advisen industry report sample feasib

8/3/2019 Advisen Industry Report Sample Feasib

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Industry Analysis

Drug Retail Industry Q1 2011

Industry Overview

The drugstores industry, part of the larger food and staples retailing industry, is a high-volume, low-margin business, with

cutthroat competition. This is a mature industry and non-cyclical in nature. The staples offered at these stores make the

industry non-cyclical. Drugstores can be independent, chains, part of supermarkets, and included in mass merchandiser

stores. Independent mom-and-pop drugstores are on the decline. Typically, chains are drugstore owners with four or more

stores. Chains average over 8,500 square feet per store, generate more than $5 million in revenue, and 60 percent ofrevenue is from pharmacy sales. Independent drugstores average 3,000 square feet per store and $2 million in revenue,

with 90 percent of revenue derived from pharmacy sales.

The drugstores industry is much more concentrated than the grocery stores industry. In 2008, 37,804 traditional

drugstores existed, which are stores not part of larger stores such as supermarket superstores and mass merchant

supercenters, and not mail order operations. Of the traditional stores, 20,884 were part of chains, with the top-three (CVS,

Walgreens, and Rite Aid) dominating this landscape. The number of all drugstore outlets, including mass merchants and

supermarkets with pharmacies, in 2008 was 53,658. But despite its concentrated nature relative to grocery stores, this

segment is not very concentrated compared to most industries, and is highly competitive. The total number of outlets does

not include one of the fastest growing segments of mail order pharmacy sales, which consisted of almost 22 percent of

prescription drug revenue in 2008.

Revenue. In 2008, revenue for traditional drugstores grew 3.1 percent to $203.8 billion, with chains growing 2.9 percent

to $104.1 billion in revenue. Of the $253.6 billion (3.5 billion scripts) in prescription drug sales in 2008, up 1.8 percent from

2007, traditional drugstore chains accounted for 41.1 percent of revenue (46.6 percent of scripts dispensed), traditional

independent drugstores accounted for 17.2 percent (21.8 percent), supermarkets 10.2 percent (13.6 percent), mass

merchants 9.8 percent (11.3 percent), and mail order 21.7 percent (6.7 percent). It is interesting to note that the mail order

numbers reflect that each script represents larger amounts of prescription drugs per order.

Cost Structure. Many of the same costs that apply to grocery stores also apply to drugstores, which is a detail-oriented,

labor-intensive business. Close to half of operating expenses are labor expenses, including wages, benefits, and recruiting

and training in a high-turnover industry. Other significant costs include rent, renovations, store equipment, stocking and

loading equipment, inventory management equipment, and energy costs. One notable difference from grocery stores is

that their nonunion labor force gives them a competitive advantage in labor cost and flexibility. However, the advantages

of nonunion employees might be all but negated by the high cost of pharmacists. The rapid growth in prescriptions written

has made pharmacists scarce, which is accelerating wage growth and recruitment costs.

Drug Retail Industry Report

October 25, 201


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Industry Trends

The drugstores industry is going through dramatic changes, placing even greater competitive pressures on this already

cutthroat industry. Not the least of these challenges is the onslaught of mass merchants supercenters into the drugstore

realm. The largest drugstore chains are increasingly entering each others territory, and see more competition from notonly mass merchants, but also supermarkets and mail-order options. Drugstores are fighting back with larger store sizes,

consolidation, superior service, and private label brands. Making operations more efficient has become essential for

players in this industry, which has spurred use of new technology. Many long-term societal trends such as the aging

population and the new Medicare prescription drug plan might benefit drugstores.

Trends, opportunities, and threats in this industrys environment follow:

Supercenters Attack Mass merchant supercenters are proliferating, and revenue from drugstore items are

growing with them. Mass merchants such as Wal-Mart have cost advantages over traditional drugstore formats. Wal-Mart

uses its grocery and drug offerings to woo customer traffic. This allows supercenters to sell groceries on much thinner

profit margins. Mass merchants have other cost advantages over traditional drugstores, such as economies of scale and

inexpensive locations. Most importantly, Wal-Marts size gives it buying power over vendors as never seen before in retail,

allowing it to negotiate merchandise costs, helping to keep prices low for its customers.

