Carerx Corporation · TSX:CRRX
Carerx — Centric Health — Q3 2019 Earnings Presentation
14 slides from Carerx's earnings presentation, Nov 12, 2019
Slide 1: Q3 2019 Earnings Call
Q3 2019 Earnings Call November 12, 2019
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: Third Quarter Highlights
Third Quarter Highlights 204.1% ▪ Specialty Pharmacy revenue increased 12.4% to $31.4 million growth in Specialty ▪ Average number of beds Pharmacy Adjusted serviced up 7.7% to 31,281 EBITDA ▪ Sale of Surgical and Medical Centres ▪ Private placement with Yorkville Margin of 12.9% Asset Management 4
Slide 5: Continued Growth in Number of Beds Serviced
Continued Growth in Number of Beds Serviced 31,265 31,281 ▪ Increased average beds serviced by 2,241 compared 30,341 to Q3 2018 29,690 ▪ Average beds serviced up 29,040 7.7% since Q3 2018, representing a compound Average number of quarterly growth rate of beds serviced* close to 1.9% Q3 18 Q4 18 Q1
Slide 6: Sale of Surgical and Medical Centres Division
Sale of Surgical and Medical Centres Division ▪ Entered definitive agreement with Kensington Capital Advisors on August 9, 2019 ▪ Cash purchase price of $35M ▪ Expected to close November 2019 ▪ Net proceeds will be used to pay down debt 6
Slide 7: Private Placement with Yorkville Asset Management
Private Placement with Yorkville Asset Management ▪ Signed a binding term sheet at the end of September ▪ Includes participation from existing major shareholders (Jack Shevel and Ewing Morris) and management ▪ $27.5M in 8.25% unsecured convertible debentures ▪ Up to $10.2M in common shares at $0.12
Slide 8: Continuing to Improve our Balance Sheet
Continuing to Improve our Balance Sheet YTD aggregate gross proceeds of up to $89.1 million ▪ Divestiture of ▪ Private placement non-core assets equity raises
Slide 9: Better Positioned for Growth
Better Positioned for Growth ▪ Momentum in our Specialty Pharmacy operations ▪ Divested non-core assets, deleveraged balance sheet ▪ Strengthened our ability to lead the market consolidation 9
Slide 10: Andrew Mok, Chief Financial Officer
Andrew Mok Chief Financial Officer
Slide 11: Specialty Pharmacy Quarterly Results
Specialty Pharmacy Quarterly Results Revenue ▪ Revenue of $31.4 million in Q3 ($ millions) 2019 32 ▪ Up 12.4% from $27.9 million in 24 Q3 2018 16 ▪ Drivers: Continued growth in beds serviced and the impact 8 of revenue initiatives from the 2018 Business Re-Engineering 0 Q3 2018 Q3 2019 Plan 11
Slide 12: Specialty Pharmacy Quarterly Results
Specialty Pharmacy Quarterly Results Adjusted EBITDA ▪ Adjusted EBITDA of $4.0 ($ thousands) million 4,038 3,703 3,342 ▪ Up 204.1% from Q3 2018 ▪ Adjusted EBITDA Margin = 2,119 12.9% vs 4.8% in Q3 2018 1,327 ▪ Fourth consecutive quarter of sequential profit growth Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3
Slide 13: Total Bank Debt
Total Bank Debt $77.7M Acquisition (Assumes partial exercise of upsize Facility option under private placement) Term Facility Revolving Revolving Facility $15.9M Facility Subordinated Subordinated Facility Facility 30-Sep-19 Pro-forma 13
Slide 14: Questions?
Questions?