• Same Store Prescription Volume Grew 2.7 Percent
• Second Quarter Net Loss from Continuing Operations of $78.7 Million or $1.48 Per Share, Compared to the Prior Year Second Quarter Net Loss of $352.3 Million or $6.67 Per Share
• Second Quarter Adjusted Net Income from Continuing Operations of $6.3 Million or $0.12 Per Share, Compared to the Prior Year Second Quarter Adjusted Net Loss of $7.9 Million or $0.15 Per Share
• Second Quarter Adjusted EBITDA from Continuing Operations of $134.2 Million, Compared to the Prior Year Second Quarter Adjusted EBITDA of $148.6 Million
• Rite Aid Narrows Fiscal 2020 Outlook for Adjusted EBITDA
CAMP HILL, Pa.–(BUSINESS WIRE)–Rite Aid Corporation (NYSE: RAD) today reported operating results for its second fiscal quarter ended August 31, 2019.
For the second quarter, the company reported net loss from continuing operations of $78.7 million, or $1.48 per share, Adjusted net income from continuing operations of $6.3 million, or $0.12 per share, and Adjusted EBITDA from continuing operations of $134.2 million, or 2.5 percent of revenues.
“After my first few weeks as CEO, I’m optimistic about our future because I believe in the Rite Aid brand and the opportunity we have to deliver innovative experiences as a health and wellness destination, even as we recognize the challenges ahead,” said Rite Aid CEO Heyward Donigan. “I’m also encouraged by the market opportunities for EnvisionRxOptions as health plans and employers rethink their pharmacy services partnerships. In talking with many associates during my first 45 days, we know there is important work in front of us, and we are acting with urgency to finalize a strategic plan that positions our company to meet its full potential. We look forward to sharing the key elements of this plan in the coming months.”
“As we continue these efforts, I’d like to thank our Rite Aid team for their hard work during the second quarter,” Donigan continued. “Our Adjusted EBITDA results exceeded our plan driven by prescription count growth and strong expense control. This gives us important momentum for our future, and I look forward to working closely with our team to deliver a solid finish to our fiscal year and position Rite Aid as an innovative leader in our industry.”
Second Quarter Summary
Revenues from continuing operations for the quarter were $5.37 billion compared to revenues from continuing operations of $5.42 billion in the prior year’s quarter. Retail Pharmacy Segment revenues were $3.85 billion and decreased 1.6 percent compared to the prior year period due to a reduction in store count, partially offset by an increase in same store sales. Revenues in the Pharmacy Services Segment were $1.58 billion, an increase of 1.1 percent compared to the prior year period, which was due to an increase in Medicare Part D revenue.
Retail Pharmacy Segment same store sales from continuing operations for the second quarter increased 0.4 percent over the prior year period, consisting of a 1.5 percent increase in pharmacy sales and a 1.8 percent decrease in front-end sales. Front-end same store sales, excluding cigarettes and tobacco products, decreased 0.6 percent. Pharmacy sales were negatively impacted by approximately 276 basis points as a result of new generic introductions. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, increased 2.7 percent over the prior year period resulting primarily from the company’s continued emphasis on driving clinical services. Prescription sales from continuing operations accounted for 67.2 percent of total drugstore sales.
Net loss from continuing operations was $78.7 million or $1.48 per share compared to last year’s second quarter net loss from continuing operations of $352.3 million or $6.67 per share. The decrease in net loss was due primarily to $282.6 million of goodwill and intangible asset impairment charges, net of tax, in the prior year period and a reduction in lease termination and impairment charges. These items were partially offset by higher restructuring-related costs, higher income tax expense and a decrease in Adjusted EBITDA.