Drugstore Competition Heightens After a decade of consolidation, culminating in three giants in the

drugstore segment (i.e., CVS, Walgreen, and Rite Aid), the big-three chains are now trolling on each others turf and the

turf of other large chains. They are often clustered together in the same neighborhood. Competition is also coming from

supermarkets and mass merchant supercenters. Mass merchant supercenters are the low-cost operators, so their

pharmacies attract cash-paying customers without insurance. They will benefit during times when employers are pulling

back on health plans, forcing consumers to directly purchase more prescriptions. Mail-order operations are also booming

for prescriptions. Pharmacy benefit managers (PBMs) use mail-order pharmacies, and often use online ordering

techniques, to fill prescriptions for those with regular prescription use.

Drugstores Respond Drugstores are fighting back by offering an expanded selection of food and general

merchandise, requiring larger store sizes. This increases the economies of scale of each store and creates higher margin

opportunities. Also, companies are becoming larger through acquisitions, and despite being more concentrated than many

food and staples retailing industry segments, consolidation opportunities abound even for the largest chains. Larger firms

allow for economies of scale and buying power that the mass merchants, and increasingly larger supermarkets, enjoy.

Although drugstore chains have been reorganizing, becoming larger and stripping out costs to become more efficient,

mass merchant supercenters have a cost advantage that cannot be completely matched by the drugstore model. Like

supermarkets, drugstores are offering private-label brands, whose OTC drugs benefit from their credibility. They further

take advantage of their credibility with newly expanding in-store clinics, serving those without a regular physician.

Long-Term Trends Affecting Drugstores As Baby Boomers continue the inevitable march toward their

senior years, drug use is expected to grow at increasing rates. The new Medicare prescription-drug coverage law passed

in November 2003 was phased in and took full effect in 2006. Healthcare reform was passed in March 2010, which will

expand Medicare prescription-drug coverage, as well as result in more people with healthcare insurance coverage. These

new laws mean that a large group of previously uninsured people now and will soon have coverage for prescriptions. This

converts a large part of the cash-paying, high-margin customer base into third-party-paying, low-margin customers.

Although this could be bad news for drugstores, it could result in an opportunity to regain customers lost to massmerchants. It will certainly encourage more prescription drug purchases from those delaying the purchase of unaffordable

drug regimens. In the much longer-term, however, this development could potentially hurt all pharmacy outlets. As drug

prices rise, the government might start exerting price pressures on participants across-the-board, from pharmaceutical

companies to retailers.

Use of generic drugs is growing and reshaping the drugstores industry. They offer retailers higher margins over brand

drugs, and customer and third-party payers receive substantial discounts. The pharmacist shortage is making pharmacies


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increasingly more expensive to operate. Many drugstores are responding to this problem by cutting pharmacy hours,

intensifying recruitment efforts, and increasing the number of technicians assisting pharmacists.

Efficiency is Paramount The drugstores industry has always been a high-volume, low-margin business.

But the recent rise in competition from mass merchants and each other has made margins thinner than ever before. For

the sake of survival, drugstore players need to remain lean and efficient. Most well managed companies in this industry

are implementing efficient customer response (ECR) programs, which are efforts to streamline distribution, forge stronger

partnerships with suppliers, and lower prices. Many retailers, particularly Wal-Mart, are employing radio frequency

identification (RFID) tags to reduce costs. The pharmacist shortage has prompted drugstores to invest in automatic

dispensing equipment, which are robotics for fulfilling prescriptions. Computer information systems and workflow software

are being used to help handle the increased number of prescriptions and to serve customers better.

