EX-99.1 2 ex99-1.htm PRESS RELEASE ex99-1.htm
Press Release
For Further Information Contact:


INVESTORS:
MEDIA:
Kevin Twomey
Karen Rugen
717-731-6540
717-730-7766
or investor@riteaid.com
  
 
FOR IMMEDIATE RELEASE

RITE AID ANNOUNCES SECOND QUARTER RESULTS

·
Reports Second Quarter Loss of $.10 Per Diluted Share Compared to a Loss of $.02 Per Diluted Share in Prior Year
   
·
Reports Second Quarter Adjusted EBITDA of $261.5 Million Compared to Adjusted EBITDA of $154.7 Million in Prior Year
   
·
Updates Fiscal 2008 Guidance; Increases Synergies Expected from Brooks Eckerd Acquisition
 
CAMP HILL, PA, September 27, 2007 - Rite Aid Corporation (NYSE: RAD) today announced financial results for its second quarter ended September 1, 2007.  Other than same-store comparisons, results for the second quarter reflect the acquisition of the Brooks Eckerd stores and distribution centers acquired June 4, 2007.

Revenues for the 13-week second quarter were $6.60 billion versus revenues of $4.29 billion in the prior year second quarter.  Revenues increased 53.9 percent.

Same store sales increased 1.1 percent during the second quarter as compared to the year-ago like period, consisting of a 1.4 percent pharmacy same store sales increase and a 0.6 percent increase in front-end same store sales.  The number of prescriptions filled in same stores increased 0.4 percent. (The acquired Brooks Eckerd stores are excluded from the same store sales and prescription count calculations.)  Prescription sales accounted for 67.4 percent of total sales, and third party prescription sales represented 95.9 percent of pharmacy sales.

Net loss for the quarter was $69.6 million or $.10 per diluted share compared to last year’s second quarter net loss of $0.3 million or $.02 per diluted share. The increases in adjusted EBITDA of $106.8 million and income tax benefit of $36.1 million were exceeded by the increase in expenses resulting from the Brooks Eckerd acquisition, which included an increase in depreciation and amortization of $65.2 million, additional interest expense of $55.1 million, integration expense of $52.1 million, a one-time financing commitment charge of $12.9 million and an increase in stock-based compensation expense of $6.7 million.
 
- MORE -

 
Rite Aid FY'08 Second Quarter Release - page 2


Adjusted EBITDA (which is reconciled to net loss on the attached table) was $261.5 million or 4.0 percent of revenues for the second quarter compared to $154.7 million or 3.6 percent of revenues for last year’s second quarter.  The $106.8 million increase in adjusted EBITDA was due to the increase in revenues, which came primarily from acquired Brooks Eckerd stores, along with an improvement in gross margin rate. Excluding occupancy expenses related to the company’s new and relocated store program, expenses as a percent of revenues were lower.

“We had a strong second quarter. We grew our business, improved the gross margin rate and controlled expenses.  Our integration of Brooks Eckerd is off to an excellent start, and we’re seeing more cost-saving synergies from the acquisition than we initially expected,” said Mary Sammons, Rite Aid chairman, president and CEO.   “At the same time we’re converting the acquired stores to Rite Aid, we’re also continuing our organic store growth and remain on target to open 125 new and relocated stores this year. We’re on track to deliver the full potential of a bigger and better Rite Aid.”

In the second quarter, the company acquired 1,854 Brooks Eckerd stores, opened 11 stores, relocated 8 stores, acquired one other store and closed or sold 56 stores, which include the 23 divestitures required by the Federal Trade Commission (FTC).  Stores in operation at the end of the quarter totaled 5,142.

Company Confirms Fiscal 2008 Adjusted EBITDA Guidance, Updates Other Fiscal 2008 Guidance

Rite Aid confirmed its fiscal 2008 guidance for adjusted EBITDA, integration expenses and capital expenditures and increased its guidance for acquisition-related cost savings. The company now expects acquisition-related cost savings for fiscal 2008 to be approximately $200 million, as compared to the previous guidance of approximately $155 million, which are expected to come primarily from the areas of merchandising, purchasing, advertising, distribution and administration.

