Mr. Puneet Khanna reports

CARERX REPORTS RESULTS FOR THE THIRD QUARTER OF 2023

CareRx Corp. has released its financial results for the third quarter ended Sept. 30, 2023.

"Our third quarter results were in line with our expectations, and our quarter-over-quarter improvement in adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] reflects early progress from our team's exceptional work in improving our efficiencies and managing the cost challenges that we have been facing in the health care labour market," said Puneet Khanna, president and chief executive officer of CareRx. "Through enhancements in our technological and operational capabilities, as well as an organizational focus on margin-enhancing initiatives, we intend to further leverage our industry leadership position in order to drive profitable growth as we continue to provide value-added service to the expanding seniors living sector."

Highlights for the third quarter of 2023:

• Revenue for the quarter was $93.8-million as compared with $94.5-million for the second quarter of 2023 and $97.4-million for the third quarter of 2022:
  • Decrease compared with the prior quarter was primarily due to a small net reduction in the average number of beds serviced;
  • Decrease 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 $7.3-million as compared with $7-million for the second quarter of 2023 and $7.7-million for the third quarter of 2022:
  • Increase compared with the prior quarter was due to certain cost savings and margin-enhancing initiatives implemented during the third quarter of 2023;
  • Decrease 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 loss for the quarter was $1.4-million as compared with net income of $1.9-million for the second quarter of 2023 and net loss of $1.8-million for the third quarter of 2022:
  • Net loss in the quarter compared with net income generated in the second quarter of 2023 was primarily due to a non-recurring income tax recovery that was recorded during the second quarter of 2023;
  • Decline in net loss as compared with the same period in the prior year was driven primarily by decreases in share-based compensation expense, transaction and restructuring costs, finance costs, and the loss on the change in fair value of contingent consideration liabilities.
• On Sept. 7, 2023, the company launched a normal course issuer bid to repurchase for cancellation up to one million of the company's common shares during the period from Sept. 7, 2023, to Sept. 6, 2024, subject to certain daily limitations.

Conference call

The company will host a conference call, including a slide presentation, to discuss its third quarter of 2023 financial results on Wednesday, Nov. 8, 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 approximately 94,000 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. CareRx 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. The company 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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