income Per Diluted Share of $0.16, Compared to the Prior Year of $2.08
  • Prior Year’s Fourth Quarter and Full Year Net Income Benefited from a Deferred Tax Valuation Allowance Adjustment of $1.841 Billion, or Approximately $1.80 Per Diluted Share 
  • Adjusted EBITDA of $383.0 Million for the Fourth Quarter, Up 11.6 Percent Year-Over-Year  and $1,402.3 Million for the Full Year, Up 6.0 Percent Year-Over-Year

CAMP HILL, Pa., 2016-Apr-09 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) today reported operating results for its fourth quarter and fiscal year ended February 27, 2016.

For the fourth quarter, the company reported revenues of $8.3 billion, net income of $65.6 million, or $0.06 per diluted share, Adjusted net income of $76.1 million, or $0.07 per diluted share and Adjusted EBITDA of

$383.0 million, or 4.6 percent of revenues. For the full year, the company reported revenues of $30.7 billion, net income of $165.5 million, or $0.16 per diluted share, Adjusted net income of $241.0 million or $0.23 per diluted share and Adjusted EBITDA of $1,402.3 million, or 4.6 percent of revenues.

“Our positive fourth-quarter results helped us deliver a successful fiscal year that reflects the tremendous progress we’re making to expand our retail healthcare offering,” said Rite Aid Chairman and CEO John Standley. “In the fourth quarter, we generated nearly $40 million of growth in Adjusted EBITDA, including an increase in our Retail Pharmacy Segment and strong results from our new Pharmacy Services Segment. This was one of many key highlights of fiscal 2016, which was a transformational year that saw us acquire EnvisionRx, launch the ground-breaking wellness+ with Plenti program, complete our 2,000th Wellness store and exceed $30 billion in revenues for the first time.”

“We look forward to building upon this success and to continue delivering a higher level of care in the communities we serve. We thank our dedicated Rite Aid associates for their hard work in executing our strategy and providing an even better retail healthcare experience for our customers. We’re also excited about our opportunity to join forces with Walgreens Boots Alliance to further expand consumer access to health care as part of the first global, pharmacy-led health and wellbeing enterprise.”

Fourth Quarter Summary
Revenues for the quarter were $8.3 billion compared to revenues of $6.8 billion in the prior year’s fourth quarter, an increase of $1.4 billion or 20.8 percent. Retail Pharmacy Segment revenues were $6.8 billion and decreased 0.3 percent compared to the prior year period primarily as a result of a decrease in same store sales. Pharmacy Services Segment revenues were $1.5 billion.

Same store sales for the quarter decreased 0.6 percent over the prior year, consisting of a 0.8 percent decrease in pharmacy sales and a 0.4 percent decrease in front-end sales. Pharmacy sales included an approximate 241 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores increased 0.1 percent over the prior year period. Prescription sales accounted for 68.1 percent of total drugstore sales, and third party prescription revenue was 97.9 percent of pharmacy sales.

Adjusted net income (which is reconciled to net income in the attached tables) was $76.1 million or $0.07 per diluted share compared to last year’s fourth quarter adjusted net income of $65.2 million or $0.06 per diluted share.

Adjusted EBITDA (which is reconciled to net income in the attached tables) was $383.0 million or 4.6 percent of revenues for the fourth quarter compared to $343.3 million or 5.0 percent of revenues for the same period last year. Adjusted EBITDA improved due to $34.2 million of Pharmacy Services Segment Adjusted EBITDA and an increase of $5.5 million in Retail Pharmacy Segment Adjusted EBITDA. The increase in Retail Pharmacy Segment Adjusted EBITDA was driven by an increase in front-end gross profit, partially offset by a decrease in pharmacy gross profit and an increase in selling, general and administrative expenses.

In the fourth quarter, the company opened 3 stores, relocated 10 stores, remodeled 89 stores and expanded 1 store, bringing the total number of wellness stores chainwide to 2,042. The company also acquired 2 stores and closed 4 stores, resulting in a total store count of 4,561 at the end of the fourth quarter. The company also opened 3 clinics in the fourth quarter, bringing the total to 78.

Full Year Results
For the fiscal year ended February 27, 2016, Rite Aid had revenues of $30.7 billion compared to revenues of  $26.5 billion in the prior year, an increase of $4.2 billion or 15.9 percent. Retail Pharmacy Segment revenues were $26.9 billion and increased 1.3 percent compared to the prior year primarily as a result of an increase in same store sales. Pharmacy Services Segment revenues were $4.1 billion from the date of the acquisition of EnvisionRx, which was June 24, 2015, through the end of the fiscal year.

Same store sales for the year increased 1.3 percent consisting of a 1.8 percent increase in pharmacy sales and a  0.2 percent increase in front end sales. Pharmacy sales included an approximate 221 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores increased 0.5 percent over the prior year period. Prescription sales accounted for 69.1 percent of total drugstore sales, and third party prescription revenue was 97.8 percent of pharmacy sales.

Adjusted net income for fiscal 2016 was $241.0 million or $0.23 per diluted share compared to last year’s adjusted net income of $273.0 million or $0.27 per diluted share. The decline in adjusted net income resulted primarily from increased interest expense incurred in connection with the company’s acquisition of EnvisionRx and higher depreciation expense related to an increase in capital spending, partially offset by an increase in Adjusted EBITDA.

Adjusted EBITDA was $1,402.3 million or 4.6 percent of revenues for the year compared to $1,322.8 million or  5.0 percent of revenues for last year. Adjusted EBITDA improved due to $101.4 million of Pharmacy Services Segment Adjusted EBITDA, partially offset by a decrease of $21.9 million in Retail Pharmacy Segment Adjusted EBITDA. The decrease in Retail Pharmacy Segment Adjusted EBITDA was due to an increase in selling, general and administrative expenses related to our higher level of sales and a decrease in pharmacy gross profit, partially offset by an increase in front-end gross profit.

Operating cash flow for fiscal 2016 was approximately $1.0 billion, due to strong Adjusted EBITDA results and contributions from working capital management. Working capital primarily benefited from a reduction in store level pharmacy inventory. The company used this operating cash flow to fund capital expenditures and to reduce borrowings following the acquisition of EnvisionRx.

For the year, the company relocated 20 stores, acquired 6 stores, remodeled 412 stores, expanded 2 stores, opened  5 stores, and closed 20 stores. The company also opened 23 clinics during the fiscal year.

As previously announced on October 27, 2015, Rite Aid and Walgreens Boots Alliance, Inc. (“WBA”) entered into a definitive agreement under which WBA will acquire all outstanding shares of Rite Aid for $9.00 per share in cash, for a total enterprise value of approximately $17.2 billion, including acquired net debt. The board of directors of both companies and Rite Aid’s shareholders have approved the transaction, which is subject to certain conditions, including, among others, the receipt of approval under applicable antitrust laws and other customary closing conditions. The transaction is expected to close in the second half of calendar 2016.

Given the agreement with WBA described above, and as is customary for transactions of this type, Rite Aid does not intend to provide earnings guidance for fiscal 2017.

Rite Aid is one of the nation’s leading drugstore chains with 4,561 stores in 31 states and the District of Columbia. Information about Rite Aid, including corporate background and press releases, is available through Rite Aid’s website at www.riteaid.com.

Cautionary Statement Regarding Forward Looking Statements 

Statements in this release that are not historical and statements regarding the expected timing of the closing of the proposed merger and the ability of the parties to complete such transaction considering the various closing conditions and any assumptions underlying any of the foregoing, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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, our high level of indebtedness and our ability to make interest and principal payments on our debt and satisfy the other covenants contained in our debt agreements, general economic, market and competitive conditions, our ability to improve the operating performance of our stores in accordance with our long term strategy, the impact of private and public third-party payers continued reduction in prescription drug reimbursements and efforts to encourage mail order, our ability to manage expenses and our investments in working capital, outcomes of legal and regulatory matters, changes in legislation or regulations, including healthcare reform, and risks related to the proposed merger. 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, in the definitive proxy statement that we filed with the Securities and Exchange Commission on December 21, 2015 in connection with the proposed merger, and in other documents that we file or furnish with the Securities and Exchange Commission, which you are encouraged to read. 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. Additionally, there can be no assurance that the proposed merger will be completed, or if it is completed, that it will close within the anticipated time period or that the expected benefits of the proposed merger will be realized. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention 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. 

