Carerx Corporation · TSX:CRRX
Carerx — Centric Health — Q4 2019 Earnings Presentation
19 slides from Carerx's earnings presentation, Mar 27, 2020
Slide 1: Q4 2019 Earnings Call
Q4 2019 Earnings Call March 27, 2020
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, belief
Slide 3: David Murphy, President & Chief Executive Officer
David Murphy President & Chief Executive Officer
Slide 4: 2019 Highlights
2019 Highlights Specialty Pharmacy – Continuing Operations 4th Quarter Full Year Revenue + 7.9% + 4.8% Average Beds Serviced + 6.0% + 7.6% Adjusted EBITDA + 86.7% + 62.7% Adj. EBITDA Margin 12.3% 12.1% 4
Slide 5: Continued Growth in Number of Beds Serviced
Continued Growth in Number of Beds Serviced 31,457 In Q4 2019 we increased 31,265 31,281 our average beds serviced by 1,767, or 6.0%, 30,341 compared to Q4 2018 29,690 Average number of beds serviced* Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 * Includes a restatement of previously reported numbers to reflect th
Slide 6: Strengthened our Balance Sheet
Strengthened our Balance Sheet FY 2019 aggregate gross proceeds of $86.8 million ▪ Divestiture of ▪ Private placement non-core assets equity raises
Slide 7: Continued, Successful Execution
Continued, Successful Execution In the fourth quarter: ▪ Closed the sale of the Surgical Strengthened Centric and Medical Centres division for gross proceeds of $35.0 Health’s ability to lead million the market ▪ Completed a private consolidation placement on for gross proceeds of $35.2 million 7
Slide 8: Andrew Mok, Chief Financial Officer
Andrew Mok Chief Financial Officer
Slide 9: Specialty Pharmacy Quarterly Results
Specialty Pharmacy Quarterly Results Revenue ▪ Revenue of $32.2 million in Q4 ($ millions) 2019 32 ▪ Up 7.9% from $29.9 million in Q4 2018 24 ▪ Driven by continued growth in the average number of beds serviced 16 Q4 2018 Q4 2019 9
Slide 10: Specialty Pharmacy Quarterly Results
Specialty Pharmacy Quarterly Results Adjusted EBITDA ▪ Adjusted EBITDA of $4.0 ($ millions) million 4 ▪ Up 86.7% from Q4 2018 3 ▪ Adjusted EBITDA Margin = 2 12.3% vs 7.1% in Q4 2018 1 0 Q4 2018 Q4 2019 10
Slide 11: Specialty Pharmacy Full Year Results
Specialty Pharmacy Full Year Results Revenue Adjusted EBITDA ($ millions) ($ millions) $124.6 $118.9 $15.0 4.8% $9.2 62.7% FY 2018 FY 2019 FY 2018 FY 2019 11
Slide 12: Total Bank Debt
Total Bank Debt September 30, 2019 December 31, 2019 $77.7M Acquisition Facility Term Facility Revolving Revolving Facility $16.4M Facility Subordinated Subordinated Facility Facility 12
Slide 13: David Murphy, President & Chief Executive Officer
David Murphy President & Chief Executive Officer
Slide 14: Becoming Canada's largest specialty pharmacy
Becoming Canada’s + largest specialty pharmacy
Slide 15: Acquisition of Remedy'sRx
Acquisition of Remedy’sRx ▪ Signed definitive agreement on March 23rd for the acquisition of Remedy Holdings Inc. and the Remedy’sRx Specialty Pharmacy Business ▪ Purchase price of $39.0 million ▪ Potential earn-out of up to $5.0 million based on certain performance thresholds being met on the first
Slide 16: A Look at the Combined Business
A Look at the Combined Business Combined Business Beds Beds Beds ~31,500 ~50,000 ~18,500 Serviced Serviced Serviced Western Western Western Geography Canada & Geography Canada & Geography Canada & Ontario Ontario Ontario Revenue $125mm Revenue $185mm Revenue $60mm Canada’s largest specialty pharmacy
Slide 17: Compelling Transaction Rationale
Compelling Transaction Rationale ▪ Creates largest Canadian specialty pharmacy business, best positioned to capitalize on industry dynamics that present near-term opportunities to capture market share ▪ Highly complementary organizations with significant opportunity to implement best practices and c
Slide 18: Our Vital Role During the COVID-19 Pandemic
Our Vital Role During the COVID-19 Pandemic ▪ Pharmacy is an essential service – our sites remain fully operational ▪ Ensuring the safe and timely delivery of medications to seniors in the homes we service ▪ Working with suppliers and home operator partners to minimize disruptions 18
Slide 19: Questions?
Questions?