New Rite Aid (RADCQ) 24 Sep 202021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Rite Aid Corporation Second Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instruction]. Please be advised that today’s conference is being recorded. Instruction]. [Operator you. Thank like speaker now of the over conference Relations I today, to Trent your for Treasury. President Kruse, to and would hand Senior Investor Vice Please go ahead.

of you and conference and earnings On I'm to Aid the listening a a course, really help everyone. you, part second I'm call. good team note, eager our to Thank fiscal XXXX today. to all Jack, We Alright. vision with deliver team, welcome of excited to personal of our quarter Rite and morning work on be the you

the are Matt Peters, On call Donigan, with morning me and Heyward Robson, this Dan Jim Schroeder.

we will website under the As slides we be providing discussing are Investor Relations today. at riteaid.com information are release, in our mentioned tab. These we on material related to the slides our provided

following will be management to meant results your While the to be as directly used slides a call. and not slides, the are these document review the company's to of facilitate speaking reference

Before that, described furnish turn our press of we context SEC. the our GAAP we report includes to and risks with and Also, Item on of the Heyward. in are statements or are the the remind in actual reconciliation today's along start, over can will uncertainties certain are of to The presented cause we recent me in With in in and These to release the release in Heyward? a and that call to file the non-GAAP forward-looking most measures, our that related These slides. statements. certain using described other measures annual results documents accompanying I'd risks measure, forward-looking let press that non-GAAP and like certain to definition be release, in slides. differ. conference call XA uncertainties you our XX-K Form

Thanks, Trent.

our than And policies, for on-board personnel play have of as to enhancements our which company’s and an excited really role created team, governance strategy. will key efforts, Treasury Trent essential aligning of leading also the you continue environment. just social the a RxEvolution during with business busy our our not for as but our done as great our company. crucial with serving and environmental, Treasurer are we senior And forward more in continue only member will Investor I this newly are for ever Relations Treasury by working a company, our overseeing Trent this and We important forward. Byron will role member team, and in time of our in drive Purcell a help to he go both be thank want work IR all closely covering Byron has as to really

to our to new bring our Now strategy attention making and progress RxEvolution results the we're our to for let's turn QX, life.

and our steps company, healthcare clinical a in during and on we're retail indispensable customers we're an As time elevate as significant when most. need our pharmacy, healthcare, on revolutionize journey critical fulfilling life-saving provider. in the pharmacy, communities of frontlines order and services or the our immunity to industry providing mail role our support a care immunity clinical focused medications, specialty and taking our Whether role

retail business, customers and but to partnership conducted associates, Human provide with the time of second Health safe not COVID I'm half our results importantly, focuses -- this beyond. the this unprecedented momentum we painless the a and continuing sustainable more most for week, initiatives strategy, the fiscal continue key a In Pharmacy important we more we're only to -- shopping of and these the a through our challenge you environment RxEvolution this finally, that XXX,XXX value Aid And and pandemic. results company U.S. providers needed operational focused access, during customer, testing worked many of achieve is of in than tests. digital expand to unlocking drive recent Rite position ways strong no at stores for just and as we excellence on will our global spirit pleased reliable, two our PBM, the tirelessly will the and report back in this than which to days, we're support locations our free. more and the to highly communities our the averaging our the represents looking met end passionate convenient through mid-market by in know, healthcare to COVID Retail and Department growth. provide we on important long-term offer to teams pharmacists service, accelerating turnaround thanks at aggressively for to testing the that of transformation At which to all this drive and dominant XXXX essential for XX,XXX quarter with Services, future the test our build In And one experiences. We’re than charge have our becoming drive revitalizing XXX to is role painless more under one serve. of than

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expenses paid controlled revenue, time by program. savings off generated grew modernizing and our also We

our was than business, Although COVID-XX in severe affect to QX. less the really the This is continues normal. impact new

products, everyday to growth and like like With they're liquor home consumption, with and to prescription course of increases, and at our unique categories And cleaning all significantly trends to performed, COVID care. along growth of additional our for in improved last being seasonal continue our our nail stores We compared and consumption care, down offices summer Medicare although as surgeries compared clients like things the needs baby elective revenue more to in and which to memberships. to hair QX, at second their meeting expenses crisis. reopening still and Elixir safe teams doctors’ home acute we was also Part and that recorded addition In growth, and demand customers. supplies, paper items are higher associates in COVID increase Pharmacy serving items, OTC Services year's for D all diligently quarter. the incur an clean drove substantial ensure the segment, worked by we related fueled In continue during

our market We approach optimize utilizing network by margin provides management, a continued competitive to that benefit. pharmacy a

expense Elixir also we're Rite As and and Elixir we seeing integration continued both Aid, between within results our in strong management.

gross gross in rebate negatively was a for by MedTrak savings that change for at company and subsidiary, contract our rebate reduction anticipate in profit EBITDA new related will a our impacted clients. our improved profit our adjusted drive aggregator aggregator While we

to a quarter. of a pharmacists and a XX% PBM, the As to on we Overall, our for the adjusted than as And focus the value of and $X.XX fundamentals missed Thanks execution, to of coming will our Aid. a strong. more business team visible bringing organization, the beat for by exciting is a committed day, of whole our revitalizing income team’s digital life. mid-market to experiences. our by more Every total RxEvolution foundation laying second are our our prior EBITDA grew increased strategy. more sustainable and performance dominant haven't adjusted new is Rite per becoming compared our net This bold the through We're year's new relentless be $XX.X a growth strong yield in revenue we helped signs quarter up. very and retail there strategy growth company share unlocking million

supporting in daily. and products our health total will be wellness New arriving stores

We rebranded by our year. logo the the of middle of be completed facades to are of in updating our of the stores, new process with all next

already have stores. We XXX finished

first campaign, our in airwaves of branding featuring year. new Our protect support the communities which critical health be to and month hit flu helping this commercial will immunity our this shot our earlier the

fall unveil new the medicine to And wait We're fusion be media we of campaign. experience Stores new cannot ad differentiation our alternative and also first this of deliver highlights the full-scale of weeks and a Our for on perfect we campaign our coming traditional hitting to later in remedies. Future to as our open preparing point the we'll all cylinders this customers. launch

of ages of the our parents dialed for As meeting we're execute target between and into care and children's, multi-generational who launch, growth new consumer, women needs XX, our pets. the we XX Gen X and including households, millennial

be number we our serve. the number markets We a continue or pharmacy in on two to to goal markets the in double one presence, down strong which have we retail with

do this partnerships with opportunistic M&A. service, will buys, continued network through file increased excellent share and health plans, regional participation, gaining We by

connectors care place never are significant value The in of Elixir, our repackage eye and modernize toward consumer an healthcare All our we pharmacists last additional of in of elevating the leadership this At and provide as our to before role mile assets the in marketplace. and steps team deliver the grow. Aid clinical key new engagement levels experience. seen businesses and remains enhanced help operational out healthcare. and track. have taking with digital really building to realize advantage these and of other, our And will complement and new on take Rite synergies, our of solutions, Elixir curated Elixir full we're other importantly, brand to services, launch our really continuing products, integrate each each And new more to we're how who

