Rite Aid Corporation (NYSE:RAD) announced operating results for 2Q2016 wherein it disclosed that revenues came at $7.7 billion, net income $0.02 per diluted share, and adjusted EBITDA came at 4.5% of revenues. John Standley, the CEO and Chairman said that the second quarter was crucial for Rite as they completed the acquisition deal of EnvisionRx. They worked as a team to boost transformation an convert into a retail healthcare firm.
The highlights
EnvisionRx made encouraging contributions to company’s performance as Pharmacy Services division delivered results in line with expectations. They will continue to concentrate on major initiatives such as flu immunizations, Wellness store remodels and wellness+ with Plenti to boost performance in retail vertical as they leverage EnvisionRx’s suite of offerings to create integrated and unique offerings in the healthcare segment.
The performance
Rite Aid revenue in 2Q2015 came at $7.7 billion compared to revenues of $6.5 billion in the comparable period, a year ago. Retail Pharmacy Segment revenue came at $6.6 billion and jumped 1.9% primarily due to increase in same store sales. Also, the Pharmacy Services division revenues were $1.1 billion measured from the date of the EnvisionRx acquisition deal, which was June 24 through the quarter’s end.
The developments
In 2Q2016, Rite Aid Corporation (NYSE:RAD) remodeled 119 stores and relocated 3 stores, which brings the total count of wellness stores chain-wide to 1,859. The company commenced two new stores, purchased two stores, and closed nine stores. As a result, the total store number stood at 4,561 at the end of 2Q2015. The Company commenced five clinics in 2Q, bringing the total number to 70.
The guidance
Rite Aid updated its FY2016 guidance to highlight recent sales trends and expected amortization expense coming from EnvisionRx. There was no change in midpoint guidance of Adjusted EBITDA. Total revenues are anticipated to come in between $30.8 billion and $31.1 billion.
