Rite Aid Corporation (NYSE: RAD) stock rose over 2.4% on April 12th, 2018 (as of 1:37 PM GMT-4; Source: Google finance). The group delivered a decent Retail Pharmacy Segment performance during the fourth quarter while Adjusted EBITDA also rose against pcp. Pharmacy Services Segment started positive in the new commercial selling season. The group finished the asset sale of 1,932 stores to WBA and made a definitive merger agreement with Albertsons Companies to transform Rite Aid into a truly differentiated leader in food, health and wellness.
The group enhanced operational performance via a stabilization of reimbursement rates, improvements in drug purchasing costs and a record number of immunizations which enabled them to deliver a higher pharmacy margin for the quarter. These areas of the business would continue to be a major priorities.
The group forecasts sales to be in the range of $21.7 billion and $22.1 billion in fiscal 2019 with same store sales forecasted to be in the range from a rise of 0.0 percent to a rise of 1.0 percent over fiscal 2018.
On an overall note, the group delivered a net loss from continuing operations of $483.7 million, or $0.46 per diluted share, while adjusted net loss from continuing operations reached $10.3 million, or $0.01 per diluted share. The Adjusted EBITDA from continuing operations reached $157.4 million, or 2.9 percent of revenues and pro-forma Adjusted EBITDA from continuing operations of $173.2 million.
For the fourth quarter of fiscal 2018 the group reported a net income of $767.1 million, or $0.73 per diluted share while delivered a net income of $943.5 million, or $0.90 per diluted share for FY17. They finished the sale of all 1,932 stores and related assets to WBA.
For the fourth quarter of 2018, the Same store sales from Retail Pharmacy continuing operations fell 1.7% yoy which comprises a 2.3% fall in pharmacy sales and a 0.6% fall in front-end sales. The Pharmacy sales included over 138 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, fell 1.8% yoy on the back of in part to exclusion from certain pharmacy networks that Rite Aid participated in the prior year. Prescription sales from continuing operations comprised 64.9 percent of total drugstore sales.