<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 3, 1995
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM ----- TO ------
COMMISSION FILE NUMBER 1-5742
RITE AID CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 23-1614034
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
30 HUNTER LANE 17011
CAMP HILL, PENNSYLVANIA (ZIP CODE)
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(717) 761-2633
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
NOT APPLICABLE
(FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR, IF CHANGED SINCE LAST
REPORT)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
----- ----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
<TABLE>
<CAPTION>
OUTSTANDING AT
CLASS OF COMMON STOCK JUNE 3, 1995
--------------------- ----------------
<S> <C>
$1.00 PAR VALUE 83,757,967 SHARES
</TABLE>
1
<PAGE> 2
RITE AID CORPORATION
INDEX
<TABLE>
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Condensed Consolidated Balance Sheet June 3, 1995
and March 4, 1995. . . . . . . . . . . . . . . . . . . . . . 2
Condensed Consolidated Statement of Income Thirteen
Weeks Ended June 3, 1995 and May 28, 1994. . . . . . . . . . 4
Condensed Consolidated Statement of Cash Flows
Thirteen Weeks Ended June 3, 1995 and May 28, 1994 . . . . . 5
Notes to Condensed Consolidated Financial Statements . . . . 6
Independent Auditors' Report . . . . . . . . . . . . . . . . 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . . . . 8
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . 10
</TABLE>
-1-
2
<PAGE> 3
- -------------------------------------------------------------------------------
RITE AID CORPORATION
FORM 10-Q
FOR THE THIRTEEN WEEKS ENDED JUNE 3, 1995
- -------------------------------------------------------------------------------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
RITE AID CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in Thousands)
<TABLE>
<CAPTION>
ASSETS June 3, 1995 March 4, 1995
- ------ ----------------- ---------------
(UNAUDITED)
<S> <C> <C>
Current Assets
Cash $ 9,680 $ 7,148
Accounts Receivable, Net 255,816 239,859
Inventories 1,063,975 1,070,346
Prepaid Expenses 29,628 28,716
Net Current Assets of Discontinued
Operations - 27,151
---------- ----------
Total Current Assets 1,359,099 1,373,220
---------- ----------
Property, Plant and Equipment 1,487,866 1,427,091
Less: Accumulated Depreciation and
Amortization 663,837 648,612
---------- ----------
824,029 778,479
---------- ----------
Intangible Assets
Excess of Cost Over Underlying Equity in
Subsidiaries 119,115 99,653
Lease Acquisition Costs and Other
Intangible Assets 165,858 154,359
---------- ----------
284,973 254,012
---------- ----------
Other Assets 29,463 26,153
---------- ----------
Net Noncurrent Assets of Discontinued
Operations - 40,743
---------- ----------
$2,497,564 $2,472,607
========== ==========
</TABLE>
See accompanying independent auditors' report and notes to condensed
consolidated financial statements.
-2-
3
<PAGE> 4
- -----------------------------------------------------------------------------
RITE AID CORPORATION
FORM 10-Q
FOR THE THIRTEEN WEEKS ENDED JUNE 3, 1995
- -----------------------------------------------------------------------------
Item 1. Financial Statements: (Continued)
RITE AID CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in Thousands)
<TABLE>
<CAPTION>
LIABILITIES June 3, 1995 March 4, 1995
- ----------- ---------------- ---------------
(UNAUDITED)
<S> <C> <C>
Current Liabilities
Short-Term Debt and
Current Maturities of Long-
Term Debt $ 76,155 $ 137,553
Accounts Payable 271,907 273,128
Income Taxes 54,025 38,241
Sales and Other Taxes Payable 13,406 13,796
Accrued Expenses 74,354 79,263
Reserve for Restructuring and
Other Charges 30,530 35,244
---------- ----------
Total Current Liabilities 520,377 577,225
---------- ----------
Long-Term Debt, Less Current Maturities 871,262 805,984
---------- ----------
Deferred Income Taxes 78,234 77,586
---------- ----------
Stockholders' Equity
Common Stock 90,290 90,290
Additional Paid-In Capital 61,115 60,655
Retained Earnings 979,247 955,111
Net Unrealized Gain on Marketable
Securities 3,089 2,847
Cumulative Pension Liability Adjustments (1,304) (1,314)
Treasury Stock, At Cost (104,746) (95,777)
---------- ----------
1,027,691 1,011,812
---------- ----------
$2,497,564 $2,472,607
========== ==========
</TABLE>
See accompanying independent auditors' report and notes to condensed
consolidated financial statements.