Adjusted EBITDA from continuing operations was $134.2 million or 2.5 percent of revenues for the second quarter compared to Adjusted EBITDA from continuing operations of $148.6 million or 2.7 percent of revenues for the same period last year, a decrease of $14.4 million. The Retail Pharmacy Segment Adjusted EBITDA from continuing operations decreased $10.9 million compared to the prior year due primarily to weaker front end gross profit, resulting from a decline in front end same store sales, and a reduction in Transition Service Agreement fee income from Walgreens Boots Alliance. These items were partially offset by lower salaries and benefit expense related to the company’s recent corporate restructuring and strong labor and expense control at the stores. The Pharmacy Services Segment Adjusted EBITDA benefited from improvements in pharmacy network performance but decreased $3.4 million over the prior year period due to operating investments to support current year and future growth.
In the second quarter, the company remodeled 24 stores and relocated one store, bringing the total number of wellness stores chainwide to 1,805. Additionally, the company closed 2 stores, resulting in a total store count of 2,464 at the end of the second quarter.
Outlook for Fiscal 2020
Rite Aid is updating its fiscal 2020 outlook, including narrowing its guidance for Adjusted EBITDA. The company’s outlook assumes continued prescription count growth, improvements in generic drug costs and strong SG&A expense control, offset by a decline in prescription reimbursement rates. The fiscal 2020 guidance also assumes continued improvements in pharmacy network performance in the Pharmacy Services Segment.
Rite Aid expects revenues to be between $21.5 billion and $21.9 billion in fiscal 2020 with same store sales expected to range from an increase of 0.0 percent to an increase of 1.0 percent over fiscal 2019.
Net loss is expected to be between $235.0 million and $275.0 million.
Adjusted EBITDA is expected to be between $510.0 million and $550.0 million.
Adjusted net income per share is expected to be between $0.00 and $0.56.
Capital expenditures are expected to be approximately $250 million.
Conference Call Broadcast
Rite Aid will hold an analyst call at 8:30 a.m. Eastern Time today with remarks by Rite Aid’s management team. The call will be simulcast via the internet and can be accessed at www.riteaid.com in the conference call section of investor information. A playback of the call will also be available by telephone beginning at 12:00 p.m. Eastern Time today until 11:59 p.m. Eastern Time on Sept. 29, 2019. The playback number is 1-855-859-2056 from within the U.S. and Canada or 1-404-537-3406 from outside the U.S. and Canada with the reservation number 4487388.
About Rite Aid Corporation
Rite Aid Corporation, which generated fiscal 2019 annual revenue of $21.6 billion, is one of the nation’s leading drugstore chains with 2,464 stores in 18 states and pharmacy benefit management (PBM) capabilities through EnvisionRxOptions and its affiliates. At Rite Aid we have a personal interest in our customers’ health and wellness and deliver the products and services they need to lead healthier lives. Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.
Cautionary Statement Regarding Forward-Looking Statements
Statements in this release that are not historical, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding Rite Aid’s outlook for fiscal 2020; Rite Aid’s competitive position and ability to realize its growth initiatives and operating efficiencies; and any assumptions underlying any of the foregoing. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” and “will” and variations of such words and similar expressions are intended to identify such forward-looking statements.
These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to, our high level of indebtedness and our ability to make interest and principal payments on our debt and satisfy the other covenants contained in our debt agreements; general economic, industry, market, competitive, regulatory and political conditions; our ability to improve the operating performance of our stores in accordance with our long term strategy; the impact of private and public third-party payers continued reduction in prescription drug reimbursements and efforts to encourage mail order; our ability to manage expenses and our investments in working capital; outcomes of legal and regulatory matters; changes in legislation or regulations, including healthcare reform; our ability to achieve the benefits of our efforts to reduce the costs of our generic and other drugs; risks related to the pending sale of the remaining Rite Aid distribution centers and related assets to Walgreens Boots Alliance, Inc. (“WBA”), including the possibility that the transactions may not close, or the business of Rite Aid may suffer as a result of uncertainty surrounding the pending transactions; our ability to successfully execute and achieve benefits from our leadership transition plan and organizational restructuring, including managing the transition to our new chief executive officer and other management; the potential for operational disruptions due to, among other things, concerns of management, employees, current and potential customers, other third parties with whom we do business and shareholders; the success of any changes to our business strategy that may be implemented under our new chief executive officer and other management; our ability to achieve cost savings through the organizational restructurings within the anticipated timeframe, if at all; possible changes in the size and components of the expected costs and charges associated with the organizational restructuring plan; and the outlook for and future growth of the Company.
