CareRx Reports Results for the First Quarter of 2024

TORONTO - CareRx Corporation ( CareRx or the Company ) (TSX: CRRX), 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, 2024.

Our first quarter results were in line with our expectations, and the continued growth in Adjusted EBITDA margin reflects the ongoing progress from our team s exceptional work in improving our efficiencies and managing costs, said Puneet Khanna, President & Chief Executive Officer of CareRx. Coupled with enhancements to our technological and operational capabilities, we will continue to seek opportunities to drive profitable growth while remaining committed to providing exceptional pharmacy services to the rapidly expanding seniors living sector.

Highlights for the First Quarter of 2024

Revenue for the quarter was $89.7 million as compared to $91.1 million for the fourth quarter of 2023 and $91.4 million for the first quarter of 2023: Decrease was primarily due to a net reduction in the average number of beds serviced.

Adjusted EBITDA1 for the quarter was $7.4 million as compared to $7.5 million for the fourth quarter of 2023 and $6.8 million for the first quarter of 2023: Slight decrease as compared to the prior quarter was due to a net reduction in the average number of beds serviced and Increase as compared to the same period in the prior year was due to certain efficiencies and cost savings initiatives that commenced during the second half of 2023.

Net loss for the quarter was $0.5 million as compared to $3.7 million for the fourth quarter of 2023 and $2.1 million for the first quarter of 2023: Decrease compared to the prior quarter was mainly due to lower finance costs and the non-recurring intangible assets impairment recorded during the fourth quarter of 2023 and Decline in net loss as compared to the same period in the prior year was driven primarily by decreases in finance costs, share-based compensation expense, and the impact of certain cost savings initiatives that commenced during the second half of 2023.

In March 2024, the Ontario Ministry of Health issued an Executive Officer Notice announcing the postponement of the previously scheduled changes to long-term care pharmacy funding for a further year. These changes, which were scheduled to go into effect on April 1, 2024, would have reduced the fixed professional fee under the fee-per-bed capitation model from an annual amount of $1,500 dollars per bed to $1,400 dollars per bed on April 1, 2024.

On March 27, 2024, the Company entered into an automatic share purchase plan with a designated broker to allow for the purchase of shares under the normal course issuer bid during pre-determined times when the Company would ordinarily not be permitted to purchase shares due to regulatory restrictions and customary blackout periods.

About CareRx Corporation

CareRx is Canada s leading provider of pharmacy services to seniors living communities. We serve approximately 91,000 residents in over 1,500 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.

Contact:

Puneet Khanna

Tel: [phone]

Andrew Mok

Tel: [phone]

Neil Weber

Tel: [phone]

Email: [e-mail]

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