Reconciliation of Non-GAAP Financial Measures

The company separately reports financial results on the basis of Adjusted Net Income, Adjusted Net Income per diluted share, and Adjusted EBITDA, which are non-GAAP financial measures. See the attached tables for a reconciliation of Adjusted Net Income, Adjusted Net Income per diluted share and Adjusted EBITDA to net income, which is a comparable GAAP financial measure. Adjusted Net Income and Adjusted Net Income per diluted share excludes amortization of EnvisionRx intangible assets, acquisition-related costs, loss on debt retirements and LIFO adjustments. Adjusted EBITDA is defined as net income excluding the impact of income taxes (and any corresponding adjustments to tax indemnification asset), interest expense, depreciation and amortization, LIFO adjustments, charges or credits for facility closing and impairment, inventory write-downs related to store closings, debt retirements and other items (including stock-based compensation expense, sale of assets and investments and revenue deferrals related to our customer loyalty program). 

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Click Here for 4th Quarter Results Detail

Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Susan Henderson 717-730-7766

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Rite Aid Corporation to release Fiscal 2016 Fourth Quarter financial results on April 7, 2016

CAMP HILL, Pa., 2016-Mar-25 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) said today that it will release financial results for its Fiscal 2016 Fourth Quarter at 7 a.m. Eastern time Thursday, April 7, 2016. Given the company’s pending merger with Walgreens Boots Alliance, Inc. (Nasdaq: WBA), Rite Aid will not be holding a conference call. The text of the earnings release, along with the corresponding charts and supplemental information slides, will be made available immediately after the release in the Investor Relations section of the company’s website at www.riteaid.com.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 annual revenues of $26.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

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Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Susan Henderson 717-730-7766

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Rite Aid Corporation announces sales results for February

CAMP HILL, Pa., 2016-Mar-05 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) today announced sales results of its retail pharmacy segment for February.

Monthly Sales
For the five weeks ended Feb. 27, 2016, same store sales decreased 0.8 percent over the prior-year period. February front-end same store sales decreased 0.5 percent. Pharmacy same store sales, which included an approximate 269 basis points negative impact from new generic introductions, decreased 0.9 percent. Prescription count at comparable stores increased 1.4 percent over the prior-year period.

Total drugstore sales for the five-week period increased 0.1 percent with isalessales of $2.562 billion compared to $2.559 billion for the same period last year. Prescription sales accounted for 69.4 percent of drugstore sales, and third party prescription sales represented 98.0 percent of pharmacy sales.

Quarterly Sales
Same store sales for the 13-week period ended Feb. 27, 2016 decreased 0.6 percent over the prior-year period. Front-end same store sales decreased 0.4 percent while pharmacy same store sales decreased 0.8 percent. Prescription count at comparable stores increased 0.1 percent over the prior-year period.

Total drugstore sales for the 13 weeks ended Feb. 27, 2016 decreased 0.3 percent with sales of $6.775 billion compared to $6.796 billion for the same period last year. Prescription sales represented 68.1 percent of total drugstore sales, and third party prescription sales represented 97.9 percent of pharmacy sales.

Year-to-Date
Same store sales for the 52-week period ended Feb. 27, 2016 increased 1.3 percent over the prior-year period. Front-end same store sales increased 0.2 percent while pharmacy same store sales increased 1.8 percent. Prescription count at comparable stores increased 0.5 percent over the prior-year period.

Total drugstore sales for the 52 weeks ended Feb. 27, 2016 increased 1.3 percent with sales of $26.681 billion compared to $26.349 billion for the same period last year. Prescription sales represented 69.1 percent of total drugstore sales, and third party prescription sales represented 97.8 percent of pharmacy sales.

Going forward, Rite Aid will no longer report sales and comparable store sales results on a monthly basis. Rite Aid will continue to provide this information on a quarterly basis as part of its quarterly reporting.

Rite Aid is one of the nation’s largest drugstore chains. On Feb. 27, 2016, the company operated 4,561 stores compared to 4,570 stores in the like period a year ago. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at http://www.riteaid.com. Note that all sales data in this release is preliminary, unaudited and subject to revision.

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. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties that are 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, which you are encouraged to read. 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 place undue reliance on these forward-looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention 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.

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Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Susan Henderson 717-730-7766

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Rite Aid Corporation announces January sales results of its retail pharmacy segment

CAMP HILL, Pa., 2016-Feb-01 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) today announced sales results of its retail pharmacy segment for January.

Monthly Sales
For the four weeks ended Jan. 23, 2016, same store sales decreased 1.4 percent over the prior-year period. January front-end same store sales decreased 1.9 percent. Pharmacy same store sales, which included an approximate 242 basis points negative impact from new generic introductions, decreased 1.2 percent. Prescription count at comparable stores decreased 1.0 percent over the prior-year period.

Total drugstore sales for the four-week period decreased 1.3 percent with sales of $2.000 billion compared to $2.026 billion for the same period last year. Prescription sales accounted for 70.5 percent of drugstore sales, and third party prescription sales represented 97.7 percent of pharmacy sales.

Year-to-Date
Same store sales for the 47-week period ended Jan. 23, 2016 increased 1.5 percent over the prior-year period. Front-end same store sales increased 0.3 percent while pharmacy same store sales increased 2.0 percent. Prescription count at comparable stores increased 0.4 percent over the prior-year period.

Total drugstore sales for the 47 weeks ended Jan. 23, 2016 increased 1.4 percent with sales of $24.119 billion compared to $23.791 billion for the same period last year. Prescription sales represented 69.1 percent of total drugstore sales, and third party prescription sales represented 97.8 percent of pharmacy sales.

Rite Aid is one of the nation’s largest drugstore chains. On Jan. 23, 2016, the company operated 4,558 stores compared to 4,569 stores in the like period a year ago. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at http://www.riteaid.com. Note that all sales data in this release is preliminary, unaudited and subject to revision.

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. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties that are 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, which you are encouraged to read. 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 place undue reliance on these forward-looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention 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. 

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Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Susan Henderson 717-730-7766

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Walgreens Boots Alliance Completes $12.8 Billion placement as part of its proposed acquisition of Rite Aid Corporation

DEERFIELD, Ill., 2015-12-22 — /EPR Retail News/ — Walgreens Boots Alliance, Inc. (Nasdaq:WBA) today announced it has completed the placement of $5 billion of term loan facilities, evenly split between two tranches of $2.5 billion each, with three- and five-year maturities, respectively, and a $7.8 billion term loan bridge facility. These facilities replace the company’s previously reported $12.8 billion bridge facility commitment.

This financing has been put in place as part of the financing of Walgreens Boots Alliance’s proposed acquisition of Rite Aid Corporation (NYSE:RAD). Drawing under the facilities is subject to the closing of this acquisition.

“The term loan facilities constitute a key milestone in securing permanent financing for the proposed acquisition of Rite Aid,” said George Fairweather, Executive Vice President and Global Chief Financial Officer of Walgreens Boots Alliance, Inc. “We are very pleased with the high level of interest and support from our banking partners, which resulted in the oversubscription of the transaction. The $5 billion pre-payable term facilities provide us with diversification of funding sources and the flexibility to reduce leverage over time.”

The proposed acquisition by Walgreens Boots Alliance of Rite Aid, which was announced on 27 October 2015, is subject to approval of Rite Aid’s stockholders and satisfaction of other customary closing conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The transaction is expected to close in the second half of calendar 2016.

