Q 2 Highlights :>(( Highlights for the Second Quarter of 2022
(All percentage increases are as compared to the second quarter of 2021)
- Revenue increased 95% to $96.9 million from $49.7 million:
- Growth driven primarily by contribution from the prior year acquisitions of the Long-Term Care Pharmacy Businesses of Rexall Health Solutions and Medical Pharmacies Group Limited (collectively, the "2021 Acquisitions"), the partial contribution of the Long-Term Care Pharmacy Business of Hogan Pharmacy Partners Ltd. (the "Hogan LTC Pharmacy Business") that was acquired on May 30, 2022 as well as organic growth from contracts that were onboarded over the last 12 months.
- Adjusted EBITDA1 increased 103% to $8.8 million from $4.3 million:
- Growth driven primarily by contributions of the 2021 Acquisitions, as well as from new contracts that were onboarded over the last 12 months.
- Adjusted EBITDA was partially impacted by incremental costs, including overtime, contract labour and recruitment costs, totaling $0.6 million, incurred as a result of challenges in the current labour market, which has resulted in a higher than average number of open pharmacy staff positions.
- Net loss increased by 196% to $25.1 million from $8.5 million:
- Increase in net loss was driven primarily by non-cash adjustments including impairment losses related to goodwill and intangible assets totaling $24.3 million, an increase in share-based compensation and adjustments related to the change in fair value of contingent consideration liability and the change in fair value of investment, which were partially offset by the contribution of the 2021 Acquisitions, the change in the fair value of derivative financial instruments and a decrease in transaction and restructuring costs.
- Completed the acquisition of the Hogan LTC Pharmacy Business on May 30, 2022, adding approximately 800 residents:
- Expected to contribute run-rate annualized revenue and Adjusted EBITDA1 of approximately $4.0 million and $0.6 million, respectively, prior to any benefits from the integration of the operations of the business and expected future bed growth of Hogan customers.
- Commenced operations at new high-volume fulfillment centre in Oakville, Ontario in April 2022.
- Pricing for certain select generic molecules were reduced effective April 29, 2022, from approximately 18% to 15% of their relevant brand reference prices under the agreement between the pan-Canadian Pharmaceutical Alliance and the Canadian Generic Pharmaceutical Association.
- Appointed Maria Perrella as an independent member of the Company's Board of Directors and Audit Committee Chair.