www.riteaid.com<\/a>.<\/p>\nCautionary Statement Regarding Forward-Looking Statements<\/b><\/p>\n
Statements in this release that are not historical, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding Rite Aid’s outlook and guidance for fiscal 2024; the continued impact of the global coronavirus (COVID-19) pandemic on Rite Aid\u2019s business; our key growth initiatives, including the timing and plans to (i) grow our pharmacy business and our Elixir business and (ii) deepen our customer loyalty and engagement;and any assumptions underlying any of the foregoing. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” and “will” and variations of such words and similar expressions are intended to identify such forward-looking statements.<\/i><\/p>\n
These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to: <\/i>risks related to the prolonged impact of the COVID-19 global pandemic and the emerging new variants, including the government responses thereto; <\/i>the impact of COVID-19 on our workforce, operations, stores, expenses, and supply chain, and the operations or behaviors of our customers, suppliers and business partners; our ability to successfully implement our store closure program and other strategies; the impact of our high level of indebtedness<\/i>, the ability to refinance such indebtedness on acceptable terms<\/i> (including the impact of rising interest rates, market volatility, and continuing actions by the United States Federal Reserve) and our ability to satisfy our obligations and the other covenants contained in our debt agreements; outcome of pending or new litigation and government investigations, including, without limitation, those related to opioids, \u201cusual and customary\u201d pricing, government payer programs or other matters; our ability to monetize (and on reasonably available terms) the CMS receivable created in our Part D business; general competitive, economic, industry, market, political (including healthcare reform) and regulatory conditions (including changes to laws or regulations relating to labor or wages), including continued impacts of inflation or other pricing environment factors on our costs, liquidity and our ability to pass on price increases to our customers, including as a result of inflationary and deflationary pressures, a decline in consumer financial position, whether due to inflation or other factors, as well as other factors specific to the markets in which we operate; the impact of private and public third-party payers continued reduction in prescription drug reimbursements, new or disruptive business models or practices, and efforts to encourage mail order; our ability to manage expenses and our investments in working capital; our ability to achieve the benefits of our efforts to reduce the costs of our generic and other drugs; our ability to achieve cost savings and other benefits of our restructuring efforts within our anticipated timeframe, if at all; <\/i>the outcome of our continuing efforts to monitor and comply with applicable laws, orders, regulations, policies and procedures;<\/i> and our ability to partner and have relationships with health plans and health systems.<\/i><\/p>\n
These and other risks, assumptions and uncertainties are more fully described in Item 1A (Risk Factors) of our most recent Annual Report on Form 10-K and in other documents that we file or furnish with the Securities and Exchange Commission <\/i>(the \u201cSEC\u201d), which you are encouraged to read. To the extent that COVID-19 adversely affects our business and financial results, it may also have the effect of heightening many of such risk factors.<\/i><\/p>\n
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to rely on these forward-looking statements, which speak only as of the date they are made.<\/i><\/p>\n
The degree to which COVID-19 may adversely affect Rite Aid\u2019s results and operations, including its ability to achieve its outlook for fiscal 2024 guidance, will depend on numerous evolving factors and future developments, which are highly uncertain. As a result, the impact on Rite Aid\u2019s financial and operating results cannot be reasonably estimated with specificity at this time, but the impact could be material. Rite Aid expressly disclaims any current intention, and assumes no duty, to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.<\/i><\/p>\n
All references to \u201cCompany\u201d and \u201cRite Aid\u201d as used throughout this release refer to Rite Aid Corporation and its affiliates.<\/i><\/p>\n
Reconciliation of Non-GAAP Financial Measures<\/b><\/p>\n
Rite Aid separately reports financial results on the basis of Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share, Adjusted EBITDA, Adjusted EBITDA Gross Profit and Adjusted EBITDA SG&A, which are non-GAAP financial measures. See the attached tables for a reconciliation of Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share and Adjusted EBITDA to net income (loss), and net income (loss) per diluted share, which are the most directly comparable GAAP financial measures. Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share exclude amortization expense, merger and acquisition-related costs, non-recurring litigation and other contractual settlements, gains or losses on debt modifications and retirements, LIFO adjustments, goodwill and intangible asset impairment charges, restructuring-related costs, the gain or loss on Bartell acquisition, and the change in estimate related to manufacturer rebate receivables. Rite Aid believes Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share serve as appropriate measures to be used in evaluating the performance of its business and help its investors better compare its operating performance over multiple periods.<\/i><\/p>\n
Adjusted EBITDA is defined as net income (loss) excluding the impact of income taxes, interest expense, depreciation and amortization, LIFO adjustments, charges or credits for facility exit and impairment, goodwill and intangible asset impairment charges, inventory write-downs related to store closings, gains or losses on debt modifications and retirements, and other items (including stock-based compensation expense, merger and acquisition-related costs, non-recurring litigation and other contractual settlements, severance, restructuring-related costs, costs related to facility closures, gain or loss on sale of assets, the gain or loss on Bartell acquisition, and the change in estimate related to manufacturer rebate receivables). The add back of LIFO (credit) charge when calculating Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share removes the entire impact of LIFO (credits) charges, and effectively reflects Rite Aid’s results as if the company was on a FIFO inventory basis.<\/i>Rite Aid believes Adjusted EBITDA serves as an appropriate measure in evaluating the performance of its business and helps its investors better compare its operating performance with its competitors.<\/i><\/p>\n
Adjusted EBITDA Gross Profit includes LIFO adjustments, depreciation and amortization (COGS portion only) and other items. See the attached tables for a reconciliation of Adjusted EBITDA Gross Profit to Revenue, which is the most directly<\/i><\/p>\n
comparable GAAP financial measure. Adjusted EBITDA SG&A excludes depreciation and amortization (SG&A portion only), stock-based compensation expense, merger and acquisition-related costs, non-recurring litigation and other contractual settlements, and other items. See the attached tables for a reconciliation of Adjusted EBITDA SG&A to Revenue, which is the most directly comparable GAAP financial measure. The Company believes Adjusted EBITDA Gross Profit and Adjusted EBITDA SG&A serve as appropriate measures in evaluating the performance of its business and helps its investors better compare its operating performance with its competitors.<\/i><\/p>\n