Adjusted EBITDA (which is reconciled to net loss on the attached table) is expected to be between $1.0 billion and $1.1 billion, including the nine months of acquisition-related cost savings of approximately $200 million.  Integration expense is expected to be $145 million.  Capital expenditures, including integration capital expenditures but excluding proceeds from sale and leaseback transactions, are expected to be between $825 million and $875 million.  Proceeds from sale and leaseback transactions are expected to be approximately $100 million.

As a result of current sales trends, the company revised its guidance for sales and same store sales.  Sales are expected to be between $24.5 billion and $25.1 billion. Same store sales, which will not include the acquired stores until one year after close, are expected to improve 1.3 percent to 3.3 percent over fiscal 2007.  This compares to previous fiscal 2008 sales guidance of between $25.3 billion and $26.0 billion, with same store sales improving 3.8 percent to 5.8 percent over fiscal 2007.

Based primarily on recent market changes in interest rates and an increase in amortization expense related to acquired intangible assets, net loss for fiscal 2008 is expected to be between $78 million and $161 million or a loss per diluted share of $.15 to $.27.  This compares to previous fiscal 2008 net loss guidance of $47 million to $129 million or a loss per diluted share of $.11 to $.23.
 
- MORE -
 
 
Rite Aid FY'08 Second Quarter Release - page 3


Increases Acquisition-Related Cost Savings Guidance for Fiscal 2009

Rite Aid also increased its guidance for acquisition-related cost savings for fiscal 2009 to $300 million as compared to previous guidance of $225 million, which are expected to come primarily from the areas of merchandising, purchasing, advertising, distribution and administration. Accretion related to the Brooks Eckerd acquisition in fiscal 2009 is now expected to be $.12 to $.14 per diluted share as a result of delay in the timing of closed store charges.  Previously the company expected the acquisition to be accretive in fiscal 2009 by $.18 to $.20 per diluted share.

Conference Call Broadcast

Rite Aid will hold an analyst call at 8:30 a.m. Eastern Time today with remarks by Rite Aid's management team. The call will be simulcast via the internet and can be accessed through the websites www.riteaid.com in the conference call section of investor information and www.StreetEvents.com.  A playback of the call will be available on both sites starting at 12 p.m. Eastern Time today.  A playback of the call will also be available by telephone for 48 hours beginning at 12 p.m. Eastern Time today until 12 p.m. Eastern Time on September 29.  The playback number is 1-800-642-1687 from within the U.S. and Canada or 1-706-645-9291 from outside the U.S. and Canada with the eight-digit reservation number 16088846.

Rite Aid Corporation is one of the nation’s leading drugstore chains with annual revenues of more than
$27 billion and more than 5,100 stores in 31 states and the District of Columbia.  Information about Rite Aid, including corporate background and press releases, is available through the company’s website at www.riteaid.com.

This press release may contain forward-looking statements, which are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.  Factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements include 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 and other debt agreements, our ability to improve the operating performance of our  stores  in accordance with our long term strategy, our ability to realize the benefits of the Brooks Eckerd acquisition, our ability to hire and retain pharmacists and other store personnel, the efforts of private and public third-party payors to reduce prescription drug reimbursements and encourage mail order, competitive pricing pressures, continued consolidation of the drugstore industry, changes in state or federal legislation or regulations, the outcome of lawsuits and governmental investigations, general economic conditions and inflation, interest rate movements and  access to capital.  Consequently, all of the forward-looking statements made in this press release are qualified by these and other factors, risks and uncertainties.  Readers are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission.  Forward-looking statements can be identified through the use of words such as "may", "will", "intend", "plan", "project", "expect", "anticipate", "could", "should", "would", "believe", "estimate", "contemplate", and "possible".

See the attached table or the 8-K furnished to the Securities and Exchange Commission on September 27, 2007 for definition, purpose and reconciliation of a non-GAAP financial measure referred to herein to the most comparable GAAP financial measure.

