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Total revenues of $1.24 billion for the thirteen weeks ended October 25,2007 were 3.3 percent higher than the $1.20 billion reported in the comparableperiod last year. Total retail drug store sales increased 3.1 percent andtotal pharmacy benefit services revenues increased 6.3 percent compared withthe same period last year.
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Commenting on the quarter, Chairman, President and Chief Executive OfficerWarren F. Bryant said, "We are encouraged by our financial results for thequarter and pleased with the performance of both the retail and pharmacybenefit services segments. We are improving the profitability of our retailsegment and better aligning our stores with our longer term goals while wecontinue to pursue new business opportunities at RxAmerica."
During the third quarter, Longs opened 13 stores and remodeled 25 stores.The Company is estimating capital expenditures for the full year of Fiscal2008 to be in the range of $170 million to $200 million. Longs plans to openor relocate approximately 30 to 35 stores and remodel up to 46 stores inFiscal 2008.
The Company also announced its expansion plans to open or relocate 20 to30 stores and remodel up to 40 stores next year and estimated capitalexpenditures for Fiscal 2009 in the range of $150 million to $200 million.Over the next five years, the Company plans to grow its number of stores at acompound annual growth rate of 7 percent.
During the third quarter, Longs Drugs repurchased 419,000 shares of commonstock at an average price of $50.84 per share for a total investment of $21.3million. Approximately $25 million remains under previous Board authorizationand yesterday, the Board of Directors authorized the repurchase of up to anadditional $200 million of the Company's common stock during the periodextending through February 28, 2011.
THIRD QUARTER
Income
Income from continuing operations for the thirteen weeks ended October 25,2007, was $19.3 million, or $0.51 per diluted share, compared with income fromcontinuing operations for the thirteen weeks ended October 26, 2006 of $13.3million, or $0.35 per diluted share.
Revenues
Total revenues of $1.24 billion for the thirteen weeks ended October 25,2007 were 3.3 percent higher than the $1.20 billion reported in the comparableperiod last year. Total retail drug store sales were $1.16 billion, a 3.1percent increase from $1.12 billion in the comparable period last year.Same-store sales increased 1.4 percent with pharmacy same-store salesincreasing 2.0 percent and front-end same-store sales increasing 0.8 percent.Pharmacy sales were 52.6 percent of total drug store sales during the period,compared with 51.9 percent a year ago.
Pharmacy benefit services generated a 6.3 percent increase in revenuesduring the third quarter to $79.7 million compared with $75.0 million reportedlast year. Pharmacy benefit management services generated revenues of $19.1million compared with third quarter revenues last year of $9.7 million and theprescription drug plans for Medicare beneficiaries generated revenues of $60.7million compared with $65.3 million a year ago.
Retail Drug Store Gross Profit
The retail drug store gross profit for the third quarter ended October 25,2007 was $300.8 million, or 26.0 percent of sales, compared with a grossprofit of $280.1 million, or 24.9 percent of sales, last year. Growth in theretail drug store gross profit margin was primarily due to higher genericutilization, increa