Elixir, on opportunity. believe will take represents and growth long-term our transformation remain it bullish we our biggest While time,

As and an leverage freeing we'll organization, reducing working ratio. our capital, continue improving debt on our focus up our

working excellence, I customers thriving. and As our be just get and of they're not deliver and how help each we to look get ahead, but day healthy, XX,XXX every more our operational proud couldn't to associates, together

our important to of forward be While excited we we vision pushing we're ahead for have work to the us, hard achieve know future.

making. updates with to for QX strategic the turn over Jim additional some to So performance progress our on Jim? it we're like I'd and that,

serve to am with Heyward. once you, that as I teams tirelessly our show day determination proud took of and and and performance executed market our share. again passion each I’m the every our and associates, they perseverance more the who continue Thank communities. struck quarter of customers this by

that to the key as continue strategy, the am progress a the become healthcare to growing, to that our we can making ecosystem. teams initiatives lies us, and swiftly important by Aid, execute that. work and stake throughout energized claim aggressively I role organization. the of the we're broader in levels to deploy our prove implement and expanding highest and thriving revitalize at together work drive Much differentiated RxEvolution growth business, Our we But we ahead know Rite

quarter, In year-over-year, XX-day terms for equivalents. to when same-store the counts increasing adjusted our business, pharmacy prescription comps team delivered of strong by our X.X%

led increased, gained the top each through share in an classes, execution. As disciplined, in year frontend, did pharmacy all last under growth versus age increases years groups yet this market on has our old. customers of relatively share XX our pharmacy therapeutic this With We by share straightforward we the quarter. XX increase of share across drove

fills achieved stay ways Our with to effective their increase maintenance by help finding with course creative in medication large our part in them medications. to customers chronic was connect on

expanding or example, Management Therapy them through MPM Medication interventions engaging For personalized and delivery. home

strong and infections have lower results down same last Our doctors’ at being and just people to continue quarter delay cold consumers postpone from incidents X.X% prescriptions home. of acute cough, despite procedures office as and visits, flu came for staying year, elective

just X.X% back last at had trend, with early quarter are compared to that below itself our rebound, COVID saw last are CDC given within with been another that reflected encouraged we days plan, upward continued QX. guidance represents which finishing baseline pneumonia. ancillary trend year. that during same reported X.X% vaccines trending acute down and We trend the below in to specifically August our QX protect encouraged upward against month-to-month as And positive also immunizations, our I’m a XX%

OutcomesMTM. We Management through Medication notably, large second continue and quarter to advanced among interventions, this place to additional drive Therapy we chains

and As increased on scripts of drives from and MTM better better and medications. economics measures DIR from increased you improved related quality safe performance know, adherence use effective

asked been COVID immunize routine rapid increasingly HHS pharmacists a and healthcare. staying these pace found and a immunizations, to immunization down role X. a our times, play. to pharmacists pharmacists came This test play we've expanded In vital regulations troubling during embraced families recently following at drop example, for role report state addition, evolve scope, policies at an to federal to our in issued expanded that the administration order, that an to continue From have childhood resulting CDC age in from home. allows our as

is helping and this have according the year responsibilities among guidelines we the to expand our can people and continue our we serve. And Our pharmacists customers protect to communities so most we responded opportunities. against these protect flu that in help important

immunize year, with year enough demand off last in height to shipments more strong last increased the first above results the to expect ordered than flu our of early of We and hitting a as customers our we're month. into plan stores vaccine of shots QX. just arrival with last and XX% we above And have trending season flu head flu start

We or drive And balance averaging achieve COVID continue than testing turnaround on times quality feedback recent would and turnaround just to two under I less too expand seen not tests consumer test two that our able to but here, pause positive times COVID reliable been results, pain-free sacrificed days. days, through for like to we've speed reliability. of have

over And to as not XXX had tests Aid simply tests. mentioned, whether at over actually stores X.X point you are have past. in and Rite we one Our million indicate is expanding the Heyward conducted the it whether present, virus

continue healthcare help in the COVID, a on play we distribution rely combat We of available. to pharmacists increasingly and when will expect expect critical the accordingly, to to vaccine system role

the frees elevating As filling whole RxEvolution see, around we pharmacists way But health you to afforded them expanded the pharmacists our beyond between No well it's role acting simply that Rite remedies. goes the are delivery can expanded a has fill-bottles. strategy critical that Within Aid traditional in spectrum are perfect find alternative supporting responsibilities helping healthcare engage already longer the simply important role balance them system playing pharmacists. time. specifically, customers the a with Aid on and in a are solutions, in our Rite note an medicines pharmacists’ broad of to industry

remedies As of and around mixed efforts educate stress, share Rite certified These topics basket pharmacists the to through emerge Aid anxiety, pharmacists part spectrum sleep, position Aid engage leveraging evolution, and discussions nearly empower support X,XXX broader By their with immunity. of health grow healthcare our to in to Aid informed also on a that care ultimate our confident and we're them engagement all key customers pharmacists a last as way, to tools customer this on health, sales Rite trained but of broader will customers already are holistic only continue delivery have to holistic modern in been to mile continue system. whole and the purchases. not and like Rite support supporting connectors our

strong exclude On like when by the quarter, we channel. share the took chain grew excluding tobacco tobacco, share XXX According in retail points and dollars, last in which side, IRI in-store unit points drug market we sales cards, the quarter, to cigarettes had we in another same-store as and and segment, market frontend frontend sales basis grew basis X% drugstore within XXX reports, greeting more items. than by

in recorded baby COVID seasonal growth summer paper we related addition consumption would In care, with for demand and cleaning higher items supplies, along to care. like categories like growth increases, nail as items, also hair you home everyday at and in that imagine OTC liquor products and

keep our performance brand not expected growth XXX own despite branded than in it about year-over-year. dollars, own brand decreased with in sales pace actual increased penetration just XX.X% own positive to basis While Therefore, points stronger sales. actually brands, did

and merchandising, needs curating As approach we're electronics Based that our an like net on reducing assortment of sleep efforts, and optimization snacks, and few inventory business, categories our our whole growth research, new the beverages we or those overhauling and care track we remerchandising consumer supports This expanding efforts providing to target for. healthy consumers growth. grow we’re assortment remain purposefully mix means turns vitamins increase and strategy. Through the that consumer hardware, on like wants, remedies, CBD growth eliminating retail our brand and these holistic drive our support with including assortment she they supplements enhancing and health rationalization we to our products. more and home categories entertainment, while new customer expect skincare which and

purveyor alluded pharmacists essentially of before like actively assortment strategy, curated to in seller select products new pharmacy which of that are And involved thrive. earlier, line never from this us and with to and process the our through our merchandising help a and and As connecting her a in reviews. family remerchandising her connectivity, everything frontend I takes services we're