Notes to Editors:


About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led, health and wellbeing enterprise.

The company was created through the combination of Walgreens and Alliance Boots in December 2014, bringing together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years.

The company employs over 370,000* people and has a presence in more than 25* countries; it is the largest retail pharmacy, health and daily living destination in the USA and Europe. Including its equity method investments, Walgreens Boots Alliance is a global leader in pharmacy-led, health and wellbeing retail with over 13,100* stores in 11* countries. The company includes one of the largest global pharmaceutical wholesale and distribution networks with over 350* distribution centers delivering to more than 200,000** pharmacies, doctors, health centers and hospitals each year in 19* countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products.

Its portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as increasingly global health and beauty product brands, such as No7, Botanics, Liz Earle and Soap & Glory. More company information is available at www.walgreensbootsalliance.com.

* As at 31 August 2015 including equity method investments

** For 12 months ended 31 August 2015 including equity method investments

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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 satisfaction of the conditions to closing the acquisition in the anticipated timeframe or at all, including risks related to the failure to obtain necessary regulatory and Rite Aid stockholder approvals and the possibility that the acquisition does not close, including in circumstances in which Rite Aid would be obligated to pay Walgreens Boots Alliance a termination fee or other expenses and vice versa; risks related to the ability to realize the anticipated benefits of the acquisition, including the possibility that the expected synergies from the proposed acquisition will not be realized or will not be realized within the expected time period; the risk that the businesses will not be integrated successfully; risks associated with the financing of the transaction; disruption from the transaction making it more difficult to maintain business and operational relationships; negative effects of this announcement or the consummation of the proposed acquisition on the market price of Walgreens Boots Alliance’s common stock; significant transaction costs; unknown liabilities; the risk of litigation and/or regulatory actions related to the proposed acquisition; other business effects, including the effects of industry, market, economic, political or regulatory conditions; future exchange or interest rates or credit ratings; changes in tax laws, regulations, rates and policies; competitive developments; and risks and uncertainties discussed in the reports that Walgreens Boots Alliance has filed with the Securities and Exchange Commission (the “SEC”). 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 place undue reliance on these forward-looking statements, which speak only as of the date they are made. Walgreens Boots Alliance expressly disclaims any current intention 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. A further list and description of risks and uncertainties can be found in Walgreens Boots Alliance’s most recent Form 10-K and its reports on Form 10-Q and Form 8-K.

Walgreens Boots Alliance, Inc.
Media Relations
USA / Michael Polzin, +1 847-315-2935
International / Laura Vergani, +44 (0)207 980 8585
Investor Relations
Gerald Gradwell and Ashish Kohli, +1 847-315-2922

SOURCE: Walgreens Boots Alliance, Inc.

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Rite Aid Corporation to release financial results for Fiscal 2016 Third Quarter ended Nov. 28, 2015 on Thursday, Dec. 17, 2015

CAMP HILL, Pa., 2015-12-8 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) said today that it will release financial results for its Fiscal 2016 Third Quarter, which ended Nov. 28, 2015, on Thursday, Dec. 17, 2015. Given the company’s pending merger with Walgreens Boots Alliance, Inc. (Nasdaq: WBA), Rite Aid will not be holding a conference call. The text of the earnings release, along with the corresponding charts and supplemental information slides, will be made available immediately after the release in the Investor Relations section of the company’s website at www.riteaid.com.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 annual revenues of $26.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

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Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Susan Henderson 717-730-7766

 

SOURCE: Rite Aid Corp.

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Rite Aid Corporation announces sales results for November

CAMP HILL, Pa., 2015-12-4 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) today announced sales results of its retail pharmacy segment for November.

Monthly Sales
For the five weeks ended Nov. 28, 2015, same store sales increased 0.9 percent over the prior-year period. November front-end same store sales increased 1.2 percent. Pharmacy same store sales, which included an approximate 267 basis points negative impact from new generic introductions, increased 0.7 percent. Prescription count at comparable stores increased 0.8 percent over the prior-year period.

Total drugstore sales for the five-week period decreased 0.6 percent to $2.556 billion compared to $2.571 billion for the same period last year. Prescription sales accounted for 69.2 percent of drugstore sales, and third party prescription sales represented 97.9 percent of pharmacy sales.

Quarterly Sales
Same store sales for the 13-week period ended Nov. 28, 2015 increased 0.9 percent over the prior-year period. Front-end same store sales increased 0.3 percent while pharmacy same store sales increased 1.2 percent. Prescription count at comparable stores increased 0.2 percent over the prior-year period.

Total drugstore sales for the 13 weeks ended Nov. 28, 2015 increased 0.8 percent with sales of $6.701 billion compared to $6.651 billion for the same period last year. Prescription sales represented 69.9 percent of total drugstore sales, and third party prescription sales represented 97.9 percent of pharmacy sales.

Year-to-Date
Same store sales for the 39-week period ended Nov. 28, 2015 increased 1.9 percent over the prior-year period. Front-end same store sales increased 0.4 percent while pharmacy same store sales increased 2.6 percent. Prescription count at comparable stores increased 0.6 percent over the prior-year period.

Total drugstore sales for the 39 weeks ended Nov. 28, 2015 increased 1.8 percent with sales of $19.906 billion compared to $19.553 billion for the same period last year. Prescription sales represented 69.5 percent of total drugstore sales, and third party prescription sales represented 97.8 percent of pharmacy sales.

Rite Aid is one of the nation’s largest drugstore chains. On Nov. 28, 2015, the company operated 4,560 stores compared to 4,572 stores in the like period a year ago. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at http://www.riteaid.com. Note that all sales data in this release is preliminary, unaudited and subject to revision.

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. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties that are 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, which you are encouraged to read. 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 place undue reliance on these forward-looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention 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.

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Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Susan Henderson 717-730-7766

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Darren Karst promoted to the combined role of senior executive VP and CFO and chief administrative officer Rite Aid Corporation

Company Also Names Jim Comitale as SVP, General Counsel and Secretary

CAMP HILL, Pa., 2015-10-30 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) today announced that Darren Karst has been promoted to the combined role of senior executive vice president and chief financial officer and chief administrative officer, effective immediately. He will continue to report to Rite Aid Chairman and CEO John T. Standley.

Karst, who joined Rite Aid in August, 2014 as the company’s executive vice president and chief financial officer, is assuming the CAO responsibilities currently held by Frank Vitrano, who will remain with the company as its chief strategic business development officer. In addition to Karst’s current responsibilities for all aspects of the company’s finance, accounting, treasury, tax, investor relations, legal, risk management, internal assurance and asset protection functions, he will now also be responsible for the company’s information technology, indirect procurement and operating efficiency functions.

The company also announced the appointment of Jim Comitale, currently assistant general counsel, to senior vice president, general counsel and secretary, reporting to Karst. He is succeeding Marc Strassler, who will continue to serve as Rite Aid’s corporate counsel.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 annual revenues of $26.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

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Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Susan Henderson 717-730-7766

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Rite Aid 2Q Fiscal 2016: Net Income $21.5m; Adjusted EBITDA $346.8m

  • Second Quarter Net Income of $21.5 Million and Net Income per Diluted Share of $0.02, Compared to Prior Year’s Second Quarter Net Income of $127.8 Million and Net Income  per Diluted Share of $0.13
  • Second Quarter Adjusted EBITDA of $346.8 Million Compared to Adjusted EBITDA of $364.2 Million in Prior Year’s Second Quarter
  • Completes Previously Announced Acquisition of EnvisionRx
  • Rite Aid Updates Outlook for Fiscal 2016

 

CAMP HILL, Pa., 2015-9-21 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) today reported operating results for its fiscal second quarter ended August 29, 2015. The company reported revenues of $7.7 billion, net income of $21.5 million or $0.02 per diluted share, and Adjusted EBITDA of $346.8 million, or 4.5 percent of revenues.

