On Dec. 21, Rite Aid (NYSE:RAD) released third-quarter earnings for the period ended Nov. 25.

  • Sales were up 4.2% on the back of a 3.4% increase in same-store sales.
  • Net income before preferred dividends was $1.1 million, as operating margin increased year over year.
  • 195 of 214 investors think Rite Aid will outperform the S&P 500 in our new ratings service, CAPS. Do you have an opinion? Bring it to CAPS!

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$4,320.2

$4,145.7

4.2%

Net Profit*

$1.1

($5.2)

N/A

EPS

($0.01)

($0.02)

N/A

Diluted Shares

524.6

525.3

(0.2%)

*Before preferred dividends

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2007

Q3 2006

Change*

Gross Margin

26.7%

27.1%

(0.4)

Operating Margin

1.6%

1.4%

0.2

Net Margin

0%

(0.1%)

0.2

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Cash + ST Invest.

$148.4

$105.1

41.2%

Accounts Rec.

$321.8

$308.7

4.2%

Inventory

$2,468.4

$2,485.7

(0.7%)


Liabilities

Q3 2007

Q3 2006

Change

Accounts Payable

$923.8

$870.9

6.1%

Long-Term Debt

$2,785.0

$2,478.8

12.4%

Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$182.7

$336.8

(45.8%)

Capital Expenditures*

$184.6

$97.6

89.1%

Free Cash Flow

($1.9)

$239.2

N/A

*Less proceeds from sale and leaseback transactions and asset sales

Find out why Fools always follow the money.

Related Companies:

  • Medco (NYSE:MHS)
  • CVS (NYSE:CVS)
  • Walgreen (NYSE:WAG)

Related Foolishness:

Foolanthropy is celebrating its 10th year! To learn more about our five Foolish charities or to make a donation, visit www.foolanthropy.com.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.