• Return to Growth

Toronto, Ontario--(Newsfile Corp. - May 7, 2025) - CareRx Corporation (TSX: CRRX) ("CareRx" or the "Company"), Canada's leading provider of pharmacy services to seniors living and other congregate care communities, today reported its financial results for the first quarter ended March 31, 2025.

"Over the past several quarters, we have made meaningful progress in strengthening our financial and operational foundation," said Puneet Khanna, President and Chief Executive Officer of CareRx. "Through focused investments, the Company has enhanced its ability for scalable, sustainable growth while maintaining cost discipline, resulting in improved margin performance and a stronger balance sheet. As we enter a new growth phase, we remain committed to delivering long-term value for all stakeholders."

Highlights for the First Quarter of 2025

• Revenue for the quarter was $89.6 million compared to $92.2 million for the fourth quarter of 2024 and $89.7 million for the first quarter of 2024:
  • The Company's revenue decrease compared to the fourth quarter of 2024 was primarily due to the first quarter having two fewer business days; and
  • Revenue was stable compared to the same period in the prior year primarily due to a change in the mix of branded and generic pharmaceuticals dispensed.
• Adjusted EBITDA¹ for the quarter was $7.8 million compared to $7.6 million for the fourth quarter of 2024 and $7.4 million for the first quarter of 2024:
  • Increase compared to the prior quarter due to non-recurring adjustments in other operating expenses that occurred in that period; and
  • Increase compared to the first quarter of 2024 was primarily due to certain efficiencies and cost savings initiatives.
• Net income for the quarter was $0.2 million compared to a net loss of $2.2 million for the fourth quarter of 2024 and net loss of $0.5 million for the first quarter of 2024:
  • Net income was generated primarily due to decrease in finance costs, lower share-based compensation expense and lower loss on disposal of assets as compared to the fourth quarter of 2024; and
  • Elimination of net loss compared to the same period in the prior year was driven primarily by decreases in finance costs, and depreciation and amortization expenses, partially offset by increase in transaction, restructuring and other costs and reduced favourable adjustment in fair value of contingent consideration liability.
• In December 2024, the Company opened a new state-of-the-art pharmacy in North Burnaby, British Columbia, and subsequently completed the consolidation of its existing Burnaby and Vancouver pharmacy operations into this new location during the first quarter of 2025.
• In April 2025, the Ontario Ministry of Health issued an Executive Officer Notice announcing a pause in the previously scheduled changes to long-term care pharmacy funding. These changes, which were scheduled to go into effect on April 1, 2025, would have reduced the fixed professional fee under the fee-per-bed capitation model from an annual amount of $1,500 to $1,400 per bed, with further annual decreases of $100 until reaching $1,200 per bed.

¹ See "Non-IFRS Measures" below

FINANCIAL RESULTS

Selected Financial Information

¹ See "Non-IFRS Measures" below.

Conference Call

The Company will host a conference call, including a slide presentation, to discuss its first quarter of 2025 financial results on Wednesday, May 7, 2025, at 10:30 a.m. Eastern Time (ET).

Telephone Dial-In Access Information

To dial direct and enter the call through an operator, dial 647-484-8814 or 1-844-763-8274. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. Those participating in the conference call by telephone can view the slide presentation by accessing the online webcast (see instructions below) and choosing the Non-Streaming Audio option.

Webcast Access Information

A live webcast of the conference call, including the slide presentation, will be available on the Events and Presentations page of the Investors section of the Company's website (https://carerx.ca/presentations/). You may also access the webcast with the attached link https://www.gowebcasting.com/14021 to access the live webcast. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. To view the webcast presentation with slides, please choose either the Real Streaming Audio or Windows Streaming Audio option.

The webcast with slide presentation will be archived for 90 days on the Events and Presentations page of the Investors section of the Company's website (https://carerx.ca/presentations/).

About CareRx Corporation

CareRx is Canada's leading provider of pharmacy services to seniors living communities. We serve approximately 88,000 residents in approximately 1,450 seniors and other congregate care communities (long-term care homes, retirement homes, assisted living facilities, and group homes). We are a national organization with a large network of pharmacy fulfillment centres strategically located across the country. This allows us to deliver medications in a timely and cost-effective manner and quickly respond to routine changes in medication management. We use best-in-class technology that automates the preparation and verification of multi-dose compliance packaging of medication, providing the highest levels of safety and adherence for individuals with complex medication regimens. We take an active role in working with our home operator partners to promote resident health, staff education, and medication system quality and efficiency.

Forward-Looking Statements

This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements regarding the Company's business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.

Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Factors that could cause such differences include the Company's general business risks, the Company's exposure to and reliance on government regulation and funding, risks related to employee recruitment and retention, the Company's liquidity and capital requirements, exposure to epidemic or pandemic outbreak, reliance on contracts with key care operators and other risk factors described from time to time in the reports and disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and neither the Company nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. The factors underlying current expectations are dynamic and subject to change.

Non-IFRS Measures

This press release includes certain measures which have not been prepared in accordance with IFRS such as "EBITDA", "Adjusted EBITDA", "Adjusted EBITDA Margin" and "Adjusted EBITDA per share". These non-IFRS measures are not recognized under IFRS and, accordingly, shareholders are cautioned that these measures should not be construed as alternatives to net income determined in accordance with IFRS. The non-IFRS measures presented are unlikely to be comparable to similar measures presented by other issuers.

The Company defines "EBITDA" as earnings before depreciation and amortization, finance costs, net, and income tax expense (recovery). "Adjusted EBITDA" is defined as EBITDA before transaction, restructuring and other costs, change in fair value of contingent consideration liability, impairments, change in fair value of derivative financial instruments, change in fair value of investment, (gain) loss on disposal of property and equipment and share-based compensation expense. "Adjusted EBITDA Margin" is defined as Adjusted EBITDA divided by revenue. "Adjusted EBITDA per share" is defined as Adjusted EBITDA divided by the weighted average outstanding shares. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service interest and principal debt repayments and fund future growth initiatives. The Company's agreements with lenders are also structured with certain financial performance covenants which includes Adjusted EBITDA as a key component of the covenant calculation. EBITDA and Adjusted EBITDA are not recognized measures under IFRS.

Reconciliation of Non-IFRS Measures