form8k.htm
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 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): June 26, 2008 (June 26,
2008)
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RITE
AID CORPORATION
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(Exact
name of registrant as specified in its charter)
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Delaware
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1-5742
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23-1614034
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(State
or Other Jurisdiction of Incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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30
Hunter Lane, Camp Hill, Pennsylvania
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17011
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(Address
of Principal Executive Offices)
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(Zip
Code)
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Registrant's
telephone number, including area code (717)
761-2633
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None
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(Former
Name or Former Address, if Changed Since Last
Report)
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Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
[
] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[
] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[
] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[
] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02.
RESULTS OF OPERATIONS AND
FINANCIAL CONDITION.
Please refer to Item 8.01 of this
current report, incorporated by reference into this Item 2.02.
ITEM
8.01. OTHER EVENTS
On June 26, 2008, we announced that
pharmacy same store sales for the Brooks Eckerd stores we acquired on June 4,
2007 were as follows: negative 4.7% for the third quarter of fiscal 2008;
negative 6.0% for the fourth quarter of fiscal 2008 (which takes into
account the pharmacy systems conversions we conducted during the quarter as part
of the integration of these stores, a weaker cough, cold and flu season and
Zyrtec's switch from a prescription to an over-the-counter formulation); and
negative 5.2% for the first quarter of fiscal 2009 (which takes into account the
completion of the pharmacy systems conversions we conducted as part of the
integration of these stores and the continued impact of Zyrtec's switch from a
prescription to an over-the-counter formulation). Front end
same store sales for the Brooks Eckerd stores were as
follows: negative 13.7% for the third quarter of fiscal 2008 (which
takes into account removal of the non-go-forward inventory, the retrofitting of
the plan-o-grams and the minor remodels conducted during the quarter as part of
the integration of these stores); negative 10.0% for the
fourth quarter of fiscal 2008 (which takes into account a weaker cough, cold and
flu season than expected and the minor remodels that occurred during the quarter
as part of the integration of these stores, the effects of which were partially
offset by the Zyrtec switch); and negative 7.6% for the first quarter fiscal of
2009 (which takes into account the minor remodels that occurred during the
quarter as part of the integration of these stores and the photo and cosmetic
disruptions that occurred during the quarter, the effects of which were
partially offset by the Zyrtec switch). Private brand penetration in
the Brooks Eckerd stores reached 11.5% at the end of May.
Rite Aid achieved a generic dispense
rate of 67.7% for all stores, with the generic dispense rate in the Brooks
Eckerd stores increasing to in excess of a 66% for the quarter and a generic
dispense rate of 68% for the core Rite Aid stores. This rate has increased in
each of the past 28 quarters, and Rite Aid hopes to achieve a rate of
70%.
This report may contain forward-looking
statements, including guidance, which are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
expressed or implied in the forward-looking statements. Factors that could cause
actual results to differ materially from those expressed or implied in such
forward-looking statements include our high level of indebtedness; our ability
to make interest and principal payments on our debt and satisfy the other
covenants contained in our senior secured credit facility and other debt
agreements; our ability to improve the operating performance of our stores in
accordance with our long term strategy; our ability to successfully complete the
integration of Brooks Eckerd and realize the benefits of the Brooks Eckerd
acquisition, including positive same store sales growth for Brooks Eckerd and
cost savings; our ability to manage expenses, including integration expenses;
our ability to hire and retain pharmacists and other store personnel; the
efforts of private and public third-party payors to reduce prescription drug
reimbursements and encourage mail order; competitive pricing pressures,
including aggressive promotional activity from our competitors; continued
consolidation of the drugstore industry, changes in state or federal legislation
or regulations; the outcome of lawsuits and governmental investigations; general
economic conditions and inflation; and interest rate movements and
access to capital. Consequently, all of the forward-looking
statements made in this report are qualified by these and other factors, risks
and uncertainties. Readers are also directed to consider other risks
and uncertainties discussed in documents filed by Rite Aid with the Securities
and Exchange Commission. Forward-looking statements can be identified through
the use of words such as "may", "will", "intend", "plan", "project", "expect",
"anticipate", "could", "should", "would", "believe", "estimate", "contemplate",
and "possible".
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 hereunto
duly authorized.
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RITE
AID CORPORATION
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Dated
: June 26, 2008
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By:
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/s/
Robert B. Sari
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Name:
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Robert
B. Sari
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Title:
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Executive
Vice President,
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General
Counsel and Secretary
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