Rite Aid 2014 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2014 Rite Aid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 122

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This report, as well as our other public filings or public statements, include forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-
looking statements are often identified by terms and phrases such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘intend,’’
‘‘estimate,’’ ‘‘expect,’’ ‘‘continue,’’ ‘‘should,’’ ‘‘could,’’ ‘‘may,’’ ‘‘plan,’’ ‘‘project,’’ ‘‘predict,’’ ‘‘will’’ and
similar expressions and include references to assumptions and relate to our future prospects,
developments and business strategies.
Factors that could cause actual results to differ materially from those expressed or implied in such
forward-looking statements include, but are not limited to:
• our high level of indebtedness;
• our ability to make interest and principal payments on our debt and satisfy the other covenants
contained in our senior secured credit facility, second priority secured term loan facilities and
other debt agreements;
• general economic conditions (including the impact of continued high unemployment and
changing consumer behavior), inflation and interest rate movements;
• our ability to improve the operating performance of our stores in accordance with our long term
strategy;
• our ability to maintain or grow prescription count and realize front-end sales growth;
• our ability to hire and retain qualified personnel;
• the continued impact of private and public third party payors reduction in prescription drug
reimbursement and efforts to encourage mail order and limit access to payor networks;
• competitive pricing pressures, including aggressive promotional activity from our competitors;
• our inability to offset cost increases for generic drugs;
• decisions to close additional stores and distribution centers or undertake additional refinancing
activities, which could result in further charges to our operating statement;
• our ability to manage expenses and our investment in working capital;
• continued consolidation of the drugstore and the pharmacy benefit management industries;
• changes in state or federal legislation or regulations, and the continued impact from the ongoing
implementation of the Patient Protection and Affordable Care Act as well as other healthcare
reform;
• the outcome of lawsuits and governmental investigations; and
• other risks and uncertainties described from time to time in our filings with the Securities and
Exchange Commission (the ‘‘SEC’’).
We undertake no obligation to update or revise the forward-looking statements included in this
report, whether as a result of new information, future events or otherwise, after the date of this report.
Our actual results, performance or achievements could differ materially from the results expressed in,
or implied by, these forward-looking statements. Factors that could cause or contribute to such
differences are discussed in the sections entitled ‘‘Risk Factors’’ and ‘‘Management’s Discussion and
Analysis of Financial Condition and Results of Operations—Overview and Factors Affecting Our
Future Prospects’’ included in this annual report on Form 10-K.
2