The Company presents these non-GAAP financial measures in order to provide transparency to its investors because they are measures that management uses to assess both management performance and the financial performance of its operations and to allocate resources. In addition, management believes that these measures may assist investors with understanding and evaluating the Company\u2019s initiatives to drive improved financial performance and enables investors to supplementally compare its operating performance with the operating performance of its competitors including with those of its competitors having different capital structures. While the Company has excluded certain of these items from historical non-GAAP financial measures, there is no guarantee that the items excluded from non-GAAP financial measures will not continue into future periods. For instance, the Company expects to continue to experience charges for facility exit and impairment charges and inventory write-downs related to store closures as the Company continues to complete a multi-year strategic initiative designed to improve overall performance. The Company also expects to continue to experience and report restructuring-related charges associated with continued execution of its strategic initiatives.<\/i><\/p>\n
Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share or other non-GAAP measures should not be considered in isolation from, and are not intended to represent an alternative measure of, operating results or of cash flows from operating activities, as determined in accordance with GAAP. The Company\u2019s definition of these non-GAAP measures may not be comparable to similarly titled measurements reported by other companies, including companies in its industry.<\/i><\/p>\n\n\n| \u00a0<\/td>\n<\/tr>\n |
\n| RITE AID CORPORATION AND SUBSIDIARIES<\/td>\n<\/tr>\n |
\n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n |
\n| CONSOLIDATED BALANCE SHEETS<\/td>\n<\/tr>\n |
\n| (Dollars in thousands)<\/td>\n<\/tr>\n |
\n| (unaudited)<\/td>\n<\/tr>\n |
\n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n |
\n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n |
\n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n |
\n | \n | \nMarch 4, 2023<\/td>\n | | \nFebruary 26, 2022<\/td>\n<\/tr>\n |
\n| ASSETS<\/td>\n | | \n | \n | \n | <\/tr>\n
\n| Current assets:<\/td>\n | | \n | \n | \n | <\/tr>\n
\n| Cash and cash equivalents<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n157,151<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n39,721<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Accounts receivable, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,149,958<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,343,496<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Inventories, net of LIFO reserve of $539,932 and $487,173<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,900,744<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,959,389<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Prepaid expenses and other current assets<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n93,194<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n106,749<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Total current assets<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n3,301,047<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n3,449,355<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Property, plant and equipment, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n907,771<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n989,167<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Operating lease right-of-use assets<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2,497,206<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2,813,535<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Goodwill<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n507,936<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n879,136<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Other intangibles, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n250,112<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n291,196<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Deferred tax assets<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n12,368<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n20,071<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Other assets<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n50,922<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n86,543<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Total assets<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n7,527,362<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n8,529,003<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n |
\n| LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY<\/td>\n | | \n | \n | \n | <\/tr>\n
\n| Current liabilities:<\/td>\n | | \n | \n | \n | <\/tr>\n
\n| Current maturities of long-term debt and lease financing obligations<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n6,332<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n5,544<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Accounts payable<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,494,611<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,571,261<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Accrued salaries, wages and other current liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n724,529<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n780,632<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Current portion of operating lease liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n502,403<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n575,651<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Total current liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2,727,875<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2,933,088<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Long-term debt, less current maturities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2,925,258<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2,732,986<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Long-term operating lease liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2,372,943<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2,597,090<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Lease financing obligations, less current maturities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n12,580<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n14,830<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Other noncurrent liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n130,482<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n151,976<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Total liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n8,169,138<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n8,429,970<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n |
\n| Commitments and contingencies<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n–<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n–<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Stockholders’ (deficit) equity:<\/td>\n | | \n | \n | \n | <\/tr>\n
\n| Common stock<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n56,629<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n55,752<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Additional paid-in capital<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n5,917,964<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n5,910,299<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Accumulated deficit<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(6,601,517<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(5,851,581<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n |
\n| Accumulated other comprehensive loss<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(14,852<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(15,437<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n |
