Mr. Puneet Khanna reports

CARERX REPORTS RESULTS FOR THE SECOND QUARTER OF 2023

CareRx Corp. has released its financial results for the second quarter ended June 30, 2023.

"We are pleased to have returned to generating organic quarter-over-quarter revenue and adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] growth in the second quarter, which was in line with our expectations. While CareRx has been navigating the various challenges in the health care labour market over the last year, our focus on organic growth opportunities and margin accretive efficiencies is starting to take hold and these results are reflective of that focus," said Puneet Khanna, president and chief executive officer of CareRx. "With the growth in beds serviced in the second quarter, we have now substantially offset the fiscal 2022 customer offboarding. CareRx will continue to focus on the execution of a comprehensive technology and operational process optimization program which is expected to result in cost savings and improved productivity. Over the next 12 months, these efforts are expected to drive improved financial and operating performance, strengthen our competitive advantage, and better position CareRx in this high-growth industry."

Highlights for the second quarter of 2023:

• Revenue for the quarter was $94.5-million as compared with $91.4-million for the first quarter of 2023 and $96.9-million for the second quarter of 2022:
  • Increase compared with the prior quarter was primarily due to an increase in the average number of beds serviced;
  • Decline compared with the same period in the prior year was primarily driven by a change in the mix of branded and generic pharmaceuticals dispensed, which did not negatively impact the company's profitability in the quarter.
• Adjusted EBITDA for the quarter was $7-million as compared with $6.8-million for the first quarter of 2023 and $8.8-million for the second quarter of 2022:
  • Increase compared with the prior quarter was due to an increase in the average number of beds serviced;
  • Decline compared with the same period in the prior year was primarily the result of incremental costs associated with continued challenges in the health care labour market.
• Net income for the quarter was $1.9-million as compared with a net loss of $2.1-million for the first quarter of 2023 and a net loss of $25.1-million for the second quarter of 2022:
  • Elimination of net loss as compared with the prior quarter was primarily due to an increase in income tax recovery;
  • Elimination of net loss as compared with the same period in the prior year was driven primarily by non-cash adjustments including impairment losses related to goodwill and intangible assets and investments recorded during the second quarter of 2022, which did not recur in 2023.
• Effective May 31, 2023, Mr. Khanna assumed the role of president and chief executive officer and joined the company's board of directors on June 6, 2023, after previously serving as the company's chief operating officer.
• On June 6, 2023, Jeff Watson joined the company's board of directors. Mr. Watson most recently served as the president and chief executive officer of Apotex Inc. from December, 2018, to April, 2023.

Conference call

The company will host a conference call, including a slide presentation, to discuss its second quarter of 2023 financial results on Thursday, Aug. 10, 2023, at 8:30 a.m. Eastern Time (ET).

Telephone dial-in access information

To join the conference call without operator assistance, you may register and enter your phone number to receive an instant automated call.

To dial direct and enter the call through an operator, dial 416-764-8659 or 1-888-664-6392. 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 on-line 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. 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.

About CareRx Corp.

CareRx is Canada's leading provider of pharmacy services to seniors living communities. It serves over 95,000 residents in over 1,500 seniors and other congregate care communities (long-term care homes, retirement homes, assisted living facilities and group homes). CareRx is a national organization with a large network of pharmacy fulfilment centres strategically located across the country. This allows the company to deliver medications in a timely and cost-effective manner and quickly respond to routine changes in medication management. The company uses best-in-class technology that automates the preparation and verification of multidose compliance packaging of medication, providing the highest levels of safety and adherence for individuals with complex medication regimes. CareRx takes an active role in working with its home operator partners to promote resident health, staff education, and medication system quality and efficiency.

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