###

 
 
 
RITE AID CORPORATION AND SUBSIDIARIES      
             
CONSOLIDATED BALANCE SHEETS      
(Dollars in thousands)      
(unaudited)      
             
  
September 1, 2007
  
March 3, 2007
  
ASSETS
            
Current assets:
            
Cash and cash equivalents
   $
170,332
     $
106,148
  
Accounts receivable, net
    
788,718
      
374,493
  
Inventories, net
    
3,992,427
      
2,335,679
  
Prepaid expenses and other current assets
    
167,203
      
136,668
  
Total current assets
    
5,118,680
      
2,952,988
  
Property, plant and equipment, net
    
2,911,391
      
1,743,104
  
Goodwill
    
1,575,924
      
656,037
  
Other intangibles, net
    
1,233,305
      
178,220
  
Deferred tax assets
    
1,186,256
      
1,380,942
  
Other assets
    
240,571
      
179,733
  
Total assets
   $
12,266,127
     $
7,091,024
  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
Current liabilities:
                
Current maturities of long-term debt and lease financing obligations
   $
22,267
     $
16,184
  
Accounts payable
    
1,638,674
      
902,807
  
Accrued salaries, wages and other current liabilities
    
1,093,136
      
670,934
  
Total current liabilities
    
2,754,077
      
1,589,925
  
Long-term debt, less current maturities
    
5,519,777
      
2,909,983
  
Lease financing obligations, less current maturities
    
160,006
      
174,121
  
Other noncurrent liabilities
    
1,092,852
      
754,149
  
Total liabilities
    
9,526,712
      
5,428,178
  
                 
Commitments and contingencies
    
-
      
-
  
Stockholders' equity:
                
Preferred stock - Series E
    
120,000
      
120,000
  
Preferred stock - Series G
    
134,504
      
129,917
  
Preferred stock - Series H
    
131,235
      
127,385
  
Preferred stock - Series I
    
116,415
      
116,415
  
Common stock
    
795,430
      
536,686
  
Additional paid-in capital
    
3,965,143
      
3,118,299
  
Accumulated deficit
     (2,500,250 )     (2,462,197 )
Accumulated other comprehensive loss
     (23,062 )     (23,659 )
Total stockholders' equity
    
2,739,415
      
1,662,846
  
Total liabilities and stockholders' equity
   $
12,266,127
     $
7,091,024
  
 
 


RITE AID CORPORATION AND SUBSIDIARIES      
             
CONSOLIDATED STATEMENTS OF OPERATIONS      
(Dollars in thousands, except per share amounts)      
(unaudited)      
             
             
 
Thirteen Weeks ended September 1, 2007
  
Thirteen Weeks ended September 2, 2006 
Revenues
   $
6,599,205
     $
4,288,356
  
Costs and expenses:
                
Cost of goods sold
    
4,802,881
      
3,137,321
  
Selling, general and administrative expenses
    
1,750,881
      
1,082,102
  
Store closing and impairment charges
    
16,587
      
6,446
  
Interest expense
    
123,250
      
68,185
  
Acquisition related financing commitment charge
    
12,900
      
-
  
Loss (gain) on sale of assets and investments, net
    
1,651
       (2,146 )
                 
     
6,708,150
      
4,291,908
  
                 
Loss before income taxes
     (108,945 )     (3,552 )
                 
Income tax benefit
     (39,347 )     (3,222 )
                 
Net loss
   $ (69,598 )   $ (330 )
                 
Basic and diluted loss per share:
                
                 
Numerator for loss per share:
                
Net loss
   $ (69,598 )   $ (330 )
Accretion of redeemable preferred stock
     (26 )     (26 )
Cumulative preferred stock dividends
     (8,097 )     (7,830 )
Preferred stock beneficial conversion
     (480 )    
-
  
Loss attributable to common stockholders - basic and diluted
   $ (78,201 )   $ (8,186 )
                 
                 
                 
Denominator:
                
Basic and diluted weighted average shares
    
781,805
      
523,373
  
                 
Basic and diluted loss per share
   $ (0.10 )   $ (0.02 )
 
 


RITE AID CORPORATION AND SUBSIDIARIES      
             
CONSOLIDATED STATEMENTS OF OPERATIONS      
(Dollars in thousands, except per share amounts)      
(unaudited)      
             
             
 
Twenty-six Weeks ended September 1, 2007
  
Twenty-six Weeks ended September 2, 2006 
Revenues
   $
11,057,015
     $
8,625,442
  
Costs and expenses:
                
