Mr. Puneet Khanna reports

CARERX REPORTS RESULTS FOR THE FOURTH QUARTER OF 2023

CareRx Corp. has released its financial results for the fourth quarter ended Dec. 31, 2023.

"In 2023, we made tremendous progress to deliver on our operational optimization program and further strengthen our financial position," said Puneet Khanna, president and chief executive officer of CareRx. "As evidenced by our third consecutive quarter of adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] growth and the improvement in our adjusted EBITDA margin, our focus on increasing productivity and driving efficiencies has better positioned CareRx to deliver sustained and accretive growth. Through our industry leadership position, we will continue to generate value for our shareholders, stakeholders and customers by providing exceptional pharmacy services to the rapidly expanding seniors living sector."

Highlights for the fourth quarter of 2023:

• Revenue for the quarter was $91.1-million as compared with $93.8-million for the third quarter of 2023 and $94.3-million for the fourth quarter of 2022:
  • Decrease compared with the prior quarter was mainly due to a 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 $7.5-million as compared with $7.3-million for the third quarter of 2023 and $7.1-million for the fourth quarter of 2022:
  • Increase to previous quarter and the same period in the prior year was due to certain efficiencies and cost-savings initiatives implemented during the second half of 2023.
• Net loss for the quarter was $3.7-million as compared with net loss $1.4-million for the third quarter of 2023 and net loss of $4.7-million for the fourth quarter of 2022:
  • Increase compared with the prior quarter was mainly due to a non-cash adjustment related to loss on financial liability extinguishment recorded as part of the refinancing transaction and a net reduction in the average number of beds serviced;
  • Decline in net loss as compared with the same period in the prior year was driven primarily by decreases in share-based compensation expense, the loss on the change in fair value of contingent consideration liabilities and the impact of certain cost-savings initiatives implemented during the second half of 2023, partially offset by a lower gain on the change in fair value of derivative financial instruments and intangible assets impairment recorded during the fourth quarter of 2023.
• On Dec. 21, 2023, the company entered into a comprehensive refinancing transaction led by a Canadian Schedule I chartered bank, and arranged and managed by Crown Private Credit Partners Inc. (CPCP). Under the terms of the refinancing, CPCP provided a senior secured revolving operating loan of up to $20-million and a $50-million senior secured term loan, of which $14-million and $47-million were advanced, respectively, on Dec. 21, 2023, with future draws on the term loan available to finance certain capital expenditures.
• The proceeds from the credit facilities, plus available cash on hand, were used to repay $78-million of existing debt and to redeem the entire aggregate principal of the Ewing convertible debentures that otherwise were set to mature on March 12, 2024.

Financial results

Conference call

The company will host a conference call, including a slide presentation, to discuss its fourth quarter of 2023 and the full year ended Dec. 31, 2023, financial results on Thursday, March 7, 2024, 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 on-line 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). The company is a national organization with a large network of pharmacy fulfilment centres strategically located across the country. This allows it 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 regimens. 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.

We seek Safe Harbor.