Rite we’ve our the change teams quarter our we So that this new to launch of bringing Pharmacy full later is evidence discussed exciting brand. real day delivered What's on results yet brand it's strong Aid, before steadily Retail another Customers even noticing new consumers. before launched fall. are our business. We're quietly at these a that even formally

fleet, pylons and painted our blue refreshing actively freshly And stores. the across XXX and our and stores exteriors. facades of are we've We completed new logo, reflecting green the

our website our want. Just but kind digital our our and in smaller we new all modern scale growth showcasing not and shopping on consistent momentum us that by aspects brand we're migrate within to this from later and to past newly to of gives designing consumer we're consumer our cut to our journeys launch and redesigned engage key consumers print And revitalizing online better-for-you and segments. consumer seamless bringing that Sunday, our prepare mobile fall. new of our of target continue this revitalized we we format identity expect. reflecting launched print experience it campaign a to full assortments. drive customers circular down omni-channel as This And with only our the our brand much a needed We've riteaid.com brand app, experience proud deliver growth

in digital sales channels, enhancements growth roadmap defined redesigned a across remain stores channels our consumers. to online from with our additional to quarter store, These elevated, Amazon, eligible new plans in prior And target remains of this I which across key strong totally Digital push continue all our coming and digital Instacart we states with were as weeks. transactions and up will and cadence. website XXX% launched robust addition delivery mentioned, the and on an Scripts. Instacart future app guide we growth past, delivering reaching a half the In alcohol in forward to launch all

expansion the a ScriptDrop pickup we significantly which also for to our portfolio stores. in Pay with at of by delivery prescription strengthen store drive end every both ScriptDrop, ScriptDrop We're the stores and and Following have we'll to launched Go partnership in-store all through, expedited the all out this delivery. prescription and Through fiscal expanding from the available prescriptions convenient have expect on at service year. rolling doorstep be eligible of to phases successful

care quarter and way our in we clinic and getting the care the to our During expanding connecting strategy, virtual believe the all with strategy, locations, not and consistent is physical best telehealth line to or value care. Simply customers owning put closed healthcare system our delivery by we our while itself. add with into teams, ready of to

the And added strengthening launch, now role our customers provider will network We more pharmacists' for pharmacists based teams. excited we capitalize Future. of couldn't our resource full our that first Stores as the our into unveil strong true to, of extensions come as building the by will an by of be like on bloom virtual finally, needs our our ever in QX. our brand partners alluded this And care to partnering Heyward customers, serve unique up care further can will as demand on These recommend providers.

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trusted they underutilized. of Our longer be center advocates. repositioned and in off and be upfront pharmacists the walled pharmacy accessible health and and will no Instead, as will

the signage. will standard to pharmacists, consumers have modern Our a and stores new on-demand access our digital unprecedented feature setting also industry. will capabilities, technology infrastructure telehealth These for engaging

We're in her place a with environment attract helps Stores place of a New thrive. that new whole Future health begin are core. view and In physical in wants specifically Rite these needs, in weeks, she Future the ultimate as Pennsylvania; our to customers rollout the the Etters, Our ultimately Aid our go, that confident of will destination, openings grand net to the the of a Hampshire an designed launch new will brand elements embodiment retain we and with and a the our of calendar meets schedule accelerate early new reflected Littleton, coming year. and our consumer place all Stores her our

of to remain realize destination focused and delivering will our we our core evolving company's communities. execute business, our new Before I over whole build over, merchandise, of role our update connector. our to as Dan just our results swiftly it becoming and relaunching and turn of Stores overhauling a to the driver remind growth. our turn fully on say we are take quarterly know that full like a and moving our Aid an I'd in provider me the that, of future business while our and Elixir, from I'd to Dan? it pharmacist of potential, like now reaching time ultimate the plays building by Pharmacy plan Rite choice for community And pharmacy some confidently our we let it Elixir. brands, and stores on Services you, Future, with And to health a is the And

lines spoke, modernization business. And quick and against the at rebranding, go-to-market our we continues of same we're last our future will A Elixir growth Since Jim. across finalizing good Thanks, our note our to rebranding. progress that time, on strategic strategies make our drive strategies. integration

Elixir December. We complete transition our will in fully to

for completed well as our core realizing as steps On quarters vision the big of Integration shared the working functions modernization. operational be of we first we've cost efficiencies on in critical, a earnest take operational both savings. and Elixir's continues number The realignments Rite we Aid yield few organizational will within as integration are work service next vendor will actively that initiatives consolidation functions. towards front,

mail PBM a pharmacy D to a population book Medicare large Today, is Just as well members, of a Rite retail healthcare have a a as well. strong Part as Aid of specialty Elixir from growing we transforming transforming order as is business. and pharmacy business, company,

in In addition, discount our we services good card for PBM have growth clients.

benefit cost Our than members, Elixir something administration. want seamless PBM want They same they care healthcare savings health health from other and want few gaps outcomes. savings standard enables more with companies. their outcomes. get all closes they administration, They clients, experience phone. better Moreover, connected convenience, and the want consultation on-demand a more a to better they a on access just clicks they and that their even want this

