Carerx Corporation · TSX:CRRX
Carerx — Q1 2023 Earnings Presentation
16 slides from Carerx's earnings presentation, May 10, 2023
Slide 1: Q1 2023 Earnings Call
Slide 2: Forward Looking Statements
Forward Looking Statements Certain of the statements contained in this presentation are "forward looking information within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, business strategy, plans and other expectations, beliefs
Slide 3: President & Chief Executive Officer
President & Chief Executive Officer
Slide 4: Q1 2023 highlights
• Revenue in Q1 2023 of $91.4 million • Adjusted EBITDA in Q1 2023 of $6.8 million • Equity financing strengthens balance sheet • Announced CEO transition subsequent to quarter-end
Slide 5: Chief Financial Officer
Andrew Mok Chief Financial Officer
Slide 6: Revenue Q1 2022 vs Q1 2023
(millions) 110 • Average beds serviced of 94,436: -0.8% vs Q1 2022 100 $93.2 $91.4 • Revenue decline driven by the offboarding of a 90 large customer contract which was substantially 80 completed by the fourth quarter of 2022 70 • Decline also the result of the change in the mix of 60 branded and ge
Slide 7: Adjusted EBITDA Q1 2022 vs Q1 2023
(millions) • Adjusted EBITDA decline partially driven by 10 $8.6 the offboarding of a large customer contract 9 which was substantially completed by the 8 fourth quarter of 2022 $6.8 7 • Decline also the result of incremental costs 6 associated with continued challenges in the 5 healthcare labour ma
Slide 8: Incremental healthcare labour market costs
• Q1 2023 results include $1.7 million in incremental costs associated with continued challenges in the healthcare labour market • Scarcity and increased competition for pharmacists, registered pharmacy technicians, and pharmacy support staff has resulted in a higher number of open positions and a l
Slide 9: Net loss Q1 2022 vs Q1 2023
(millions) Q1 2022 Q1 2023 • Decrease in net loss driven primarily by lower transaction and restructuring costs, 0 share-based compensation expense and finance costs • Cost reductions partially offset by impact of -1 the customer offboarding, incremental costs incurred as a result of the current lab
Slide 10: Q1 2023 public equity offering
• In Q1 2023 the Company raised equity by way of a public offering and concurrent private placement for gross proceeds of approximately $16.1 million at a price of $2.70 per share • Proceeds expected to be used for debt reduction, working capital and general corporate purposes
Slide 11: Cash and net debt at March 31, 2023
(millions except ratio) • Increase in cash balance driven by cash At March 31/23 from operating activities and net proceeds of equity financing Cash $40.4 M • No impact from rising interest rates due to Net Debt1 $54.2 M fixed rate debt Net Debt to Adjusted EBITDA2 2.0x 1. Debt = borrowings (princip
Slide 12: Chief Operating Officer & Incoming President & Chief Executive Officer
Chief Operating Officer & Incoming President & Chief Executive Officer
Slide 13: Seamless transition and continued strategy execution
• Puneet Khanna, 20+ years in pharmacy and seniors’ care sectors, former CEO of MED e-care Healthcare Solutions Inc. • Passionate and professional CareRx management team committed to improving the health of seniors across Canada • Jeff Watson, former CEO of Apotex, nominated to Board Seamless transi
Slide 14: Strategic Priorities
Strategic Priorities 14 qd) Optimize business operations CA a) eo CN WY Strengthen balance sheet and improve cash generation Continue to grow revenue Expand industry advocacy efforts
Slide 15: Increasingly compelling medium and long-term growth opportunity
Grow with existing customers • LTC occupancy increasing post-Covid >94,0001 beds 19% • Home operators expanding through increased capacity, new construction, new bed license allocations and acquisitions • Increased penetration and broadening scope of services Win new contracts 81% • Leverage scale a
Slide 16: Visit our website at www.carerx.ca
Visit our website at www.carerx.ca | Follow @CareRx on Twitter