These and other risks, assumptions and uncertainties are more fully described in Item 1A (Risk Factors) of our most recent Annual Report on Form 10-K and in other documents that we file or furnish with the Securities and Exchange Commission, which you are encouraged to read.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Rite Aid expressly disclaims any current intention to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.
Reconciliation of Non-GAAP Financial Measures
Rite Aid separately reports financial results on the basis of Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share and Adjusted EBITDA which are non-GAAP financial measures. See the attached tables for a reconciliation of Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share and Adjusted EBITDA to net income (loss), and net income (loss) per diluted share, which are the most directly comparable GAAP financial measures. Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share exclude amortization expense, merger and acquisition-related costs, non-recurring litigation settlement, loss on debt retirements, LIFO adjustments, goodwill and intangible asset impairment charges, restructuring-related costs and the WBA merger termination fee. The current calculations of Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share reflect a modification made in the second quarter of fiscal 2019 to add back all amortization expenses rather than the amortization of EnvisionRx intangible assets only. Adjusted EBITDA is defined as net income (loss) excluding the impact of income taxes, interest expense, depreciation and amortization, LIFO adjustments, charges or credits for facility closing and impairment, goodwill and intangible asset impairment charges, inventory write-downs related to store closings, loss on debt retirements, the WBA merger termination fee, and other items (including stock-based compensation expense, merger and acquisition-related costs, non-recurring litigation settlement, severance, restructuring-related costs and costs related to facility closures and gain or loss on sale of assets). The current calculation of Adjusted EBITDA reflects a modification made in the second quarter of fiscal 2019 to eliminate the add back of revenue deferrals related to our customer loyalty program and to present amounts previously included within other as separate reconciling items. We further note that the add back of LIFO (credit) charge when calculating Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share removes the entire impact of LIFO (credits) charges, and effectively reflects Rite Aid’s results as if the company was on a FIFO inventory basis.
In addition to Adjusted EBITDA, Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share, we occasionally refer to several other Non‑GAAP measures, on a less frequent basis, in order to describe certain components of our business and how we utilize them to describe our results. Adjusted EBITDA Gross Profit includes LIFO adjustments, depreciation and amortization (COGS portion only) and other items. The presentation includes a reconciliation of Adjusted EBITDA Gross Profit to Revenue, which is the most directly comparable GAAP financial measure. Adjusted EBITDA SG&A excludes depreciation and amortization (SG&A portion only), stock-based compensation expense, merger and acquisition-related costs, litigation settlement, restructuring-related costs and other items. The presentation includes a reconciliation of Adjusted EBITDA SG&A to Revenue, which is the most directly comparable GAAP financial measure.
