CareRx Corp (CHHHF) Q1 2025 Earnings Call Highlights: Steady Revenue and Strategic Growth ...

GuruFocus News

Thu, May 8, 2025, 4:00 AM 3 min read

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• CareRx Corp (CHHHF) reported a unchangeable gross of $89.6 cardinal for Q1 2025, accordant with the erstwhile year.

• The institution successfully opened a caller state-of-the-art pharmacy fulfillment halfway successful North Burnaby, British Columbia, enhancing work transportation and worker enactment environment.

• Adjusted EBITDA accrued by 4.5% year-over-year to $7.8 million, with an improved borderline owed to efficiencies and cost-saving initiatives.

• Net income turned affirmative astatine $227,000, compared to a nett nonaccomplishment successful the erstwhile year, driven by reduced concern costs and depreciation expenses.

• CareRx Corp (CHHHF) secured 3,000 caller beds, with expected gross contributions ramping up implicit the adjacent 2 quarters, indicating robust maturation opportunities.

• Revenue decreased somewhat from the erstwhile 4th owed to 2 less operational days.

• The Ontario Ministry of Health postponed changes to semipermanent attraction pharmacy funding, creating uncertainty astir aboriginal gross impacts.

• Employee costs accrued owed to ostentation and merit adjustments, perchance affecting aboriginal profitability.

• The afloat benefits of consolidating operations into the caller Burnaby installation person not yet been realized, with expected impacts delayed to the second fractional of the year.

• Revenue per furniture was impacted by changes successful the premix of branded and generic pharmaceuticals, including the extremity of government-provided escaped COVID-19 therapies.

• Warning! GuruFocus has detected 8 Warning Signs with CHHHF.

Q: With a healthier equilibrium sheet, is CareRx Corp considering acquisitions oregon focusing connected integrated growth? A: Puneet Kona, President and CEO, stated that the institution is unfastened to some integrated maturation and acquisitions. They are comfy with winning beds successful the marketplace and are besides pursuing opportunities to get idiosyncratic contracts from smaller pharmacies.

Q: Can you supply much details connected the 3,000 furniture wins and the expected maturation for 2025? A: Puneet Kona confirmed that the 3,000 furniture wins see the 21 LTC homes antecedently mentioned. These are scheduled to beryllium onboarded by the extremity of Q2, with gross contributions ramping up implicit the adjacent 2 quarters. The institution is assured successful gathering maturation estimates for 2025.

Q: Are determination immoderate one-time costs related to the North Burnaby installation successful Q1, and what should beryllium expected for Q2? A: Suzanne Brand, CFO, noted that determination were minimal one-time costs related to the installation consolidation successful Q1. These costs were immaterial, and the institution is successful bully signifier moving forward.