Company delivers 4.0% same store sales growth
as same store script count increases 2.6%
TORONTO, Oct. 24,
2023 /CNW/ - Neighbourly Pharmacy Inc.
("Neighbourly" or the "Company") (TSX: NBLY),
Canada's largest and fastest
growing network of independent pharmacies, today announced its
financial results for the twelve-week period ended September 9, 2023 (the "second quarter
2024").
"Neighbourly's second quarter results reflect the increasing
momentum of our pharmacy business, our focus on operational
execution and the ongoing contributions from our robust M&A
pipeline," stated Skip Bourdo, the
Company's Chief Executive Officer. "The team continues to deliver
on our growth initiatives, as we maintain an unwavering focus on
delivering exceptional patient care," concluded Mr. Bourdo.
Second Quarter 2024 Highlights
- Revenue for the second quarter increased to $203.2 million, up $24.3
million or 13.6% compared to prior year. 75% of the growth
was driven by pharmacies acquired in the past 12 months.
- Same store sales1 growth continued on a strong
trajectory, increasing 4.0% in the second quarter.
- Adjusted EBITDA2 for the second quarter increased to
$21.4 million, up 8.0% primarily due
to the incremental contributions from pharmacies added to the
Company's network in the past 12 months.
- The Company acquired one more pharmacy location subsequent to
quarter end, bringing the pharmacy network to 292 locations across
Canada.
- Adjusted Earnings per Share3 for the second quarter
of $0.13, compared to $0.12 in the second quarter of 2023.
- Pro-Forma Revenue3 of $889.2
million and Pro-Forma Adjusted EBITDA3 of $97.1 million.
|
___________________________________
|
|
1
Same-store sales is a supplementary measure, which represents sales
from comparable pharmacy locations that were owned and operated by
the Company with more than 52 consecutive weeks of
operations.
|
|
2
Adjusted EBITDA is a non-IFRS measure. See "Non-IFRS Measures" and
the reconciliation to the most directly comparable IFRS measure at
the conclusion of this news release.
|
|
3
Adjusted Earnings (Loss) per share, Proforma Revenue and Proforma
EBITDA are non-IFRS measures. See "Non-IFRS Measures" and the
reconciliation to the most directly comparable IFRS measure at the
conclusion of this news release.
|
Selected Second Quarter 2024 Results
|
|
|
Second
quarter
|
|
|
Year to Date
|
|
in 000's
|
|
|
2024
|
2023
|
|
|
2024
|
2023
|
|
Store count
|
|
|
292
|
276
|
|
|
292
|
276
|
|
|
|
|
|
|
|
|
|
|
Total
Prescriptions
|
|
|
3,421
|
3,058
|
|
|
6,720
|
4,962
|
|
Same-store
prescription growth (%)
|
|
|
2.6 %
|
(1.9 %)
|
|
|
1.7 %
|
(0.8 %)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$ 203,200
|
$
178,875
|
|
|
$
400,042
|
$
293,251
|
|
Same-store sales
growth (%)1
|
|
|
4.0 %
|
3.6 %
|
|
|
4.0 %
|
2.7 %
|
|
Pharmacy revenue as
a % of revenue
|
|
|
80.2 %
|
78.8 %
|
|
|
80.1 %
|
79.2 %
|
|
|
|
|
|
|
|
|
|
|
Corporate, general
& administrative ("CG&A") costs2
|
|
|
$
7,218
|
$ 6,879
|
|
|
$
14,014
|
$
11,416
|
|
CG&A as a % of
revenue
|
|
|
3.6 %
|
3.8 %
|
|
|
3.5 %
|
3.9 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA3
|
|
|
$ 21,358
|
$
19,776
|
|
|
$
41,233
|
$
31,036
|
|
Adjusted EBITDA
margin (%)
|
|
|
10.5 %
|
11.1 %
|
|
|
10.3 %
|
10.6 %
|
|
|
|
|
|
|
|
|
|
|
Pro-Forma Adjusted
EBITDA for the 52 weeks ended4
|
|
|
$
97,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro-Forma Revenue
for the 52 weeks ended5
|
|
|
$ 889,201
|
|
|
|
|
|
|
___________
|
|
|
|
|
|
|
|
|
|
1
Same-store sales is a supplmentary
measure, which represents sales from comparable pharmacy locations
that were owned and operated by the Company with more than 52
consecutive weeks of operations.
