Retail drug store chain Rite Aid (NYSE:RAD) declared results for its first quarter ended June 2, 2012, which showed losses waned more than 50% over the previous year. Shareholders clearly believe the company’s turnaround efforts are achieving success. However, the company also revised its guidance for the fiscal 2013 to account for the negative impact of generic drug introductions.
Revenues were about a percent higher at $6.47 billion versus $6.39 billion in the same period last year. Loss for the quarter was $28.1 million ($0.03 a share) compared to $63.1 million ($0.07 a share) last year.
The company’s results benefited from higher sales and margins but were impacted due to a charge of $20.9 million for settlement of wage and hour class action suits against the company. The company also took a charge of $17.8 million on account of restructuring of debt due to the successful completion of previously announced refinancing.
“Our turnaround efforts continue to be successful as demonstrated by our sixth consecutive quarter of increased same store sales and Adjusted EBITDA,” said Chairman, President and CEO John Standley. “During the quarter, we saw strong growth in same-store prescription counts while key initiatives like our popular wellness+ customer loyalty program, enhanced Rite Aid brand offerings and ground-breaking Wellness store format continued to gain traction. We’re proud of the hard work and dedication that our entire Rite Aid team has displayed in driving these positive results and look forward to delivering an even better shopping experience to our customers as we move ahead.”
Sales for fiscal 2013 are estimated to be in the range between $25.3 billion and $25.7 billion and reflect the negative impact of new generic drug introductions on pharmaceutical sales. Net loss for the year is expected between $103 million and $248 million or a loss per diluted share of $0.13 to $0.29.