Mergers and Acquisitions. Increased competition has caused further consolidation of drugstores. In July

2004, CVS acquired 1,260 Eckerd stores from JC Penney for $2.15 billion. Then in June 2006, CVS acquired 700 Osco

and Sav-On drugstores from the Albertsons implosion for $2.9 billion. Rite Aid beefed up its position among the big -three

by agreeing in August 2006 to acquire 1,860 Brooks and Eckerd (the stores not acquired by CVS in 2004) stores from the

Jean Coutu Group for $2.55 billion in cash and stock plus $850 million of assumed debt, for a total of $3.4 billion. Perhaps

the most direct response to outside competition for traditional drugstores is CVS (now CVS Caremark) acquiring PBM-

giant Caremark Rx (now Caremark Pharmacy Services). In mid-2007, CVS purchased Caremark Rx for $26.5 billion,

which could usher in a new era for drugstores.

Drugstores are benefiting from their drug-savvy credibility by offering in-store clinics. These clinics serve the 30% of the

U.S. population that doesnt have a regular physician. Each clinic is staffed with a nurse practitioner, and handles minor

medical conditions. In September 2006, CVS acquired MinuteClinic, the largest retail-based health clinic in the US. In May

2007, Walgreen acquired TakeCare Health Systems. Both plan on expanding their in-store clinics, but Wal-Mart also

plans to expand the number of its in-store clinics.

SIC Codes in this Sub-Industry:Sub-Industry: Drug Retail (30101010)

Owners and operators of primarily drug retail stores and pharmacies.SIC Codes:

5910 Drug Stores And Proprietary Stores

5912 Drug Stores And Proprietary Stores


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MSCAd Industry Large Losses

Advisen's Master Significant Case & Action database (MSCAd) compiles details and statistics on significant large losses, includingmanagement liability cases such as securities class actions, auditing and other management malpractice, state and federal

government regulatory fines, employment liability cases and errors and omissions litigation. This also includes EEOC settledlitigation, ERISA/Fiduciary Duty, Malpractice, Anti-Trust, Fraud, Trade Practices, and Contract Cases.

MSCAd is the most comprehensive, accurate source of this data available to the industry. Our information is compiled by adedicated research team using numerous sources such as Stanford Securities, Federal agencies such as the Department ofJustice, the EEOC, and the Securities & Exchange Commission, research tools such as LEXIS/NEXIS, major law firms and claimsadministrators, State insurance commissioners and attorneys general, and other sources. The consolidated data is subject toongoing review and rigorous audit procedures to ensure both accuracy and timeliness.

Cases Filtered For:

Industry Filters

Dates: 2010,2009,2008,2007,2006

Industries: 5910 Drug Stores And Proprietary Stores5912 Drug Stores And Proprietary Stores

Case Count: 112

MSCAd Large Losses 5 Year Trend


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MSCAd Large Losses Case Category Breakdown

.


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MSCAd Large Losses - Line of Business


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MSCAd Large Losses Recent 10 casesCase

IDCompany

NameCompany

ID Category/TypeAccident

DateFilingDate Status

TotalAmount($)

651531

DuaneReade Inc.

1012507 General Litigation/Undetermined

01/01/2008

01/20/2011 Pending

650149

CVSCaremarkCorporation

1000616Employment/Discrimination &Harassment: Racial

12/21/2010 Pending

650157


1000616 Employment/Wage and Hour

12/13/2010 Pending

650754

CVSCaremark

Corporation

1000616Intellectual Property/

TrademarkInfringement

09/01/2010

12/09/2010 Pending

650685


1000616Employment/WrongfulTermination

12/08/2010

12/08/2010 Pending

647656


1000616Business & TradePractices/Breach ofContract

12/01/2010

12/03/2010 Pending

650160


1000616Employment/

Wage and Hour11/23/2010 Pending

650183

CVS

CaremarkCorporation

1000616

Employment/


650191


1000616Employment/


650088


1000616Products & Services/

Product Usage

09/22/2010

11/08/2010Dismissed


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MSCAd Large Losses Top 10 by Settlement Amount ($)Case

IDCompany

NameCompany

ID Category/TypeAccident

DateFilingDate Status

TotalAmount($)

643660


1000616Penalties/Regulatory,Compliance, Taxation

09/01/2007 10/12/2010 Settled $77,600,000

606446WalgreenCompany

1010736 Products & Services/Third Party Liability

08/19/2007 Award $25,800,000

608890WalgreenCo.