\n| Total stockholders’ (deficit) equity<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(641,776<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n99,033<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n |
\n| Total liabilities and stockholders’ (deficit) equity<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n7,527,362<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n8,529,003<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| RITE AID CORPORATION AND SUBSIDIARIES<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| CONSOLIDATED STATEMENTS OF OPERATIONS<\/td>\n<\/tr>\n | \n| (Dollars in thousands, except per share amounts)<\/td>\n<\/tr>\n | \n| (unaudited)<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n\n \nFourteen weeks ended<\/p>\n \nMarch 4, 2023<\/p>\n<\/td>\n | | \n\n \nThirteen weeks ended<\/p>\n \nFebruary 26, 2022<\/p>\n<\/td>\n<\/tr>\n | \n| Revenues<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n6,092,902<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n6,065,390<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Costs and expenses:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Cost of revenues<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n4,843,938<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n4,824,077<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Selling, general and administrative expenses<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,296,059<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,243,841<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Facility exit and impairment charges<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n76,430<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n112,551<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Goodwill and intangible asset impairment charges<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n119,000<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n229,000<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Interest expense<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n66,331<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n46,094<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Gain on debt modifications and retirements, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(38,830<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n–<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| (Gain) loss on sale of assets, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(7,294<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n5,584<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n6,355,634<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n6,461,147<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Loss before income taxes<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(262,732<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(395,757<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Income tax benefit<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(21,421<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(6,695<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Net loss<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(241,311<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(389,062<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Basic and diluted loss per share:<\/td>\n | | \n | \n | \n | <\/tr>\n \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Numerator for loss per share:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Net loss attributable to common stockholders – basic and diluted<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(241,311<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(389,062<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Denominator:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Basic and diluted weighted average shares<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n54,993<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n54,208<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Basic and diluted loss per share<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(4.39<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(7.18<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| RITE AID CORPORATION AND SUBSIDIARIES<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| CONSOLIDATED STATEMENTS OF OPERATIONS<\/td>\n<\/tr>\n | \n| (Dollars in thousands, except per share amounts)<\/td>\n<\/tr>\n | \n| (unaudited)<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n\n \nFifty-three weeks ended<\/p>\n \nMarch 4, 2023<\/p>\n<\/td>\n | | \n\n \nFifty-two weeks ended<\/p>\n \nFebruary 26, 2022<\/p>\n<\/td>\n<\/tr>\n | \n| Revenues<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n24,091,899<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n24,568,255<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Costs and expenses:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Cost of revenues<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n19,287,959<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n19,461,760<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Selling, general and administrative expenses<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n4,902,087<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n5,033,876<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Facility exit and impairment charges<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n211,385<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n180,190<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Goodwill and intangible asset impairment charges<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n371,200<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n229,000<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Interest expense<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n224,399<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n191,601<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| (Gain) loss on debt modifications and retirements, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(80,142<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n3,235<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| (Gain) loss on sale of assets, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(68,586<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n5,505<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Loss on Bartell acquisition<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n–<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n5,346<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n24,848,302<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n25,110,513<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Loss before income taxes<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(756,403<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(542,258<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Income tax benefit<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(6,467<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(3,780<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Net loss<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(749,936<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(538,478<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Basic and diluted loss per share:<\/td>\n | | \n | \n | \n | <\/tr>\n \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Numerator for loss per share:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Net loss attributable to common stockholders – basic and diluted<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(749,936<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(538,478<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Denominator:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Basic and diluted weighted average shares<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n54,680<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n54,055<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Basic and diluted loss per