Cost of goods sold
    
8,038,010
      
6,290,407
  
Selling, general and administrative expenses
    
2,878,668
      
2,167,699
  
Store closing and impairment charges
    
20,617
      
19,034
  
Interest expense
    
191,975
      
137,519
  
Acquisition related financing commitment charge
    
12,900
      
-
  
Gain on sale of assets and investments, net
     (2,579 )     (1,355 )
                 
     
11,139,591
      
8,613,304
  
                 
(Loss) income before income taxes
     (82,576 )    
12,138
  
                 
Income tax (benefit) expense
     (40,612 )    
1,513
  
                 
Net (loss) income
   $ (41,964 )   $
10,625
  
                 
Basic and diluted loss per share:
                
                 
Numerator for loss per share:
                
Net (loss) income
   $ (41,964 )   $
10,625
  
Accretion of redeemable preferred stock
     (51 )     (51 )
Cumulative preferred stock dividends
     (16,127 )     (15,597 )
Preferred stock beneficial conversion
     (556 )    
-
  
Loss attributable to common stockholders - basic and diluted
   $ (58,698 )   $ (5,023 )
                 
                 
                 
Denominator:
                
Basic and diluted weighted average shares
    
656,422
      
522,751
  
                 
Basic and diluted loss per share
   $ (0.09 )   $ (0.01 )
 
 

 
RITE AID CORPORATION AND SUBSIDIARIES 
SUPPLEMENTAL INFORMATION 
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA 
(In thousands) 
       
 
     
Thirteen Weeks ended September 1, 2007 
  
Thirteen Weeks ended September 2, 2006 
               
               
Reconciliation of net loss to adjusted EBITDA:
            
     Net loss  
 $ (69,598 )   $ (330 )
     Adjustments:
                
          Interest expense
    
123,250
      
68,185
  
          Recurring income tax benefit
     (39,347 )     (3,222 )
          Depreciation and amortization
    
132,492
      
67,288
  
          LIFO charges (a)
    
16,041
      
8,946
  
          Store closing and impairment charges
    
16,587
      
6,446
  
          Stock-based compensation expense
    
11,960
      
5,296
  
          Loss (gain) on sale of assets and investments, net
    
1,651
       (2,146 )
          Acquisition related financing commitment charge (b)
    
12,900
      
-
  
          Legal and accounting expenses (c)
    
87
      
256
  
          Incremental acquisition costs (d)
    
52,101
      
-
  
          Closed store liquidation expense (e)
    
2,300
      
3,207
  
          Other 
    
1,050
      
800
  
 
Adjusted EBITDA
   $
261,474
     $
154,726
  
 
Percent of revenues
     3.96 %     3.61 %
                   
                   
                   
 
 
Notes:
          
               
   
(a)
  
Represents non-cash charges to value our inventories under the last-in first-out ("LIFO") method.
               
   
(b)
  
Represents a charge for financing commitments related to the acquisition of Jean Coutu, USA. 
               
   
(c)
  
Charges consist primarily of fees paid for legal services related to defending against litigation related
       
to prior management's business practices and to defend prior management.
  
               
   
(d)
  
Represents incremental costs related to the acquisition of Jean Coutu, USA.
    
               
   
(e)
  
Represents costs to liquidate inventory at stores that are in the process of closing.
 
 


RITE AID CORPORATION AND SUBSIDIARIES 
SUPPLEMENTAL INFORMATION 
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA 
(In thousands) 
             
             
   
Twenty-six Weeks ended September 1, 2007
    
Twenty-six Weeks ended September 2, 2006
  
             
             
Reconciliation of net (loss) income to adjusted EBITDA:
            
     Net (loss) income
   $ (41,964 )   $
10,625
  
     Adjustments:
                
          Interest expense
    
191,975
      
137,519
  
          Recurring income tax (benefit) expense
     (40,612 )    
1,513
  
          Depreciation and amortization
    
200,411
      
133,420
  
          LIFO charges (a)
    
25,332
      
17,892
  
          Store closing and impairment charges
    
20,617
      
19,034
  
          Stock-based compensation expense
    
18,574
      
8,606
  
          Gain on sale of assets and investments, net
     (2,579 )     (1,355 )
          Acquisition related financing commitment charge (b)
    
12,900
      
-
  
          Legal and accounting expenses (c)
    
243
      
357
  
          Incremental acquisition costs (d)
    
63,266
      
-
  
          Closed store liquidation expense (e)
    
4,399
      
5,631
  
          Other
    
1,728
      
1,872
  
               Adjusted EBITDA
   $
454,290
     $
335,114
  
               Percent of revenues
     4.11 %     3.89 %
                 
                 
                 

 
Notes:
          
               
   
(a)
  
Represents non-cash charges to value our inventories under the last-in first-out ("LIFO") method.
               