|
|
2
Corporate, general & administrative
costs represents costs incurred at the corporate level (as opposed
to costs incurred at the store level) and is a component of
Operating, general and administrative expenses. See reconciliation
in the "Results of Operations".
|
|
3
Adjusted EBITDA is a non-IFRS financial
measure and does not have any standard meaning under IFRS. Refer to
"Reconciliation of Non-IFRS Measures" of this MD&A for
additional information including a reconciliation to the most
comparable IFRS measure.
|
|
4
Pro-Forma Adjusted EBITDA is a non-IFRS
financial measure and does not have any standard meaning under
IFRS. Refer to "Reconciliation of Non-IFRS Measures" of this
MD&A for additional information including a reconciliation to
the most comparable IFRS measure.
|
|
5
Pro-Forma Revenue is a non-IFRS financial
measure and does not have any standard meaning under IFRS. Refer to
"Reconciliation of Non-IFRS Measures" of this MD&A for
additional information including a reconciliation to the most
comparable IFRS measure.
|
Declaration of Dividend
Neighbourly announced today that a quarterly dividend will be
paid on December 19, 2023, to the Company's common
shareholders of record as of November 21,
2023. The amount of the dividend will be $0.045 for each common share. This dividend
is an "eligible dividend" for Canadian income tax
purposes.
Conference Call and Webcast Information
A conference call will be held at 8:30AM Eastern on October
24, 2023, to discuss Neighbourly's financial results for the
second quarter 2024. Participants may join the Company's conference
call by dialing 416-764-8650 or 1-888-664-6383. For those unable to
participate, playback will be made available an hour after the
event at 416-764-8677 or 1-888-390-0541, utilizing passcode
142967#. The webcast of the call will also be archived and
available on the Company's website.
The conference call will also be available via webcast on the
Investor section of Neighbourly's website at
https://investors.neighbourlypharmacy.ca/events-and-presentations.
Neighbourly's unaudited consolidated financial statements and
accompanying notes, and Management's Discussion and Analysis for
the second quarter 2024 are available on the Company's website at
www.neighbourlypharmacy.ca and on SEDAR at www.sedar.com.
Persistence Capital Partners' Letter of Intent to Take
Neighbourly Private
With respect to Persistence Capital Partners' Letter of Intent
to take Neighbourly private, announced on October 3, 2023, neither Neighbourly nor the
Transaction Committee expect to make further public comment
regarding such matter until a definitive agreement is reached. As a
result, no updates in connection thereto will be made or discussed
during the scheduled Second Quarter 2024 conference call.
About Neighbourly Pharmacy Inc.
Neighbourly is Canada's largest
and fastest growing network of community
pharmacies. United by their patient first focus and their
role as essential and trusted healthcare hubs within their
communities, Neighbourly's pharmacies strive to provide
accessible healthcare with a personal touch. Since 2015,
Neighbourly has expanded its diversified national
footprint to include 292 locations, reinforcing the
Company's reputation as the industry's acquirer of choice.
Non-IFRS Measures
This press release makes reference to certain non-IFRS measures,
such as "Adjusted EBITDA", "Adjusted EBITDA Margin", "Pro-Forma
Adjusted EBITDA", "Pro-Forma Revenue", "Adjusted Net Income (Loss)"
and "Adjusted Earnings (Loss) Per Share." Refer to the
Company's Management's Discussion and Analysis dated August 1, 2023 for the twelve weeks ended
September 9, 2023, which is available
under the Company's profile on SEDAR at www.sedar.com, for an
explanation of the composition of those non-IFRS measures, an
explanation of how these non-IFRS measures provide useful
information to investors and the additional purposes for which
management uses these non-IFRS financial measures. These measures
are not recognized under International Financial Reporting
Standards ("IFRS") and do not have a standardized meaning
prescribed by IFRS and are therefore unlikely to be comparable to
similar measures presented by other companies. Rather, these
measures are provided as additional information to complement those
IFRS measures by providing further understanding of our results of
operations from management's perspective. Accordingly, these
measures should not be considered in isolation nor as a substitute
for analysis of our financial information reported under IFRS.