| RITE AID CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Dollars in thousands) | ||||||||
| (unaudited) | ||||||||
| August 31, 2019 | March 2, 2019 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents |
$ |
142,181 |
|
$ |
144,353 |
|
||
| Accounts receivable, net |
|
1,945,600 |
|
|
1,788,712 |
|
||
| Inventories, net of LIFO reserve of $619,437 and $604,444 |
|
1,968,937 |
|
|
1,871,941 |
|
||
| Prepaid expenses and other current assets |
|
183,428 |
|
|
179,132 |
|
||
| Current assets held for sale |
|
145,213 |
|
|
117,581 |
|
||
| Total current assets |
|
4,385,359 |
|
|
4,101,719 |
|
||
| Property, plant and equipment, net |
|
1,270,467 |
|
|
1,308,514 |
|
||
| Operating lease right-of-use assets |
|
2,944,651 |
|
|
– |
|
||
| Goodwill |
|
1,108,136 |
|
|
1,108,136 |
|
||
| Other intangibles, net |
|
381,369 |
|
|
448,706 |
|
||
| Deferred tax assets |
|
382,105 |
|
|
409,084 |
|
||
| Other assets |
|
201,126 |
|
|
215,208 |
|
||
| Total assets |
$ |
10,673,213 |
|
$ |
7,591,367 |
|
||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current maturities of long-term debt and lease financing obligations |
$ |
10,704 |
|
$ |
16,111 |
|
||
| Accounts payable |
|
1,570,178 |
|
|
1,618,585 |
|
||
| Accrued salaries, wages and other current liabilities |
|
732,787 |
|
|
808,439 |
|
||
| Current portion of operating lease liabilities |
|
502,706 |
|
|
– |
|
||
| Current liabilities held for sale |
|
43,364 |
|
|
– |
|
||
| Total current liabilities |
|
2,859,739 |
|
|
2,443,135 |
|
||
| Long-term debt, less current maturities |
|
3,834,605 |
|
|
3,454,585 |
|
||
| Long-term operating lease liabilities |
|
2,745,598 |
|
|
– |
|
||
| Lease financing obligations, less current maturities |
|
22,540 |
|
|
24,064 |
|
||
| Other noncurrent liabilities |
|
250,145 |
|
|
482,893 |
|
||
| Total liabilities |
|
9,712,627 |
|
|
6,404,677 |
|
||
| Commitments and contingencies |
|
– |
|
|
– |
|
||
| Stockholders’ equity: | ||||||||
| Common stock |
|
54,896 |
|
|
54,016 |
|
||
| Additional paid-in capital |
|
5,885,550 |
|
|
5,876,977 |
|
||
| Accumulated deficit |
|
(4,948,958 |
) |
|
(4,713,244 |
) |
||
| Accumulated other comprehensive loss |
|
(30,902 |
) |
|
(31,059 |
) |
||
| Total stockholders’ equity |
|
960,586 |
|
|
1,186,690 |
|
||
| Total liabilities and stockholders’ equity |
$ |
10,673,213 |
|
$ |
7,591,367 |
|
||
| RITE AID CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Dollars in thousands, except per share amounts) | ||||||||
| (unaudited) | ||||||||
| Thirteen weeks ended August 31, 2019 |
Thirteen weeks ended September 1, 2018 |
|||||||
| Revenues |
$ |
5,366,264 |
|
$ |
5,421,362 |
|
||
| Costs and expenses: | ||||||||
| Cost of revenues |
|
4,221,825 |
|
|
4,260,211 |
|
||
| Selling, general and administrative expenses |
|
1,135,530 |
|
|
1,153,991 |
|
||
| Lease termination and impairment charges |
|
1,471 |
|
|
39,609 |
|
||
| Goodwill and intangible asset impairment charges |
|
– |
|
|
375,190 |
|
||
| Interest expense |
|
60,102 |
|
|
56,233 |
|
||
| Gain on sale of assets, net |
|
(1,587 |
) |
|
(4,965 |
) |
||
|
|
5,417,341 |
|
|
5,880,269 |
|
|||
| Loss from continuing operations before income taxes |
|
(51,077 |
) |
|
(458,907 |
