Rite Aid 2016 Annual Report Download - page 3

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 credit facilities and other debt agreements;
• the continued impact of private and public third party payors reduction in prescription drug
reimbursement and their efforts to limit access to payor networks, including mail order;
• our ability to achieve the benefits of our efforts to reduce the costs of our generic and other
drugs;
• our ability to continue 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;
• competitive pricing pressures, including aggressive promotional activity from our competitors;
• 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 working capital;
• continued consolidation of the drugstore and the pharmacy benefit management (‘‘PBM’’)
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;
• risks related to compromises of our information or payment systems or unauthorized access to
confidential or personal information of our associates or customers;
• our ability to maintain our current pharmacy services business and obtain new pharmacy services
business, including maintaining renewals of expiring contracts, avoiding contract termination
rights that may permit certain of our clients to terminate their contracts prior to their expiration
and early price renegotiations prior to contract expirations;
• the continued impact of declining gross margins in the PBM industry due to increased market
competition and client demand for lower prices while providing enhanced service offerings,
• our ability to maintain our current Medicare Part D business and obtain new Medicare Part D
business, as a result of the annual Medicare Part D competitive bidding process;
• the expiration or termination of our Medicare or Medicaid managed care contracts by federal or
state governments and related tax matters;
3