On Thursday, April 12, drugstore retailer Rite Aid
- Despite net sales falling 4.4%, same-store sales improved 3%, demonstrating the impact from the loss of one week in this year's fourth quarter.
- Comparisons for EPS of $0.01 are impractical since last year's fourth quarter included a $1.82 per-share income tax benefit.
- Shareholders recently approved Rite Aid's pending purchase of 1,850 Brooks and Eckerd drugstores from Canadian-based Jean Coutu Group, which increases the store base an additional 50% and could help Rite Aid grow even healthier.
- Rite Aid carries a favorable four-star rating in Motley Fool's CAPS community, as do rivals Walgreen
(NYSE:WAG) and CVS(NYSE:CVS) . Retailing giants Wal-Mart(NYSE:WMT) and Costco(NASDAQ:COST) also fill a large amount of prescriptions. CAPS players have awarded Costco a four-star rating, while Wal-Mart isn't getting as much love with a two-star rating -- Fools may still want to think twice before selling out.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q4 2007 |
Q4 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$4,562,069 |
$4,771,326 |
(4.4%) |
|
Net Profit |
$15,097 |
$1,246,733 |
(98.8%) |
|
EPS |
$0.01 |
$1.83 |
(99.5%) |
|
Diluted Shares |
547,294 |
682,860 |
(19.9%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2007 |
Q4 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
26.90% |
26.71% |
0.19 |
|
Operating Margin |
0.00% |
0.13% |
(0.13) |
|
Net Margin |
0.33% |
26.13% |
(25.80) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$106,148 |
$76,067 |
39.5% |
|
Accounts Rec. |
$374,493 |
$354,949 |
5.5% |
|
Inventory |
$2,335,679 |
$2,341,410 |
(0.2%) |
|
Liabilities |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$902,807 |
$862,192 |
4.7% |
|
Long-Term Debt |
$2,909,983 |
$2,298,706 |
26.6% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q4 2007 |
Q4 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$126,400 |
$80,407 |
57.2% |
|
Capital Expenditures |
$110,477 |
$96,601 |
14.4% |
|
Free Cash Flow |
$15,923 |
($16,194) |
(198.3%) |
Free cash flow is a Fool's best friend.
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Costco is a Stock Advisor recommendation. This market-beating newsletter is available for a free 30-day trial. Wal-Mart is a Motley Fool Inside Value recommendation. Try any one of our investing services free for 30 days.
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.
Fool contributor Ryan Fuhrmann is long shares of Walgreen but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