01/02/2003 03/07/2007 Settled $24,500,000

615703

CVSCaremark

Corporation

1000616

Securities/Breach of

Fiduciary Duties:Class Action 12/21/2006 Settled $20,000,000

419122


1000616Employment/Wageand Hour

03/17/2002 03/17/2006 Settled $19,750,000

623459Albertson'sLLC


01/02/1995 03/28/2008 Settled $8,900,000

634607CaremarkRx, Inc.

1064564Securities/DerivativeShareholder Action

05/26/2006 Settled $7,500,000

609220Walgreen

Co.1010736 Products & Services/

Third Party Liability10/18/2007 Award $6,000,000

637221WalgreenCo

1010736Business & TradePractices/SalesPractices

03/23/2010 Settled $5,970,000

645722C&KExpress,LLC

7061290Management &Strategy/ERISA violations

10/29/2010 Settled $3,000,000


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Insurance Program Pricing

ADVx tracks changes in average premiums paid upon the renewal of commercial lines insurance policies. Theindex is the composite of four lines of business: domestic property, general liability, workers compensation anddirectors & officers liability, weighted by their relative premium volume as reported in Best's Aggregates andAverages. Premiums are adjusted to 2000 dollar value. Policy renewal data are collected and compiled by Advisenfrom retail and wholesale insurance brokers and risk managers.

CompositePercent Change

Individual Lines of Business Percent Change


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CompetitorsTop 6 U.S. Public Companies Sorted by Market CapTicker Company Name Market Cap

(in Millions)

Sales(in

Millions)

EmployeesSales PerEmployee

NetIncome

Price EarningsRatio

CVSCVS CaremarkCorporation 44,883.59 98,729.00 295,000 334,674.57 3,696.00 13.07

WAG Walgreen Co 39,027.38 67,420.00 244,000 276,311.47 2,091.00 18.72

RAD Rite Aid Corp. 1,112.80 25,669.12 97,500 263,272.99 -506.68 -1.92

LBMHLiberator MedicalHoldings Inc 56.16 25.82

APHYAssured PharmacyInc 0.18 13.92 39 357,012.48

MYHAMy Healthy AccessInc 0.01 0.69 55 12,527.27 -5.97 -0.01

Top 7 U.S. Private Companies Sorted by SalesCompany Name Sales

(in Millions)Employees Sales Per Employee

Walgreen Drug Stores 50,000.00 179,000 279,329.60

Usn Corp. 49,124.00 355,000 138,377.46

Rite Aide Pharmacy 16,840.00 38,448 437,994.17

Medical Center Pharmacy 8,103.50 7,522 1,077,306.56

Wal Mart Pharmacy # 2121 4,875.07 21,274 229,156.42

Drug World Pharmacies 4,000.00 6,566 609,198.90

National Senior Care, Inc. 3,106.70 35,000 88,762.85


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Stock and Financial Performance Trends

Stock Chart of Top 4 Companies by Market Cap

CVS WAG RAD MYHA S&P Industry

Drug Retail Income StatementCVS CaremarkCorporation Walgreen Co Rite Aid Corp.

My HealthyAccess Inc

AverageIndustry

Most Recent Quarter Date 09/30/2010 11/30/2010 11/30/2010 9/30/2007 9/30/2010

Sales $23,874.00M $17,344.00M $6,202.35M $0.14M $251.54M

Cost of Goods Sold $18,480.00M $12,126.00M $4,436.22M $0.06M $187.66M

Selling, General andAdministrative Expense $3,541.00M $3,997.00M $1,594.39M $1.1M $46.88M

Operating Income BeforeDepreciation $1,853.00M $1,221.00M $171.74M $(1.02)M $17.85M

Depreciation andAmortization $370M $273M $124.98M $0.04M $3.92M

Operating Income AfterDepreciation $1,483.00M $948M $46.76M $(1.06)M $13.94M


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CVS CaremarkCorporation Walgreen Co Rite Aid Corp.