So more this proposition from deliver both with investing are serve. we clinical in we value Rite market a we for national Health Elixir. a experience enhance this deliver those employers stronger are with on we strong the partnering requirements experience, to narrowing our operational health Aid more and and for members. to market vision, for And while will our a we to Addressing a with footprint. And technology significantly solutions are capabilities on be are putting healthcare our differentiator both for looking member significant digital tangible, meaningful closely markets. clients' Dialog a focus independent an executing plans We're new clear seeing PBM and target

excel. we For we as regional targets, regional knowledge through of plans mid-sized effectively With Medicaid already strategic value verticals, more populations. see right already these specifically mid-sized targets predominantly according where to clients. these well Medicare deliver to client the team serve which healthcare markets, by and as required aligned as and/or proposition manufacturing, Supporting that such we strategy local a our win our -- verticals have state have this, specific to expertise management employers, and our and a we governments, the health plans, this and small solid

selling as big we season. All of a into will move play initiatives the these XXXX role

for well order improved expense Revenue and year due XX.X%. million unfavorable our We revenues, profit increase integrate This Medicare was increase was the contract revenue in or gross pharmacy prior membership. EBITDA to strong in Medicare favorable to subsidiary. revenues $XX.X savings or million management control. by rebate million year's our reduction to Part of $XXX maintenance partially in control, Now well compared was as new offset mail D D reduction as year-over-year as decrease continue by due The and quarter result At was Adjusted second company $XX.X from clients. expense will was network Part million pharmacy, of our for due adjusted anticipate due as to of last members a we second million business that Part the growth in up by gross to XX% $XX.X in D We membership increased at an are increased strong principally EBITDA year-over-year performance. Elixir our membership Medicare regarding are quarter our aggregator related benefited X.X% profit X% to The the medications stockpiling revenues revenues a up our Medicare for MedTrak second $XX commercial quarter Rite Aid of Specialty an as and of and Part utilization Elixir. of pandemic. members. grew as D especially aggregator drive our change primarily to profit revenues. X.X% a gross rebate or to

improving returns continue to focus strategy. network to our efforts addition, margin, on our including optimize from positive In significant we realize

that win With employers Matt? for regional mid-sized as turn said, Matt some health is relationships. Our industry to That well to we on capitalizing performing plans. we QX card said, over nicely, focused as performance. I'll business see growth and savings opportunity in financial selling to on are new continue season on comments the business now highly the our XXXX and with with it

morning. and Dan, Thanks, good

and million driven in which in the EBITDA current was in for segment billion, generated from home. was cigarette diluted $XXX.X share cold revenue last $X.X per income expenses. net sales of in than $XXX.X $X.XX by quarter. for second same-store count by acute share Pharmacy quarter compared $X.XX in share or a in and visits the adjusted segment and per by million in revenue sales due of fiscal or was a quarter increased SG&A strong a from prior our quarter. or quarter our to RediClinic prescriptions, adjusted billion. $X year EBITDA $X.XX caused the diluted up Adjusted of incident offset in call, I'll and to adjusted per down up growth adjusted XX.X% a lower compared was $XX.X $XXX segments. partially prescription The the up the in and Pharmacy procedures diluted year's prior share Retail in through $X.X Pharmacy quarter of this million million higher second reduction revenue elective sales doctors’ of maintenance million for diluted in both our tobacco adjusted infections quarter. cough, increased higher resulting $XXX in growth people and our XX office were X.X% to the second to same-store driven reduction We improvement million after COVID million in and lease quarter were X.X% in to business surgical a excluding quarter. compared offset results from quarter. loss improvement $XX.X year's walk prior expense, increase year's X.X% The to sales. same-store by XXXX. increased the million interest EBITDA revised and On wind flu basis income guidance X.X% an quarter to per net income prescriptions revenues an the the Increase postponement by Revenues with our Services same-store or on $X.XX Retail staying Net lower and by and was Pharmacy at of million the loss $XX.X day connection of was impairment charges Retail with increase X.X%. due net Adjusted second Frontend Pharmacy was or for last year termination $X

down count we was was decrease While prescription it significant over acute improvement this quarter. the quarter, first during a XX.X% the experienced

aggressively will We by focus broad well networks further in medication presence. through our initiatives gain have script as interventions new continue to to working where market on prescription and to strong markets growth driving pursuing we immunization buys and file access as adherence

$XX.X increased Retail favorable second million percent the seeing of quarter. by Pharmacy profit weeks over year basis prior a the During we flu quarter XX last gross $XX profit points year's EBITDA than segment revenues. gross of prior year's X to but first second Adjusted demand dollars was for September, immunizations. million, as worse high are

in increase EBITDA reimbursement a decline profit revenue. quarter. $XX.X is pharmacy adjusted profit million was and of due concentrated percentage in in to year's to our rate of gross driven gross and last for revenues by Our quarter Retail Pharmacy points The as is in SG&A XXX was as percent adjusted a EBITDA improvements the expense lower second basis pressure. revenues segment margin

pay incurred basis XXX and year's million pandemic included quarter. charges. $XX in We and of associated $XX.X which in was COVID, SG&A by lower million than SG&A impacted by cleaning EBITDA incremental second incremental adjusted PTO year's points plan. a modernization the adjusted associates, $X.X benefit last to EBITDA Current was increases with Our our driven pharmacy million costs, delivery costs

have would benefited flat launched services have these $XX been transition as year. the Walgreens percent favorable million but EBITDA that income prior have in sales, initiatives recur the services to expense We as of from adjusted X basis SG&A we After completed. did under agreement prior also points quarter for from that that a recorded we this as cost items, of not been adjusting the XXX earlier year year, reduction

in As through travel tracking $XX in announced advertising, XXXX reductions center we quarter, we an and that goal. achieve and rent, payroll, to expect fiscal expenses, toward last are call incremental million to cost savings

billion. was second related to year's growth the million profit EBITDA network just $XX reduction revenues, partially offset was adjusted an reduction EBITDA. for management I gross primarily Services improved last in profit of million EBITDA a D impact of increase increase in at decrease Part quarter to in Our the adjusted that XX% rebate to discussed. $XX.X worse million our increased $XX.X gross The was unfavorable of Adjusted Elixir, MedTrak growth. saw in Pharmacy initiatives by million The Pharmacy subsidiary. and Services cost for The due the segment, $XXX $X pharmacy change aggregator was reduction segment due than revenues Medicare or revenues to membership

turn sheet. to and our balance let's flows Now, cash

timing driven statement from an Our from prior activities million inventory The year shows cash for a quarter. a activities by in and in operating of operating second is year of quarter compared use million $XXX of receivable current seasonal our flow expected use in build. in quarter the to the of quarter cash use differences, $XXX the cash the in other receivable, increase CMS cash

similar year the to last CMS positive reduction our securitize generate expect to operating cash receivable We by driven and expect initiatives. to the flow for year, inventory

ratio of the net cash, was end and Our X.X EBITDA. times our leverage of adjusted billion second was our debt $X.X quarter at balance, approximately

of expect back We the half to leverage improve year. ratio our over the

cash, notes notes we XXXX quarter, million our million XXXX, secured our funded April of with revolver. and the second due $XXX X% billion draw X.XXX% November of $XXX of completed lien on During for which we a exchange $X.X of an due of

result on the flexibility our due runway significantly only strategic the we XXXX, exchange our of profile. strong the maturity our our one we us and X.XXX% a combined and which year, liquidity gives notes $XX left now $X.XX April of completed earlier with outstanding As in initiatives. to debt have improves execute These this exchanges, end billion, million quarter