) |
||
| Income tax expense (benefit) |
|
27,628 |
|
|
(106,559 |
) |
||
| Net loss from continuing operations |
|
(78,705 |
) |
|
(352,348 |
) |
||
| Net loss from discontinued operations, net of tax |
|
(574 |
) |
|
(6,792 |
) |
||
| Net loss |
$ |
(79,279 |
) |
$ |
(359,140 |
) |
||
| Basic and diluted loss per share: | ||||||||
| Numerator for loss per share: | ||||||||
| Net loss from continuing operations attributable to common stockholders – basic and diluted |
$ |
(78,705 |
) |
$ |
(352,348 |
) |
||
| Net loss from discontinued operations attributable to common stockholders – basic and diluted |
|
(574 |
) |
|
(6,792 |
) |
||
| Loss attributable to common stockholders – basic and diluted |
$ |
(79,279 |
) |
$ |
(359,140 |
) |
||
| Denominator: | ||||||||
| Basic and diluted weighted average shares |
|
53,041 |
|
|
52,823 |
|
||
| Basic and diluted loss per share | ||||||||
| Continuing operations |
$ |
(1.48 |
) |
$ |
(6.67 |
) |
||
| Discontinued operations |
$ |
(0.01 |
) |
$ |
(0.13 |
) |
||
| Net basic and diluted loss per share |
$ |
(1.49 |
) |
$ |
(6.80 |
) |
||
| RITE AID CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Dollars in thousands, except per share amounts) | ||||||||
| (unaudited) | ||||||||
| Twenty-six weeks ended August 31, 2019 |
Twenty-six weeks ended September 1, 2018 |
|||||||
| Revenues |
$ |
10,738,853 |
|
$ |
10,809,852 |
|
||
| Costs and expenses: | ||||||||
| Cost of revenues |
|
8,467,691 |
|
|
8,479,952 |
|
||
| Selling, general and administrative expenses |
|
2,298,182 |
|
|
2,306,618 |
|
||
| Lease termination and impairment charges |
|
1,949 |
|
|
49,468 |
|
||
| Goodwill and intangible asset impairment charges |
|
– |
|
|
375,190 |
|
||
| Interest expense |
|
118,372 |
|
|
119,025 |
|
||
| Loss on debt retirements, net |
|
– |
|
|
554 |
|
||
| Gain on sale of assets, net |
|
(4,299 |
) |
|
(10,824 |
) |
||
|
|
10,881,895 |
|
|
11,319,983 |
|
|||
| Loss from continuing operations before income taxes |
|
(143,042 |
) |
|
(510,131 |
) |
||
| Income tax expense (benefit) |
|
35,002 |
|
|
(116,056 |
) |
||
| Net loss from continuing operations |
|
(178,044 |
) |
|
(394,075 |
) |
||
| Net (loss) income from discontinued operations, net of tax |
|
(894 |
) |
|
249,351 |
|
||
| Net loss |
$ |
(178,938 |
) |
$ |
(144,724 |
) |
||
| Basic and diluted loss per share: | ||||||||
| Numerator for loss per share: | ||||||||
| Net loss from continuing operations attributable to common stockholders – basic and diluted |
$ |
(178,044 |
) |
|
$ |
(394,075 |
) |
|
| Net (loss) income from discontinued operations attributable to common stockholders – basic and diluted |
|
(894 |
) |
|
|
249,351 |
|
|
| Loss attributable to common stockholders – basic and diluted |
$ |
(178,938 |
) |
$ |
(144,724 |
) |
||
| Denominator: | ||||||||
| Basic and diluted weighted average shares |
|
53,084 |
|
|
52,771 |
|
||
| Basic and diluted loss per share | ||||||||
| Continuing operations |
$ |
(3.35 |
) |
$ |
(7.47 |
) |
||
| Discontinued operations |
$ |
(0.02 |
) |
$ |
4.73 |
|
||
| Net basic and diluted loss per share |
$ |
(3.37 |
) |
$ |
(2.74 |
) |
||
| RITE AID CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Dollars in thousands) | ||||||||