My HealthyAccess Inc

AverageIndustry

Nonoperating Income(Expense) $1M $3M $6.3M $0M $0.02M

Special items $0M $(7)M $0M $(0.03)M $(0.12)M

Pretax Income $1,347.00M $921M $(80.68)M $(1.15)M $12.87M

Income Taxes - Total $528M $341M $(1.61)M $0M $4.88M

Minority Interest $(1)M $0M $0M $(0.01)M

Income BeforeExtraordinary Items $820M $580M $(79.07)M $(1.15)M $7.99M

Dividends - Preferred $0M $0M $2.38M $0M $0M

Income Before

Extraordinary Items

Available for Common $820M $580M $(81.45)M $(1.15)M $7.99M

Common Stock Equivalents- Dollar Savings $0M $0M $0M $0M $0M

Income BeforeExtraordinary Items -Adjusted for Common StockEquivalents $820M $580M $(81.45)M $(1.15)M $7.99M

Net Income (Loss) $809M $580M $(79.07)M $(1.15)M $7.92M


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Drug Retail Balance SheetCVS Caremark

CorporationWalgreen Co Rite Aid Corp.

My Healthy

Access Inc

Average

Industry

Most Recent Quarter Date09/30/2010 11/30/2010 11/30/2010 9/30/2007

09/30/2010

Assets

Cash and Short TermInvestments $983M $2,062.00M $122.04M $0M $17.74M

AccountsReceivable/Debtors-Total $5,111.00M $2,472.00M $974.47M $0.02M $46.84M

Inventories - Total $10,585.00M $7,909.00M $3,330.80M $0.02M $111.27M

Current Assets - Other -Total $660M $220M $100.04M $0M $5.41M

Current Assets - Total $17,339.00M $12,663.00M $4,527.36M $0.05M $181.26M

Property, Plant andEquipment - Total (Net) $8,356.00M $11,197.00M $2,138.54M $0.42M $121.04M

Intangible Assets - Total $0M N/A

Assets - Other - Total $36,018.00M $3,184.00M $1,150.07M $0.02M $242.75M

Assets - Total $61,713.00M $27,044.00M $7,815.97M $0.02M $545.05M

Liabilities and Net Worth

Debt in Current Liabilities -Total $2,488.00M $13M $34.25M $2.75M $15.52M

Current Liabilities - Other $5,024.00M $2,780.00M $1,107.24M $0.52M $48.21M

Current Liabilities - Total $11,674.00M $8,149.00M $2,433.83M $4.56M $118.36M

Long-Term Debt - Total $8,653.00M $2,389.00M $6,214.85M $0M $68.94M

Long-Term Debt Due in OneYear N/A N/A N/A N/A N/A

Account Payable/Creditors -

Trade $4,162.00M $4,955.00M $1,292.35M $1.29M $54.18M

Deferred Taxes - BalanceSheet $3,653.00M $360M $0M $0M $24.6M

Liabilities - Other $1,061.00M $1,783.00M $1,175.50M $0M $16.78M

Income Taxes Payable $0M $401M $0M $0.45M


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CVS CaremarkCorporation

Walgreen Co Rite Aid Corp.My HealthyAccess Inc

AverageIndustry

Minority Interest $35M $0M $0M $0M $0.22M

Preferred/Preference Stock(Capital) - Total $0M $0M $159.26M $0M $0M

Common/Ordinary Equity -Total $36,637.00M $14,363.00M $(2,167.48)M $(3.97)M $316.15M

Common/Ordinary Stock(Capital) $16M $80M $890.32M $0.06M $0.59M

Treasury Stock - Total (AllCapital) $9,085.00M $3,594.00M $0M $0M $75.49M

Capital Surplus/SharePremium Reserve $27,443.00M $708M $4,280.46M $7.33M $174.23M

