CareRx Corporation (TSX:CRRX) has posted fourth-quarter results that saw its revenue jump 109% year-on-year, driven by strong contributions from its acquisitions, and organic growth.
For the period ended December 31, 2021, the Toronto-based provider of pharmacy services to senior living communities, reported revenue of C$96.9 million, compared to C$46.4 million in the fourth quarter of 2020. Excluding $1.1 million in non-recurring costs, the company logged C$8.7 million in adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization for the quarter.
"The fourth quarter was a strong finish to an exceptional year that saw our bed count and revenue double as a result of the successful execution of our growth strategy," CareRx CEO David Murphy said in a statement.
"We made considerable progress on the integration of the MPGL LTC Pharmacy Business, acquired in August, such that we are on track to substantially complete the integration projects by the end of the third quarter this year, and remain firmly on track to realize $5 million of annualized costs savings synergies," he added.
READ: CareRx expands scope of medical supplies business under new Revicare brand
The net loss from operations increased by 47% to C$4.4 million from C$3 million.
CareRx’s cash pile from operating activities soared to C$7.3 million for the year ended December 31, 2021, compared to C$0.2 million for the year ended December 31, 2020.
During the quarter, CareRx signed a lease to build a new high-volume fulfillment centre in Burlington, Ontario. According to the company, it will be the first pharmacy in Canada to use BD Rowa Dose technology, enabling higher prescription volumes without additional labour costs, while improving safety and reducing medication packaging errors and waste.
“Next month, we will open our new state-of-the-art, high-volume fulfillment centre in Burlington – marking an important first step in the modernization of our fulfillment network,” said Murphy, while pointing out that this would allow the company to realize scale and efficiency advantages.
Significantly, CareRx has secured extensions after the fourth quarter with two of its largest customers, representing around 15,000 total beds serviced, for an average of 5.5 years from the end of 2021.
"The recent long-term contract extensions with our two largest home operator partners are further evidence of the value we provide in supporting our customers in the delivery of outstanding care to residents,” said Murphy. “For many home operators, the pandemic has highlighted the importance of their pharmacy partnership. We have built, and continue to strengthen, a differentiated offering that we believe makes us the ideal partner for their pharmacy needs.”
Moreover, the company has expanded the scope of its medical supplies business under a new brand, Revicare, offering an increased assortment of medical supplies.
CareRx noted that it was on a growth fast-track with its ability to improve badly needed healthcare for Canada’s older population.
“With the accelerated expansion of the seniors living sector in the months and years ahead, we are well positioned to grow with our customers and play a significant role in improving healthcare for the most vulnerable Canadians," concluded Murphy.
The company will host a conference call, including a slide presentation, to discuss its fourth quarter financial results on March 18, 2022, at 8:00 am ET. 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 has a large network of pharmacy fulfillment centres strategically located across Canada. This allows the leading provider of pharmacy services to senior living communities to deliver medicines in a timely and cost-effective manner. The company serves over 96,000 residents in over 1,600 seniors and other congregate care communities.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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