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Rite Aid acquires Houston-based retail clinic, releases earnings

By , - Last modified: April 10, 2014 at 9:22 AM
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Rite Aid continued a busy week today by announcing the acquisition of the Houston-based RediClinic, one of the nation's leading operators of retail clinics.

RediClinic operates 30 clinics in the greater Houston, Austin and San Antonio areas. Through the acquisition, RediClinic will operate as a wholly owned subsidiary of Rite Aid. Details of the transaction were not disclosed in a news release.

In addition, the East Pennsboro-based company released its fourth-quarter earnings. For the quarter, Rite Aid reported revenues of $6.6 billion, net income of $55.4 million, or 6 cents per diluted share, and adjusted EBITDA of $356.3 million, or 5.4 percent of revenues.

For the full year, the company reported revenues of $25.5 billion, net income of $249.4 million, or 23 cents per diluted share, and adjusted EBITDA of $1.3 billion, or 5.2 percent of revenues.

"Thanks to the strong teamwork of our dedicated Rite Aid associates, we delivered strong fourth-quarter and fiscal 2014 results, including new company records for fourth-quarter and full-year Adjusted EBITDA," said Rite Aid Chairman and CEO John Standley. "These accomplishments reflect the significant progress we're making in executing key initiatives and delivering on our promise to actively work with our customers to keep them well."

He cited the recent acquisition of Health Dialog and the expanded distribution agreement with McKesson Corp., as reasons Rite Aid will succeed with its rebound strategy "to become a growing retail healthcare company."

Revenues for the quarter increased 2.2 percent, primarily as a result of an increase in pharmacy same-store sales.

Standley said the RediClinic acquisition will augment Rite Aid's "health and wellness strategy." The company will continue to expand RediClinic's footprint in Texas before expanding services to "select markets" elsewhere, he said in the release.

"RediClinic is a pioneer and a leader in the retail clinic industry, having provided high-quality, convenient and affordable health care to nearly one and a half million people since opening its first clinic in 2005," Standley said.

RediClinics are staffed by board-certified nurse practitioners and physician assistants who are licensed to treat common conditions and to provide preventive services, in collaboration with local physicians who are affiliated with a health care system in each market, the release said.

Patients can be treated for more than 30 common medical conditions and RediClinic's clinicians are able to write prescriptions for these conditions when appropriate.

Additionally, RediClinics provide a broad range of preventive services, including screenings, medical tests, immunizations, and basic physical exams. The company offers its trademarked Weigh Forward weight/lifestyle management program.

"Through our new relationship with Rite Aid, RediClinic is well positioned for continued growth in Texas and other states," said RediClinic CEO Web Golinkin. "Rite Aid enables us to leverage our many years of experience in retail healthcare to the benefit of patients throughout the U.S."

Rite Aid is one of the nation's largest drugstore chains. The company trades its shares on the New York Stock Exchange under the ticker symbol RAD.

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