-3-
4
<PAGE> 5
- ----------------------------------------------------------------------------
RITE AID CORPORATION
FORM 10-Q
FOR THE THIRTEEN WEEKS ENDED JUNE 3, 1995
- ----------------------------------------------------------------------------
Item 1. Financial Statements: (Continued)
RITE AID CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Dollars In Thousands Except Per Share Amounts)
(UNAUDITED)
<TABLE>
<CAPTION>
THIRTEEN THIRTEEN
WEEKS ENDED WEEKS ENDED
June 3, 1995 May 28, 1994
----------------- -----------------
<S> <C> <C>
NET SALES $1,354,841 $1,051,142
COSTS AND EXPENSES
Cost of Goods Sold Including
Occupancy Costs 996,211 769,966
Selling, General and
Administrative Expenses 279,451 216,715
Interest Expense 16,256 8,758
---------- ----------
1,291,918 995,439
---------- ----------
Income Before Income Taxes 62,923 55,703
Income Taxes 24,540 21,723
---------- ----------
NET INCOME $ 38,383 $ 33,980
========== ==========
EARNINGS PER SHARE $.46 $.40
==== ====
CASH DIVIDENDS PER COMMON SHARE $.17 $.15
==== ====
AVERAGE SHARES OUTSTANDING 83,930,000 85,738,000
</TABLE>
See accompanying independent auditors' report and notes to condensed
consolidated financial statements.
-4-
5
<PAGE> 6
- ----------------------------------------------------------------------------
RITE AID CORPORATION
FORM 10-Q
FOR THE THIRTEEN WEEKS ENDED JUNE 3, 1995
- ----------------------------------------------------------------------------
Item 1. Financial Statements: (Continued)
RITE AID CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(UNAUDITED)
<TABLE>
<CAPTION>
THIRTEEN THIRTEEN
WEEKS ENDED WEEKS ENDED
JUNE 3, 1995 May 28,1994
----------------- -----------------
<S> <C> <C>
Operating Activities
Income from Continuing Operations
Before Income Taxes $ 62,923 $ 55,703
Depreciation and Amortization 28,470 22,910
Accreted Interest on Zero Coupon Notes 3,180 2,896
Changes in Operating Assets and Liabilities,
Net of Effects from Acquisitions (19,985) (17,604)
--------- ---------
74,588 63,905
Discontinued Operations
Income from Operations Before Income Taxes 190 3,923
Depreciation and Amortization 700 2,510
Changes in Net Operating Assets - (8,156)
--------- ---------
890 (1,723)
Income Taxes Paid (2,105) (7,515)
--------- ---------
Net Cash Provided by Operations 73,373 54,667
--------- ---------
Investing Activities
Purchase of Property, Plant and Equipment (62,723) (30,365)
Purchase of Businesses, Net of Cash Acquired (15,143) -
Intangible Assets Acquired (16,660) (2,559)
Investing Activities of Discontinued
Operations - (1,883)
Proceeds from the Sale of Discontinued
Operations 51,055 -
Other (3,016) (2,881)
--------- ---------
Net Cash Provided (Used) by Investing
Activities (46,487) (37,688)
--------- ---------
Financing Activities
Proceeds from the Sale of Long-Term Debt
Securities 197,702 -
Proceeds (Payments) of Short-Term Debt (199,300) (4,603)
Cash Dividends Paid (14,247) (12,853)
Acquisition of Stock for Treasury (8,969) (10,477)
Proceeds from the Sale of Stock 460 6
--------- ---------
Net Cash Provided (Used) by Financing
Activities (24,354) (27,927)
--------- ---------
Increase (Decrease) in Cash $ 2,532 $ (10,948)
========= =========
</TABLE>
See accompanying independent auditors' report and notes to condensed
consolidated financial statements.
