TORONTO, Aug. 9, 2021 /CNW/ - CareRx Corporation ("CareRx" or the "Company") (TSX: CRRX), Canada's leading provider of pharmacy services to seniors living and other congregate care communities, today reported its financial results for the second quarter ended June 30, 2021.
Highlights for the Second Quarter of 2021
(All percentage increases are as compared to the second quarter of 2020)
- Revenue from continuing operations increased 25% to $49.7 million from $39.7 million:
- Driven primarily by the acquisition of the Remedy'sRx Specialty Pharmacy business ("Remedy's") partway through the second quarter of 2020 and the acquisition of SmartMeds Pharmacy ("SmartMeds") on April 1, 2021;
- Partially offset by a temporary COVID-19-related reduction in the average number of beds serviced during the quarter, which has improved since the peak impact in January, but has not yet returned to pre-COVID-19 levels;
- Adjusted EBITDA1 from continuing operations increased 54% to $4.3 million from $2.8 million:
- Driven by the acquisition of Remedy's, including the quarterly contribution of over $3.0 million in annualized cost saving synergies, as well as the acquisition of SmartMeds;
- Entered a definitive agreement to acquire the Long-Term Care Pharmacy Division of Medical Pharmacies Group Limited (the "MPGL Acquisition"), which is expected to close by mid-September 2021:
- Comprised of 18 facilities and approximately 36,000 beds;
- Expected to contribute run-rate annualized revenue and Adjusted EBITDA of approximately $150.0 million and $10.0 to 12.0 million, respectively, and minimum additional cost savings synergies of $5.0 million;
- Purchase price to be financed from $63.3 million of gross proceeds raised through brokered and non-brokered private placements of subscription receipts that were completed on May 19, 2021 and through incremental debt of $39.0 million with the Company's lenders;
- Completed the acquisition of the Long-Term Care Pharmacy Services business of Rexall Health Solutions ("Rexall LTC Pharmacy Business") on June 21, 2021:
- Adds approximately 4,000 beds across Ontario and Northern Alberta and expected to contribute run-rate annualized revenue of approximately $14.0 million and nominal Adjusted EBITDA, prior to any integration synergies; and
- Completed the acquisition of SmartMeds:
- Adds over 2,400 beds in Ontario and expected to contribute annualized run-rate revenue of $13.0 million and Adjusted EBITDA of $1.5 million, prior to any integration synergies.
"Our second quarter results reflect the continued execution of our growth strategy, with a 25% year-over-year increase in revenue and 54% increase in Adjusted EBITDA as we realized the contribution and synergies from the Remedy's and SmartMeds acquisitions," said David Murphy, President and Chief Executive Officer of CareRx. "We are on track to close the MPGL Acquisition by mid-September, and we are confident that the integration and resulting synergies will enable us to realize further efficiencies in our business, expand our Adjusted EBITDA margin, and create competitive advantages that will position us for continued growth and market share gains."
https://www.newswire.ca/news-releases/carerx-reports-25-year-over-year-growth-in-revenue-and-54-year-over-year-growth-in-adjusted-ebitda-for-second-quarter-of-2021-839610531.html