Carerx Corporation · TSX:CRRX
Carerx — Investor Presentation (June 2024)
23 slides from Carerx's investor presentation, June 2024
Slide 1: Canada's Largest Seniors Care Pharmacy Provider
Canada’s Largest Seniors Care Pharmacy Provider TSX: CRRX Investor Presentation June 2024
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: A growing market with strong demographic tailwinds
Currently >500,000 congregate care beds in Canada Canada’s over 65 population will grow by over 1.3 million over the next 5 years Nearly 1 in 5 Canadians The Ontario government has is aged 65 or older pledged to build 30,000 new LTC beds by 2028 3 3 A growing market with strong demographic tailwinds
Slide 4: Never has the level of care for these residents been so important
Adults aged 65 and older consume approximately 40% of all prescription drugs The typical senior and 25% of OTC drugs in a long-term care or retirement home takes 4 to 12 medications daily As the population ages so will the demand for specialized LTC pharmacy 4 4 4 Never has the level of care for the
Slide 5: Canada's largest provider of essential pharmacy services to seniors
Canada’s largest provider of essential pharmacy services to seniors housing communities and other congregate care settings National network of pharmacy fulfilment centers strategically located across Canada enabling timely and cost-effective medication and service delivery to long-term care homes 5
Slide 6: Who We Serve
Who We Serve Long-Term Care Homes Retirement and Assisted Living Supportive Housing & Group Comprehensive suite of services to Seamless transition of pharmacy Homes meet their complex and unique services for residents entering Expert support services for requirements retirement residences specialize
Slide 7: Comprehensive Services Offering
Comprehensive Services Offering Clinical & Support Services • Medication and treatment carts with tablets Clinical & Support Services • Digital prescribing technology Seniors Living • Electronic medication • Onsite geriatric-certified clinical pharmacists Facility administration (eMAR) software • Au
Slide 8: History
History Centric Health CareRx Acquired Commissioned BD Rowa Business restructuring advanced packaging and deleveraging Sale of surgical and Acquired Acquired technology at flagship medical centres division Oakville fulfilment centre Focus on institutional/specialty pharmacy Comprehensive debt refina
Slide 9: CareRx vs Retail Pharmacy
CareRx vs Retail Pharmacy Retail Facility move-in consultation with pharmacist ✓ Experienced pharmacist with specialized geriatric certification visits the facility ✓ Deprescribing of medications to improve health outcomes and patient safety ✓ After-hours emergency medications and 24/7 pharmac
Slide 10: CareRx Pharmacy
CareRx Pharmacy Not open to the public No front store High volume prescription expertise Expert pharmacy logistics services 10 Prescriptions sent to CareRx by 3 pm delivered same day
Slide 11: Reimbursement Model
Reimbursement Model Majority of pharmacy services and medications for seniors are paid for by provincial drug plans (e.g. Ontario Drug Benefit program) CareRx is actively engaged with governments in setting reimbursement model and service requirements Payors • Dispensing fee Government • Drug cost •
Slide 12: Technology Drives Efficiency & Safety
Technology Drives Efficiency & Safety LTC pharmacies play a key role in providing & supporting technologies to make the medication management system safe and efficient • Unit dose “pouch” packaged medications (PacMed and BD Rowa Dose) • “eMAR” software PacMed ADCs • Automated dispensing cabinets (AD
Slide 13: Revicare Medical Supplies
Revicare Medical Supplies Incontinence care products Nutritional products Arthritis care and compression stockings Wound care: Coloplast Ostomy and catheters RHA compliance Support 13
Slide 14: Nationwide Footprint: The Market Leader in Seniors Care Pharmacy
Nationwide Footprint The Market Leader in Seniors Care Pharmacy 91,000 Beds serviced >1,500 Seniors housing communities Serving the largest seniors home operators in Canada Fulfillment Tripled Beds in 3 Years 26 centres Year average contract 5+ term with our largest 91,000 customers 31,400 14 2020 2
Slide 15: Multi-Year Growth Opportunity
Multi-Year Growth Opportunity Next ~15 years CareRx 91,000 beds Number of beds in 18% Canada forecast to grow 1,025,000 82% >2x ~500,000 Current market ~500,000 available beds1 1. Includes seniors homes, group homes, corrections facilities and other congregate living settings 15 15 Increasingly comp
Slide 16: Growth Strategy
Growth Strategy ➢ Broadening scope of products and services (e.g. Revicare, BOOMR., etc.) ➢ Leverage scale & capabilities to provide superior pharmacy services offering Organic Bed Wins ➢ Increased focus on expansion to other congregate care settings ➢ LTC occupancy increasing post-Covid Home Partne
Slide 17: Leadership Team
Leadership Team Puneet Khanna Travis Featherstone President & Chief Executive Officer SVP, Western Operations & System Integration Former Chief Commercial Officer, COO and SVP, Corporate Joined CareRx in 2009 and has held various roles with increasing Development of CareRx; former CEO of MED e-care
Slide 18: Financial Performance
Financial Performance Revenue Adj. EBITDA Operating Cash Flow $381.7 $32.3 $27.4 $370.7 $28.7 $22.3 $262.6 $22.9 $162.2 $12.8 $7.3 $0.02 FY '20 FY '21 FY '22 FY '23 FY '20 FY '21 FY '22 FY '23 FY '20 FY '21 FY '22 FY '23 All figures in millions 18 18 Organic growth and acquisitions driving cash flow
Slide 19: Financial Performance
Financial Performance Adj. EBITDA & Margin 8.3% 8.2% 7.8% $7.5 $7.4 7.5% 7.5% $7.3 $7.0 $6.8 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 All figures in millions 19 19 Focused on accretive growth and operational efficiencies
Slide 20: Balance Sheet
Balance Sheet At March 31, 2024 Total Debt1 Cash $11.4 M $12.0 M Net Debt1 $48.8 M $1.2 M Net Debt to Adjusted EBITDA2 1.6x $47.0 M Term Loan Operating Loan Hogan Vendor Take-Back Note 20 1. Debt = borrowings (principal) not including November 2019 Convertible Debentures 2. Annual run-rate based on
Slide 21: Capital Structure and Ownership
Capital Structure and Ownership Shares Outstanding (000’s) Ownership 70,000 3,070 65,208 Fully Diluted Ownership 2,021 60,116 Yorkville Asset Management 14,854,639 22.8% 50,000 Management & Insiders 6,078,545 9.3% Other 44,274,370 67.9% 30,000 Total 65,207,554 100% 10,000 Current I/O Convertible Oth
Slide 22: Investment Highlights
Investment Highlights 1 2 3 4 Differentiated Highly Visible Demographic Management Strategy Recurring Revenue Tailwinds Largest pure-play 5+ year contract length Rapidly increasing seniors Leading long-term care pharmacy focused on with largest customers population and pharmacy management long-term
Slide 23: TSX: CRRX
Canada’s Largest Seniors Care Pharmacy Provider TSX: CRRX