-5- 6
<PAGE> 7
- --------------------------------------------------------------------------------
RITE AID CORPORATION
FORM 10-Q
FOR THE THIRTEEN WEEKS ENDED JUNE 3, 1995
- --------------------------------------------------------------------------------
ITEM 1. Financial Statements: (Continued)
RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1- BASIS OF PRESENTATION
The financial information included herein is unaudited. In
addition, the financial information does not include all
disclosures required under generally accepted accounting principles
because certain note information included in the Company's annual
report has been omitted; however, such information reflects all
adjustments (consisting solely of normal recurring adjustments)
which are, in the opinion of management, necessary to a fair
statement of the results for the interim periods. The report of
KPMG Peat Marwick LLP commenting upon their review accompanies the
condensed consolidated financial statements included in Item 1 of
Part I.
The results of operations for the thirteen weeks ended June 3, 1995
and May 28, 1994 are not necessarily indicative of the results to
be expected for the full year.
NOTE 2- EARNINGS PER SHARE
Earnings per share were computed by dividing net income by the
weighted average number of shares of common stock outstanding
during the periods.
NOTE 3- DISCONTINUED OPERATIONS
On May 12, 1995, ADAP Inc. was sold to an investment group led by
Falcon Capital, Inc. Aggregate consideration for the transaction
was approximately $66,000,000, subject to certain adjustments
primarily based on the results of physical inventories. The
management of Rite Aid believes that the reserve amount for loss on
disposal of ADAP is adequate.
NOTE 4- COMMITMENTS AND CONTINGENCIES
The company had standby letters of credit of $30,200,000 and
$29,700,000 at June 3, 1995 and May 28, 1994, respectively.
The company is the defendant in claims and lawsuits arising in the
ordinary course of business. In the opinion of management, these
matters are covered adequately by insurance, or if not so covered,
are of such nature or involve such amounts as would not have a
material effect on the financial statements of the company if
decided adversely.
-6-
7
<PAGE> 8
- -------------------------------------------------------------------------------
RITE AID CORPORATION
FORM 10-Q
FOR THE THIRTEEN WEEKS ENDED JUNE 3, 1995
- -------------------------------------------------------------------------------
Item 1. Financial Statements: (Continued)
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Rite Aid Corporation
Camp Hill, Pennsylvania
We have reviewed the condensed consolidated balance sheet of Rite Aid
Corporation and subsidiaries as of June 3, 1995, and the related condensed
consolidated statements of income and cash flows for the thirteen week periods
ended June 3, 1995 and May 28, 1994. These financial statements are the
responsibility of the Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data, and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit in
accordance with generally accepted auditing standards, the objective of which
is the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the condensed consolidated financial statements referred to
above for them to be in conformity with generally accepted accounting
principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of Rite Aid Corporation and
subsidiaries as of March 4, 1995, and the related consolidated statements of
income, stockholders' equity and cash flows for the year then ended (not
presented herein); and in our report dated April 21, 1995, we expressed an
unqualified opinion on those consolidated financial statements. In our
opinion, the information set forth in the accompanying condensed consolidated
balance sheet as of March 4, 1995, is fairly stated, in all material respects,
in relation to the consolidated balance sheet from which it has been derived.
The company changed its method of accounting for investments in the fourth
quarter of fiscal year 1995 to conform with Statement of Financial Accounting
Standards No. 115.
