CareRx Reports Results for the First Quarter of 2025

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