| (unaudited) | ||||||||
| Thirteen weeks ended August 31, 2019 |
Thirteen weeks ended September 1, 2018 |
|||||||
| OPERATING ACTIVITIES: | ||||||||
| Net loss |
$ |
(79,279 |
) |
$ |
(359,140 |
) |
||
| Net loss from discontinued operations, net of tax |
|
(574 |
) |
|
(6,792 |
) |
||
| Net loss from continuing operations |
$ |
(78,705 |
) |
$ |
(352,348 |
) |
||
| Adjustments to reconcile to net cash used in operating activities of continuing operations: | ||||||||
| Depreciation and amortization |
|
83,044 |
|
|
89,743 |
|
||
| Lease termination and impairment charges |
|
1,471 |
|
|
39,609 |
|
||
| Goodwill and intangible asset impairment charges |
|
– |
|
|
375,190 |
|
||
| LIFO charge |
|
7,504 |
|
|
3,358 |
|
||
| Gain on sale of assets, net |
|
(1,587 |
) |
|
(4,965 |
) |
||
| Stock-based compensation expense |
|
4,712 |
|
|
5,215 |
|
||
| Changes in deferred taxes |
|
26,979 |
|
|
(112,452 |
) |
||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable |
|
(135,704 |
) |
|
(129,565 |
) |
||
| Inventories |
|
(100,536 |
) |
|
(62,751 |
) |
||
| Accounts payable |
|
(9,730 |
) |
|
(17 |
) |
||
| Operating lease right-of-use assets and operating lease liabilities |
|
46,875 |
|
|
– |
|
||
| Other assets |
|
(67,187 |
) |
|
(18,334 |
) |
||
| Other liabilities |
|
(55,935 |
) |
|
(117,271 |
) |
||
| Net cash used in operating activities of continuing operations |
|
(278,799 |
) |
|
(284,588 |
) |
||
| INVESTING ACTIVITIES: | ||||||||
| Payments for property, plant and equipment |
|
(43,079 |
) |
|
(44,594 |
) |
||
| Intangible assets acquired |
|
(7,498 |
) |
|
(6,864 |
) |
||
| Proceeds from dispositions of assets and investments |
|
3,765 |
|
|
5,813 |
|
||
| Net cash used in investing activities of continuing operations |
|
(46,812 |
) |
|
(45,645 |
) |
||
| FINANCING ACTIVITIES: | ||||||||
| Net proceeds from revolver |
|
250,000 |
|
|
1,145,000 |
|
||
| Principal payments on long-term debt |
|
(1,671 |
) |
|
(2,640 |
) |
||
| Change in zero balance cash accounts |
|
18,325 |
|
|
(18,184 |
) |
||
| Net proceeds from the issuance of common stock |
|
– |
|
|
392 |
|
||
| Payments for taxes related to net share settlement of equity awards |
|
(791 |
) |
|
(2,244 |
) |
||
| Deferred financing costs paid |
|
(129 |
) |
|
– |
|
||
| Net cash provided by financing activities of continuing operations |
|
265,734 |
|
|
1,122,324 |
|
||
| Cash flows from discontinued operations: | ||||||||
| Operating activities of discontinued operations |
|
11,605 |
|
|
12,047 |
|
||
| Investing activities of discontinued operations |
|
– |
|
|
– |
|
||
| Financing activities of discontinued operations |
|
– |
|
|
(818,762 |
) |
||
| Net cash provided by (used in) discontinued operations |
|
11,605 |
|
|
(806,715 |
) |
||
| Decrease in cash and cash equivalents |
|
(48,272 |
) |
|
(14,624 |
) |
||
| Cash and cash equivalents, beginning of period |
|
190,453 |
|
|
147,092 |
|
||
| Cash and cash equivalents, end of period |
$ |
142,181 |
|
$ |
132,468 |
|
||
| RITE AID CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Dollars in thousands) | ||||||||
| (unaudited) | ||||||||
| Twenty-six weeks ended August 31, 2019 |
Twenty-six weeks ended September 1, 2018 |
|||||||
