<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 16, 1996
RITE AID CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-5742 23-1614034
(State of (Commission File Number) (IRS Employer
incorporation) Identification No.)
30 HUNTER LANE, CAMP HILL, PENNSYLVANIA 17011
(Address of principal executive offices, including zip code)
(717) 761-2633
(Registrant's telephone number, including area code)
NO CHANGE
(Former name or former address, if changed since last report)
<PAGE> 2
Item 7. Financial Statements and Exhibits
(c) Exhibits
12. Computation of ratios of earnings to fixed charges.
99. Press release dated December 16, 1996, issued by the registrant
announcing financial results for the third quarter ended November
30, 1996.
<PAGE> 3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
RITE AID CORPORATION
By: /s/ Frank M. Bergonzi
-----------------------------------
Name: Frank Bergonzi
Title: Executive Vice President
and Chief Financial Officer
Date: December 16, 1996
<PAGE> 4
EXHIBIT INDEX
Exhibit
Number Description
- ----------------------------------------------------------------------------
12. Computation of ratios of earnings to fixed charges.
99. Press Release dated December 16, 1996, issued by the registrant announcing
financial results for the third quarter ended November 30, 1996.
<PAGE> 1
EXHIBIT 12
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHANGES
RITE AID CORPORATION
(DOLLAR AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
39 WEEKS YEAR ENDED
ENDED -----------------------------------------------------------
NOVEMBER 30, MARCH 2, MARCH 4, FEB 26, FEB 27, FEB 29,
1996 1996 1995 1994 1993 1992
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Fixed Charges
Interest
Expense $ 57,902 $ 68,341 $ 42,300 $ 28,683 $ 29,387 $ 37,463
Interest Portion
of Net Rental
Expense(1) 43,974 52,080 40,424 40,427 37,659 34,939
-------- -------- -------- -------- -------- --------
Fixed Charges
Before Capitalized
Interest 101,876 120,421 82,724 69,110 67,046 72,402
Capitalized
Interest 1,352 1,948 373 217 445 721
-------- -------- -------- -------- -------- --------
Total Fixed
Charges $103,228 $122,369 $ 83,097 $ 69,327 67,491 $ 73,123
======== ======== ======== ======== ======== ========
Earnings
Income from
Continuing
Operations Before
Income Taxes $170,444(3) $256,202 $231,464 45,670(2) $200,569 $187,202
Fixed Charges
Before Capitalized
Interest (per
above) 101,876 120,421 82,724 69,110 67,046 72,402
-------- -------- -------- -------- -------- --------
Total Adjusted
Earnings $272,320 $376,623 $314,188 $114,780 $267,615 $259,604
======== ======== ======== ======== ======== ========
Ratio of Earnings
to Fixed Charges 2.64 3.08 3.78 1.66 3.97 3.55
======== ======== ======== ======== ======== ========
</TABLE>
(1) The interest portion of the net rental expenses is estimated to be equal to
one-third of the minimum rental expense for the period.
(2) Income from continuing operations before income taxes for fiscal year
1994 includes a $149,196,000 one-time, pre-tax provision for corporate
restructuring and other charges.
(3) Income from continuing operations before income taxes for the thirty-nine
week period ended November 30, 1996 includes a $16,057,000 one-time,
pre-tax provision for costs related to the attempted Revco, D.S., Inc.
acquisition.
<PAGE> 1
EXHIBIT 99
[RITE AID LOGO] MAILING ADDRESS
Press Release P.O. Box 3165
For Further Information Contact: Harrisburg, PA 17105
GENERAL OFFICE
30 Hunter Lane
Camp Hill, PA 17011
INVESTORS: MEDIA:
Frank Bergonzi Sarah Datz
(717) 975-5750 (717) 975-5718
FOR IMMEDIATE RELEASE
RITE AID ANNOUNCES RECORD THIRD QUARTER RESULTS
13-WEEK REVENUES UP 11.5 PERCENT
CAMP HILL, PA. (December 16, 1996)--Rite Aid Corporation (RAD - NYSE, PSE),
today announced financial results for the third quarter ended November 30, 1996.
Corporate sales increased 11.5 percent to $1,484,641,000 compared to
$1,331,796,000 for the third quarter of fiscal 1996. Net income rose 14.5
percent to $37,409,000 from $32,660,000 and earnings per share increased 15.4
percent to $.45 compared to $.39 in the third quarter last year.
For the 39 weeks, revenues advanced 7.4 percent to $4,313,019,000 from
$4,015,036,000 for the same period one year ago. Net income, before the
nonrecurring charge for costs associated with the attempted acquisition of Revco
D. S. Inc., was $115,257,000, an increase of 13.0 percent compared to
$101,953,000 or $1.37 per share versus $1.22 per share for the year-earlier
period.
Net income for the 39 weeks ended November 30, 1996 was $105,334,000 or $1.26
per share. This reflected a first quarter, pre-tax charge of $16,057,000 to
write off costs associated with the attempted Revco acquisition.
