Rite Aid Corporation (NYSE:RAD) Q1 2020 Earnings Conference Call - Final Transcript

Jun 26, 2019 • 05:00 pm ET


Rite Aid Corporation (NYSE:RAD) Q1 2020 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Kelly, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Rite Aid First Quarter Fiscal 2020 Earnings Conference Call. (Operator Instructions) To download a copy of today's presentation, click the blue file button on the lower left corner of your screen and select the file.

Thank you. I would now like to turn the call over to Byron Purcell. Please go ahead.

Byron Purcell

Thank you, and good evening, everyone. We welcome you to our first quarter earnings conference call. On the call today with me, are John Standley, Chief Executive Officer; Bryan Everett, Chief Operating Officer; Ben Bulkley, Chief Executive Officer of EnvisionRxOptions; and Matt Schroeder, Chief Financial Officer.

On today's call, John, Bryan and Ben will provide an update on the business. Matt will provide an update on our first quarter results and review guidance for fiscal 2020. 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 I hope you'll find them helpful as they summarize some of the key points made on the call.

Before we start, I'd like to remind you that today's conference call includes certain forward-looking statements. These forward-looking statements are presented in the context of certain risks and uncertainties that can cause actual results to differ. These risks and uncertainties are described in our press release in Item 1A of our most recent annual report on Form 10-K and other documents that we file or furnish with the Securities and Exchange Commission. Also, we will be using certain non-GAAP measures in our release and then the accompanying slides. The definition of these non-GAAP measures, along with the reconciliation to the related GAAP measure are described in our press release and slides.

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

John T. Standley

Thanks, Byron, and thanks everyone, for joining us on today's call. While first quarter results did not meet our expectations due to prescription reimbursement rate pressure in the retail pharmacy segment and margin compression in the pharmacy services segment, we are pleased with improvements in our top line growth and operating efficiency in the retail pharmacy segment and Medicare Part D revenue growth in the pharmacy services segment. We believe that enhancements made to the McKesson supply agreement, generic purchasing improvements, revenue growth and the benefit of actions we have taken to reduce costs should drive improved results in both segments for the remainder of the year. In addition, we recently formed two strategic partnerships that will help us better meet the needs of our customers heading forward. The key element of our strategy is to drive a digital transformation that delivers personalized and seamlessly connected experiences to our customers across all in-store and online touch points.