This increased foot traffic in their store, which also benefitted front of the store general merchandise sales. The results in 2021 included a high level of vaccines and testing. The reported revenue numbers are worse than they look because there were significant price increases since last year. Their GAAP EPS was a loss of $6.07 per share and adjusted EBITDA was $78.5 million. There was a $252 million Elixir goodwill impairment charge, a $41.3 million gain on their debt repurchases, $29 million gain on sale leaseback deals, and a $45.8 million facility exit/impairment charge. The 2Q results included many special items. My values indicated RAD was a sell and it has dropped about 75% since that report. I think the financial results during the pandemic gave a "false positive" indication of Rite Aid's future. So, I thought that using that same logic it would be appropriate to use "old" numbers to establish values for Rite Aid and not their results during the pandemic that were helped by vaccines and testing. Often investors in other companies that were negatively impacted by the pandemic used "old" numbers for establishing current stock values. Many Seeking Alpha readers were very upset that I used too many "old" pre-pandemic numbers in my February 2021 article because they were expecting that the more positive pandemic results were indicative of the future. The latest results are more like their operations before the pandemic. Remember the stock is currently selling at only about $0.25 per share after factoring in their 2019 1-20 reverse stock split. Unless management can find some medicine in one of their store's pharmacies that cures their poor managerial skills or they can get help from some outside investor, Rite Aid most likely will have to do some major restructuring either out of court or in Ch.11. Their debt securities also dropped, and I would not be surprised if S&P lowers their debt rating from the current CCC. The stock price plunged 28% on Thursday to $5.08. While there were a few bright spots in their latest quarterly report, investors in Rite Aid ( RAD) were very disappointed with current results and downward revised guidance.
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