These non-IFRS measures are used to provide readers with
supplemental measures of our operating performance and thus
highlight trends in our core business that may not otherwise be
apparent when relying solely on IFRS measures. We also believe that
market participants frequently use non-IFRS measures in the
evaluation of issuers. Our management also uses non-IFRS measures
in order to facilitate operating performance comparisons from
period to period, to prepare annual operating budgets and forecasts
and to determine components of management compensation. See the
financial table at the conclusion of this press release for a
reconciliation of Adjusted EBITDA, Adjusted EBITDA Margin,
Pro-Forma Adjusted EBITDA, Pro-Forma Revenue and Adjusted Net
Income (Loss) to the most directly comparable IFRS measures.
Key-Performance Indicators
This press release makes reference to certain key performance
indicators, such as Same-store sales and corporate, general &
administrative costs. We monitor key performance indicators to help
us evaluate our business, measure our performance, identify trends
affecting our business, formulate business plans and make strategic
decisions. These key performance indicators are also used to
provide investors with supplemental measures of our operating
performance and thus highlight trends in our core business that may
not otherwise be apparent when relying solely on IFRS measures. We
also believe that securities analysts, investors and other
interested parties frequently use industry metrics in the
evaluation of issuers. Our key performance indicators may be
calculated in a manner different than similar key performance
indicators used by other companies.
Forward-Looking Statements
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
information") within the meaning of applicable securities laws.
Forward-looking information may relate to our future financial
results and may include information regarding our financial
position, business strategy, growth strategies, financial results,
taxes, dividend policy, plans and objectives. In some cases,
forward-looking information can be identified by the use of
forward-looking terminology such as "expects", "estimates",
"outlook", "forecasts", "projection", "prospects", "intends",
"anticipates", "believes", or variations of such words and phrases
or statements that certain actions, events or results "may",
"could", "would", "might", "will", "will be taken", "occur" or "be
achieved". In addition, any statements that refer to expectations,
intentions, projections or other characterizations of future events
or circumstances contain forward-looking information. Statements
containing forward-looking information are not historical facts but
instead represent management's expectations, estimates and
projections regarding future events or circumstances.
Forward-looking information in this news release includes, among
other things, statements relating to the expected completion of
acquisitions and timing thereof, the expected impact of
acquisitions on the Company's financial results and expected
accretion, the payment of dividends, and same store sales
improvements.
Forward-looking information is necessarily based on a number of
opinions, estimates and assumptions that the Company considered
appropriate and reasonable as of the date such statements are made
in light of its experience and perception of historical trends,
current conditions and expected future developments. Such
estimates and assumptions include the satisfaction of all
conditions of closing and the successful completion of probable
acquisitions within the anticipated timeframe, including receipt of
regulatory approvals. Further, forward-looking information
is subject to known and unknown risks, uncertainties,
assumptions and other factors that may cause the actual results,
level of activity, performance or achievements to be materially
different from those expressed or implied by such forward-looking
information, including but not limited to risks and uncertainties
related to probable acquisitions, including the failure to receive
or delay in receiving regulatory approvals or otherwise satisfy the
conditions to the completion such acquisitions, in a timely manner,
or at all, and the reliance on information provided by the
relevant sellers, as well as other factors discussed or
referred to in the Company's Management's Discussion and Analysis
for the twelve weeks ended September 9,
2023 (the "MD&A") and under the heading "Risk
Factors" in the Company's annual information form (the
"AIF") filed on June 8, 2023.
If any of these risks or uncertainties materialize, or if the
opinions, estimates, or assumptions underlying the forward-looking
information prove incorrect, actual results or future events might
vary materially from those anticipated in the forward-looking
information. The opinions, estimates or assumptions referred
to above and described in greater detail elsewhere in the MD&A
as well as in the "Risk Factors" section of the AIF should be
considered carefully by prospective investors. The pro forma
information set forth in this press release should not be
considered to be what the actual financial position or other
results of operations would have necessarily been had the probable
acquisitions discussed herein been completed as, at, or for the
periods stated.
Although we have attempted to identify important risk factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other risk
factors not presently known to us or that we presently believe are
not material that could also cause actual results or future events
to differ materially from those expressed in such forward-looking
information. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information. No
forward-looking statement is a guarantee of future results.
