CareRx Corporation (TSX:CRRX) has said it continued to see strong growth in the second quarter of this year, with revenue surging 95%.
The provider of pharmacy services to seniors living communities reported revenue of $96.9 million in the three months to June 30, 2022, up from $49.7 million in the second quarter last year, with adjusted earnings before interest, tax, depreciation and amortization (EBITDA) jumping 103% to $8.8 million.
"Our second quarter results reflect the continued execution of our growth strategy, with a 95% year-over-year increase in revenue and a 103% increase in adjusted EBITDA as we completed the acquisition of the Hogan Long-Term Care Pharmacy Business and benefited from the contribution and synergies of our 2021 acquisitions and new contract wins," said David Murphy, president and CEO of CareRx in a statement.
READ: CareRx closes acquisition of Hogan Pharmacy Partners, inks multi-year partnership with seniors living operator
The company said 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.
“While we are taking measures to mitigate this impact, we expect these challenges to persist for the remainder of the year, given broader trends in the labour market for healthcare workers,” CEO Murphy said.
“Despite these short-term headwinds, we remain optimistic about our long-term growth prospects as the market leader in a highly fragmented industry with favourable demographic and other trends," he added.
The company’s net loss increased to $25.1 million from $8.5 million, driven primarily by non-cash adjustments including impairment losses related to goodwill and intangible assets totaling $24.3 million, which were partially offset by the contribution of last year’s acquisitions of the long-term care pharmacy businesses of Rexall Health Solutions and Medical Pharmacies Group.
The company is hosting a conference call to discuss its second-quarter 2022 financial results on Monday, August 15, 2022 at 8:30 am ET. A live webcast of the conference call will be available here
CareRx is Canada's leading provider of pharmacy services to seniors living communities, serving over 97,000 residents in over 1,600 seniors and other congregate care communities.
Contact the author at jon.hopkins@proactiveinvestors.com