share<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(13.71<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(9.96<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| RITE AID CORPORATION AND SUBSIDIARIES<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| CONSOLIDATED STATEMENTS OF CASH FLOWS<\/td>\n<\/tr>\n | \n| (Dollars in thousands)<\/td>\n<\/tr>\n | \n| (unaudited)<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n\n \nFourteen weeks ended<\/p>\n \nMarch 4, 2023<\/p>\n<\/td>\n | | \n\n \nThirteen weeks ended<\/p>\n \nFebruary 26, 2022<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| OPERATING ACTIVITIES:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Net loss<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(241,311<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(389,062<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Adjustments to reconcile to net cash provided by operating activities:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Depreciation and amortization<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n68,450<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n72,995<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Facility exit and impairment charges<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n76,430<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n112,551<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Goodwill and intangible asset impairment charges<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n119,000<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n229,000<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| LIFO charge<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n27,661<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n414<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Change in allowances for uncollectible accounts receivable<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n7,856<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,019<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| (Gain) loss on sale of assets, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(7,294<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n5,584<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Stock-based compensation expense<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2,902<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n4,230<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Gain on debt modifications and retirements, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(38,830<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n–<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Changes in deferred taxes<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,570<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(5,107<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Changes in operating assets and liabilities:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Accounts receivable<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n301,242<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n473,157<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Inventories<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n52,929<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(9,962<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Accounts payable<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2,535<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n9,792<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Operating lease right-of-use assets and operating lease liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(31,582<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(9,858<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Other assets<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n45,413<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(1,209<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Other liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(120,558<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(150,832<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Net cash provided by operating activities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n266,413<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n342,712<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| INVESTING ACTIVITIES:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Payments for property, plant and equipment<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(42,722<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(49,089<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Intangible assets acquired<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(7,463<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(2,334<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Proceeds from dispositions of assets and investments<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n18,552<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n10,885<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Proceeds from sale-leaseback transactions<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n17,450<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n17,708<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Net cash used in investing activities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(14,183<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(22,830<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| FINANCING ACTIVITIES:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Proceeds from issuance of long-term debt<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n50,000<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n–<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Net payments to revolver<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(150,000<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(441,000<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Principal payments on long-term debt<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(124,873<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(1,016<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Change in zero balance cash accounts<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n30,473<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n6,802<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Financing fees paid for early debt redemption<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(852<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n–<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Payments for taxes related to net share settlement of equity awards<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(556<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(236<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Deferred financing costs paid<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(2,325<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n–<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Net cash used in financing activities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(198,133<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(435,450<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Increase (decrease) in cash and cash equivalents<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n54,097<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(115,568<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Cash and cash equivalents, beginning of period<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n103,054<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n155,289<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Cash and cash equivalents, end of period<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n157,151<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n39,721<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| RITE AID CORPORATION AND SUBSIDIARIES<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| CONSOLIDATED STATEMENTS OF CASH FLOWS<\/td>\n<\/tr>\n | \n| (Dollars in thousands)<\/td>\n<\/tr>\n | \n| (unaudited)<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n\n \nFifty-three weeks ended<\/p>\n \nMarch 4, 2023<\/p>\n<\/td>\n | | \n\n \nFifty-two weeks ended<\/p>\n \nFebruary 26, 2022<\/p>\n<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| OPERATING ACTIVITIES:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Net loss<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(749,936<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n(538,478<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Adjustments to reconcile to net cash (used in) provided by operating activities:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Depreciation and amortization<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n276,583<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n295,686<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Facility exit and impairment charges<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n211,385<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n180,190<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Goodwill and intangible asset impairment charges<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n371,200<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n229,000<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| LIFO charge<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n53,028<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,314<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Change in allowances for uncollectible accounts receivable<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n15,267<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n22,011<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| (Gain) loss on sale of assets, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(68,586<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n5,505<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Loss on Bartell acquisition<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n–<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n5,346<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Stock-based compensation expense<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n11,537<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n13,050<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| (Gain) loss on debt modifications and retirements, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(80,142<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n3,235<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Changes in deferred taxes<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n7,703<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(6,709<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Changes in operating assets and liabilities:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Accounts receivable<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n151,610<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n54,086<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Inventories<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n5,158<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(97,112<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Accounts payable<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(96,570<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n139,228<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Operating lease right-of-use assets and operating lease liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(86,133<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(29,375<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Other assets<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n36,478<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n33,737<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Other liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(111,021<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n68,558<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Net cash (used in) provided by operating activities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(52,439<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n379,272<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| INVESTING ACTIVITIES:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Payments for property, plant and equipment<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(215,285<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(194,090<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Intangible assets acquired<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(32,400<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(26,623<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Proceeds from insured loss<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n–<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n10,436<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Proceeds from dispositions of assets and investments<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n69,582<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n18,706<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Proceeds from sale-leaseback transactions<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n73,344<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n57,498<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Net cash used in investing activities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(104,759<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(134,073<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| FINANCING ACTIVITIES:<\/td>\n | | \n | \n | \n | <\/tr>\n \n| Proceeds from issuance of long-term debt<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n50,000<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n350,000<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Net proceeds from (payments to) revolver<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n491,000<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(141,000<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Principal payments on long-term debt<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(277,941<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(545,036<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Change in zero balance cash accounts<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n18,289<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(8,285<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Financing fees paid for early debt redemption<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(1,733<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(833<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Payments for taxes related to net share settlement of equity awards<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(2,662<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(2,588<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Deferred financing costs paid<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(2,325<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(18,638<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Net cash provided by (used in) financing activities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n274,628<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(366,380<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Increase (decrease) in cash and cash equivalents<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n117,430<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(121,181<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n<\/tr>\n | \n| Cash and cash equivalents, beginning of period<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n39,721<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n160,902<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| Cash and cash equivalents, end of period<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n157,151<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n39,721<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n | | | | |
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