Accordingly, you should not place undue reliance on forward-looking
information, which speaks only as of the date made. The
forward-looking information contained in this press release
represents the Company's expectations as of the date of this press
release (or as the date they are otherwise stated to be made) and
are subject to change after such date. However, the Company
disclaims any intention or obligation or undertaking to update or
revise any forward-looking information whether as a result of new
information, future events, or otherwise, except as required under
applicable securities laws in Canada. All of the forward-looking information
contained in this news release is expressly qualified by the
foregoing cautionary statements.
Condensed Consolidated Statements of Income (Loss) and
Comprehensive Income (Loss)
|
|
|
12 weeks
ended
|
|
24 weeks
ended
|
|
000's
|
|
September
9,
2023
|
September
10,
2022
|
|
September
9,
2023
|
September
10,
2022
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
203,200
|
178,875
|
|
400,042
|
293,251
|
|
Cost of
sales
|
|
122,444
|
108,506
|
|
242,787
|
180,518
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
80,756
|
70,369
|
|
157,255
|
112,733
|
|
|
|
|
|
|
|
|
|
Operating, general and
administrative expenses
|
|
61,932
|
51,758
|
|
121,341
|
83,837
|
|
Acquisition,
transaction and integration costs
|
|
1,484
|
10,997
|
|
2,783
|
12,110
|
|
Depreciation and
amortization
|
|
15,971
|
9,314
|
|
31,818
|
16,203
|
|
Impairment
loss
|
|
48
|
-
|
|
628
|
-
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
1,321
|
(1,700)
|
|
685
|
583
|
|
|
|
|
|
|
|
|
|
Finance costs,
net
|
|
8,189
|
(5,180)
|
|
15,568
|
(2,665)
|
|
Change in fair value of
financial assets and liabilities
|
|
5,710
|
(37)
|
|
12,438
|
(37)
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
(12,578)
|
3,517
|
|
(27,321)
|
3,285
|
|
|
|
|
|
|
|
|
|
Recovery of income
taxes
|
|
(2,361)
|
3,383
|
|
(5,099)
|
3,895
|
|
|
|
|
|
|
|
|
|
Net income (loss)
and comprehensive income (loss) for the period
|
(10,217)
|
134
|
|
(22,222)
|
(610)
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
(10,453)
|
(216)
|
|
(22,566)
|
(1,216)
|
|
Non-controlling
interest
|
|
236
|
350
|
|
344
|
606
|
|
|
|
|
|
|
|
|
|
|
|
(10,217)
|
134
|
|
(22,222)
|
(610)
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to shareholders of the Company
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
(0.23)
|
0.00
|
|
(0.51)
|
(0.03)
|
Condensed Consolidated Statements of Financial
Position
|
in
000's
|
|
September
9, 2023
|
March 25,
2023
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
11,781
|
22,889
|
|
Trade and other
receivables
|
|
38,972
|
38,236
|
|
Inventory
|
|
94,816
|
94,277
|
|
Prepaid expenses and
other assets
|
|
5,265
|
3,898
|
|
Assets held for
sale
|
|
1,194
|
2,099
|
|
|
|
152,028
|
161,399
|
|
|
|
|
|
|
Property and equipment,
net
|
|
26,677
|
27,986
|
|
Right-of-use assets,
net
|
|
76,757
|
80,207
|
|
Intangible assets,
net
|
|
350,674
|
353,219
|
|
Goodwill
|
|
481,054
|
456,311
|
|
Deferred tax
assets
|
|
20,355
|
19,750
|
|
Other assets
|
|
1,726
|
3,129
|
|
|
|
957,243
|
940,602
|
|
|
|
|
|
|
|
|
1,109,271
|
1,102,001
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
other liabilities
|
|
101,235
|
105,697
|
|
