Carerx Corporation · TSX:CRRX
Carerx — Q1 2022 Earnings Presentation
18 slides from Carerx's earnings presentation, May 12, 2022
Slide 1: Q1 2022 Earnings Call
Q1 2022 Earnings Call May 12, 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: Q1 2022 Continued strong growth in revenue and Adjusted EBITDA
Q1 2022 Continued strong growth in revenue and Adjusted EBITDA Acquisitions continue to contribute in line with expectations Continued progress on integration of MPGL LTC Pharmacy Contribution from organic growth Agreement to acquire Hogan LTC Pharmacy 4
Slide 5: Q1 2022 Financial Highlights
Q1 2022 Financial Highlights From Continuing Operations (+/- compared to Q1 2021) • Average beds serviced of 95,204: +95% vs Q1/21 Q1 2022 • Growth driven by: (millions) • Acquisitions completed in 2021 Revenue $93.2 +108% • Contribution from organic Adjusted EBITDA $8.6 +111% growth from new contra
Slide 6: Successful Execution of Our Growth Strategy
Successful Execution of Our Growth Strategy Average Beds Serviced Revenue Adj. EBITDA (from continuing ops) (from continuing ops) (000s) ($ millions) ($ millions) 95 93.2 8.6 49 44.9 4.1 30 31 30.7 30.4 0.1 2.0 2.1 Q1 '19 Q1 '20 Q1 '21 Q1 '22 Q1 '19 Q1 '20 Q1 '21 Q1 '22 Q1 '19 Q1 '20 Q1 '21 Q1 '22 S
Slide 7: Medical Pharmacies: Our Largest & Most Significant Acquisition to Date
Medical Pharmacies: Our Largest & Most Significant 5 sites consolidated in 2021 Acquisition to Date • • 1 site consolidated in Q1/22 August 23, 2021: Completed Acquisition of LTC Pharmacy Division of Medical • 3 sites to be consolidated by Pharmacies Q3/22 • Added ~36,000 beds, serviced through 17 c
Slide 8: Hogan: Adds Innovative Pharmacy Services Delivery Model
Hogan: Adds Innovative Hogan Model: • Uses biometrically secured Pharmacy Services "smart" medication Delivery Model dispensing cabinets March 29, 2022: Agreement to Acquire Hogan Long-Term Care • 24/7 pharmacist Pharmacy support • Award-winning Hogan Model • Currently servicing ~725 beds • Fully in
Slide 9: Driving Efficiencies Through Expanded Scale
Driving Efficiencies Through Expanded Scale New high-volume fulfilment centre in Oakville, ON • Enables higher volumes Single High-Volume without additional labour costs Fulfilment Centre • Capable of serving ~30,000 beds – 3x that of previously largest ~30,000 beds facility • First pharmacy in Cana
Slide 10: Customer Contract Updates
Customer Contract Updates Renewals with three of four largest customers, including two largest customers • Represents ~18,000 beds • Beds will be under contract for an average of 5.5 years from end of 2021 Expected to offboard ~5,800 beds throughout H2/22 due to customer awarding RFP to another prov
Slide 11: Andrew Mok, Chief Financial Officer
Andrew Mok Chief Financial Officer 11
Slide 12: Q1 2022 Financial Results | Revenue
Q1 2022 Financial Results | Revenue (millions) 110 • 108% year-over-year growth $93.2 100 90 • Growth driven by SmartMeds, Rexall 80 and Medical Pharmacies LTC 70 Business acquisitions 60 $44.9 • All acquisitions continued to 50 contribute in line with expectations 40 • Contribution from organic gro
Slide 13: Q1 2022 Financial Results | Adjusted EBITDA
Q1 2022 Financial Results | Adjusted EBITDA (millions) • 111% year-over-year growth • Growth driven by 10 • Acquisitions completed in 2021 9 $8.6 • $0.5 M of cost savings synergies 8 from MPGL LTC Pharmacy Business 7 acquisition 6 • Organic growth from new contracts $4.1 onboarded throughout 2021 5
Slide 14: Balance Sheet
Balance Sheet (millions except ratio) At Mar. 31/21 • Ending cash balance and cash used in operations were impacted by the timing of Cash $28.5 working capital movements, including a $6.3M reduction in accounts payable during Net Debt1 $64.6 Q1/22 Net Debt to Adjusted EBITDA2 1.9x 14 1. Debt = borro
Slide 15: David Murphy, President & Chief Executive Officer
David Murphy President & Chief Executive Officer 15
Slide 16: Better Positioned than Ever for Continued Growth
Better Positioned than >96,0001 beds 23% Ever for Continued Growth 77% • Positioned to benefit from increased scale and enhanced capabilities • Confidence in organic growth prospects Market Opportunity via Organic Growth & Acquisitions • Significantly strengthened position as a natural consolidator
Slide 17: Inaugural ESG Report
Inaugural ESG Report Environmental, Social & Governance initiatives have long been an important part of our identity and are reflected in our core values 2022 ESG Report outlines our commitment to health and safety, employee engagement, diversity, equity and inclusion, data privacy and security, cor
Slide 18: Questions
Questions Visit our website at www.carerx.ca | Follow @CareRx on Twitter