(All percentage increases are as compared to the second quarter of 2021)
- Revenue increased 95% to
$96.9 million from$49.7 million: - Growth driven primarily by contribution from the prior year acquisitions of the Long-Term Care Pharmacy Businesses of
Rexall Health Solutions andMedical Pharmacies Group Limited (collectively, the "2021 Acquisitions"), the partial contribution of the Long-Term Care Pharmacy Business ofHogan Pharmacy Partners Ltd. (the "Hogan LTC Pharmacy Business") that was acquired onMay 30, 2022 as well as organic growth from contracts that were onboarded over the last 12 months. - Adjusted EBITDA1 increased 103% to
$8.8 million from$4.3 million: - Growth driven primarily by contributions of the 2021 Acquisitions, as well as from new contracts that were onboarded over the last 12 months.
- Adjusted EBITDA was partially impacted by incremental costs, including overtime, contract labour and recruitment costs, totaling
$0.6 million , incurred as a result of challenges in the current labour market, which has resulted in a higher than average number of open pharmacy staff positions. - Net loss increased by 196% to
$25.1 million from$8.5 million: - Increase in net loss was driven primarily by non-cash adjustments including impairment losses related to goodwill and intangible assets totaling
$24.3 million , an increase in share-based compensation and adjustments related to the change in fair value of contingent consideration liability and the change in fair value of investment, which were partially offset by the contribution of the 2021 Acquisitions, the change in the fair value of derivative financial instruments and a decrease in transaction and restructuring costs. - Completed the acquisition of the Hogan LTC Pharmacy Business on
May 30, 2022 , adding approximately 800 residents: - Expected to contribute run-rate annualized revenue and Adjusted EBITDA1 of approximately
$4.0 million and$0.6 million , respectively, prior to any benefits from the integration of the operations of the business and expected future bed growth of Hogan customers. - Commenced operations at new high-volume fulfillment centre in
Oakville, Ontario inApril 2022 . - Pricing for certain select generic molecules were reduced effective
April 29, 2022 , from approximately 18% to 15% of their relevant brand reference prices under the agreement between the pan-Canadian Pharmaceutical Alliance and theCanadian Generic Pharmaceutical Association . - Appointed
Maria Perrella as an independent member of the Company's Board of Directors and Audit Committee Chair.
1 See "Non-IFRS Measures" below. |
"Our second quarter results reflect the continued execution of our growth strategy, with a 95% year-over-year increase in revenue and a 103% increase in Adjusted EBITDA as we completed the acquisition of the Hogan Long-Term Care Pharmacy Business and benefited from the contribution and synergies of our 2021 acquisitions and new contract wins," said
Selected Financial Information
For the three month periods | For the six month periods | |||||
(Thousands of Canadian dollars except per share amounts and percentages) | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 |
$ | $ | $ | $ | $ | $ | |
Revenue | 96,879 | 49,656 | 39,749 | 190,055 | 94,513 | 70,175 |
EBITDA1 | (17,868) | (991) | (7,241) | (12,347) | (1,092) | (7,502) |
Adjusted EBITDA1 | 8,797 | 4,338 | 2,825 | 17,413 | 8,424 | 4,870 |
Per share - Basic | ||||||
Adjusted EBITDA Margin1 | 9.1 % | 8.7 % | 7.1 % | 9.2 % | 8.9 % | 6.9 % |
Net loss | (25,129) | (8,489) | (14,148) | (27,891) | (14,355) | (8,834) |
Per share - Basic and Diluted | ( | ( | ( | ( | ( | ( |
Cash used in operations | (3,979) | (5,721) | (2,665) | (5,155) | (7,426) | (4,115) |
Total Assets | 258,433 | 165,222 | 151,759 | 258,433 | 165,222 | 151,759 |
Total Liabilities | 198,606 | 144,655 | 153,356 | 198,606 | 144,655 | 153,356 |
1 See "Non-IFRS Measures" below. |
This press release includes certain measures which have not been prepared in accordance with IFRS such as "EBITDA", "Adjusted EBITDA", "Adjusted EBITDA Margin" and "Adjusted EBITDA per share". These non-IFRS measures are not recognized under IFRS and, accordingly, shareholders are cautioned that these measures should not be construed as alternatives to net income determined in accordance with IFRS. The non-IFRS measures presented are unlikely to be comparable to similar measures presented by other issuers.
The Company defines "EBITDA" as earnings before depreciation and amortization, finance costs (income), net, and income tax expense (recovery). "Adjusted EBITDA" is defined as EBITDA before transaction and restructuring costs, change in fair value of contingent consideration liability, impairments, change in fair value of derivative financial instruments, change in fair value of investment, gain on disposal of property and equipment and stock-based compensation expense. "Adjusted EBITDA Margin" is defined as Adjusted EBITDA divided by revenue. "Adjusted EBITDA per share" is defined as Adjusted EBITDA divided by the weighted average outstanding shares. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service interest and principal debt repayments and fund future growth initiatives. The Company's agreements with lenders are also structured with certain financial performance covenants which includes Adjusted EBITDA as a key component of the covenant calculation. EBITDA and Adjusted EBITDA are not recognized measures under IFRS.
For the three month | For the six month periods | |||
2022 | 2021 | 2022 | 2021 | |
(Thousands of Canadian Dollars except per share amounts) | $ | $ | $ | $ |
Net loss | (25,129) | (8,489) | (27,891) | (14,355) |
Depreciation and amortization | 5,127 | 3,234 | 9,826 | 6,326 |
Finance costs, net | 3,575 | 4,548 | 7,249 | 7,969 |
Income tax recovery | (1,441) | (284) | (1,531) | (1,032) |
EBITDA | (17,868) | (991) | (12,347) | (1,092) |
Transaction and restructuring costs | 1,033 | 1,822 | 3,721 | 2,589 |
Change in fair value of contingent consideration liability | 658 | 82 | 754 | 251 |
24,330 | — | 24,330 | — | |
Share-based compensation expense | 823 | 739 | 2,153 | 1,492 |
Change in fair value of derivative financial instruments | (2,980) | 2,235 | (4,106) | 4,840 |
Change in fair value of investment | 2,713 | — | 2,713 | — |
Loss on disposal of assets | 88 | 451 | 195 | 344 |
Adjusted EBITDA | 8,797 | 4,338 | 17,413 | 8,424 |
Weighted average number of shares - basic and diluted (in thousands) | 47,076 | 30,366 | 46,792 | 29,214 |
Adjusted EBITDA per share - basic |
The Company will host a conference call, including a slide presentation, to discuss its second quarter 2022 financial results on
To access the conference call by telephone, dial 416-764-8659 or 1-888-664-6392. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. Those participating in the conference call by telephone can view the slide presentation by accessing the online webcast (see instructions below) and choosing the Non-Streaming Audio option.
A live webcast of the conference call, including the slide presentation, will be available on the Events and Presentations page of the Investors section of the Company's website (https://carerx.ca/presentations/). Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. To view the webcast presentation with slides, please choose either the Real Streaming Audio or Windows Streaming Audio option.
The webcast with slide presentation will be archived for 90 days on the Events and Presentations page of the Investors section of the Company's website (https://carerx.ca/presentations/).
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements regarding the Company's business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.
Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Factors that could cause such differences include the Company's exposure to and reliance on government regulation and funding, the Company's liquidity and capital requirements, exposure to epidemic or pandemic outbreak, the highly competitive nature of the Company's industry, reliance on contracts with key customers and other risk factors described from time to time in the reports and disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and neither the Company nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. The factors underlying current expectations are dynamic and subject to change.
SOURCE
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