Promissory notes
payable
|
|
-
|
62
|
|
Current portion of
long-term borrowings
|
|
6,250
|
3,750
|
|
Current portion of
lease liabilities
|
|
22,609
|
22,808
|
|
|
|
130,094
|
132,317
|
|
|
|
|
|
|
Long-term
borrowings
|
|
250,258
|
225,237
|
|
Lease
liabilities
|
|
60,697
|
64,637
|
|
Deferred tax
liabilities
|
|
62,516
|
64,322
|
|
Other
liabilities
|
|
|
9,488
|
-
|
|
|
|
382,959
|
354,196
|
|
|
|
513,053
|
486,513
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
Share
capital
|
|
868,284
|
867,052
|
|
Contributed
surplus
|
|
16,196
|
10,876
|
|
Deficit
|
|
(294,104)
|
(267,513)
|
|
|
|
590,376
|
610,415
|
|
Non-controlling
interest
|
|
5,842
|
5,073
|
|
|
|
596,218
|
615,488
|
|
|
|
|
|
|
|
|
1,109,271
|
1,102,001
|
Condensed Consolidated Statements of Cash Flows
|
|
|
|
12 weeks
ended
|
|
24 weeks
ended
|
|
000's
|
|
September
9,
2023
|
September
10,
2022
|
|
September
9,
2023
|
September
10,
2022
|
|
Cash provided by (used
in):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
Net income (loss) for
the period
|
|
(10,217)
|
134
|
|
(22,222)
|
(609)
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
15,971
|
9,314
|
|
31,818
|
16,203
|
|
Impairment
loss
|
|
48
|
-
|
|
628
|
-
|
|
Share-based
compensation
|
|
2,534
|
1,165
|
|
5,320
|
2,139
|
|
(Gain) loss on disposal
of property and equipment
|
|
-
|
(6)
|
|
-
|
11
|
|
Finance costs (income),
net
|
|
8,189
|
(5,180)
|
|
15,568
|
(2,665)
|
|
Change in fair value of
financial assets and liabilities
|
|
5,710
|
(37)
|
|
12,438
|
(37)
|
|
Provision for income
taxes
|
|
(2,361)
|
3,383
|
|
(5,099)
|
3,895
|
|
Lease renewals and
modifications
|
|
68
|
(33)
|
|
42
|
(137)
|
|
Loss on remeasurement
of held for sale assets
|
|
-
|
444
|
|
-
|
444
|
|
Change in non-cash
operating working capital
|
|
(7,619)
|
(16,241)
|
|
(3,819)
|
(15,118)
|
|
Income taxes recovered
(paid)
|
|
284
|
490
|
|
(1,457)
|
244
|
|
Payment of contingent
consideration
|
|
-
|
(12)
|
|
-
|
(12)
|
|
|
|
|
12,607
|
(6,579)
|
|
33,217
|
4,358
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common shares, net of issuance costs
|
|
-
|
282,926
|
|
-
|
282,784
|
|
Proceeds from exercise
of stock options
|
|
748
|
68
|
|
1,232
|
68
|
|
Proceeds from long-term
borrowings
|
|
37,266
|
151,174
|
|
37,266
|
151,174
|
|
Repayment of long-term
borrowing
|
|
(1,250)
|
-
|
|
(13,250)
|
-
|
|
Transaction costs
related to long-term borrowings
|
|
-
|
(1,976)
|
|
-
|
(1,976)
|
|
Interest
Paid
|
|
(4,214)
|
(4,149)
|
|
(9,533)
|
(5,196)
|
|
Dividends and
distributions paid
|
|
(2,346)
|
(4,484)
|
|
(4,382)
|
(4,812)
|
|
Payment of lease
liabilities
|
|
(6,683)
|
(5,824)
|
|
(12,739)
|
(9,718)
|
|
Proceeds from
cancellation of shares
|
|
-
|
-
|
|
-
|
900
|
|
|
|
|
23,521
|
417,735
|
|
(1,406)
|
413,224
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
Acquisition of property
and equipment
|
|
(1,577)
|
(2,698)
|
|
(2,479)
|
(5,042)
|
|
Acquisition of
intangible assets
|
|
(157)
|
(45)
|
|
(194)
|
(332)
|
|
Acquisition of other
assets
|
|
-
|
-
|
|
-
|
(3)
|
|
Business combinations,
net of cash acquired
|
|
(38,847)
|
(434,398)
|
|
(40,671)
|
(443,602)
|
|
Proceeds from sale of
assets held for sale
|
|
-
|
-
|
|
325
|
-
|
|
Interest
received
|
|
37
|
39
|
|
100
|
81
|
|
|
|
|
(40,544)
|
(437,102)
|
|
(42,919)
|