Retained Earnings $18,263.00M $17,169.00M $(7,338.26)M $(11.36)M $216.81M

Shareholders Equity-Total $36,637.00M $14,363.00M $(2,008.22)M $(3.97)M $316.15M

Drug Retail Cash Flow

CVS CaremarkCorporation

Walgreen CoRite Aid

Corp.My HealthyAccess Inc

Average Industry

Most Recent Annual

Date09/30/2010 08/31/2010 2/28/2010 12/31/2006 12/31/2009

Operating Activities (Indirect)

Depreciation andAmortization $1,389.00M $1,030.00M $534.24M $0.02M $14.17M

Operating Activities -New Cash Flow $4,035.00M $3,744.00M $(325.06)M $(1.81)M $53.56M

Investing Activities

Investing Activities NetCash Flow $(1,069.00)M $(1,274.00)M $(120.49)M $(0.33)M $(21.31)M

Capital Expenditures $2,548.00M $1,014.00M $183.86M $0.26M $24.61M

Financing Activities

Cash Dividends (CashFlow) $439M $541M $0M $0M $5.41M

Financing Activities - NetCash Flow $(3,232.00)M $(2,677.00)M $397.11M $2.11M $(23.95)M


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Financial Ratios ComparisonsValuation Ratios

CVS

CaremarkCorporation

Walgreen

Co Rite Aid Corp.

My Healthy

Access Inc

Average

Industry

Price to Earnings (TTM) 13.07 18.72 -1.92 -0.01 15.64

Price to Sales (TTM) 0.46 0.57 0.04 0.02 0.52

Profitability Ratios(%)

CVSCaremark

Corporation

WalgreenCo

Rite Aid Corp.My HealthyAccess Inc

AverageIndustry

Operating Margin (TTM) 6.21 5.47 0.75 -772.26 5.54

Operating Margin (TTM) 3Year Avg. 6.53 5.06 0.53 -2,519.19

EBITDA Margin (TTM) 7.76 7.04 2.77 -745.26 7.48

EBITDA Margin (TTM) 3 YearAvg. 7.95 6.63 2.64 -1,853.69 7.39

Pretax Margin (TTM) 0 0 0 -6,105.81 5.53

Pretax Margin (TTM) 3 YearAvg. 0 0 0

-1,102,948.16 5.53

Effective Tax Rate (Annual) 39.2 37.02 2 -772.26 39.14

Effective Tax Rate (Annual) 3Year Avg. 38.71 37.25 -34.73 -2,519.19 35.93

Management Effectiveness Ratios

CVSCaremark

Corporation

WalgreenCo


AverageIndustry

Return on Assets 5.61 8.14 -6.8 -1,550.33 6.4

Return on Assets (3 Year Avg.) 5.84 8.56 -15.45 -1,403.42

Return on Equity 9.59 15.06 29.41 321.99 11.07

Return on Equity (3 Year Avg.) 0 0 0 0 11.09


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Coverage & Leverage Ratio

CVSCaremark

Corporation

WalgreenCo


Average Industry

Times Interest earned (TTM) 10.82 41.22 0.35 -18.56 15.57

EBITDA/Interest(TTM) 13.53 53.09 1.28 19.49

EBITDA Capex/Interest(TTM) 3.46 41.22 0.5 14.45

Debt to Capital (MRQ) 0.23 0.14 1.47 -2.26 0.21

Debt to Equity (MRQ) 0.3 0.17 -2.88 -0.69 0.26

Debt (avg. 12 mos.) to EBITDA(TTM) 1.49 0.51 10 -0.25 1.12

Free CF (TTM) to Total Debt(avg. 12 mos.) 18.75 91.49 3.2 -196.62 0.34

Liquidity & Activity Ratios

CVSCaremark

Corporation

WalgreenCo


Average Industry

Current Ratio (MRQ) 1.49 1.55 1.86 0.01 1.53

Quick Ratio (MRQ) 0.52 0.56 0.45 0.01 0.54

AR Turnover (MRQ) 18.04 27.09 24.53 29.68 21.11

Inventory Turnover 7.36 6.24 5.23 28.14 7.14

AP Turnover 18.62 9.59 13.7 1.01 11.85


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Recent Industry News of Top 5 Competitors

Walgreen Company To Acquire Online Retailer drugstore.com, inc.