KPMG PEAT MARWICK LLP
Harrisburg, Pennsylvania
July 14, 1995
-7-
8
<PAGE> 9
- -------------------------------------------------------------------------------
RITE AID CORPORATION
FORM 10-Q
FOR THE THIRTEEN WEEKS ENDED JUNE 3, 1995
- -------------------------------------------------------------------------------
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations:
Net sales for the thirteen-weeks ended June 3, 1995 were $1,354,841,000, an
increase of 28.9% over last year's first quarter sales of $1,051,142,000. The
large increase reflects the revenues contributed by the 224 Perry drugstores
acquired on January 28, 1995. Excluding the Perry stores, the sales gain for
the quarter was 10.8%, mainly attributable to same-store increases of 7.6%. A
year earlier, same-store sales increased 4.7%. The company operated 2,836
drugstores as of June 3, 1995.
Cost of goods sold including occupancy costs amounted to 73.6% of net sales
compared to 73.3% a year ago. Pressure on margins continued as a greater share
of pharmacy sales were paid for by third-party payers. For the thirteen weeks,
60.6% of prescription sales were paid for by third-party plans compared to
57.8% last year. Typically, third-party prescription sales have lower gross
profit margins than other pharmacy sales.
Selling, general and administrative expenses were 20.6% of sales for both
periods, totaling $279,451,000 for the current quarter and $216,715,000 for the
prior year. Despite higher same-store sales, the benefit realized from
leveraging operating expenses was offset by integration costs and additional
administrative expenses associated with the Perry acquisition.
Interest expense was $16,256,000 and $8,758,000 for the thirteen weeks ended
June 3, 1995 and May 28, 1994, respectively. The larger expense for fiscal
1996 reflects the increased borrowings during the previous twelve months that
were used to purchase the Perry drugstores and other acquisitions. In
addition, the company bought back 1,703,000 shares of its common stock since
May 28, 1994 at a cost of $35,054,000. Contributing to the higher interest
expense was a rise in short-term interest rates. The weighted average rate on
the company's commercial paper was 6.2% for the quarter compared to 3.8% for
the same period last year.
The company announced on June 21, 1995 that it had agreed to purchase the
entire chain of conventional, freestanding drugstores owned and operated by
Pathmark Stores, Inc. The transaction is expected to close by late July,
pending Federal Trade Commission approval. The 30 Pathmark stores to be
purchased are located in the New York metropolitan region. In the last twelve
months, these stores generated $145,000,000 in sales.
On June 28, 1995, Rite Aid announced that it had agreed to sell 37 drugstores
and the assets of 72 other units located in Florida to Eckerd Corporation for
approximately $75,000,000. In conjunction with the sale of these stores, the
company's Florida distribution center will also be closed. The gain from the
sale of the above assets will be offset by the future obligations of the 72
leases not being acquired by Eckerd, and the costs associated with closing the
distribution center. Consequently, a provision not to exceed the amount of the
gain will be recorded at the conclusion of the sale to reserve for these
expenses. The 109 stores contributed $190,000,000 to fiscal 1995 sales and
about $.03 to earnings per share. Completion of this transaction is pending
Federal Trade Commission approval.
-8-
9
<PAGE> 10
- -------------------------------------------------------------------------------
RITE AID CORPORATION
FORM 10-Q
FOR THE THIRTEEN WEEKS ENDED JUNE 3, 1995
- -------------------------------------------------------------------------------
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations: (Continued)
The reserve for restructuring and other charges remains adequate to cover the
unsettled leases of the 200 drugstores closed during fiscal 1995. The company
continues to negotiate with landlords of the closed stores to terminate their
leases. Where favorable terms cannot be agreed upon, the company will endeavor
to sublet the locations until the leases expire.
On July 6, 1995, the company redeemed its $44,980,000 of 9 5/8% sinking fund
debentures due March 1, 2016, through the use of proceeds received from the
sale of ADAP, Inc. ADAP was sold in May 1995 to an investment group for
approximately $66,000,000, subject to final adjustments. The management of
Rite Aid believes that the reserve for loss on disposal of ADAP is adequate.
