Fred's Posts Net Profit In Q4; Sales, Comps Down

(RTTNews) - Fred's, Inc. (FRED) reported Monday that its fourth-quarter net income was $68.73 million, compared to last year's net loss of $32.39 million.

The latest results were benefited by income from discontinued operations of $135.96 million or $3.77 per share mainly related to the sale of Fred's specialty pharmacy business to an affiliate of CVS Health Corp. and certain assets of Fred's retail pharmacy business to Walgreen Co.

On a continuing operations basis, net loss was $67.2 million, or $1.86 per share, compared to net loss of $25.4 million or $0.68 per share last year.

Adjusted EBITDA was negative $17.7 million, compared to positive $31.4 million in 2017.

Fred's net sales for the fourth quarter decreased 17.2 percent to $307.1 million from $370.9 million last year. Comparable store sales fell 9.7 percent, compared to a 4.8 percent decrease a year ago.

Gross profit decreased 22.1 percent to $71.7 million. Gross margin decreased 147 basis points to 23.4 percent.