2011-03-24Walgreens Company and drugstore.com, inc. announced a definitive merger agreement pursuant to which Walgreens willacquire drugstore.com in a transaction with a total enterprise value of approximately $409 million. Under the terms of themerger agreement, drugstore.com stockholders will receive $3.80 in cash for each share of stock, which represents anequity value of approximately $429 million. The price per share is a premium of approximately 102% overdrugstore.comaCOs 30-day average closing stock price, and a premium of approximately 113% over the closing price ofdrugstore.comaCOs common stock on March 23, 2011, the last trading day prior to announcement. As a result of themerger, Walgreens will acquire the drugstore.com website in addition to other websites operated by the company.

CVS Caremark Corporation Announces Quarterly Dividend

2011-03-09CVS Caremark Corporation announced that its Board of Directors has approved a quarterly dividend of $0.125 per share onthe Common Stock of the Corporation, payable May 3, 2011 to holders of record on April 22, 2011.

Catalyst Health Solutions, Inc. To Acquire Walgreens Co.'s Pharmacy Benefit Management Subsidiary,

2011-03-09Catalyst Health Solutions, Inc. announced that it has entered into a definitive agreement with Walgreen Co. to acquireWalgreens' pharmacy benefit management (PBM) subsidiary, Walgreens Health Initiatives, Inc. (WHI), for $525 million incash. Catalyst will enter into an agreement with Walgreens to provide PBM services for WalgreensaCO 244,000 activeemployees in addition to retirees and dependents, as well as an agreement to administer the Walgreens PrescriptionSavings Club.

Liberator Medical Holdings, Inc. Comments On Quarterly 2011 Revenue Guidance

2011-02-23Liberator Medical Holdings, Inc. announced that it expects revenues to continue to grow over the next three quarters offiscal 2011 due to its advertising and marketing programs.

CVS Caremark Corporation Issues FY 2011 EPS Guidance Below Analysts' Estimates

2011-02-03CVS Caremark Corporation announced that for fiscal 2011, it expects Adjusted diluted EPS from continuing operationsexpected to be in the range of $2.72-$2.82 and GAAP diluted EPS from continuing operations expected to be in the range of$2.52-$2.62. According to Reuters Estimates, analysts are expecting the Company to report adjusted EPS of $2.89 andGAAP diluted EPS of $2.74 for fiscal 2011.

CVS Caremark Corporation Announces Management Change

2011-01-24CVS Caremark Corporation announced the next stage of its transition plan outlined during its Annual Shareholders meeting

last year. After the successful transition of day-to-day responsibilities for the Company's retail operations earlier this month,the Company has announced that Larry Merlo, President and Chief Operating Officer of CVS Caremark, will assume therole of Chief Executive Officer (CEO) effective March 1, 2011. Thomas M. Ryan will remain Non-Executive Chairman untilhis retirement at the Company's Annual Meeting of Shareholders in May of 2011.


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Walgreen Company Declares Regular Quarterly Dividend

2011-01-13Walgreen Company announced that it has declared a regular quarterly dividend of $0.175 per share, a 27.3% increase overthe year-ago dividend. The dividend is payable March 12, 2011, to shareholders of record February 18, 2011.

Rite Aid Corporation Lowers High End Of Prior FY 2011 Revenue Guidance To A Range In Line WithAnalysts' Estimates; Lowers FY 2011 Earnings Guidance; Lowers FY 2011 Same Store Sales Guidance

2010-12-16Rite Aid Corporation announced that based on its third quarter 2010 results and its lower expectation for same store sales inthe fourth quarter of 2010, the Company lowered its fiscal 2011 guidance for sales and Adjusted EBITDA and increasedfiscal 2011 guidance for net loss. Sales are now expected to be between $25.0 billion and $25.2 billion with same storesales expected to range from a decrease of 1.5% to a decrease of 0.9%. Adjusted EBITDA is expected to be between $815million and $855 million. Net loss is expected to be between $655 million or $0.74 per diluted share and $525 million or$0.60 per diluted share. According to Reuters Estimates, analysts on were expecting the Company to report revenue of$25.2 billion, EBITDA of $815 million, net profit of $(489) million and EPS of $(0.56) for fiscal 2011.

