CareRx Corporation (TSX:CRRX) has reported its financial results for the fourth quarter ended December 31, 2022, during which a key success was winning a multi-year contract to provide pharmacy services to residents in multiple seniors living facilities in Atlantic Canada.
"Our 2022 results reflect the exceptional progress we have made in growing our national presence and expanding our leadership position over the past three years," said David Murphy, president and chief executive officer of CareRx in the results statement.
"During that period, we have more than tripled our revenue and Adjusted EBITDA. With long-term contract extensions now in place with our largest home operator partners, and our geographic expansion plans well underway, we are very well positioned to continue this robust growth trajectory as the leading pharmacy partner to the rapidly expanding seniors living sector."
READ: CareRx earns repeat ‘Buy’ rating from Canaccord analysts with reduced price target following equity financing
Notably, after the end of the fourth quarter, the company completed a public offering and private placement of common shares for total gross proceeds of approximately $16.1 million.
"While challenges in the healthcare labour market continue to impact the sector and put short-term strain on our operations and cost structure, we are confident in our long-term ability to leverage our scale and capabilities to provide superior service, drive efficiencies and margin expansion, and create exceptional value for all of our stakeholders," Murphy added.
4Q Highlights:
- Revenue eased by 3% to $94.3 million from $96.9 million. The decline was mainly due to the offboarding of a large customer contract although the impact was partly offset by the contribution of new beds onboarded throughout 2022.
- Adjusted EBITDA decreased 6% to $7.1 million from $7.6 million. Again, the decline was partially driven by the offboarding of the large customer contract. Another factor was the certain incremental costs associated with continued challenges in the healthcare labour market
- Net loss widened by 5% to $4.7 million from $4.4 million. The loss was driven primarily by the commencement of the customer offboarding, incremental labour costs, higher share-based compensation expense, the loss on the change in fair value of contingent consideration liabilities and income tax expense.
Conference Call
The company said it will host a conference call to discuss its results on March 9, 2023, at 8.30am ET. To join the conference call without operator assistance, participants may register and enter their phone number via this link to receive an instant automated call. To dial direct and enter the call through an operator, participants may dial these numbers.
CareRx is Canada's leading provider of pharmacy services to seniors living communities, serving over 94,000 residents in over 1,600 seniors and other congregate care communities.
Contact the author at jon.hopkins@proactiveinvestors.com