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drugstore.com inc. Reports Profitable Fourth Quarter of 2008 and Free Cash Flow of $5.4 Million on Record OTC Sales
Date:2/4/2009

$22,926 $21,652 Contribution margin 15,539 14,013 57,043 47,554 CNS 240 270 1,069 1,040 Core OTC contribution margin $15,299 $13,743 $55,974 $46,514 NOTE 3: Supplemental information related to the company's Core OTC net sales, cost of sales, gross profit, gross margin, variable order costs and contribution margin for the three and twelve months ended December 28, 2008 and December 30, 2007 is presented for informational purposes only and is not prepared in accordance with generally accepted accounting principles SUPPLEMENTAL INFORMATION: Segment Information: (In thousands, unless Three Months Ended Twelve Months Ended otherwise December 28, December 30, December 28, December 30, indicated) 2008 2007 2008 2007 Net sales: OTC $69,809 $65,870 $260,794 $234,282 Vision 14,555 12,708 61,420 54,906 Mail-order pharmacy 9,576 12,729 44,365 50,143 $93,940 $91,307 $366,579 $339,331 Cost of sales: OTC $48,282 $45,378 $180,252 $164,469 Vision 11,125 9,649 47,279 41,904 Mail-order pharmacy 7,720 10,737 36,166 41,935 $67,127 $65,764 $263,697 $248,308 Gross profit: OTC 21,527 20,492 80,542 69,813 Vision 3,430 3,059 14,141 13,002 Mail-order pharmacy 1,856 1,992 8,199 8,208 $26,813 $25,543 $102,882
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