CareRx Corporation (TSX:CRRX) posted third-quarter results that saw its revenue jump 56% year-on-year, driven by strong contributions from its acquisitions, and strong organic growth.
For the period ended September 30, 2021, the Toronto-based provider of pharmacy services to senior living communities, reported revenue of C$71.3 million, compared to C$45.6 million in the 3Q of 2020.
The company also logged 79% year-on-year growth in adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization for the quarter.
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The company received funds under its previously completed private placements of subscription receipts for total gross proceeds of C$63.3 million and issued common shares totaling 12,524,880.
CareRx highlighted that during the quarter it completed the acquisition of the long-term care pharmacy division (the MPGL LTC Pharmacy Business) of Medical Pharmacies Group Limited.
Following the completion of the acquisition, CareRx now serves over 92,000 residents in over 1,600 senior and other congregate care communities across Canada, further expanding CareRx's leading national footprint.
In a statement accompanying the numbers, CareRx President and CEO David Murphy said: "Third quarter revenue and Adjusted EBITDA were better than anticipated, driven by strong contribution from acquisitions, accelerated organic growth, and continued outstanding execution by our team."
"Each of our acquisitions, including that of the Medical Pharmacies long-term care pharmacy business, are performing in line with or ahead of expectations, and integration activities are on schedule,” he added.
Murphy noted that as pandemic-related impacts on “our sector continue to subside, we are seeing increased opportunities to acquire new customers” and add new beds.
“Organic growth in the 3Q alone consisted of more than 2,200 new beds, with additional wins that have been onboarded during the fourth quarter,” added Murphy. “This renewed momentum in organic growth, combined with a continued robust and active acquisition pipeline, makes us highly confident in our ability to continue our growth trajectory in the quarters and years ahead."
The company will host a conference call, including a slide presentation, to discuss its 3Q financial results on November 10, 2021, at 8:00 am Eastern Time. Investors can access the conference call by dialing 416-764-8659 or 1-888-664-6392.
The firm will share a live webcast of the conference call, and slide presentation in the Investors section on its website.
CareRx Corporation (TSX:CRRX) has a large network of pharmacy fulfillment centres strategically located across Canada. This allows the leading provider of pharmacy services to seniors living communities to deliver medicines in a timely and cost-effective manner.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive