Rite Aid delivered a solid third quarter as the drug store chain looked to revitalize its business growth strategies going forward into 2020.
Revenues from continuing operations for the third quarter ended November 30 were $5.46 billion compared to revenues from continuing operations of $5.45 billion in the prior year’s quarter. Retail pharmacy segment same store sales from continuing operations for the third quarter decreased 0.1% over the prior year period, consisting of a 0.1% increase in pharmacy sales and a 0.5% decrease in front-end sales. Front-end same store sales, excluding cigarettes and tobacco products, increased 1%.
Net income from continuing operations was $52.3 million or $0.98 per share compared to last year’s third quarter net loss from continuing operations of $17.3 million or $0.33 per share. The increase in net income was due primarily to a $55.7 million gain on debt retirements and an increase in Adjusted EBITDA.
“Our team delivered a strong quarter that provides us with momentum as we prepare to roll out our long-term strategy and position Rite Aid Corporation as an innovative leader in our industry,” said Rite Aid CEO Heyward Donigan. “Adjusted EBITDA grew in our retail business due to tight expense control and prescription count growth in our retail pharmacies, which benefited from solid growth in immunizations. At the same time, we saw improved pharmacy network management at EnvisionRxOptions.”
Donigan continued, “While we are pleased with these results, we have important work ahead of us to put our company on a path to long-term sustainable growth. We will soon reveal our comprehensive strategy that revitalizes Rite Aid retail pharmacies as fresh and relevant, leveraging the trust and expertise of our pharmacists in meeting the unique health and wellbeing needs of our communities. We are also investing in the expansion and integration of EnvisionRxOptions, particularly its services, technologies and clinical offerings. This will provide us scale to deliver lower total cost of care, an enhanced client experience and heightened consumer engagement. We are making great progress, and we are excited to share more details at our upcoming analyst day on March 16.”