CareRx Corporation (TSX:CRRX) has reported first-quarter financial results, revealing a narrowing loss despite challenges in the labor market, according to CEO David Murphy.
The company posted revenue of $91.4 million, down 2% year-over-year from $93.2 million, and adjusted EBITDA of $6.8 million, down 21% from $8.6 million. Net loss shrank 22% to $2.1 million from $2.8 million.
The revenue decline can be attributed in part to the offboarding of a large customer contract that was substantially completed in the fourth quarter of 2022. This contract loss was partially offset by the contribution of new beds onboarded throughout 2022 and the first quarter of 2023, the company said.
There was also the matter of increasing incremental costs associated with challenges in the healthcare labor market related to scarcity and increased competition for certain pharmacy positions, the company said. This has resulted in a higher number of open positions and a longer time to fill vacancies.
"Our first quarter results were in line with our expectations, and reflect our team's exceptional work improving our business performance and managing the challenges we've been facing in the healthcare labor market," Murphy said. "Together, we have grown CareRx into the leading national congregate care pharmacy provider, delivering critical services to our most vulnerable populations. I'm proud of what we have built and am extremely confident about the next chapter of CareRx's growth under Puneet's leadership."
Meanwhile, CareRx announced that since the end of the first quarter, Murphy plans to resign, effective May 31. Chief operating officer Puneet Khanna will take on the role, according to a statement.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel