Rite Aid’s Losses Widen in 2Q
CAMP HILL, Pa. (AP)_ Rite Aid Corp., the struggling pharmacy chain, said Tuesday that losses from continuing operations more than doubled in its fiscal second quarter due to store closings and debt restructuring.
The nation’s third largest drugstore chain, based in Camp Hill, Pa. said its loss from continuing operations for the quarter ended Aug. 26 was $425 million, or $1.87 a share. That compared to a loss from continuing operations of $154.4 million, or 60 cents a share, for the same period a year ago.
The net loss for the quarter, after selling its pharmacy benefit management firm PCS Health Systems Inc., was $456.5 million, or $1.97 a share.
Revenues rose to $3.4 billion from $3.2 billion.
The company’s losses were pushed higher by non-cash charges of $210.6 million, which included an $83.8 million loss related to debt restructuring. Rite Aid also lost more than $77 million from its investment in online drug retailer Drugstore.com.
Rite Aid lost $11.1 milion from closing 13 stores in the quarter. At the end of the quarter it had 3,767 stores.
Shares of Rite Aid fell 69 cents, or 17 percent, to $3.31 in Tuesday morning trading on the New York Stock Exchange.
Rite Aid, with more than 4,000 store locations in 30 states, has been rocked with difficulty after financial woes and accounting troubles sent the company’s stock tumbling by more than 80 percent, or $10 billion, in a year.
In July, accounting irregularities forced the company to revise its earnings downward by $1 billion for fiscal 1998 and 1999. The restatement cost the company $26.1 million.
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