CareRx Reports Results for the Third Quarter of 2024
Continued Expansion of Adjusted EBITDA and EBITDA Margin
TORONTO, Nov. 8, 2024 /CNW/ - CareRx Corporation ("CareRx" or the "Company") (TSX:CRRX), Canada's leading provider of pharmacy services to seniors living and other congregate care communities, today reported its financial results for the third quarter ended September 30, 2024.
"Over the past 18 months, we have been deeply committed to strengthening our business by modernizing our operating platform, reducing net debt, enhancing service levels, and further solidifying our position as the leading pharmacy services provider to the seniors living sector," said Puneet Khanna, President and Chief Executive Officer of CareRx. "Our disciplined approach to resource allocation, and prioritizing profitable beds, have resulted in five consecutive quarters of EBITDA growth. With an enhanced operating platform, a strong growth pipeline and confirmed bed wins for 2025, we are now well-positioned to capitalize on the next wave of growth in the senior care sector."
Highlights for the Third Quarter of 2024
Revenue for the quarter was $92.8 million as compared to $92.0 million for the second quarter of 2024 and $93.8 million for the third quarter of 2023:
Despite a slight net reduction in the average number of beds serviced, the Company's revenue increased as compared to the second quarter of 2024 as a result of an increase in branded pharmaceutical prices during the third quarter of 2024; and
Decrease as compared to the third quarter of 2023 was primarily due to a net reduction in the average number of beds serviced, partially offset by an increase in branded pharmaceutical prices during the third quarter of 2024.
Adjusted EBITDA1 for the quarter was $7.8 million as compared to $7.5 million for the second quarter of 2024 and $7.3 million for the third quarter of 2023:
Increase as compared to the prior quarter was due to the full quarter benefit of improved supply terms as a result of the amendment to the existing agreement with the Company's principal pharmaceutical wholesaler effective April 1, 2024; and
Increase as compared to the same period in the prior year was due to certain efficiencies and cost savings initiatives that commenced during the second half of 2023 and improved supply terms as a result of the amendment to the existing agreement with the Company's principal pharmaceutical wholesaler effective April 1, 2024.
Net loss for the quarter was $0.4 million as compared to a net loss of $1.4 million for the second quarter of 2024 and net loss of $1.4 million for the third quarter of 2023:
Decrease in net loss compared to the prior quarter was primarily due to the full quarter benefit of improved supply terms as a result of the amendment to the existing agreement with the Company's principal pharmaceutical wholesaler effective April 1, 2024; and
Decrease in net loss as compared to the same period in the prior year was driven primarily by decreases in finance costs, in addition to the impact of certain cost savings initiatives that commenced during the second half of 2023.
On September 3, 2024, the TSX approved the renewal of the Company's normal course issuer bid to repurchase for cancellation up to 1,500,000 of its common shares during the period from September 7, 2024 to September 6, 2025.
On October 1, 2024, Suzanne Brand, a highly accomplished executive bringing a wealth of financial, healthcare and leadership experience, joined the Company in the role of Chief Financial Officer.
On October 1, 2024, the Company announced that it will be opening a new state-of-the-art pharmacy in North Burnaby, British Columbia, designed to enhance service delivery for the homes and residents serviced by the Company throughout the B.C. lower mainland, while improving the employee experience, through optimized workflows, streamlined operations and leading-edge medication packaging technology. With this expansion, the Company will be consolidating its existing Burnaby and Vancouver pharmacy operations into the new North Burnaby location, commencing in early December 2024. The transition is expected to be completed by the end of the first quarter of 2025.
1 See "Non-IFRS Measures" below
FINANCIAL RESULTS
Selected Financial Information
For the three month periods ended September 30,
For the nine month periods ended September 30,
(Thousands of Canadian dollars except per share amounts and percentages)
2024
2023
2022
2024
2023
2022
$
$
$
$
$
$
Revenue
92,836
93,760
97,353
274,533
279,649
287,408
EBITDA1
6,612
7,022
6,943
19,154
19,211
(5,404)
Adjusted EBITDA1