“The second quarter was pivotal for Rite Aid as we completed the acquisition of EnvisionRx and worked as a team to accelerate our transformation into a retail healthcare company,” said Rite Aid Chairman and CEO John Standley. “EnvisionRx made positive contributions to our performance as our Pharmacy Services Segment* delivered results that were in line with our expectations. We will continue to focus on key initiatives like wellness+ with Plenti, flu immunizations and Wellness store remodels to drive performance in our retail segment as we also leverage EnvisionRx’s suite of services to create unique and integrated offerings in the healthcare marketplace.”

Second Quarter Summary 

Revenues for the quarter were $7.7 billion versus revenues of $6.5 billion in the prior year’s second quarter, an increase of $1.2 billion or 17.5 percent. Retail Pharmacy Segment revenues were $6.6 billion and increased    1.9 percent primarily as a result of an increase in same store sales. Pharmacy Services Segment revenues were $1.1 billion from the date of the acquisition of EnvisionRx, which was June 24, 2015 through the end of the quarter.

*Pharmacy Services Segment consists of results from EnvisionRx  

Same store drugstore sales for the Retail Pharmacy Segment increased 2.1 percent over the prior year, consisting of a 0.3 percent increase in front-end sales and a 2.8 percent increase in pharmacy sales. Pharmacy sales included an approximate 223 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores increased 0.2 percent over the prior year period. Prescription sales accounted for 69.3 percent of total drugstore sales, and third party prescription revenue was 97.8 percent of pharmacy sales.

Net income was $21.5 million or $0.02 per diluted share compared to last year’s second quarter net income of $127.8 million or $0.13 per diluted share. The decline in net income resulted primarily from a $33.2 million loss on debt retirement related to the redemption of the company’s 8.00% senior secured notes, higher depreciation and amortization expense related to EnvisionRx and an increase in capital spending, higher interest and transaction costs incurred in connection with the company’s acquisition of EnvisionRx, and the cycling of a prior year benefit of approximately $40 million related to the Company’s transition to its new drug purchasing and delivery arrangement with McKesson.

Adjusted EBITDA (which is reconciled to net income on the attached table) was $346.8 million or 4.5 percent of revenues for the second quarter compared to $364.2 million or 5.6 percent of revenues for the like period last year. After taking into effect the prior year benefit of $40 million related to the Company’s transition to its new drug purchasing and delivery arrangement, Adjusted EBITDA increased by $22.6 million. This increase was due to $33.2 million of Pharmacy Services Segment Adjusted EBITDA, partially offset by a decline in Retail Pharmacy Segment gross margin, which was due to lower pharmacy reimbursement, partially offset by lower drug purchasing costs.

In the second quarter, the company relocated 3 stores and remodeled 119 stores, bringing the total number of wellness stores chainwide to 1,859. The company also opened 2 new stores, acquired 2 stores, and closed 9 stores, resulting in a total store count of 4,561 at the end of the second quarter. The Company also opened 5 clinics in the second quarter, bringing the total to 70.

Rite Aid Updates Fiscal 2016 Guidance  

Rite Aid has updated its fiscal 2016 guidance to reflect more recent sales trends and additional expected amortization expense from EnvisionRx. The midpoint of Adjusted EBITDA guidance remains unchanged. Total revenues are expected to be between $30.8 billion and $31.1 billion. Retail drugstore sales are expected to be between $26.7 billion and $27.0 billion and same store sales to range from an increase of 1.5 percent to an increase of 2.5 percent over fiscal 2015. Adjusted EBITDA (which is reconciled to net income on the attached table) guidance is expected to be between $1.360 billion and $1.440 billion and net income is expected to be between $125 million and $195 million or income per diluted share of $0.12 to $0.19. Capital expenditures are expected to be approximately $665 million.

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 simulcast via the internet and can be accessed through the websites www.riteaid.com in the conference call section of investor information and www.StreetEvents.com. Slides related to materials discussed on the call will be available on both sites. A playback of the call will be available on both sites starting at 12 p.m. Eastern Time today. A playback of the call will also be available by telephone beginning at 12 p.m. Eastern Time today until 11:59 p.m. Eastern Time on Sept. 19, 2015. The playback number is 1-855-859-2056 from within the U.S. and Canada or 1-404-537-3406 from outside the U.S. and Canada with the eight-digit reservation number 34603858.

Rite Aid is one of the nation’s leading drugstore chains with 4,561 stores in 31 states and the District of Columbia. Information about Rite Aid, including corporate background and press releases, is available through Rite Aid’s website at www.riteaid.com.

Statements, including guidance, 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. 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, our high level of indebtedness and our ability to make interest and principal payments on our debt and satisfy the other covenants contained in our debt agreements, general economic, market and competitive conditions, our ability to improve the operating performance of our stores in accordance with our long term strategy, the impact of private and public third-party payers continued reduction in prescription drug reimbursements and efforts to encourage mail order, our ability to manage expenses and our investments in working capital, outcomes of legal and regulatory matters and changes in legislation or regulations, including healthcare reform. These and other risks, assumptions and uncertainties are 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, which you are encouraged to read. 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 place undue reliance on these forward-looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention 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.                                                                                

See the attached table for a reconciliation of a non-GAAP financial measure, Adjusted EBITDA to net income, the most comparable GAAP financial measure. We define Adjusted EBITDA as net income excluding the impact of income taxes (and any corresponding adjustments to tax indemnification asset), interest expense, depreciation and amortization, LIFO adjustments, charges or credits for facility closing and impairment, inventory write-downs related to store closings, debt retirements and other items (including stock-based compensation expense, sale of assets and investments and revenue deferrals related to our customer loyalty program).  

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Click Here for 2nd Quarter Results Detail

Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Susan Henderson 717-730-7766

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Rite Aid Corporation announces that seasonal flu shots are now available at all Rite Aid pharmacies nationwide

  • Rite Aid Pharmacists Ready to Help Patients Protect Themselves Against the Flu
  • Rite Aid’s Workplace Flu Shot Clinic and Voucher Programs Return

Camp Hill, PA, 2015-8-13— /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) announced today that seasonal flu shots are now available at all Rite Aid pharmacies nationwide. Customers can visit any of Rite Aid’s nearly 4,600 pharmacies to receive a flu shot from a certified immunizing Rite Aid pharmacist, subject to state regulations. Flu shots are covered by most insurance plans, including Medicare Part B and are available during pharmacy hours; no appointment is necessary. To locate the nearest Rite Aid pharmacy, visit www.riteaid.com or call 1-800-RITE-AID.

“While the timing of flu season is unpredictable, outbreaks can happen as early as October, which is why it is so important to get vaccinated as early as possible,” said Jocelyn Konrad, Rite Aid executive vice president of pharmacy. “Rite Aid encourages people to get a flu shot sooner rather than later, as it is the very best way to protect themselves and their loved ones from getting the flu.”

Rite Aid carries the standard trivalent flu vaccine, which offers protection against three strains of the flu: the influenza A H3N2 virus, the influenza B virus and the influenza A H1N1. Additionally, a quadrivalent flu vaccine that offers protection against an additional influenza B virus will also be available. The Centers for Disease Control and Prevention (CDC) recommends that everyone six months and older get a flu vaccination as soon as it is available, since it takes about two weeks after vaccination for antibodies to develop in the body and provide protection against the flu.

All Rite Aid pharmacies currently have supplies of trivalent and quadrivalent flu vaccines; a high-dose flu shot, approved for people 65 and older, will be available in all stores later this week. Upon request, Rite Aid pharmacists can administer an intradermal flu shot, which uses a smaller needle that is injected into the skin instead of the muscle, approved for people 18-64 years of age.

While the CDC recommends flu shots for everyone over six months, certain groups of people are at greater risk for complications from the flu. These groups include: diabetics, pregnant women, adults over 65, children under 5, those with asthma and other chronic lung diseases, those with kidney and liver disorders, heart disease patients and those with compromised immune systems.