Now let's to fiscal reissued XXXX guidance. our turn

to strong Pharmacy severe a toward be the continues, weighted guidance fourth remainder initiatives from growth season the season cost cold and the we segment for assumptions Retail demand continued PTO our a announced OTC prior on reduction have quarter. than are guidance flu gained of expectations announced pandemic Key our for into previously from the incremental our cold cough, by benefit cost offset we pressure impact year immunizations, recently insights rate modernization, and Pharmacy our the over savings operations impact less for segment plan the its last While flu and from in on from Med benefits announced include expect revenues previously toward and to in increased from assumptions D pharmacy expect quarter. cough, quarter, through initiatives. and in that continued our third revenues a soft and reduction calendar immunizations Key our to management network improvement year, weighted Services while the flu-related be the flu Note headwind benefit we prescriptions. of reimbursement

total be increases and in $XX to billion X%. be range and a same-store $XX.X revenues We X% expect sales of to billion, between to

we We be $XXX expect and to $XXX adjusted million. $XXX to net million between million, EBITDA loss between and $XXX and expect million be

share. net to a be share and between a income per adjusted loss $X.XX expect of share income We $X.XX a of

XXXX $XXX questions. ready lines Jack, ratio million finally, to we And expect year-end fiscal we the generate be remarks. and completes flow. our be This $XXX prepared are between expenditures open $XXX for X.X million. leverage to we Our million estimated approximately times. capital are phone expect to to in cash And our free

[Operator Sachs, Instructions] with your Jones is Bob line Goldman open.

just maybe I as relates guess related the that start despite drivers I anything gross you $XX hoping initiative the related bit to doubled in for could seeing with here profit to really maybe just permanent more year was retail year? just little specific a and to maybe that the the the quarter-to-quarter. talk was business, be not this you more EBITDA might sequentially versus highlighted this nature Matt, you what it one-time PTO million, growth to to

Matt?

segment, to year. PTO Yes, of is done. And a COVID this more then in the benefit thing quarter trend incremental Thanks, coming is kind about. year. that flu and got and a some scripts ifs one-time probably of more kind and of initiative lot the and of think from then be some the maybe remainder I cold later frontend top-line, say which the is more the that's rebate to the that's third both permanent we've think, you're while one-time, seeing of benefit, in normal expenses There year of normalize we year, come what The of in to impacts expect the SG&A. talked Services recognizing would kind other certainly, that I the back the a a the one-time line, Bob. in immunizations I business, start but the uncertainty Pharmacy cough, on this certainly, acute continue Sure. adjustment little I fourth And standpoint to of through will still in in

follow-up down I seems the half, half. XX% that's EBITDA look growth guidance midpoint, just No, in for helpful. being related. I and like versus about you pointing the a at it's it front If saw to guess the it's the at back the

had side and of one rate reimbursement the which pressure, it PBM as reimbursement mentioned your also large competitors to mentioned the rates. You pharmacy relates

So as back you walk you're just what relates in EBITDA expecting what front the half the maybe saw some in versus moving pieces you to it can within of the through half?

Yes.

moving are part got continued the in are then back won't couple moving be around we PTO be from I quarter by The expectation -- still pressure. yet put year. it's to but we've in And pieces immunizations, of as year. cough, benefit think to we pieces the rate determined a some that offset be think going are last the the season think that guidance this I reimbursement certainly benefit benefit soft of the compared an to cold and the guardrails pretty from flu a pronounced do

Lisa JPMorgan, is line Gill with open. your

a to on wanted Elixir. for of I minutes just really couple focus

talked So to I And this opportunity. few things. being biggest just the a you about long-term understand want

know was out contract probably COVID, an of would in do the season talk the can selling from Part just D? you XXXX if But to you because the talked around of about can And selling talk half next thoughts for first? I on that going new we but into us couple you maybe that's the give year. continuing think season D, rebate how aggregation, but see of first about then XXXX? for about played about XXXX move that, enrollment any about secondly, and scripts a But you the things think months. open know And improvement difficult Part the be how I season, more So headwind back benefit the as into we a you the then

Yes. Hi, lot. a Lisa, That's it's Heyward.

Okay.

likely X%. controlled just because the X we is by particularly and X And grabs not focused remember, market, me billion would -- write I because way they're phrase to it's controlled this the basically for scrambling to by there's to going the big $XXX Let -- XX% on not all I'm down. market to big be of is, the those opportunity try way or not interested I was Elixir, the that Well, segments. in currently up represent

the and before, the it market company. about talked X% can So gain we of size we've share double

because a So and that situation, a se. are with do -- rebates with big we're There focused open COVID. favorable in going forward, which very ‘XX big high people of a aren't much and in higher X because it's will The good we actually new moving, rebate benefit pretty markets not have headwind retention has The is don't both to slow, as otherwise our major financially to cycle going delay now per we're market aggregator clients. change. a all due experience bids us go it The news after want people is anticipate sales is after. one-time where the a to and resulted our suggested the -- aren't you to and resulted is also going it but

then Elixir, platform, that's focused one organization going organization of all the that's we're solutions The practical entirely you're then new so Laker, we're change integrating our -- modernizing as reason launching our digital e-pharm But sales our technology way building of our practically Rite why the product we're that business. integrating really Envision, cycle portfolio, [X/X] and and clinical in go-to-market terms reality example, is drive when terms Aid on pretty sales assets terms And 'XX. updating and this much -- the that digital efficiencies for within with backroom of 'XX its through in brand through our much over and strategy new operations, is, -- works, to our as and specialty, in is also team. the redoing going experience, and out MedTrak, --

So [X/X] into we're [X/X/XX]. really and selling

Part D, stated really rightsize of to going business. this before, In terms we we're as

as number our of from for bid balancing we increase that to you have, have of in low-income and mentioned. accordingly. have particularly of We the benefits choosers this subsidy next enterprise we the want scripts, the number EBITDA reduce that We which members year area business,

this have this for year, to the next now your business. revenue, reduction out answer an I improvement right that not expect information we play in enough question? do know Does to but profits going say exactly So in a but how is would