(448,898)
|
|
|
|
|
|
|
|
|
|
|
Net change in cash for
the period
|
|
(4,416)
|
(25,946)
|
|
(11,108)
|
(31,316)
|
|
Cash, beginning of the
period
|
|
16,197
|
35,040
|
|
22,889
|
40,410
|
|
Cash, end of
period
|
|
11,781
|
9,094
|
|
11,781
|
9,094
|
Reconciliation from IFRS to Non-IFRS Measures
The following tables provide a reconciliation of loss and
comprehensive loss to Adjusted EBITDA, Adjusted Net Income (Loss)
and Pro-Forma Adjusted EBITDA, and of Revenue to Pro-Forma Revenue,
for the periods indicated:
|
|
Second
quarter
|
|
Year to
date
|
|
in 000's (unless
otherwise stated)
|
|
2024
|
2023
|
|
2024
|
2023
|
|
Loss and
Comprehensive loss for the period
|
|
(10,217)
|
134
|
|
(22,222)
|
(610)
|
|
Income tax expense
(recovery)
|
|
(2,361)
|
3,383
|
|
(5,099)
|
3,895
|
|
Finance Costs,
net
|
|
8,189
|
(5,180)
|
|
15,568
|
(2,665)
|
|
Fair value changes of
financial liabilities
|
|
5,710
|
(37)
|
|
12,438
|
(37)
|
|
Depreciation and
amortization
|
|
15,971
|
9,314
|
|
31,818
|
16,203
|
|
Impairment
loss
|
|
48
|
-
|
|
628
|
-
|
|
Acquisition,
transaction and integration costs
|
|
1,484
|
10,997
|
|
2,783
|
12,110
|
|
Share-based
compensation1
|
|
2,534
|
1,165
|
|
5,320
|
2,140
|
|
Adjusted
EBITDA
|
|
21,358
|
19,775
|
|
41,236
|
31,034
|
|
|
|
|
|
|
|
|
Revenue
|
|
203,200
|
178,875
|
|
400,042
|
293,251
|
|
Adjusted EBITDA
margin
|
|
10.5 %
|
11.1 %
|
|
10.3 %
|
10.6 %
|
|
Pro-forma Adjusted
EBITDA
|
|
|
Adjusted EBITDA for the
24 weeks ended September 9, 2023
|
41,236
|
|
Adjusted EBITDA for the 28 weeks ended March 25,
2023
|
48,155
|
|
Incremental Adjusted EBITDA for new stores acquired after September
10, 2022 as if owned on September 10, 2022
|
7,135
|
|
Incremental Adjusted
EBITDA for stores acquired, or to be acquired on or after September
9, 2023 as if owned on September 10, 2022
|
552
|
|
|
|
Pro-forma Adjusted
EBITDA for the 52 weeks ended September 9, 2023
|
97,078
|
|
|
|
Pro-forma
Revenue
|
|
|
Revenue for the 24
weeks ended September 9, 2023
|
400,042
|
|
Revenue for the 28 weeks ended March 25, 2023
|
455,898
|
|
Incremental Revenue for the new stores acquired after September 10,
2022 as if owned on September 10, 2022
|
30,586
|
|
Incremental Revenue for
the stores acquired, or to be acquired on or after September
9, 2023 as if owned on September 10, 2022
|
2,675
|
|
|
|
Pro-forma Revenue
for the 52 weeks ended September 9, 2023
|
889,201
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
1 Represents non-cash expenses recognized in connection
with share-based compensation in respect of our legacy stock option
plan and omnibus long-term equity incentive compensation
plans.
|
|
The
Company regularly acquires pharmacies and estimates that if it had
acquired each of the pharmacies that it acquired during the 52
weeks prior to September 9, 2023 on September 10, 2022, it would
have recorded additional Adjusted EBITDA of $7,135 for the 52 weeks
ended September 9, 2023. This estimate is based on the amount of
EBITDA budgeted by the Company for each of the acquired pharmacies
to be earned at the time of their acquisition. There can be no
assurance that if the Company had acquired these pharmacies
on September 10, 2022, they would have actually generated
such budgeted EBITDA, nor is this estimate indicative of future
results.