   
(b)
  
Represents a charge for financing commitments related to the acquisition of Jean Coutu, USA.
               
   
(c)
  
Charges consist primarily of fees paid for legal services related to defending against litigation related
       
to prior management's business practices and to defend prior management.
  
               
   
(d)
  
Represents incremental costs related to the acquisition of Jean Coutu, USA.
    
               
   
(e)
  
Represents costs to liquidate inventory at stores that are in the process of closing.
 
 


RITE AID CORPORATION AND SUBSIDIARIES      
             
CONSOLIDATED STATEMENTS OF CASH FLOWS      
(Dollars in thousands)      
(unaudited)      
             
             
   
Thirteen Weeks ended September 1, 2007 
  
Thirteen Weeks ended September 2, 2006 
             
             
OPERATING ACTIVITIES:
            
Net loss
   $ (69,598 )   $ (330 )
Adjustments to reconcile to net cash provided by operating activities:
                
Depreciation and amortization
    
132,492
      
67,288
  
Store closing and impairment charges
    
16,587
      
6,446
  
LIFO charges
    
16,041
      
8,946
  
Loss (gain) on sale of assets and investments, net
    
1,651
       (2,146 )
Stock-based compensation expense
    
11,960
      
5,296
  
Acquisition related financing commitment charge
    
12,900
      
-
  
Changes in deferred taxes
     (40,163 )     (2,955 )
Proceeds from insured loss
    
1,292
      
-
  
Changes in operating assets and liabilities:
                
Net repayments to accounts receivable securitization
     (90,000 )     (20,000 )
Proceeds from sale of inventory
    
8,156
      
-
  
Accounts receivable
    
99,600
      
54,044
  
Inventories
     (265,144 )     (140,672 )
Prepaid expenses and other current assets
     (13,583 )     (12,676 )
Other assets
     (5,123 )    
475
  
Income taxes receivable/payable
     (3,308 )     (2,420 )
Accounts payable
    
24,144
      
83,363
  
Other liabilities
    
22,464
       (28,520 )
Net cash (used in) provided by operating activities
     (139,632 )    
16,139
  
INVESTING ACTIVITIES:
                
Payments for property, plant and equipment
     (162,186 )     (66,681 )
Intangible assets acquired
     (15,909 )     (6,162 )
Change in cash restricted for acquisition
    
1,232,180
      
-
  
Acquisition of Jean Coutu, USA, net of cash acquired
     (2,351,246 )    
-
  
Proceeds from sale-leaseback transactions
    
10,550
      
11,803
  
Proceeds from dispositions of assets and investments
    
8,397
      
4,731
  
Proceeds from insured loss
    
408
      
-
  
Net cash used in investing activities
     (1,277,806 )     (56,309 )
FINANCING ACTIVITIES:
                
    Proceeds from issuance of long-term debt    
1,105,000
      
-
  
Net proceeds from revolver
    
342,000
      
25,000
  
Proceeds from financing secured by owned property
    
-
      
2,231
  
Principal payments on long-term debt
     (4,018 )     (2,675 )
Change in zero balance cash accounts
    
87,671
      
3,824
  
Net proceeds from the issuance of common stock
    
2,753
      
1,129
  
Payments for preferred stock dividends
     (3,845 )     (3,845 )
Excess tax deduction on stock options
    
2,651
      
46
  
Financing costs paid
     (56,132 )    
-
  
Net cash provided by financing activities
    
1,476,080
      
25,710
  
Increase (decrease) in cash and cash equivalents
    
58,642
       (14,460 )
Cash and cash equivalents, beginning of period
    
111,690
      
111,092
  
Cash and cash equivalents, end of period
   $
170,332
     $
96,632
  
 

RITE AID CORPORATION AND SUBSIDIARIES      
       
CONSOLIDATED STATEMENTS OF CASH FLOWS      
(Dollars in thousands)      
(unaudited)      
             