I question. my first understood your to though, comment make sure, that aggregator. just rebate Yes, answers I the want around

not million a saying that that it $XX you're like one-time it lower will aggregation. it's a basically, was that is repeat, So and not just

have And and than you be of have so aggregation it's where new It's contract. was therefore, that better what just rebate have pulling and through contract in new to to a before? now you a is nature, one-time going it it kind

to this make Well, Matt, I'll let wants you she on because sure. comment

number got but Yes. contract The right. transition actually Lisa, is charge forward. you anything related and model that that $XX the was to one-time million, that's a in would charge the I not going

line open. Deutsche your is Hill George with Bank,

to business is in how what now gap and guess, other And trying challenges business increase pre-COVID benefit the might sounds which help to $XX the much things guide? between can synergies the the the million I old be not and the of your house ask And in COVID we now, $XXX if is guess million, cost so the I'm guide guess, in I million that of would just Matt, in me guess, current for prior one million from guide, I'm that bump bridge much the the original to $XXX this savings changes guide the about to up were I that for and or were the was kind to were some quarter. million. And year the these related identified $XXX of guide is, you thinking I issues? is of plan core clearing is it And clarification PTO -- new challenges EBITDA company's go in prior back reimbursement that guide to and $XXX our questions. the the related original like how

George. Thanks, Yes.

couple the the hit So certainly, to guide. guide new versus a the the you -- of benefits old

was got. first guide sales guide in that quarter, are: that we talked even some of old COVID. a the think million benefit negative headwinds net of about And new in the the to we we related that $XX I COVID front-end impact in versus first have the the did expenses quarter the the one,

expectations quarter, guide thought, in a I probably year, significant one-time what that the pressure, some old versus then originally the some the the the but would soft. Elixir that We in of reimbursement things the say really and pretty then we in original some was have being that of we are: in we both And that quarter this was guide. about flu better both. rate as as new had we something that's So immunizations little that the had included thought back COVID charge had benefit also rebate fourth But cough, differences cold bit the than around half far expectations guide expenses in not talked A, QX. about around for in

you're And quick maybe with leave I part the Okay. [X/X/XX]? the Heyward, employment That's it trends there? enrollment you that. seeing rates down be sorry, of I'm guys I'll PBM commercial would my helpful. And then you in other X and very just business, question what in I'm and was, talk can -- down can in guess, to sorry I about talk for guess retail the step follow-ups

impact answer you I'll membership that just and it hand Matt. mean? what the commercial commercial, on economy, back The I'll is the -- over from to

Yes.

the minimal. really like our from X It's yes, mean, million of -- lives. XX,XXX all I it's over of

had -- a very it's us. been modest So on impact it's

X down consistent always into the 'XX. last expect fiscal too months pretty impact [X/X]. of that year, the to about Yes. got as what this on And with for happens. rate question, of We've as guidance step far certainly your George, built a talk That's our early we

Guggenheim, is with your Santangelo line open. Glen

you're at I more X%, scripts you scripts sort the think territory. were just acute of that what of can about if maybe on more. X.X%. remarks, the -- don't trying this the level, up the would what want a scripts Matt, sustainability And you single-digit in you normalize high to comment up is that down you to same-store we're you to in your almost to scripts bit us said talk acute give move starting imply but And all think, Could it, on to a really in September prepared line. reported seeing particularly as maintenance I your trend front? kind I in ask quarter, start of maybe the if know you're your even more willing I little assess about And to we're look some that normal

and the would include expect just give to immunizations, because due probably start, don't to but probably would because quarter tell seeing also challenged, immunization cold Glen, be have that's skewed guidance with we're just numbers too to think maybe flu going fourth of and the in there's we're probably be to I lot -- quarter in that land you script would specific than where we're scripts I previous of I'll early lot we We strong think, would they compared think I Well, I think, a in some numbers of flu. a little to to seeing driven what -- It's gate. back shots the by our again, expect there's of cough, be seasons. been for mean immunizations. what script pretty bit who some say demand, I the there's of still I little here, guidance. pretty last year -- I really getting in year. half somewhat is going strong a be pretty inscription earlier people -- September I third scripts out to in are flu a to kind

let -- can I me add Yes, little add little color? just a a

ahead. Heyward, sure. Yes, go

states of elective is in not public. sort the hair that week, on, are other we pent-up -- And a salons going have oversubscribed that so states that mean, back of there's demand business the just Virginia. surgery like think but you operate, we doctor's well-known California, I set like states what this And and salons. and then -- because weird a literally dental some office, I in only like which are they still are of dynamics have procedure, and the in actually from that is, this lockdown. opened

so shut people differences opinion that we to to -- more see get and these you down more more are healthcare and they too ever in going scripts of it's And haven't that doctors' my that unlikely it's to probably offices -- and believe for again just that for open then important continue the because gotten. to the acute reason. So

with their on common some side, safe, to gone of -- back-to-school, contagious. people we're So aren't degree, kind everyone's -- the haven't that sheltering but sick kids you flip getting because stuff the what that's in place, see

hadn't about think So sense. it When quite what we that's expected. you logically, it makes

expecting this especially So -- is be that to does big not on OTC, cough, cold on have an cold And cough, impact we're acute. season. a

of a situation. like sword sort So it's two-edged

and consistent past of month-to-month people aren't shelter did mention, which they as place were muscle up just consistent what Heyward we mentioned, each X our Glen, because within and -- our throat periods. acutes, meds, why just and seeing docs in relaxants ear, cough, cold, Heyward QX. in mentioned, on that's maintenance But antivirals, with relative to meds eye, see because to the months of you the meds people as nose maintenance just antibiotics, going we're aren’t injured pressure flu, getting

very forward. which and had high So but single-digits, not continue look think what I quite as as high very to steady you steady going is mentioned,

we and are see toward a mentioned that starting to Yes. And share shift earlier, Jim as scripts.

