Rite Aid Q1 Profit Matches Estimates; Confirms FY15 Guidance - Quick Facts

(RTTNews) - Rite Aid Corp. (RAD) reported first-quarter net income of $41.4 million or $0.04 per share compared to $89.7 million or $0.09 per share, last year. The company said the decline in net income resulted primarily from a decrease in adjusted EBITDA and higher income tax expense, partially offset by lower interest expense and a lower LIFO charge.

On average, nine analysts polled by Thomson Reuters expected the company to report profit per share of $0.04 for the quarter. Analysts' estimates typically exclude special items.

Adjusted EBITDA was $282.6 million compared to $344.8 million, last year. The decrease in adjusted EBITDA was driven by a reduction in pharmacy gross profit due to lower reimbursement rates that were not offset with reductions in generic costs, as well as higher salary and payroll related expenses, the company noted.

Revenues were $6.46 billion, compared to $6.29 billion, a year ago. Revenues increased 2.7 percent primarily as a result of an increase in pharmacy same store sales. Same store sales for the quarter increased 3.1 percent over the prior year. Analysts expected revenue of $6.43 billion for the quarter.

The company has confirmed its fiscal 2015 guidance, which was updated on June 5, 2014. Sales are expected to be between $26.0 billion and $26.5 billion and same store sales to range from an increase of 2.50 percent to an increase of 4.50 percent over fiscal 2014. Adjusted EBITDA is expected to be between $1.275 billion and $1.350 billion and net income is expected to be between $298.0 million and $408.0 million or income per share of $0.30 to $0.40. Analysts expect the company to report fiscal 2015 profit per share of $0.35 on revenue of $26.19 billion.