Rite Aid – Readily Available Resource for Employers Looking to Shield Workforce Against the Flu

In an effort to help employers avoid what the CDC estimates to be a $10.4 billion in direct costs for flu-related hospitalizations and outpatient visits for adults, Rite Aid will once again have a team dedicated to planning and implementing onsite workplace flu clinics, staffed by certified immunizing Rite Aid pharmacists. Rite Aid is also able to offer employers a voucher program, in which employees would receive a flu shot voucher to use at any Rite Aid pharmacy. For more information, employers can visit www.shieldmyworkforce.com  or call 1-800-622-2106.

Flu season provides an opportunity for people to review additional immunization needs. Rite Aid pharmacists are available to administer vaccinations for 12 other diseases, including pertussis (whooping cough), measles, mumps and rubella, meningitis, shingles and pneumonia, subject to state regulations.  By visiting Rite Aid’s Vaccine Central, at www.riteaid.com/vaccinecentral, customers can complete an immunization evaluation, track their personal immunization history, and find other educational resources on immunizations.

Rite Aid Corporation (NYSE: RAD) is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 annual revenues of $26.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

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Contact:

Media: Kristin Kellum 717-975-5713

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Rite Aid Corporation announces the promotion of Ken Martindale to the newly created position CEO of Rite Aid stores

  • Martindale Will Continue to Report to Rite Aid Chairman and CEO John Standley
  • Other Executive Management Appointments Announced to Help Drive Growth <and Operational Efficiencies

CAMP HILL, Pa., 2015-8-4— /EPR Retail News/ — Rite Aid Corporation (NYSE:RAD) has announced that Ken Martindale, who is currently president and chief operating officer, has been promoted to the newly created position of CEO of Rite Aid stores, effective immediately. Martindale, 55, will continue to report to John Standley, Rite Aid’s chairman and CEO, and will retain his role as president of Rite Aid Corporation.

“Ken is a proven leader who, since joining our company in 2008, has played an instrumental role in driving Rite Aid’s improved business performance,” Standley said. “We look forward to further leveraging Ken’s strong leadership skills and broad understanding of Rite Aid’s business to help us continue our momentum and successfully grow our business.”

“In addition to my ongoing responsibilities and duties as chairman and CEO of Rite Aid, Ken’s promotion will allow me to also focus on working closely with our new healthcare-focused management teams at EnvisionRx, RediClinic and Health Dialog to further accelerate our growth by implementing initiatives that deliver value to our customers and help us provide greater access to convenient, affordable and high-quality healthcare,” Standley added.

Frank Sheehy, the CEO of EnvisionRx and Web Golinkin, the CEO of RediClinic and Health Dialog, will report to Standley.

In order to help Rite Aid further drive growth and efficiencies, the company has also announced the following executive management appointments, reporting to Martindale:

Jocelyn Konrad, currently group vice president of pharmacy services, has been promoted to executive vice president of pharmacy, succeeding Robert Thompson, who has announced his retirement effective Sept. 18, after a 38-year career in pharmacy, including 11 years with Rite Aid serving in a variety of senior management positions.

David Abelman, currently senior vice president of brand development and innovation, will assume the newly created role of executive vice president of marketing. John Learish, senior vice president of marketing, will continue to manage Rite Aid’s retail drug store marketing team and will report to Abelman.

Tony Montini, currently executive vice president of merchandising, will become executive vice president of merchandising and distribution. Wilson Lester, senior vice president of supply chain, will continue to manage Rite Aid’s distribution network and will report to Montini.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 annual revenues of $26.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 annual revenues of $26.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

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Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Susan Henderson 717-730-7766

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Rite Aid Corporation announces Reliance ACO as the latest healthcare provider to join its Rite Aid Health Alliance initiative

Member Physicians, Rite Aid Pharmacists and Special Care Coaches to Provide Personalized, Community-Based Health Management to Chronic and Poly-Chronic Patients

CAMP HILL, Pa., 2015-7-30 — /EPR Retail News/ — Rite Aid Corporation (NYSE:RAD) has announced Reliance ACO, based in southeast Mich., as the latest healthcare provider to join its Rite Aid Health Alliance initiative. Through Rite Aid Health Alliance, physicians, Rite Aid pharmacists and special care coaches provide comprehensive care and support to individuals with chronic and poly-chronic health conditions, helping them achieve health improvement goals established by their physicians. Reliance ACO is the eighth partner to join Rite Aid Health Alliance.

“Adding healthcare providers, such as Reliance ACO, to our Rite Aid Health Alliance portfolio further enables us to provide our communities with unique healthcare resources,” said Robert Thompson, Rite Aid executive vice president of pharmacy. “We look forward to collaborating with our latest partner, Reliance ACO, as we work to bring a broad range of services to patients with chronic and poly-chronic conditions in southeast Michigan.”

Rite Aid’s Health Alliance integrated care model is a first for the drugstore industry, because it uniquely leverages the combined expertise of community pharmacists, who are one of the most accessible and trusted resources among healthcare providers, along with specially trained in-store care coaches. Physicians can refer patients who they feel would benefit from additional coaching in areas such as medication management and meal and exercise planning. All members of the care team will communicate regularly with physicians in a true partnership to improve patients’ overall health.

“Reliance ACO is excited to announce its partnership with Rite Aid Health Alliance. This collaboration represents our commitment to improving patient outcomes and delivering cost effective healthcare,” said Gene Farber, Reliance ACO CEO. “By partnering with Rite Aid pharmacists and care coaches in our community, our patients will have expanded access to tools and resources to manage their chronic and poly-chronic conditions successfully.”

Through Rite Aid Health Alliance, patients with chronic conditions, such as congestive heart failure, COPD, high cholesterol and diabetes, are recommended to the program by their primary care physician. Rite Aid pharmacists and specially trained care coaches, located in Rite Aid pharmacies, work with the physician and patient on an on-going basis to improve the patient’s overall health and self-management abilities. The care team members collaborate with the patient to establish health goals, eliminate barriers and create a personalized health care action plan in coordination with the patient’s physician.

Rite Aid is currently piloting Rite Aid Health Alliance partnerships with High Point, N.C.-based Cornerstone Health Care; Glendale, Calif.-based Apollo Medical Holdings, Inc. (“ApolloMed”); Greater Buffalo United Accountable Healthcare Network of Buffalo, N.Y.; Penn State Hershey Health System of Hershey, Pa.; Heritage Provider Network based in Marina Del Rey, Calif; Physician Direct ACO of Sylvan Lake, Mich.; Louisville, Ky. based Quality Independent Physicians.

In these markets at select Rite Aid pharmacies, Rite Aid provides the care coaches on the team through its wholly owned subsidiary Health Dialog, a leading provider of healthcare patient support, analytics and decision support. Rite Aid care coaches will be available in Rite Aid pharmacies, and specialize in behavior change to help patients address lifestyle health issues.

The full range of services available to patients participating in Rite Aid Health Alliance includes medication compliance support; comprehensive medication reviews and reconciliation; nutrition and weight management information; disease education; exercise coaching and tobacco cessation support. Records of all interactions, which occur in Rite Aid pharmacies, as well as updates from the physician, are stored electronically, along with patient profiles including medications and lab results. This supports continuity of care and provides convenient access of information to other members of the patient’s healthcare team.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 annual revenues of $26.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

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Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Kristin Kellum 717-975-5713

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Rite Aid Corporation announces the promotion of Frank Ho to vice president of indirect procurement

CAMP HILL, PA, 2015-7-17 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) announced today that Frank Ho, currently senior director of indirect procurement, has been promoted to vice president of indirect procurement.

In this position, Ho will oversee the Company’s procurement strategy and all related operations, including systems, supplier and contract management. Ho will report to Frank Vitrano, Rite Aid senior executive vice president and chief administrative officer.