             
   
Twenty-six Weeks ended September 1, 2007 
  
Twenty-six Weeks ended September 2, 2006 
             
             
OPERATING ACTIVITIES:
            
Net (loss) income
   $ (41,964 )   $
10,625
  
Adjustments to reconcile to net cash provided by operating activities:
                
Depreciation and amortization
    
200,411
      
133,420
  
Store closing and impairment charges
    
20,617
      
19,034
  
LIFO charges
    
25,332
      
17,892
  
Gain on sale of assets and investments, net
     (2,579 )     (1,355 )
Stock-based compensation expense
    
18,574
      
8,606
  
Acquisition related financing commitment charge
    
12,900
      
-
  
Changes in deferred taxes
     (39,002 )    
4,234
  
Proceeds from insured loss
    
8,550
      
-
  
Changes in operating assets and liabilities:
                
Net repayments to accounts receivable securitization
     (60,000 )     (5,000 )
Proceeds from sale of inventory
    
8,156
      
-
  
Accounts receivable
    
56,590
      
7,293
  
Inventories
     (256,035 )     (100,776 )
Prepaid expenses and other current assets
     (1,803 )    
1,329
  
Other assets
     (418 )    
1,490
  
Income taxes receivable/payable
     (11,518 )     (6,024 )
Accounts payable
    
75,324
      
76,882
  
Other liabilities
    
33,517
       (29,710 )
Net cash provided by operating activities
    
46,652
      
137,940
  
INVESTING ACTIVITIES:
                
Payments for property, plant and equipment
     (279,686 )     (137,194 )
Intangible assets acquired
     (29,710 )     (17,781 )
Acquisition of Jean Coutu, USA, net of cash acquired
     (2,356,578 )    
-
  
Proceeds from sale-leaseback transactions
    
10,550
      
31,480
  
Proceeds from dispositions of assets and investments
    
13,108
      
5,166
  
Proceeds from insured loss
    
5,950
      
-
  
Net cash used in investing activities
     (2,636,366 )     (118,329 )
FINANCING ACTIVITIES:
                
Proceeds from issuance of long-term debt
    
2,306,005
      
-
  
Net proceeds from revolver
    
303,000
      
1,000
  
Proceeds from financing secured by owned property
    
-
      
11,072
  
Principal payments on long-term debt
     (7,209 )     (5,170 )
Change in zero balance cash accounts
    
100,617
       (875 )
Net proceeds from the issuance of common stock
    
11,848
      
2,506
  
Payments for preferred stock dividends
     (7,690 )     (7,690 )
Excess tax deduction on stock options
    
5,522
      
111
  
Financing costs paid
     (58,195 )    
-
  
Net cash provided by financing activities
    
2,653,898
      
954
  
Increase in cash and cash equivalents
    
64,184
      
20,565
  
Cash and cash equivalents, beginning of period
    
106,148
      
76,067
  
Cash and cash equivalents, end of period
   $
170,332
     $
96,632
  


RITE AID CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
RECONCILIATION OF NET LOSS GUIDANCE TO ADJUSTED EBITDA GUIDANCE
YEAR ENDING MARCH 1, 2008
(In thousands, except per share amounts)
             
             
   
Guidance Range   
  
   
Low
    
High
  
             
Reconciliation of net loss to adjusted EBITDA:
            
             
     Net loss
   $ (161,000 )   $ (78,000 )
     Adjustments:
                
          Interest expense
    
440,000
      
440,000
  
          Income tax benefit, net
     (80,600 )     (38,600 )
          Depreciation and amortization
    
480,000
      
480,000
  
          LIFO charge
    
60,000
      
60,000
  
          Store closing, liquidation, and impairment charges
    
70,000
      
70,000
  
          Non recurring Brooks-Eckerd integration expenses
    
145,000
      
145,000
  
          Acquisition related financing commitment charge
    
12,900
      
12,900
  
          Stock-based compensation expense
    
35,000
      
35,000
  
          Other
     (1,300 )     (1,300 )
               Adjusted EBITDA
   $
1,000,000
     $
1,125,000
  
                 
          Diluted loss per share
   $ (0.27 )   $ (0.15 )