They have continued to turn a profit with there stores each quarter even if it is a small margin compared to previous years. The main bane of the company is there acquisition of Brooks Eckerd.
The pr on the 16th was a nice attempted to explain the recent negatives.
Also, they have available credit lines should they need them per there recent filings.
Still need to see what the R/S is going to be...10/1.. 15/1
CUMBERLAND, Feb 16, 2009 (Cumberland Times News - McClatchy-Tribune Information Services via COMTEX) -- Contrary to articles published in U.S. News & World Report, which was picked up by YahooFinance.com, Rite Aid Pharmacy said it is still going strong and doesn't plan on closing its doors anytime soon.
"Rite Aid has no plans to file for bankruptcy," said Cheryl Slavinsky, director of public relations for Rite Aid. "We believe that the original U.S. News & World Report article took a very conservative view of our business and we do not agree with it."
Slavinsky said sales in January were good, considering the state of the economy, and Rite Aid has the money to support its business plans.
"The Sales and Cost Reduction Initiative will continue to improve our operational performance. It also is focused on growing our profitable sales in all of the Rite Aid stores," Slavinsky said. "Another initiative we have is the capital initiative. This concentrates on relocations and remodels of our existing stores instead of building new ones."
The new Cumberland Rite Aid being built on Industrial Boulevard is an example of relocation of an existing store in a separate Industrial Boulevard location.
The planned store is 11,749 square feet and will be located at the former Virginia Avenue Exxon Service station and adjoining properties. Slavinsky said the real estate department is still on schedule to open the Rite Aid late this year.
In the Feb. 10 edition of the Times-News, a public notice stated Bohler Engineering, one of Rite Aid's engineers, requested a permit for two free-standing signs with a greater sign area than currently allowed on the property.
Eric McWlliams, project manager at Bohler's Towson office, directed all questions regarding the request to the city of Cumberland.
Attempts were made to contact a zoning officer but there was no reply.
According to the city's Zoning Rules and Regulations, free-standing signs are limited to one per establishment, unless it has fronts on two or more streets. No portion of the sign will be less than 10 feet or more than 40 feet above the ground. It also states no sign can exceed one square foot for each two feet of lineal lot frontage, or 50 square feet, whichever is smaller.
The Board of Zoning Appeals will meet at 4 p.m. Feb. 25 at City Hall to discuss the request.
Rite Aid has already begun taking unnecessary costs out of the business, such as reducing supply-chain costs, indirect spending and working capital initiatives, Slavinsky said. These initiatives will help improve their liquidity; currently they have $495 million available on their revolving credit facilities, she said.
"Our operational performance has improved in our third quarter, which was released in our Dec. 18 report," she said. "We have already cut $50 million in capital expenditures in fiscal year 2009 and expect to reduce it further in fiscal year 2010."
One of those reductions is made through their Sales and Cost Reduction Initiative. She adds that cost-cutting does not impair the stores or the continued improvement they've seen in customer satisfaction.
Contact Tess Hill at thill@times-news.com.
Market Data 
Markets 
AI