“A valued member of Rite Aid’s indirect procurement group for nearly seven years, Frank understands the importance of strategic sourcing,” said Vitrano. “His knowledge of the Company paired with his purchasing expertise will help Rite Aid meet its long-term cost management goals and we look forward to realizing the additional positive contributions from Frank and the entire indirect procurement team.”

Ho is an indirect procurement and purchasing professional with 15 years of experience. Before joining Rite Aid, Ho served as a sourcing and procurement consultant with Accenture, and held various procurement roles at American Express. Ho joined Rite Aid in 2008 as senior manager of indirect procurement before being promoted to his current role in 2013, where he was responsible for maintaining and enhancing the Company’s non-merchandise spend management processes.

Ho received a bachelor’s degree in mathematics from New York University; a bachelor’s degree in engineering from Stevens Institute of Technology in Hoboken, N.J.; and a master’s of business administration degree from Columbia University.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 annual revenues of $26.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

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Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Ashley Flower 717-975-5718

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Rite Aid Corporation announces that Paul Zikmund is joining Rite Aid as group VP of risk and controls

CAMP HILL, PA, 2015-7-7 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) announced today that Paul Zikmund, a risk management professional with nearly 30 years of experience, is joining Rite Aid as group vice president of risk and controls.

In this new position, Zikmund will oversee the risk management program for Rite Aid as well as its subsidiaries, RediClinic, Health Dialog and EnvisionRx. Zikmund will report to Tony Bellezza, Rite Aid senior vice president and chief compliance officer.

“Paul comes to Rite Aid with significant experience in enterprise risk management, having held a variety of positions spanning several industries over the course of his career,” said Bellezza. “His extensive background in organizational compliance, as well as the development and administration of enterprise risk management solutions, will be extremely valuable to Rite Aid as we continue to expand our governance, risk and compliance program.”

Most recently, Zikmund served as director of global ethics and compliance at Bunge, a leading global agribusiness and food company headquartered in White Plains, N.Y., where he was responsible for implementing the Company’s fraud, ethics and compliance risk management programs. Before joining Bunge in 2011, Zikmund held senior positions at Tyco International, Inc., SolomonEdwards and Deloitte & Touche, LLP, serving in a variety of risk management functions.

Zikmund received a bachelor’s degree in administration of justice from the University of Pittsburgh; a master’s of accountancy degree from Auburn University; a master’s of business administration degree from the University of Connecticut and a master’s of business ethics and compliance degree from the New England College of Finance. He also received his certificate in corporate ethics and compliance management (CECM) from Saint Louis University and has served as a board member for several professional associations including the Association of Certified Fraud Examiners and the National Association of Certified Valuation Analysts.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 annual revenues of $26.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

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Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Ashley Flower 717-975-5718

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Rite Aid Corporation launches new integrated marketing campaign in support of wellness+ with Plenti

Coalition Loyalty Program Brings Additional Benefits to wellness+ Members

Camp Hill, Pa., 2015-5-19 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) has launched a new integrated marketing campaign in support of wellness+ with Plenti. As a part of Plenti, the nation’s first coalition loyalty program, Rite Aid now offers its nearly 25 million active wellness+ members even more ways to earn and enjoy savings on top of the existing wellness+ benefits they currently receive.

The campaign, created by Rite Aid’s long-time agency partner MARC USA, shows how consumers can benefit from Rite Aid joining forces with their other favorite brands. The campaign is designed to reach not only Rite Aid customers but also customers of other Plenti partners including AT&T, Exxon, Macy’s, Mobil, Nationwide, Direct Energy, Enterprise Rent-A-Car and Hulu.

Rite Aid’s Senior Vice President of Marketing John Learish explains, “Customer loyalty is such a critical business driver today. Wellness+ is already one of the most robust retail loyalty programs, so it was such a natural fit for Rite Aid to join Plenti and take our program to the next level. Since there has never been anything like this before in the United States, the goal of our campaign is to help shoppers understand the power of Plenti. We also want to make sure Rite Aid customers know that in addition to earning Plenti points, which can be used for at least two years for savings at Rite Aid and certain Plenti partners, all the great benefits of wellness+ remain – including the ability to earn 20% off almost the entire store for a year.”

The new campaign features a 30-second TV spot that brings the coalition experience to life as it shows how wellness+ with Plenti works. It follows a shopper eagerly offering to buy a cold remedy for her sick husband. Along the way, she visits several Plenti partners for things she wants and needs, including Macy’s for jeans, AT&T for headphones and Exxon/Mobil for fuel, before she arrives at Rite Aid – where she ultimately gets the cold medicine free with the Plenti points she has already earned.

MARC USA’s Chief Creative Officer Bryan Hadlock explains that the TV spot was shot on site at Rite Aid as well as at other Plenti partners. Hadlock adds, “It’s quite unusual for a retail spot for one brand to feature other brands this way. It’s proof of the tremendous collaboration and coordination within the Plenti coalition and really demonstrates the ease and simplicity of the customer experience. It’s a real win-win for consumers and retailers participating in the Plenti coalition.”

The campaign media strategy includes extensive support nationwide and an additional overlay in Rite Aid’s key markets. Besides the TV spot running on major cable networks, there are two 30-second spots running on network radio, as well as direct mail, in-store signage, circular and multi-platform digital activation with six online videos, email, search, display, pre-roll and social media strategies.

Learish continued, “We’ve built such strong brand loyalty through wellness+ and wellness65+ with more than three-fourths of our sales today associated with a wellness+ card. We see wellness+ with Plenti as a way to give even more value to our loyal members and also introduce new shoppers to Rite Aid. Wellness+ with Plenti works seamlessly across all the ways people want to shop Rite Aid, including Riteaid.com – where customers can also earn and use Plenti points.”

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 annual revenues of $26.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

Plenti is a U.S. coalition loyalty program comprised of widely known companies, which includes: American Express, AT&T, ExxonMobil, Macy’s, Nationwide, Rite Aid, Direct Energy, Enterprise Rent-A-Car and Hulu. Plenti is designed to offer consumer’s greater choice and savings potential through a multi-category rewards platform. To receive more information, please visit: www.plenti.com or connect us on Facebook.com/PlentiRewards, Twitter.com/PlentiRewards, Instagram.com/PlentiRewards and YouTube.com/PlentiRewards.

Note: View TV spot here.

https://www.youtube.com/watch?v=nh-_dn69D64&index=9&list=PL384644A119743E46

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Contact:

Media: Ashley Flower 717-975-5718

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Rite Aid Corporation enhances its loyalty program wellness+ thanks to its participation in Plenti

As part of Plenti, the first U.S. Loyalty Coalition, Rite Aid will Partner with Leading Brands Including AT&T, ExxonMobil, Macy’s, Nationwide Insurance, Enterprise Rent-A-Car, Direct Energy and Hulu

Camp Hill, Pa., 2015-5-6 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) announced today that an enhanced version of its award-winning loyalty program, wellness+, is now available to consumers, thanks to the company’s participation in Plenti. Through Plenti, the first U.S.-based consumer loyalty coalition, Rite Aid will transition its existing loyalty program, of which there are nearly 25 million active members, towellness+ with Plenti. As part of the Plenti coalition, Rite Aid joins other major retailers including AT&T, ExxonMobil, Macy’s, Nationwide Insurance, Enterprise Rent-A-Car, Direct Energy and Hulu to offer consumers numerous ways to earn Plenti points and use them for savings.

“Joining Plenti is the next step in the continued evolution of our highly successful wellness+ loyalty program,” said Ken Martindale, Rite Aid’s president and chief operating officer. “Wellness+ with Plenti will provide current and new Rite Aid customers with even more ways to earn and enjoy savings, on top of all the existing wellness+ benefits they currently receive, truly offering more value than any other drugstore loyalty program.”

