On Sept. 21, 2006, Rite Aid
- Same-store sales increased 3.8% on higher pharmacy sales and higher front-of-the-store sales. Sales don't seem to be the issue.
- But despite massive amounts of revenue, the pharmacy continues to struggle to generate profits, especially given its high interest payments.
- Filling more prescriptions (up 2.6% on a same-store basis) in more stores (a potential 1,858 additions from the Brooks and Eckerd acquisition) may help the company use scale to regain profitability.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$4,252.9 |
$4,288.4 |
$4,132.5 |
3.8% |
|
Net Profit* |
-- |
($8.2) |
($17.1) |
N/A |
|
EPS |
($0.02) |
($0.02) |
($0.03) |
N/A |
|
Diluted Shares |
-- |
523.4 |
523.8 |
(0.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
26.84% |
27.18% |
(0.34) |
|
Operating Margin |
1.46% |
1.72% |
(0.26) |
|
Net Margin** |
(0.19%) |
(0.41%) |
0.22 |
**Available to common shares.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$96.6 |
$90.1 |
7.2% |
|
Accounts Rec. |
$352.7 |
$337.4 |
4.5% |
|
Inventory |
$2,424.3 |
$2,363.2 |
2.6% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$932.2 |
$801.8 |
16.3% |
|
Long-Term Debt |
$2,299.7 |
$2,813.1 |
(18.3%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$137.9 |
$313.9 |
(56.1%) |
|
Capital Expenditures* |
$105.7 |
$45.9 |
130.2% |
|
Free Cash Flow |
$32.2 |
$268.0 |
(88.0%) |
Find out why Fools always follow the money.
Related Companies:
-
Walgreen
(NYSE:WAG) -
CVS
(NYSE:CVS) -
Wal-Mart
(NYSE:WMT) -
Costco
(NASDAQ:COST)
Related Foolishness:
- Rite Aid: Not Quite Rad, but Not All Bad
- Foolish Forecast: Rite Aid Revival?
- Rite Aid Regains Respectability
- Foolish Forecast: Rite Aid Writes a Script
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.
Wal-Mart is an Inside Value recommendation, while Costco is a Stock Advisor selection. Whatever your investing style, the Fool has a newsletter for you.
At the time of publication, Fool contributor David Meier did not own shares in any of the companies mentioned. Fool rules for disclosure are here.
