http://www.morningstar.com/earnings/43338981-rite-aid-corp-rad-q2-2013.aspx

Rite Aid Corp RAD
Q2 2013 Earnings Call Transcript

Transcript Call Date 09/20/2012

Operator: Good morning. My name is Kimberly and I will be your conference operator today. At this time, I would like to welcome everyone to the Rite Aid Second Quarter Fiscal 2013 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

Thank you. Mr. Matt Schroeder, you may begin your conference.

Matt Schroeder - Group VP, Strategy, IR and Treasurer: Thank you, Kimberly, and good morning everyone. We welcome you to our second quarter conference call. On the call with me are John Standley, our Chairman, President and Chief Executive Officer; Frank Vitrano, our Chief Financial and Chief Administrative Officer and Ken Martindale, our Chief Operating Officer.

On today's call, John will give an overview of our second quarter results and discuss our business. Frank will discuss the key financial highlights and fiscal 2013 outlook, and then we will take questions.

As we mentioned on our release, we are providing slides related to the material we will be discussing today, including annual earnings and sales guidance on our website, www.riteaid.com under the Investor Relations Information tab for conference calls. This guidance is a point-in-time estimate made early in the fiscal year. The Company expressly disclaims any current intention to update it.

This conference call and the related slides will be available on the Company's website until the next earnings call unless the Company withdraws them earlier and should not be relied upon thereafter. We will not be referring to the slides directly in our remarks, but hope you'll find them helpful as they summarize some of the key points made on the call.

Before we start, I'd like to remind you that today's conference call includes certain forward-looking statements. These forward-looking statements are made in the context of certain risks and uncertainties that can cause actual results to differ. These risks and uncertainties are described in our press release in Item 1A of our most recent Annual Report on Form 10-K and other documents we file or furnish to the Securities and Exchange Commission.

Also, we will be using a non-GAAP financial measure. The definition of the non-GAAP financial measure along with the reconciliations to the related GAAP measure are described in our press release.

With these remarks, I'd now like to turn it over to John.

John T. Standley - Chairman, President and CEO: Thank you, Matt, and thank you all for joining us this morning to review our fiscal 2013 second quarter results. We are pleased with our results for the quarter as we continue to make significant progress in our turnaround efforts. We had continued strong growth in front-end same-store sales and prescription count. We've also grown adjusted EBITDA and same-store prescription count for seven consecutive quarters, thanks to our chain-wide focus on executing key sales initiatives, operating more efficiently and providing a superior customer experience.

Our adjusted EBITDA was $218.7 million for the quarter, an increase of $34.4 million or 19% year-over-year. We also decreased net loss by $53.5 million compared to the second quarter of last year. Loss per share improved from $0.11 per share in the prior year second quarter to $0.05 per share this quarter. Same-store sales were flat due to a 1.4% increase in front-end offset by a 0.7% decrease in the pharmacy.

Read our Earnings Call Transcript disclaimer.
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