New and existing wellness+ members can now sign up for wellness+ with Plenti at any Rite Aid store nationwide or online at www.riteaid.com/plenti. Once enrolled, members of wellness+ with Plenti will earn Plenti points on featured items they buy every day at any participating Plenti partner. These points can be used for at least two years for savings at Rite Aid and certain Plenti partners including Exxon, Macy’s and Mobil.

Added Martindale, “We believe that joining Plenti is going to be the next great differentiator for our business and consumers, given the premiere brands participating in the program and the multiple ways for customers to earn and save. We are excited to be part of this first of its kind U.S. loyalty coalition program and to bring such an innovative and unique program to our customers across the country.”

wellness+ with Plenti
Through wellness+ with Plenti, customers can use one card and earn two kinds of points.

Members will continue to earn wellness+ points for every one dollar spent on eligible non-prescription purchases and up to 25 wellness+ points for every eligible prescription, good toward various benefits at Rite Aid including discounts of up to 20% off storewide, exclusive sale prices and 24/7 access to a pharmacist.

In addition, they’ll also be able to earn a new additional set of points, Plenti points, whenever they make qualifying purchases at Rite Aid and all other Plenti partners.

Through wellness+ with Plenti, +UP rewards are now Plenti points. Plenti points offer even more value because they can be used for savings at Rite Aid as well as certain other Plenti partners including Exxon, Macy’s and Mobil and can be used to at least two years.

One Plenti point earned at Rite Aid is worth at least one cent in savings, so 1,000 Plenti points are worth at least $10 in savings. Plenti points can be earned at Rite Aid in-store and online, through rotating product offers such as 400 points when you buy 2 bottles of vitamins or 800 points on oral care products.

For full details on how of the Plenti program will work across all partners, please visit www.plenti.com/partners.

Rite Aid’s wellness+ with Plenti program will be supported by a national television, radio, circular and digital advertising campaign, which launches later this month.

For more information on wellness+ with Plenti, www.riteaid.com/plenti.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 annual revenues of $26.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

Plenti is a U.S. coalition loyalty program comprised of widely known companies, which include: American Express, AT&T, ExxonMobil, Macy’s, Nationwide, Rite Aid, Direct Energy, Enterprise Rent-A-Car and Hulu. Plenti is designed to offer consumers greater choice and savings potential through a multi-category rewards platform. For more information, please visit: www.plenti.com or connect with Plenti on Facebook.com/PlentiRewards, Twitter.com/PlentiRewards,Instagram.com/PlentiRewards and YouTube.com/PlentiRewards.

Plenti is run by US Loyalty, a division of American Express. In 2011, American Express acquired Loyalty Partner. The company operates three subsidiaries including Payback, which manages leading coalition loyalty programs in Germany, Italy, Poland, India and Mexico. For more information, visit www.loyaltypartner.com

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Contact:

Media: Ashley Flower 717-975-5718

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Rite Aid Corporation announces the appointment of Steve Rempel as its senior vice president and chief information officer

CAMP HILL, PA, 2015-4-22 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) announced today that Steve Rempel, a highly experienced  information technology executive, has been named Rite Aid’s senior vice president and chief information officer.

In this position, Rempel will have responsibility for all aspects of the company’s technology and information operations, including computer systems, network infrastructure, telecommunications and data security as well as the continued development and execution of Rite Aid’s immediate and long-term information technology strategy. Rempel will report to Frank Vitrano, Rite Aid’s senior executive vice president and chief administrative officer.

“Steve is an information technology expert with a proven track record in creating, driving and delivering value and results through innovative technology solutions,” said Vitrano. “His vast retail experience will be extremely valuable to Rite Aid as we continue to develop our technology and services platforms and strategies to further strengthen our business operations and enhance the experiences of our valued customers and associates.”

Before joining Rite Aid, Rempel served as chief information officer, president and CEO for Lenexa, Kan.,-based Balance Innovations, the leading provider of reconciliation and cash management solutions for the retail industry. During his tenure at Balance Innovations, he had oversight for the company’s technology strategy and provided strategic, financial and operational direction.

Rempel began his career at Safeway, Inc., one of the nation’s largest food and drug retailers. During his 35 years at Safeway, Rempel held a variety of information technology positions with increasing responsibility. Serving as the organization’s group vice president of Application Development, he had enterprise-wide responsibility for all elements of the information technology applications process, including design, development, procurement, development and support.

Rempel earned a bachelor’s degree in business administration from the University of the Fraser Valley in British Columbia and will receive his M.B.A from Auburn University this spring.

Rite Aid Corporation is one of the nation’s leading drugstore chains with nearly 4,600 stores in 31 states and the District of Columbia and fiscal 2015 annual revenues of $26.5 billion. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

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Contact:

Media: Kristin Kellum 717-975-5713

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Rite Aid Corporation reports its operating results for its fourth quarter and fiscal year ended February 28, 2015

•   Fourth Quarter Net Income of $1.835 Billion and Net Income per Diluted Share of $1.79, Compared to the Prior Year’s Fourth Quarter Net Income of $55.4 Million and Net Income per Diluted Share of $0.06

•   Full Year Net Income of $2.109 Billion and Net Income per Diluted Share of $2.08, Compared to the Prior Year Net Income of $249.4 Million and Net Income per Diluted Share of $0.23

•   Current Year Fourth Quarter and Full Year Results Includes an Income Tax Benefit of $1.716 Billion and $1.682 Billion, Respectively, Primarily as a Result of a Reduction of Deferred Tax Asset Valuation Allowance

•   Fourth Quarter Adjusted EBITDA of $343.3 Million Compared to Adjusted EBITDA of $356.3 Million   in the Prior Year’s Fourth Quarter

•   Full Year Adjusted EBITDA of $1,322.8 Million Compared to Adjusted EBITDA of $1,325.0 Million in the Prior Year

•   Rite Aid Provides Outlook for Fiscal 2016

CAMP HILL, Pa., 2015-4-9 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) today reported operating results for its fourth quarter and fiscal year ended February 28, 2015.

For the fourth quarter, the company reported revenues of $6.8 billion and net income of $1.835 billion, or $1.79 per diluted share. For the full year, the company reported revenues of $26.5 billion and net income of $2.109 billion, or $2.08 per diluted share. Current year results for both the fourth quarter and the full year were favorably impacted by a reduction of the deferred tax asset valuation allowance and a full year provision of income tax expense at a statutory tax rate, the net effect of which resulted in an income tax benefit of $1.716 billion, or $1.67 per diluted share and $1.682 billion, or $1.65 per diluted share in the fourth quarter and full year, respectively. The company reported Adjusted EBITDA of $343.3 million or 5.0 percent of revenues in the fourth quarter and $1,322.8 million or 5.0 percent of revenues for the full year.

The reduction of the tax valuation allowance represents a non-cash benefit to earnings in fiscal 2015. While the company will record charges for income taxes in future periods, it does not expect to pay significant cash taxes for the foreseeable future.

“In the fourth quarter, our strong growth in same-store sales and prescription count as well as strong cost control helped drive continued profitability,” said Rite Aid Chairman and CEO John Standley.

“These positive results contributed to a successful year in which we took significant steps to further position Rite Aid as a retail healthcare company,” added Standley. “We look forward to building upon our success by leveraging our recent strategic investments to grow our business. We will also continue to implement our initiatives that deliver value to our customers and help us provide greater access to convenient, affordable and high quality healthcare. I thank our dedicated team of nearly 90,000 Rite Aid associates for the great work they did throughout the year to continue our recent momentum.”

Fourth Quarter Summary

Revenues for the quarter were $6.8 billion versus revenues of $6.6 billion in the prior year’s fourth quarter. Revenues increased 3.8 percent primarily as a result of an increase in same store sales.