I of helpful. It's I sort just question. Bob's follow-up very to on appreciate And commentary. all that think earlier

back EBITDA even for trying you north and that and you in includes on what guidance the experience expecting would suggest this did look in have think comparability $XXX of operating this rebate when drop basis guidance we sort you're terms EBITDA million what we're with in or quarter season. would sort cough $XX And -- and partially an that pretty $XXX with sequential half, charge do considering a explained of maybe million, the XXX weaker I I off. there's issues -- PTO. I quarter, of in it’s back the in a at some did the the half aggregator an flu significant which adjusted cold, all million reconcile is over implied to of know by And basis. it guess the And EBITDA

And so you're I'm to anything half. what make sure within implying back want in just the else of not missing I terms

Yes. Yes, course, Matt, to big it. get a you. Totally of I'll turn thing. is PTO, back Totally it understand.

to $XX I back half But change got number from when million you one-time, the just this while were into that's in the do And there quarter. trying count remind that math doing. you the a we got of smaller was Yes, would benefit probably just benefit take you're will PTO that you largely the the year. I to in think

America, of Bank open. your is with Reuter line William

pretty been consistent I You've wasn't that that expecting. guess, to buys, acquisitions being somewhat And are expecting I about in additional necessarily with regard M&A but are is commentary this capital? something a change? size about these meaningful you active of opportunistic need would was file commentary you potential

think well, we saying the afford. could structure. just large I any that M&A opportunities now. do on Rite as activities you And the are that Aid on are side have number pharmacy X being And M&A. we're not or due the side. see. dominant the would real very or retail to likely being to also we're But looking we our do PBM. that by But in the We're goal goal of number at doing we markets our And start do and either emerging after Elixir going X busy we capital we are aggressively there we're that right not the can have mid-market bite-sized of

me we want additional an any Matt, put we miss that it could opportunity don't so way. afford, that let And to comments?

nailed it, you think I Heyward. No,

the to expect And selling then was is Services me. revenues were Pharmacy discussing follow-up the at a and just the to side, end understanding you you as you covered guys why takeaway that up. I'm able continue for that to the lives. on It going cycle, like little down revenues seems be this would bit, not profits get I will think be more XXXX Okay. a down. think Maybe but be When you're your

that? So misunderstand I did

talking the Elixir about You're business?

Correct.

and and Yes. the portfolio. -- in with membership the see Medicare profitability on in And customers Part a is ensuring well that side have commercial profitability the No, in good going we to we're customer we as that good the of side. the D we we that's I result have likely the the do revenue make are -- on to we're focus we both drop, our to short-term on business going fit. that think are to, short-term, business. maximizing as on want fit existing Because that sure of And more the the

As on that's commercial going have into continue growth plan I you'll call, what We're we see making health I'll on on the think business. to and focus the, XXXX, move regional when sure to we D. members Part right to start

focus, customer fit. So and to this see do be right-sized to our profitability get key expect portfolio

is your Evercore, with Anderson Elizabeth open. line

remains our little answering -- PBM Aid? done? with of talk any more for be about see Where a can you kind many Rite questions. integration what of potential And Thanks there? you so bit I the to cost do implications wonder

economics, is right-sized the Well, I'll do and dollars savings within let Medtrak, pharm, modernized. mentioned the assets our Elixir, of revenue within on in -- in the money going order, Rite integrating integrated and results outcomes, term, and Elixir care the being to and The integrations that And the sizable Rite At cost a the a but we Aid the that and health Dialog both going go-to-market e-pharm importantly time, between solving the between the have creation comment between gaps value functions client more lower Elixir. we're using and clients same our Aid cost. Elixir driving our Elixir solutions, -- integration. Health with asset, particular And and strategy I profit that we're upside that longer after the significant importantly, our I'll going Matt more back-office the revenue to major but pharmacies let the which on Rite retail we're in mail in minute, X which say our platform, first in want upside. using after, I it there's plan -- and support specialty for Care all improved better growth do Envision which as earlier, and compliance, Matt is Laker,

terms So savings. a synergy Matt, But economics talk you amount there's of for the little bit growth. of can about a in here significant

Sure.

future between talked were initiatives cost Heyward on And the year both Elizabeth, and on million Elixir for quantify this run between about, can probably 'XX. call say I basis. some savings the Elixir and and that to to as work, -- us think integration fiscal is savings do about that cost result and talking $XX work we benefit point I get Elixir and guidance quarter Rite kind of more will of subsidiaries when in furthering that together that Rite the savings we back-office to we taking there's going rate So integration last about $XX Aid. will of still in that a talked would -- between Aid million put that part

Okay. any the at just clarify, Is moment? guidance That's helpful. to potential correctly? COVID that the contribution from vaccine I in guys your am have you that And distribution don't -- understanding

That they be vaccine mathematically today actually actually every any have happen, do XXX believe distributed. that will we April. and actually commitments have And Absolutely the this don't gotten believe the said pharmacists American vaccine actually if no we have statement. and over by that vaccine, for believe that out can Fauci not. we means not know do is That's we We bold absolutely and but commitments will -- a million pretty them vaccines the vaccine. came without a it's to we administering to going impossible that

-- we're just assuming financials. right we're So our now, we're do hearts, in our but not to assuming, still in going it,

And not a number specific.

Jefferies, line open. is your Karru Martinson with

how What to the just to And at to leverage get with that reconcile the on the guidance needs year-end midpoint I'm transpire do at get is we level? about and level? between today to to year-end that EBITDA. going be $XXX trying now X.X% when X.X% million the to

Yes.

it's Karru, So Matt.

said X.X% the target, on is year-end First yes. leverage think the target X.X%, of year-end all, you I

year, this couple two securitizing The right receivable. things. a now can building that's accounts So receivable build we're we the you see a But pretty big significant think which CMS confident do. of I is -- in thing very

seasonal or of of continue year stores. of our numbers that reverse flow sheet I then our year on through build we're and that medications cash reducing back as the the second And receivable. year of generic to you the SKU to If frontend should in And in in what's normal a look as thing sell some masked and the our is, other going fact first just of stockpiling inventory see think half well. that bit of that getting is the the you're the making at progress because rationalization we balance and in part the half over statement quite flow the

expect to So those to what year-end. gets range at capital with number a around two we spend guidance from expenditure pieces, along and the you standpoint EBITDA the math that

it. we get the just And any contract contract better over the rebate what when that then of replace basically, in of $XX as Is that Okay. quickly there aggregator, the this on quarter? how we look million build changes in change does spills does kind third into terms the and kind at quarter? contract And to that hit that

Matt?

million in the just a into is quarter, So does $XX charge, the quarter. not the over spill one-time second third

we're I in we guidance. get think into benefits -- modeled to some there already our new that's modeled contract from going that have are the

it's that. get as appropriate don't specific the any contract, far comments think I on into As to

line Bryan Hunt open. your Wells is Fargo, with

wondering current the these lot -- in on all factors touched I and you of was a quarter.

on to quarter as the to With it can in of total growth the what Instacart, or what touch out-of-store the were expansion growth year maybe sales contributes e-com second half? well delivery what new of to with the as relative formats, you expectation your in ago the current

Jim or Matt?

from from are tell you that all Sure. very disclose days. key include -- because we -- well can we that the What base for sales, perspective started had, metrics Yes. because small that we those a And we home a is It's in growth track digital all including that, the tracking early numbers. on delivery. I very don't I year, we've it's of last growth significant

is channels. XX%. and growth across across all this all we to already all continue. So home isn't prescriptions to I But This we're one We're delivery growth were for that growing growing example, that channels, overweighting quarter, and think mentioned the others. I key understand past our Instacart expect just channel we there. the up

also for look and admire. newly I though hopefully -- to and the our our Yes. and all app just We just add developed branded -- I might in might add Store new that website. launched we App

our and feel I see look to So you digitally. encourage go new

physically. go can't you If

customer XX% an a I When of versus as platform? data, will, of to new loyalty just the the growth, customers much growth customers you're e-com question. Heyward. follow-up at is you app all have look transferring And that an saying, and how abundance or I existing onto XX% the

Jim?