As previously announced, same-store sales rose 7.8 percent for the quarter
and 7.2 percent for the 39 weeks compared to 6.6 percent and 7.0 percent for the
comparable periods last year. Pharmacy same-store sales led the 13-week gain at
10.7 percent. During the third quarter, the company added 51 drugstores, closed
or sold 59 smaller outlets, and enlarged or relocated 64 units. Year to date,
Rite Aid added 118 stores, closed or sold 89 outlets, and enlarged or relocated
150 stores. The company ended the quarter with 2,788 drugstores.
Rite Aid Corporation closed on the merger with Thrifty PayLess Holdings,
Inc. on December 12, 1996. Thrifty PayLess is the largest drugstore chain in
the western United States, operating over 1,000 drugstores in 10 states with
annual revenues of approximately $4.4 billion.
General information about Rite Aid including corporate background and press
releases is available, free of charge, through the company's News-On-Demand fax
service at (800) 916-7788. This information is also available through Rite Aid's
internet web site at http://www.RiteAid.com.
<PAGE> 2
EXHIBIT 99
RITE AID CORPORATION
THIRD QUARTER FISCAL 1997
CONSOLIDATED SALES AND EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
13 WEEKS ENDED 13 WEEKS ENDED
November 30, 1996 December 2, 1995 %
----------------- ---------------- ----
<S> <C> <C> <C>
SALES $1,484,641,000 $1,331,796,000 11.5
NET INCOME $ 37,409,000 $ 32,660,000 14.5
AVERAGE SHARES OUTSTANDING 83,919,000 83,758,000
EARNINGS PER SHARE $ .45 $ .39 15.4
</TABLE>
<TABLE>
<CAPTION>
39 WEEKS ENDED 39 WEEKS ENDED
November 30, 1996 December 2, 1995 %
----------------- ---------------- ---
<S> <C> <C> <C>
SALES $4,313,019,000 $4,015,036,000 7.4
NET INCOME $ 105,334,000 $ 101,953,000 3.3
AVERAGE SHARES OUTSTANDING 83,891,000 83,816,000
EARNINGS PER SHARE $ 1.26 $ 1.22 3.3
</TABLE>
Net income for the 39 weeks ended November 30, 1996 reflects a nonrecurring,
pre-tax charge of $16,057,000 to write off expenses associated with the
attempted acquisition of Revco D.S., Inc. Tax effected, this charge was
$9,923,000 or $.12 per share.
The LIFO method of valuing inventory had the effect of reducing net income 2
cents per share for the 13-week period and 10 cents per share for the 39-week
period ended November 30, 1996. For the comparable periods last year, the LIFO
adjustments were 2 cents for the quarter and 9 cents for the 39 weeks.
<PAGE> 3
EXHIBIT 99
FISCAL 1997
3RD QUARTER
(UNAUDITED)
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME
==============================================================================================================
13 Weeks Ended 13 Weeks Ended
November 30, 1996 December 2, 1995
-----------------------------------------------------------
In thousands of dollars
except per share amounts $ % $ %
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET SALES .................................. $ 1,484,641 100.0 $ 1,331,796 100.0
COSTS & EXPENSES
Cost of Goods Sold Including Occupancy Costs 1,100,706 74.1 985,454 74.0
Selling, General and Administrative Expenses 302,697 20.4 276,374 20.8
Interest Expense ........................... 20,703 1.4 16,515 1.2
-----------------------------------------------------------
COSTS & EXPENSES- 1,424,106 95.9 1,278,343 96.0
-----------------------------------------------------------
Income Before Income Taxes ................. 60,535 4.1 53,453 4.0
Income Taxes ............................... 23,126 1.6 20,793 1.5
-----------------------------------------------------------
NET INCOME- $ 37,409 2.5 $ 32,660 2.5
===========================================================
EARNINGS PER SHARE- $ .45 $ .39
===========================================================
CASH DIVIDENDS PER COMMON SHARE- $ .185 $ .17
===========================================================
AVERAGE SHARES OUTSTANDING- 83,919,000 83,758,000
===========================================================
</TABLE>
39 WEEKS
(UNAUDITED)
<TABLE>
===================================================================================================================
<CAPTION>
39 Weeks Ended 39 Weeks Ended
November 30, 1996 December 2, 1995
In thousands of dollars ------------------------------------------------------------
except per share amounts $ % $ %
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET SALES ...................................... $ 4,313,019 100.0 $ 4,015,036 100.0
COSTS & EXPENSES
Cost of Goods Sold Including Occupancy Costs ... 3,185,468 73.9 2,960,998 73.7
Selling, General and Administrative Expenses ... 883,148 20.5 837,629 20.9
Interest Expense ............................... 57,902 1.3 49,546 1.2
Nonrecurring Charge Related to
Revco D.S., Inc. Acquisition Costs .......... 16,057 0.4 -- --
------------------------------------------------------------
COSTS & EXPENSES- 4,142,575 96.1 3,848,173 95.8
------------------------------------------------------------
Income Before Income Taxes ..................... 170,444 3.9 166,863 4.2
Income Taxes ................................... 65,110 1.5 64,910 1.7
------------------------------------------------------------
NET INCOME- $ 105,334 2.4 $ 101,953 2.5
============================================================
EARNINGS PER SHARE- $ 1.26 $ 1.22
============================================================
CASH DIVIDENDS PER COMMON SHARE- $ .555 $ .51
============================================================
AVERAGE SHARES OUTSTANDING- 83,891,000 83,816,000
============================================================
</TABLE>
The LIFO method of valuing inventory had the effect of reducing net income
2(cent) per share for the 13-week period and 10(cent) per share for the 39-week
period ended November 30, 1996. For the comparable periods last year, the LIFO
adjustments were 2(cent) for the quarter and 9(cent) for the 39 weeks.