Working capital was $838,722,000 at June 3, 1995, compared to $795,995,000 at
March 4, 1995, and the current ratios were 2.6:1 and 2.4:1, respectively. Cash
provided by operations continues to be adequate to supply working capital,
provide cash for dividend payments and substantially contribute to investing
activities. Cash received from the ADAP sale was used to redeem the company's
9 5/8% sinking fund debentures. The cash expected from the sale of the Florida
stores will be more than adequate to cover the lease settlement and other costs
of the stores closed but not sold, and the costs associated with closing the
Florida distribution center. The net excess cash from the ADAP and Florida
transactions will be used towards the acquisition of the 30 Pathmark
drugstores.
To supplement internally generated cash, the company has additional borrowing
capacity through its commercial paper program which is supported by revolving
credit commitments totaling $600,000,000. There also remains $25,000,000 of
registered debt securities available to be issued under a Form S-3 shelf
registration statement. The company remains financially strong and is
positioned for growth and to take advantage of any opportunities that may
arise.
-9-
10
<PAGE> 11
- --------------------------------------------------------------------------------
RITE AID CORPORATION
FORM 10-Q
FOR THE THIRTEEN WEEKS ENDED JUNE 3, 1995
- --------------------------------------------------------------------------------
PART II
Item 4. Submission of Matters to a Vote of Security Holders:
(a) On July 11, 1995, Rite Aid Corporation held its annual meeting of
stockholders.
(b) The following directors were elected as members of the Board by Proxy at
the meeting:
Alex Grass Gerald Tsai, Jr.
Philip Neivert
The following directors' terms of office continued after the meeting:
Franklin Brown Leonard Stern
Martin Grass Henry Taub
Timothy Noonan Preston Robert Tisch
(c) Approval was given for the Annual Performance-Based Incentive Program.
(d) Approval was given to increase the number of shares of Common Stock
which may be issued under the 1990 Omnibus Stock Incentive Plan by
1,000,000 shares.
(e) A stockholder proposal was introduced at the meeting requesting that
Rite Aid Corporation prepare a report regarding equal employment
opportunities and affirmative actions. This proposal was not approved
by the stockholders at the annual meeting.
(f) No other matters were submitted to a vote of security holders at the
annual stockholders's meeting.
Item 6. Exhibits and Reports on Form 8-K:
(a) Exhibits
Item 11. - Statement regarding computation of per share
earnings
Item 15. - Copy of letter from independent accountants'
regarding unaudited interim financial information
Item 27. - Financial Data Schedule (EDGAR Filing Only)
-10-
11
<PAGE> 12
- -------------------------------------------------------------------------------
RITE AID CORPORATION
FORM 10-Q
FOR THE THIRTEEN WEEKS ENDED JUNE 3, 1995
- -------------------------------------------------------------------------------
(b) Reports on Form 8-K
The registrant filed a Form 8-K dated April 19, 1995 with the
Securities and Exchange Commission. This filing incorporated by
reference the financial statements of an acquired business, Perry
Drug Stores, Inc., for the years ended October 31, 1994 and October
31, 1993, and the quarterly periods ended January 28, 1995 and January
31, 1994. Also the filing included: Exhibit 12, Rite Aid
Corporation's ratio computations of earnings to fixed changes;
Exhibit 23, Consent of Arthur Anderson LLP; Exhibit 99, Press
release disclosing Rite Aid's fiscal year 1995 results.
