Carerx Corporation · TSX:CRRX
Carerx — Centric Health — Q1 2020 Earnings Presentation
16 slides from Carerx's earnings presentation, May 13, 2020
Slide 1: Q1 2020 Earnings Call
Q1 2020 Earnings Call May 13, 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: Q1 2020 Highlights
Q1 2020 Highlights +3.0% +3.4% +10.0% Revenue Avg. # of Adjusted beds EBITDA ▪ Completed $28 million senior secured debt refinancing during the quarter with Crown Capital and Yorkville Asset Management ▪ Entered definitive agreement to acquire Remedy Holdings Inc. and the Remedy’sRx Specialty Pharma
Slide 5: Our Vital Role During COVID-19
Our Vital Role During COVID-19 ▪ Essential service – Many seniors rely on us for safe & timely delivery of their medications ▪ Our pharmacy sites remain fully operational ▪ No material impact on our financial results to date 5
Slide 6: Andrew Mok, Chief Financial Officer
Andrew Mok Chief Financial Officer
Slide 7: Quarterly Results: Revenue
Quarterly Results Revenue ▪ Revenue of $30.4 million in Q1 ($ millions) 2020 31 ▪ Up 3.0% from $29.5 million in Q1 2019 26 ▪ Driven by continued growth in the average number of beds 21 serviced and partially offset by the impact of amendments to the Ontario Drug Benefit Act 16 (“ODBA”) that came int
Slide 8: Quarterly Results: Adjusted EBITDA
Quarterly Results Adjusted EBITDA ▪ Adjusted EBITDA of $2.0 million ($ millions) ▪ Up 10.0% from Q1 2019 2 ▪ 22.3% reduction in corporate 1.5 costs partially offset by the impact of the amendments to the ODBA 1 0.5 Q1 2019 Q1 2020 8
Slide 9: Completion of Strategic Transformation
Completion of Strategic Transformation During the first quarter ▪ Completed the divestiture of the Performance Orthotics business ▪ Completed transactions with Crown Capital Partners and Yorkville Asset Management Inc. for and on behalf of certain managed funds for total gross proceeds of up to $42.
Slide 10: David Murphy, President & Chief Executive Officer
David Murphy President & Chief Executive Officer
Slide 11: Canada's Leading Specialty Pharmacy
Canada’s Leading Specialty Pharmacy ▪ Acquisition of Remedy’s # of Beds > 50,000 closed May 7, 2020 ▪ Including Remedy’s tuck-in acquisition of Integrity 31,382 Pharmacy (“iPharm”), the Remedy’s acquisition contributes approximately 19,300 beds to our bed count ▪ Our bed count is now over Pre Acquis
Slide 12: Bringing together two organizations committed to highest level of care
▪ Bringing together two organizations committed to providing the highest level of care for Canadian seniors ▪ Potential to realize material + synergies and create long-term value due to increased scale within our shared geographic markets ▪ Combined business well positioned to accelerate growth and
Slide 13: Welcoming the Remedy's Team
Welcoming the Remedy’s Team ▪ Jeff May appointed as our new Chief Operating Officer ▪ Remedy’s Executive Vice-President and General Manager since 2015 ▪ Bruce Moody appointed to Board of Directors ▪ Founder and former principal shareholder and CEO of Remedy's Jeff May 13
Slide 14: Market Share Leader in a Fragmented Sector
Market Share Leader in a Fragmented Sector #1 in market share 425,000 11.9% Centric Health Total beds in (post acquisition) market Significant opportunities exist for further market share growth Note: Incumbent bed counts per management estimates; Total market size per CMHC Seniors Housing Report Ca
Slide 15: Plan to Rebrand as CareRx Corporation
Plan to Rebrand as CareRx Corporation ▪ Rebrand to better reflect our strategic focus and core values ▪ Opportunity to unify our combined organization under a single national brand ▪ Name change is subject to shareholder approval ▪ Also planning to have trading symbol changed from CHH to CRRX 15
Slide 16: Questions?
Questions? 16