Carerx Corporation · TSX:CRRX
Carerx — Q4 2022 Earnings Presentation
18 slides from Carerx's earnings presentation, Mar 9, 2023
Slide 1: Q4 2022 Earnings Call
Q4 2022 Earnings Call March 9, 2022
Slide 2: Cautionary Statements
Cautionary 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
Slide 3: David Murphy, President & Chief Executive Officer
David Murphy President & Chief Executive Officer 3
Slide 4: Q4 and Full Year 2022
Q4 and Full Year 2022 Revenue in Q4 2022 of $94.3 million • 2022 revenue up 45% to $381.7 million Adjusted EBITDA in Q4 2022 of $7.1 million • 2022 Adjusted EBITDA up 41% to $32.3 million Announced expansion to Atlantic Canada Equity financing strengthens balance sheet 4
Slide 5: Q4 2022 Financial Highlights
Q4 2022 Financial Highlights From Continuing Operations • Average beds serviced of (+/- compared to Q4 2021) 93,852: -3% vs Q4 2021 • Revenue, Adjusted EBITDA and (millions) Q4 2022 bed count reflect previously announced customer Revenue $94.3 -3% offboarding partially offset by contribution of new
Slide 6: Successful Execution of Our Growth Strategy
Successful Execution of Our Growth Strategy Average Beds Serviced Revenue Adj. EBITDA (from continuing ops) (from continuing ops) (000s) ($ millions) ($ millions) 381.7 32.3 96 74 262.6 22.9 12.8 45 162.2 9.4 31 124.6 2.1 FY '19 FY '20 FY '21 FY '22 FY '19 FY '20 FY '21 FY '22 FY '19 FY '20 FY '21 F
Slide 7: Announced Expansion to Atlantic Canada
Announced Expansion to Atlantic Canada Largest Network in the Sector October 3, 2022: Announced a multi-year contract to provide pharmacy services to residents in multiple seniors living facilities in Atlantic Canada • Expect to commence servicing homes in Q3 2023 • Initially serving up to 600 resid
Slide 8: Andrew Mok, Chief Financial Officer
Andrew Mok Chief Financial Officer 8
Slide 9: Q4 2022 Financial Results | Revenue
Q4 2022 Financial Results | Revenue (millions) 110 • Revenue decline driven primarily by the 100 $96.9 $94.3 offboarding of a large customer contract 90 which was substantially completed by 80 the end of the year 70 60 • Contract loss partially offset by the 50 contribution of new beds onboarded 40
Slide 10: Q4 2022 Financial Results | Adjusted EBITDA
Q4 2022 Financial Results | Adjusted EBITDA (millions) • Adjusted EBITDA decline partially driven by the offboarding of a large customer 10 contract which was substantially 9 completed by the end of the year 8 $7.6 $7.1 7 • Decline also the result of incremental 6 costs associated with continued 5 c
Slide 11: Q4 2022 Financial Results | Incremental Labour Costs
Q4 2022 Financial Results | Incremental Labour Costs • Q4 2022 results include $1.5 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
Slide 12: Q4 2022 Financial Results | Net Loss
Q4 2022 Financial Results | Net Loss (millions) • Increase in net loss driven primarily by Q4 2021 Q4 2022 commencement of the customer offboarding, incremental costs incurred 0 as a result of the current labour market, higher share-based compensation -1 expense and loss on the change in fair value
Slide 13: Equity Financing Strengthens Balance Sheet
Equity Financing Strengthens Balance Sheet • 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 genera
Slide 14: Balance Sheet
Balance Sheet (millions except ratio) At December 31/22 • Increase in cash balance driven by cash provided by operating activities and the Cash $28.4 M timing of working capital movements Net Debt1 $66.2 M Net Debt to Adjusted EBITDA2 2.3x 14 1. Debt = borrowings (principal) not including November 2
Slide 15: David Murphy, President & Chief Executive Officer
David Murphy President & Chief Executive Officer 15
Slide 16: Strategic Priorities
Strategic Priorities Optimize business operations Strengthen balance sheet and improve cash generation Continue to grow revenue Expand industry advocacy efforts 16
Slide 17: Multiple Paths For Growth
Multiple Paths For Growth 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 contra
Slide 18: Questions
Questions Visit our website at www.carerx.ca | Follow @CareRx on Twitter