Liberator Medical Holdings, Inc. To Restate Financial Results For Non-Cash Adjustments

2010-12-10Liberator Medical Holdings, Inc. announced that it would restate the Company's previously issued unaudited financialstatements for the interim periods ended December 31, 2009, March 31, 2010, and June 30, 2010, to comply with certainaccounting guidance that became effective for the Company on October 1, 2009. The changes are to non-cash items andwill not affect the Company's reporting income, operating income, operating expenses, total assets, or cash position for thethree quarters to be restated. The restatement resulted from the Company's reevaluation of the accounting treatment ofcertain convertible notes issued by the Company to a single investor in May and October 2008. The notes were convertedinto the Company's common stock in May and October 2010, respectively. The notes contained embedded anti-dilutionprovisions that could have led to adjustments in the conversion price of the notes if the Company had issued additionalshares of common stock or like securities at a price per share less than both the conversion price then in effect and $0.75,which the Company did not do at any time after the notes were issued.

Assured Pharmacy, Inc. Receives Gross Proceeds Of $300,000 From Sale Of Convertible Debentures AndWarrants

2010-12-08

Assured Pharmacy Inc announced that it has sold in a private placement to an accredited investor a 12.5% seniorconvertible debenture for an aggregate principal amount of $300,000 (before deducting expenses and fees related to theprivate placement). The debentures are convertible into shares of the Company's common stock at an initial conversionprice of $0.008 per share, subject to adjustment. As part of the private placement, the investor received a warrant topurchase 45,000,000 shares of the Company's common stock. The warrant is exercisable for a period of three years fromthe date of issuance at an initial exercise price of $0.0096, subject to adjustment. The investor may exercise the warrant ona cashless basis if the shares of common stock underlying the Warrant are not then registered pursuant to an effectiveregistration statement. The funds received from the investor will be directed to the continued development of the Company'sbusiness plan and general working capital purposes.

Rite Aid Corporation Raises FY 2011 Net Profit Guidance; Narrows FY 2011 EBITDA Guidance; Lowers FY2011 Revenue Guidance; Lowers FY 2011 Same Store Sales Guidance

2010-09-23Rite Aid Corporation lowered its fiscal 2011 outlook and expects sales to be between $25.0-$25.4 billion, with same store

sales expected to range from a decrease of 1.5% to flat and Adjusted EBITDA (which is reconciled to net loss on theattached table) is expected to be between $875-$950 million. Net loss to be between $400-$590 million or a loss per dilutedshare (EPS) of $0.46 to $0.67. According to Reuters Estimates, analysts on were expecting the Company to report revenueof $25.3 billion, EBITDA of $843 million net profit of $(426) million and EPS of $(0.48) for fiscal 2011.


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Liberator Medical Holdings, Inc. Comments On Long Term Guidance

2010-08-16Liberator Medical Holdings, Inc. announced that it believes that it is well positioned to continue to grow its sales and improve

profitability over the long term.

Rite Aid Corporation Announces Offering Of Senior Secured Notes2010-08-09Rite Aid Corporation announced its intention to offer $650 million aggregate principal amount of senior secured notes due2020. The notes will be unsecured, unsubordinated obligations of Rite Aid Corporation and will be guaranteed bysubstantially all of Rite Aid's subsidiaries. The guarantees will be secured on a senior lien basis. The proceeds of theoffering will be used, together with available cash, to repay and retire Rite Aid's $648.0 million Tranche 4 Term Loan due2015 under its senior secured credit facility, and to fund related fees and expenses.

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