Rite Aid Corporation also filed a Form 8-K dated April 20, 1995,
for a pricing agreement between the registrant and the underwriters
relating to the offer and sale of 7 5/8% Senior Notes due April 15,
2005. Included in the filing was a Form of 7 5/8% Senior Notes due
April 15, 2005.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
RITE AID CORPORATION
(Registrant)
Date: July 14, 1995 /s/ Frank Bergonzi
-------------------------- ---------------------------
Frank Bergonzi
Executive Vice President,
Chief Financial Officer
-11-
12
<PAGE> 13
EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION
__________ _____________
11 Statement Re Computation of Per Share Earnings
Thirteen Weeks Ended June 3, 1995 and May 28, 1994
15 Letter from KPMG Peat Marwick
27 Financial Data Schedule
<PAGE> 1
EXHIBIT 11
RITE AID CORPORATION AND SUBSIDIARIES
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
THIRTEEN WEEKS ENDED JUNE 3, 1995 AND MAY 28, 1994
(In Thousands Except Per Share Amounts)
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Earnings Per Common Share-Assuming No Dilution
- ----------------------------------------------
Net Income $ 38,383 $ 33,390
Weighted average number of common shares outstanding 83,930 85,738
Primary earnings per common share $.46 $.40
Earnings Per Common Share-Assuming Full Dilution
- ------------------------------------------------
Earnings
Net Income $ 38,383 $ 33,980
Add after tax interest expense applicable to 6 3/4%
convertible notes (a) 1,940 1,767
-------- --------
Net income as adjusted $ 40,323 $ 35,747
======== ========
Shares
Weighted average number of common shares outstanding 83,930 85,738
Assuming conversion of 6 3/4% convertible notes (a) 6,395 6,397
Assuming exercise of options reduced by the number
of shares which could have been purchased with the
proceeds from exercise of such options 534 428
-------- --------
Weighted average number of common shares outstanding
as adjusted 90,859 92,563
======== ========
Earnings per common share assuming full dilution $.44(b) $.39(b)
======= =======
</TABLE>
(a) Shown net of income taxes which were calculated at the company's
effective tax rate.
(b) This calculation is submitted in accordance with Regulation S-K item 601
(b)(11) although not required by APB Opinion No. 15 since dilution is
less than 3%.
13
<PAGE> 1
Exhibit 15
(KPMG PEAT MARWICK LLP LETTERHEAD)
Rite Aid Corporation
Camp Hill, Pennsylvania
Gentlemen:
Re: Registration Statement No. 2-87981; and No. 33-63794
With respect to the subject registration statements, we acknowledge our
awareness of the incorporation by reference therein of our report dated
July 14, 1995 related to our review of interim financial information.
Pursuant to Rule 436(c) under the Securities Act of 1933, such report is not
considered a part of a registration statement prepared or certified by an
accountant or a report prepared or certified by an accountant within the
meaning of Sections 7 and 11 of the Act.
Very truly yours,
KPMG PEAT MARWICK LLP
Harrisburg, Pennsylvania
July 14, 1995
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
RITE AID CORPORATION AND SUBSIDIARIES EXHIBIT 27
ARTICLE 5 FINANCIAL DATA SCHEDULES
FORM 10-Q
FIRST QUARTER ENDED JUNE 3, 1995
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-02-1996
<PERIOD-END> JUN-03-1995
<CASH> 9,680
<SECURITIES> 0
<RECEIVABLES> 260,812
<ALLOWANCES> 4,996
<INVENTORY> 1,063,975
<CURRENT-ASSETS> 1,359,099
<PP&E> 1,487,866
<DEPRECIATION> 663,837
<TOTAL-ASSETS> 2,497,564
<CURRENT-LIABILITIES> 520,377
<BONDS> 871,262
<COMMON> 90,290
0
0
<OTHER-SE> 937,401
<TOTAL-LIABILITY-AND-EQUITY> 2,497,564
<SALES> 1,354,841
<TOTAL-REVENUES> 1,354,841
<CGS> 996,211
<TOTAL-COSTS> 996,211
<OTHER-EXPENSES> 279,451
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 16,256
<INCOME-PRETAX> 62,923
<INCOME-TAX> 24,540
<INCOME-CONTINUING> 38,383
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 38,383
<EPS-PRIMARY> .46
<EPS-DILUTED> .44
</TABLE>