Same store sales for the quarter increased 4.5 percent over the prior year, consisting of a 5.7 percent increase in pharmacy sales and a 2.0 percent increase in front-end sales. Pharmacy sales included a negative impact of approximately 128 basis points from new generic introductions. The number of prescriptions filled in same stores increased 3.5 percent over the prior year period. Prescription sales accounted for 68.1 percent of total drugstore sales, and third party prescription revenue was 97.5 percent of pharmacy sales.

Net income was $1.835 billion or $1.79 per diluted share compared to last year’s fourth quarter net income of $55.4 million or $0.06 per diluted share. Current year net income included the favorable impact of a reduction of a deferred tax asset valuation allowance of $1.841 billion and income tax expense of $125.3 million compared to last year’s income tax benefit of $6.0 million.

Pre-tax income for the fourth quarter was $119.1 million or $0.12 per diluted share versus $49.4 million or $0.05 per diluted share in the prior year’s fourth quarter. Pre-tax income was favorably impacted by a LIFO credit in the current year of $23.5 million compared to last year’s LIFO charge of $44.1 million.

Adjusted EBITDA (which is reconciled to net income on the attached table) was $343.3 million or 5.0 percent of revenues for the fourth quarter compared to $356.3 million or 5.4 percent of revenues for the same period last year. Adjusted EBITDA in last year’s fourth quarter was favorably impacted by a $28 million reimbursement rate adjustment related to Medi-Cal.

In the fourth quarter, the company relocated 3 stores, remodeled 115 stores and expanded 2 stores, bringing the total number of wellness stores chainwide to 1,634. The company also opened 1 store, acquired 2 stores and closed 5 stores, resulting in a total store count of 4,570 at the end of the fourth quarter.

Full Year Results

For the fiscal year ended February 28, 2015, Rite Aid had revenues of $26.5 billion compared to $25.5 billion for the prior year. Revenues increased 3.9 percent primarily as a result of an increase in same store sales.

Same store sales for the year increased 4.3 percent consisting of a 5.8 percent increase in pharmacy sales and a    1.2 percent increase in front end sales. Pharmacy sales included a negative impact of approximately175 basis points from new generic introductions. The number of prescriptions filled in same stores increased 3.5 percent over the prior year period. Prescription sales accounted for 68.8 percent of total drugstore sales, and third party prescription revenue was 97.5 percent of pharmacy sales.

Net income for fiscal 2015 was $2.109 billion or $2.08 per diluted share compared to last year’s net income of $249.4 million or $0.23 per diluted share. Current year results were favorably impacted by the reduction of a deferred tax asset valuation allowance of $1.841 billion, partially offset by income tax expense of $159.0 million compared to $0.8 million in the prior year.

Pre-tax income was $426.8 million or $0.42 per diluted share in fiscal 2015 compared to $250.2 million or $0.23 per diluted share in fiscal 2014. Current year results were favorably impacted by a LIFO credit of $18.9 million in the current year compared to a LIFO charge of $104.1 million in the prior year, a loss on debt retirement of $18.5 million compared to $62.4 million in the prior year, and lower interest expense.

Adjusted EBITDA was $1,322.8 million or 5.0 percent of revenues for the year compared to $1,325.0 million or 5.2 percent of revenues for last year.

For the year, the company relocated 14 stores, acquired 9 stores, remodeled 440 stores, expanded 5 stores, opened two stores, and closed 28 stores.

Outlook for Fiscal 2016

The company’s outlook for fiscal 2016 is based on the anticipated benefits of its wellness remodels, a full year of benefits from the pharmacy sourcing arrangement with McKesson and other initiatives to grow sales and drive operational efficiencies. The company’s outlook also considers planned wage and benefit increases, the introduction of certain new generics and a reimbursement rate environment that is expected to continue to be challenging. The outlook does not consider the impact of the EnvisionRx acquisition due to the uncertainty as to when the transaction will close. The company’s outlook also reflects an increase in income tax expense compared to fiscal 2015, which included an income tax benefit from the reduction of the deferred tax asset valuation allowance. The company expects cash tax payments to remain in a range of $10 million to $20 million for fiscal 2016 as it will continue to be able to utilize its tax net operating loss carryforward.

Rite Aid said it expects sales to be between $26.9 billion and $27.4 billion in fiscal 2016 with same store sales expected to range from an increase of 2.5 percent to an increase of 4.5 percent over fiscal 2015.

Adjusted EBITDA (which is reconciled to net income on the attached table) is expected to be between $1.250 billion and $1.350 billion.

Net income for fiscal 2016 is expected to be between $190 million and $275 million or income per diluted share of $0.19 to $0.27. This guidance is net of estimated income tax expense of between $130 million and $180 million, or $0.13 to $0.18 per diluted share, respectively.

Capital expenditures are expected to be approximately $650 million.

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 simulcast via the internet and can be accessed through the websites www.riteaid.com in the conference call section of investor information and www.StreetEvents.com. Slides related to materials discussed on the call will be available on both sites. A playback of the call will be available on both sites starting at 12 p.m. Eastern Time today. A playback of the call will also be available by telephone beginning at 12 p.m. Eastern Time today until 11:59 p.m. Eastern Time on Apr. 10, 2015. The playback number is 1-855-859-2056 from within the U.S. and Canada or 1-404-537-3406 from outside the U.S. and Canada with the eight-digit reservation number 11217760.

Rite Aid is one of the nation’s leading drugstore chains with 4,570 stores in 31 states and the District of Columbia. Information about Rite Aid, including corporate background and press releases, is available through Rite Aid’s website at www.riteaid.com.

Statements, including guidance, 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. 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, our high level of indebtedness and our ability to make interest and principal payments on our debt and satisfy the other covenants contained in our debt agreements, general economic, market and competitive conditions, our ability to improve the operating performance of our stores in accordance with our long term strategy, the impact of private and public third-party payers continued reduction in prescription drug reimbursements and efforts to encourage mail order, our ability to manage expenses and our investments in working capital, outcomes of legal and regulatory matters and changes in legislation or regulations, including healthcare reform. These and other risks, assumptions and uncertainties are 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, which you are encouraged to read. 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 place undue reliance on these forward-looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention 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.

See the attached table for a reconciliation of a non-GAAP financial measure, Adjusted EBITDA to net income, the most comparable GAAP financial measure. We define Adjusted EBITDA as net income excluding the impact of income taxes (and any corresponding adjustments to tax indemnification asset), interest expense, depreciation and amortization, LIFO adjustments, charges or credits for facility closing and impairment, inventory write-downs related to store closings, debt retirements and other items (including stock-based compensation expense, sale of assets and investments and revenue deferrals related to our customer loyalty program).

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Click Here for 4th Quarter Results Detail

Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Susan Henderson 717-730-7766

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Rite Aid Corporation announces March sales results; 4.3 percent up over the prior-year period

CAMP HILL, Pa., 2015-4-6 — /EPR Retail News/ — Rite Aid Corporation (NYSE: RAD) today announced sales results for March.

Monthly Sales 

For the four weeks ended March 28, 2015, same store sales increased 4.3 percent over the prior-year period. March front-end same store sales increased 2.5 percent. Pharmacy same store sales, which included an approximate 167 basis points negative impact from new generic introductions, increased 5.1 percent. Prescription count at comparable stores increased 2.5 percent over the prior-year period.

Total drugstore sales for the four-week period increased 4.1 percent to $2.026 billion compared to $1.947 billion for the same period last year. Prescription sales accounted for 69.9 percent of drugstore sales, and third party prescription sales represented 97.7 percent of pharmacy sales.

Rite Aid is one of the nation’s largest drugstore chains. On March. 28, 2015, the company operated 4,568 stores compared to 4,584 stores in the like period a year ago. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at http://www.riteaid.com. Note that all sales data in this release is preliminary, unaudited and subject to revision.

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. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties that are 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, which you are encouraged to read. 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 place undue reliance on these forward-looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention 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.

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Contact:

Investors: Matt Schroeder 717-214-8867 or investor@riteaid.com

Media: Susan Henderson 717-730-7766