Delivers Continued Growth in Adjusted EBITDA Margin TORONTO, May 10, 2024 /CNW/ - 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. 1 See "Non-IFRS Measures" below FINANCIAL RESULTS Selected Financial Information For the three month periods ended March 31, (Thousands of Canadian dollars except per share amounts and percentages) 2024 2023 2022 $ $ $ Revenue 89,729 91,404 93,176 EBITDA1 6,758 5,774 5,521 Adjusted EBITDA1 7,445 6,819 8,616