Net income for the 39-week period ended November 30, 1996 reflects a
nonrecurring, pre-tax charge of $16,057,000 to write off expenses associated
with the attempted acquisition of Revco D.S., Inc. Tax effected, this charge was
$9,923,000 or $.12 per share.
[LOGO]
Rite Aid Corporation
P.O. Box 3165
Harrisburg, PA 17105
Released 12/16/96
<PAGE> 4
EXHIBIT 99
FISCAL 1997
ASSETS
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
==================================================================================================
November 30, 1996 December 2, 1995
In thousands of dollars
- --------------------------------------------------------------------------------------------------
CURRENT ASSETS
<S> <C> <C>
Cash ........................................................ $ 8,714 $ 28,273
Accounts Receivable, Net .................................... 261,817 251,308
Inventories ................................................. 1,345,119 1,218,234
Prepaid Expenses and Other Current Assets ................... 41,044 37,262
------------------------------
TOTAL CURRENT ASSETS- 1,656,694 1,535,077
------------------------------
PROPERTY, PLANT & EQUIPMENT AT COST
Land ........................................................ 170,046 100,977
Buildings ................................................... 330,047 275,084
Leasehold Improvements ...................................... 576,105 454,358
Equipment ................................................... 838,320 719,979
Construction in Progress .................................... 52,129 25,302
------------------------------
PROPERTY, PLANT & EQUIPMENT AT COST- 1,966,647 1,575,700
Accumulated Depreciation and Amortization ................... 752,579 677,406
------------------------------
NET PROPERTY, PLANT & EQUIPMENT- 1,214,068 898,294
------------------------------
INTANGIBLE ASSETS
Excess of Cost Over Underlying Equity in Subsidiaries Less
Accumulated Amortization of $12,539 and $9,796 ......... 152,791 131,629
Lease Acquisition Costs and Other Intangible Assets Less
Accumulated Amortization of $131,341 and $120,316 ....... 224,100 190,653
------------------------------
INTANGIBLE ASSETS- 376,891 322,282
------------------------------
Other Assets ................................................ 99,242 36,249
------------------------------
TOTAL ASSETS- $ 3,346,895 $ 2,791,902
==============================
</TABLE>
LIABILITIES
AND
STOCKHOLDERS'
EQUITY
<TABLE>
<CAPTION>
==================================================================================================
In thousands of dollars November 30, 1996 December 2, 1995
- --------------------------------------------------------------------------------------------------
CURRENT LIABILITIES
Short-Term Debt and
<S> <C> <C>
Current Maturities of Long-Term Debt .................... $ 64,980 $ 251,171
Accounts Payable ............................................ 310,329 279,205
Income Taxes ................................................ 83,768 55,073
Sales and Other Taxes Payable ............................... 11,311 10,549
Accrued Salaries, Wages and Other Current Liabilities ....... 62,795 91,747
------------------------------
TOTAL CURRENT LIABILITIES- 533,183 687,745
------------------------------
Long-Term Debt, Less Current Maturities ..................... 1,536,839 971,253
------------------------------
Deferred Income Taxes ....................................... 113,807 73,221
------------------------------
STOCKHOLDERS' EQUITY
Preferred Stock, Par Value $1 Per Share, Series A Junior
Participating Preferred Stock ........................... -- --
Common Stock, Par Value $1 Per Share, Issued 90,462,119
Shares and 90,290,636 Shares ............................ 90,462 90,291
Additional Paid-In Capital .................................. 63,247 61,124
Retained Earnings ........................................... 1,114,536 1,014,318
Cumulative Pension Liability Adjustments .................... (433) (1,304)
Treasury Stock at Cost (6,532,169 Shares) ................... (104,746) (104,746)
------------------------------
STOCKHOLDERS' EQUITY- 1,163,066 1,059,683
------------------------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY- $ 3,346,895 $ 2,791,902
==============================
</TABLE>