|
|
The
Company regularly acquires pharmacies and estimates that if it had
acquired each of the pharmacies that it acquired or has announced
to be acquired after September 9, 2023 on September 10, 2022, it
would have recorded additional Adjusted EBITDA of $552 for the 52
weeks ending September 9, 2023. This estimate is based on the
amount of EBITDA budgeted by the Company for each of the acquired
pharmacies to be earned at the time of their acquisition. There can
be no assurance that if the Company had acquired these pharmacies
on September 10, 2022, they would have actually generated such
budgeted EBITDA, nor is this estimate indicative of future
results.
|
|
The
Company regularly acquires pharmacies and estimates that if it had
acquired each of the pharmacies that it acquired during the 52
weeks prior to September 9, 2023 on September 10, 2022, it would
have recorded additional Revenue of $30,586 for the 52 weeks ended
September 9, 2023. This estimate is based on the amount of Revenue
budgeted by the Company for each of the acquired pharmacies to be
generated at the time of their acquisition. There can be no
assurance that if the Company had acquired these pharmacies on
September 10, 2022, they would have actually generated such
budgeted Revenue, nor is this estimate indicative of future
results.
|
|
The
Company regularly acquires pharmacies and estimates that if it had
acquired each of the pharmacies that it acquired or has announced
to be acquired after September 9, 2023 on September 10, 2022, it
would have recorded additional Revenue of $2,675 for the 52 weeks
ended September 9, 2023. This estimate is based on the amount of
Revenue budgeted by the Company for each of the acquired pharmacies
to be generated at the time of their acquisition. There can be no
assurance that if the Company had acquired these pharmacies on
September 10, 2022, they would have actually generated such
Revenue, nor is this estimate indicative of future
results.
|
|
|
|
Second
quarter
|
|
|
Year to Date
|
|
in 000's
|
|
|
2024
|
2023
|
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
|
|
Loss and
Comprehensive loss for the period
|
|
|
(10,217)
|
134
|
|
|
(22,222)
|
(610)
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
Fair value changes of
financial liabilities
|
|
|
5,710
|
(37)
|
|
|
12,438
|
(37)
|
|
Amortization on
customer lists
|
|
|
9,084
|
3,041
|
|
|
17,860
|
6,166
|
|
Impairment
loss
|
|
|
48
|
-
|
|
|
628
|
-
|
|
Acquisition,
transaction and integration costs
|
|
|
1,484
|
10,997
|
|
|
2,783
|
12,110
|
|
Share-based
compensation1
|
|
|
2,534
|
1,165
|
|
|
5,320
|
2,140
|
|
Gain on Debt
Modification2
|
|
|
-
|
(8,703)
|
|
|
-
|
(8,703)
|
|
Income tax impact on
non-GAAP adjustments
|
|
|
(448)
|
(3,438)
|
|
|
(996)
|
(4,374)
|
|
Deferred tax expense
(recovery)3
|
|
|
(2,474)
|
1,956
|
|
|
(5,285)
|
1,967
|
|
Adjusted net
income
|
|
|
5,722
|
5,116
|
|
|
10,527
|
8,658
|
|
|
|
|
|
|
|
|
|
|
Adjusted weighted
average number of shares (000's)4
|
|
|
44,722
|
43,216
|
|
|
44,669
|
38,762
|
|
Adjusted Earnings
per share
|
|
|
0.13
|
0.12
|
|
|
0.24
|
0.22
|
|
_____________________________
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
1 Represents non-cash expenses recognized in connection
with share-based compensation in respect of our legacy stock option
plan and omnibus long-term equity incentive compensation
plans.
|
|
2
Represents the non-cash gain on
debt modification related to the revaluation of the Company's
credit facility that was refinanced concurrent with the IPO with an
extended maturity and more favourable interest rate
terms.
|
|
3
Represents the portion of the
Company's tax provision that is deferred as detailed in the notes
to the Interim Financial Statements.
|
|
4
Adjusted weighted average number of shares outstanding adjusted to
reflect all preferred shares and related accrued dividends
outstanding as though they were converted to common shares at the
beginning of the respective period.
|
SOURCE Neighbourly Pharmacy Inc.