We heavily break which don't that tell relative more more it's base. quite We bit our a to really consistent. business, in-store weighted you, can toward is relatively weighted Yes. members, that our and gold though, is our new What loyal silver by we out. find little

were As understand, all throughout all COVID, certainly of might taking days COVID looking everywhere related you was comers products. early everyone because find comers to specific

emerge relative many in-store. from but we -- the we on a more many basis, new find as retail would than side more see loyal, we trending toward still net that, more As

seen if and in we've uptick And side, Jim, on that we're never pharmacy the Yes. for I'm but a wrong, coming significant in seeing me actually, people flu shots correct before.

as presents opportunity well. the real for us side on a so frontend And that

And digitally a lot of that is driven.

earnings to relative virtual is was bit my model you a the revenue care there And for RediClinic, at to RediClinics, your and the profitable and moving And it understand? that's easier shift That's to from which was me. for little a exiting I that think you RediClinic little way can telehealth great. and bit all? you And then look all when second about any discuss topic is,

turn going very be we're So we're out. picture Jim, early let quite very very I very, very, us in me roll days and just to terms I say over But ready able not to for it's of should a to but to then should that or within this start start how of next the robust to discuss it care. by present our I'll early say virtual we days. two, be and should saying, well-formed quarter that,

the that. though, In Jim, So on answer the question? you short more RediClinic want come term, to to

-- as other think can Having you anything the we guy, have we I I retail best built interest Sure. past. no in a actually is, than and being healthcare the pharmacists I'm Yes. business in clinic The possibly be. know, reality

in and mean that lot supporting a our enabler things. a those that really We're partners and new access. role is with And critical are, like to key pharmacy. And a the same such those We care metrics providers. about, plans health opportunity very quality, those a economically a at play health ecosystem for things cost core, providers plans to and

and protect piece less you of we visit, the saw of extract piece will like is, bill, a create help RediClinic nuance, or visit, the a upside So value but bill, more much right, that partners. it's binary that you're -- more to capture in downside for much valuable we those we help the healthcare

own but to to people we did believe people care. specialty primary entities which with said, -- again, So through that care their with squarely not not as come. RediClinic Heyward to going care for are bind more is, in forward, But teams what who primary stand to

can you the question? Matt, economic answer

COVID, downturn impacts saw were once not the we Yes. I of a pretty say the significant would from traffic down -- in profitable. RediClinics that

one one with Casella question. have we time line we for open. have Carla -- your is JPMorgan, final And

of a you give as items. couple amount of the the have XQ? I receivable quick Did housekeeping CMS of

sizable part it's our but build. Carla, a not, receivable of did We

higher And it and until QX XQ Okay. in you it? grow steadily be monetize would than

Yes, it year. year, calendar the grows throughout the

-- of give how you and closing many and missed opening And store it, how did you any the but stores Great. the then much Okay. the close may data expect I have and through year? open of to balance you

We did store to our remain I expect would stable. base not, Carla, but pretty

the number, the talked you even then about where shots? XX% helps mentioned us you well. a magnitude and shots sounds it you give And the can Okay. more. -- like That flu it Any benefit from front-end just -- the ordering big on and top of -- as order is

from think benefit second not I the guidance we any that's if we've our immunizations included for out Or the what half, we’re benefit got breaking you getting in mean, didn't in Carla. -- our numbers. think we what specific Well, from of we're

retail where and was the term? from coming longer when we see your where pre-COVID? And business Okay. of today then it And look how at do going versus business pharmacy is that much you

The in because frontend. been in the got I Yes. has just quarter the XX% low pharmacy, split little in would ramp-up first a XX% skewed of high that the say the something typical you pharmacy frontend we're sales steady high look quarter. overall, we mix in XX% retail sales had in But that first when the our sales, pretty frontend revenues. that XX% low at hanging versus

to over remarks. for turn back now it I'll closing Heyward And

everyone, Thanks, questions. for Okay. your

call, like that continuing it's you the say, on for end turnaround, sustainable our to long-term our obviously, foundation building Before we multiyear mentioned sounds but Many I'd growth. we're the strategy of execution. just had a of good, in sort all work

obvious think we're hope but of it's doing I job good face it's also -- a obvious the executing pandemic. that I global turnaround, in only a of a not pretty

our quarterly results we're building market through retailer so our a in the period, to pharmacist sure as I'm of now achieve making We're take one brand, that ever connector. And has a a the and also plays right and in building Future new our Rite any and as as the healthcare through change Stores provider relaunching share. pandemic. role good middle much merchandise, going of whole in evolving overhauling year a our Aid gone especially by stores, the to not continue community we're progress strong excited

on and heads are of digital We're including progress that. capabilities suite with between of with progress meantime, everyone the take also Elixir a all in include talking I about the or the proud to want forward benefit brand, within yet pretty of we're integration important year. launch you a brands, about new I and service we're new the Elixir this looking entirely out down remind step really the new So your that want an brand of new customers. new quarter Aid, to be both launching protecting with optimistic more the leadership team, Rite the we Elixir, share going assets health and developing the the to and very to two. really merchandise we're seen retail our you to we've to-date to-date of be for next just or experiences new that not In results QX, encourage to going and rehaul our In do you. of in

Cleveland the get With COVID, can't the COVID heard and how I tell to very said, And very Clinic emergence a bad. I is flu convergence actually there's CEO speak he a you flu, day. the the of is shot. of other it important of when outcome while rare,

this own a whether of or not, I help whether in to and Thank the but we'll call. report and to you're your December protect or pharmacy not health, concludes launch really Rite immunized us, market you brand on health when you all visit and a your also doctor's you talk Aid a of encourage we office, So only QX get year our out families today's joining your communities. again results. for This our in

you thank participation. your for We

You may disconnect. now