Rite Aid Corporation (NYSE:RAD) Q2 2019 Earnings Conference Call - Final Transcript

Sep 27, 2018 • 08:30 am ET


Rite Aid Corporation (NYSE:RAD) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning. My name is Christa and I'll be your conference operator today. At this time, I would like to welcome everyone to the Rite Aid Fiscal Year 2019 Second Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. And after the speakers' remarks, we will have a question-and-answer session.

I would now like to turn the call over to your host, Matt Schroeder, Chief Accounting Officer. You may begin.

Matt Schroeder

Thank you, Christa, and good morning, everyone. We welcome you to our second quarter earnings conference call. On the call with me today are John Standley, our Chairman and Chief Executive Officer; Kermit Crawford, our President and Chief Operating Officer; and Darren Karst, our Chief Financial and Chief Administrative Officer. On today's call John and Kermit will provide an update on the business. Darren will provide an update on our second quarter results and then we will take questions.

As we mentioned in our release, we are providing slides related to the material we will be discussing today. These slides are provided on our website www.riteaid.com under the Investor Relations Information tab. We will not be referring to them in our remarks, but hope you'll find them helpful as they summarize some of the key points made on the call.

(Forward-Looking Cautionary Statements)

With these remarks, I'd now like to turn it over to John.

John Standley

Thanks, Matt, and thanks to everyone for joining us on the call today. It is with a heavy heart that we have our conference call today. Our Rite Aid team remains deeply saddened by the senseless tragedy that occurred last week at the Liberty support facility in Aberdeen, Maryland. Our thoughts are with the victims, their families and all of those affected by this horrific incident. All of us at Rite Aid are committed to providing the necessary support to help those who need it as a result of this incident. We ask that everyone keep the victims, their families and our Liberty and Perryman teams in their thoughts and prayers.

We will now provide you with our quarterly earnings report. During the quarter, we've been hard at work, accelerating our standalone strategy to increase the value of our organization in the near-term, while beginning a separate effort to further evolve our strategy for the long-term. In the second quarter, we made critical progress on both of these fronts. Our results show that we generated positive top-line momentum and same-store sales in script count, as we continued to exercise SG&A expense control and deliver a great experience to our customers.

At the same time, we also engaged with many of our largest stockholders to ensure alignment between our company and its investors, as we begin to evaluate how to evolve our long-term strategy. As announced this morning, based on the valuable insight we've received, we are accelerating our efforts to refresh our Board of Directors by nominating three new independent directors, separating the Chairman and CEO roles and appointing