FLUFFING THE NUMBERS WITH TAX CREDITS** NOT GOOD**
NYSE:RAD) releases its fiscal year 2013 projections, in which it sees its adjusted earnings before taxes, interest, depreciations and amortization as between $925 million and $1.025 billion, and capital expenditures as around $300 million. The drugstore chain’s outlook for the year is based upon current same store front end sales and prescription count trends, which are adjusted for an expected decrease in pharmacy sales, as new, lower-cost generics are introduced. Also weighing in, is the lower number of pharmacies in the Express Scripts (NASDAQ:ESRX) pharmacy benefit management network, which will provide a benefit to Rite Aid. In addition, the estimates are influenced by a challenging reimbursement rate environment, and the impact of continued investments the company expects to make in its wellness remodels, customer loyalty program and other initiatives that target sales growth.