| OPERATING ACTIVITIES: | ||||||||
| Net loss |
$ |
(178,938 |
) |
$ |
(144,724 |
) |
||
| Net (loss) income from discontinued operations, net of tax |
|
(894 |
) |
|
249,351 |
|
||
| Net loss from continuing operations |
$ |
(178,044 |
) |
$ |
(394,075 |
) |
||
| Adjustments to reconcile to net cash used in operating activities of continuing operations: | ||||||||
| Depreciation and amortization |
|
166,970 |
|
|
184,272 |
|
||
| Lease termination and impairment charges |
|
1,949 |
|
|
49,468 |
|
||
| Goodwill and intangible asset impairment charges |
|
– |
|
|
375,190 |
|
||
| LIFO charge |
|
14,993 |
|
|
13,324 |
|
||
| Gain on sale of assets, net |
|
(4,299 |
) |
|
(10,824 |
) |
||
| Stock-based compensation expense |
|
10,092 |
|
|
10,246 |
|
||
| Loss on debt retirements, net |
|
– |
|
|
554 |
|
||
| Changes in deferred taxes |
|
26,979 |
|
|
(124,807 |
) |
||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable |
|
(153,269 |
) |
|
(323,724 |
) |
||
| Inventories |
|
(111,990 |
) |
|
(31,650 |
) |
||
| Accounts payable |
|
(85,623 |
) |
|
207,943 |
|
||
| Operating lease right-of-use assets and operating lease liabilities |
|
34,982 |
|
|
– |
|
||
| Other assets |
|
(44,674 |
) |
|
(11,232 |
) |
||
| Other liabilities |
|
(8,104 |
) |
|
(245,587 |
) |
||
| Net cash used in operating activities of continuing operations |
|
(330,038 |
) |
|
(300,902 |
) |
||
| INVESTING ACTIVITIES: | ||||||||
| Payments for property, plant and equipment |
|
(84,060 |
) |
|
(92,565 |
) |
||
| Intangible assets acquired |
|
(15,708 |
) |
|
(20,519 |
) |
||
| Proceeds from dispositions of assets and investments |
|
4,423 |
|
|
15,729 |
|
||
| Proceeds from sale-leaseback transactions |
|
– |
|
|
2,587 |
|
||
| Net cash used in investing activities of continuing operations |
|
(95,345 |
) |
|
(94,768 |
) |
||
| FINANCING ACTIVITIES: | ||||||||
| Net proceeds from revolver |
|
375,000 |
|
|
1,335,000 |
|
||
| Principal payments on long-term debt |
|
(3,451 |
) |
|
(433,746 |
) |
||
| Change in zero balance cash accounts |
|
54,712 |
|
|
(17,101 |
) |
||
| Net proceeds from the issuance of common stock |
|
– |
|
|
1,302 |
|
||
| Payments for taxes related to net share settlement of equity awards |
|
(986 |
) |
|
(2,244 |
) |
||
| Financing fees paid for early debt redemption |
|
– |
|
|
(13 |
) |
||
| Deferred financing costs paid |
|
(315 |
) |
|
– |
|
||
| Net cash provided by financing activities of continuing operations |
|
424,960 |
|
|
883,198 |
|
||
| Cash flows from discontinued operations: | ||||||||
| Operating activities of discontinued operations |
|
(2,272 |
) |
|
(62,003 |
) |
||
| Investing activities of discontinued operations |
|
523 |
|
|
603,402 |
|
||
| Financing activities of discontinued operations |
|
– |
|
|
(1,343,793 |
) |
||
| Net cash used in discontinued operations |
|
(1,749 |
) |
|
(802,394 |
) |
||
| Decrease in cash and cash equivalents |
|
(2,172 |
) |
|
(314,866 |
) |
||
| Cash and cash equivalents, beginning of period |
|
144,353 |
|
|
447,334 |
|
||
| Cash and cash equivalents, end of period |
$ |
142,181 |
|
$ |
132,468 |
|
||
Contacts
INVESTORS:
Byron Purcell
(717) 975-5809
Or [email protected]
MEDIA:
Christopher Savarese
(717) 975-5718
