Carerx Corporation · TSX:CRRX
Carerx — Investor Presentation (May 2022)
22 slides from Carerx's investor presentation, May 2022
Slide 1: Investor Presentation: Canada's Largest Seniors Care Pharmacy Provider
Canada’s Largest Seniors Care Pharmacy Provider TSX: CRRX Investor Presentation May 2022
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: Canada's largest and fastest growing provider of pharmacy services to seniors
Canada’s largest and fastest growing provider of pharmacy services to seniors housing communities and other congregate care settings 3 3
Slide 4: Medication supply and management is a critical component of seniors care
The typical senior Medication supply and in a long-term management is a critical care or retirement component of seniors home care home takes • Optimize medication regimen for optimal 4 to 12 resident outcomes • Ensure highest levels of safety • Minimize hospital visits medications daily 4 Never has
Slide 5: Comprehensive Institutional Pharmacy Services Offering
Comprehensive Institutional Pharmacy Services Offering Dispensing Clinical and Support Equipment and Services Services Technology • High-volume solutions for cost- • Pharmacist led medication • Medication and treatment carts with effective supply of all medications reconciliation for new admissions
Slide 6: Growing National Scale
Strongest Network in the Sector Growing National Scale PacMed/PacVision equipment >96,000 beds serviced at all locations seniors housing Geographies: Ontario >1,600 communities & Western Canada fulfilment 31 Strong Bed Growth 1 centres >96,000 100,000 monthly 80,000 >3.1 M prescriptions 60,000 40,00
Slide 7: Seniors housing beds in Canada forecast to grow
Today Next ~15 years Seniors housing beds - Canada Number of beds in Canada forecast to grow ~425,000 (and growing) >2x 1,025,000 23% >96,000 Rest of Market 9% Comp A ~37,000 ~425,000 ~292,000 68% Note: Incumbent bed counts per management estimates. Total seniors housing beds per CMHC Seniors Housin
Slide 8: Continuing the Growth Trajectory
Continuing the Growth Trajectory Today 2024 Target Organic growth Increase number of beds >96,000 under contract 130,000 beds beds Strategic acquisitions ~$390M Consolidate a highly $500M fragmented market in revenue1 in revenue 1. Annualized run rate based on Q4/21 revenue. 8 Significant operating
Slide 9: Organic Growth: Well Positioned to Capitalize on a Transforming Market
Organic Growth: Well Multiple Opportunities for Positioned to Capitalize Organic Growth on a Transforming Market Grow with existing customers Canadian LTC industry has as they expand commenced a period of • Acquisitions substantial expansion & • New home builds consolidation • New bed license alloca
Slide 10: Successful Execution of Acquisition Strategy
Successful Execution of Acquisition Strategy Proven ability to acquire at accretive multiples, rapidly integrate and realize synergies May 2020 April 2021 June 2021 August 2021 Remedy’sRx SmartMeds Rexall Medical Specialty Pharmacy Pharmacies +18,500 beds +2,400 beds +4,000 beds LTC Pharmacy Purchas
Slide 11: Medical Pharmacies: Our Largest & Most Significant Acquisition to Date
Medical Pharmacies: Our Largest & Most Significant • 5 sites consolidated by end of 2021 Acquisition to Date • 5 additional sites expected to be August 23, 2021: Completed consolidated in 2022 Acquisition of LTC Pharmacy Division of Medical Pharmacies • Cost savings synergies of $0.2 M in Q4/21 • Ad
Slide 12: Hogan: Adds Innovative Pharmacy Services Delivery Model
Hogan: Adds Innovative Hogan Model: Pharmacy Services • Uses biometrically secured Delivery Model "smart" medication dispensing cabinets March 29, 2022: Agreement to Acquire Hogan Long-Term Care Pharmacy • 24/7 pharmacist • Award-winning Hogan Model support • Currently servicing ~725 beds • Fully in
Slide 13: Driving Efficiencies Through Expanded Scale
Driving Efficiencies Through Expanded Scale New high-volume fulfilment centre in Oakville, ON • Enables higher volumes Single High-Volume without additional labour costs Fulfilment Centre • Capable of serving ~30,000 beds – 3x that of previously largest ~30,000 beds facility • First pharmacy in Cana
Slide 14: Successful Execution of Our Growth Strategy
Successful Execution of Our Growth Strategy Ave. Beds Serviced Revenue Adj. EBITDA Revenue Adj. EBITDA (000s) (from continuing ops) (from continuing ops) (from continuing ops) (from continuing ops) ($ millions) ($ millions) ($ millions) ($ millions) 262.6 22.9 96.3 96.9 7.6 162.2 12.8 48.8 46.4 118.
Slide 15: Better Positioned Than Ever for Continued Growth
Better Positioned >96,000 beds 23% Than Ever for Continued Growth • Positioned to benefit from increased scale 77% and enhanced capabilities • Experiencing accelerated organic growth Market Opportunity via • Significantly strengthened position as a Organic Growth & Acquisitions natural consolidator
Slide 16: Large, high-growth seniors living market
1 2 3 Large, high-growth Canada’s largest Leading customer seniors living market seniors care value proposition and pharmacy provider national network 4 5 Compelling organic Significant operating and acquisition leverage growth opportunities 16 www.carerx.ca
Slide 17: Appendix
Canada’s Largest Seniors Care Pharmacy Provider TSX: CRRX Appendix
Slide 18: 2024 Targets Compelling Value
2024 Targets Compelling Value 14.0x Neighbourly 10.5x Number of beds 130,000 U.S. Healthcare 13.2x 12.0x 13.2x dentalcorp $500M 10.8x Revenue Rubicon 12.0x Acquisition n/a 11.5x Adj. EBITDA 12-13% Savaria 10.3x Margin 8.0x CareRx 6.8x Note: Number of beds, revenue and adjusted EBITDA margin for 2024
Slide 19: Comp Table
Comp Table Source: FactSet. Adj. EBITDA % EV/Adj. EBITDA EV/Sales (2022E) Adj. EBITDA Net Debt/Adj. Growth (2022E) (2022E) Margin (2022E) EBITDA (2022E) Canada Neighbourly Pharmacy 91% 14.0x 1.7x 12% 1.2x Dentalcorp. 25% 13.2x 2.5x 19% 3.9x Savaria Corp. 28% 11.5x 1.9x 17% 2.8x Nova Leap Health Corp
Slide 20: Balance Sheet
Balance Sheet (millions except ratio) At Dec. 31/21 • Repayment of $4 M vendor take back note • Cash flow from operations for full year Cash $35.6 increased to $7.3 M from $0.2 M in 2021 Net Debt1 $57.6 Net Debt to Adjusted EBITDA2 1.9x 20 1. Debt = borrowings (principal) not including November 2019
Slide 21: Capital Structure
Capital Structure Shares Outstanding (000’s) 2,209 57,635 60,000 8,883 46,542 40,000 Total Debt (at Dec 31/21) (millions) 20,000 0 Current I/O Convertible Other Outstanding Total Fully Diluted Debentures Instruments $20.0 Fully Diluted Ownership $60.0 Yorkville 13,558,307 23.5% Bruce Moody 6,025,112
Slide 22: Investor Presentation
Canada’s Largest Seniors Care Pharmacy Provider TSX: CRRX Investor Presentation May 2022