Company delivers strong pharmacy same store
sales performance as its retail footprint expands to 294
locations
TORONTO, Feb. 13,
2024 /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 sixteen-week period ended December 30, 2023 (the "third quarter
2024").
"Neighbourly's third quarter results reflect the continuing
strength of our pharmacy business, thanks to our pharmacies'
unwavering focus on delivering exceptional patient care," stated
Skip Bourdo, the Company's Chief
Executive Officer. "The team continued to deliver on our M&A
and growth initiatives, adding another two pharmacies to the
Neighbourly family," concluded Mr. Bourdo.
Third Quarter 2024 Highlights
- Revenue for the third quarter increased to $284.0 million, up $18.7
million or 7.0% compared to prior year; 69% of the growth
was driven by pharmacies acquired in the past 12 months.
- Same store sales1 growth of 2.7% was driven by
strong prescription and clinical services revenue, up 4.6% and 8.3%
respectively; partially offset by softer front store sales, down
4.5% against the strong prior year performance of over the counter
cold-and-flu medications.
- Adjusted EBITDA2 for the third quarter increased to
$31.2 million, up $2.6 million or 9.2% primarily due to the
incremental contributions from pharmacies added to the Company's
network in the past 12 months.
- The Company acquired two pharmacy locations subsequent to the
second quarter's earnings release, bringing the pharmacy network to
294 locations across Canada.
- Adjusted Earnings per Share3 for the third quarter
of $0.19, compared to $0.17 in the third quarter of 2023.
- Pro-Forma Revenue3 of $905.9
million and Pro-Forma Adjusted EBITDA3 of
$98.0 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.
|
Neighbourly Privatization Highlights
- On January 15, 2024, the Company
entered into a definitive agreement (the "Arrangement
Agreement"), whereby T.I.D. Acquisition Corp., a newly-formed
entity controlled by PCP, would acquire all of the common shares in
the capital of the Company, other than those common shares already
owned by PCP or its affiliates, at a purchase price of $18.50 per common share, payable in cash plus one
contingent value right ("CVR") per common share.
- The CVR will entitle the holder to an additional cash payment
of $0.61 per CVR if the Company's
Pro-Forma Adjusted EBITDA target of $128.0
million for the fiscal year ending March 28, 2026 is achieved.
- A circular in respect of the transaction was filed and mailed
to all shareholders of record as of January
29, 2024 for a special meeting to be held on March 8, 2024.
- The privatization transaction is expected to close by
March 15, 2024, subject to
shareholder approval and the satisfaction of customary closing
conditions.
Selected Third Quarter 2024 Results
|
|
Third
quarter
|
|
Fiscal year
|
|
in 000's
|
|
2024
|
2023
|
|
2024
|
2023
|
|
Store count
|
|
294
|
284
|
|
294
|
284
|
|
|
|
|
|
|
|
|
Total
Prescriptions
|
|
4,692
|
4,379
|
|
11,412
|
9,341
|
|
Same-store
prescription growth (%)
|
|
1.7 %
|
(2.2 %)
|
|
1.7 %
|
(1.4 %)
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
283,958
|
$
265,286
|
|
$
684,000
|
$
558,537
|
|
Same-store sales
growth (%)1
|
|
2.7 %
|
4.1 %
|
|
3.4 %
|
3.3 %
|
|
Pharmacy revenue as
a % of revenue
|
|
79.0 %
|
77.4 %
|
|
79.6 %
|
78.3 %
|
|
|
|
|
|
|
|
|
Corporate, general
& administrative ("CG&A") costs2
|
|
$ 10,028
|
$
9,853
|
|
$
24,042
|
$
21,269
|
|
CG&A as a % of
revenue
|
|
3.5 %
|
3.7 %
|
|
3.5 %
|
3.8 %
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA3
|
|
$ 31,169
|
$
28,539
|
|
$ 72,402
|
$ 59,575
|
|
Adjusted EBITDA
margin (%)
|
|
11.0 %
|
10.8 %
|
|
10.6 %
|
10.7 %
|
|
|
|
|
|
|
|
|
Pro-Forma Adjusted
EBITDA for the 52 weeks ended4
|
|
$ 98,007
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro-Forma Revenue
for the 52 weeks ended5
|
|
$
905,873
|
|
|
|
|
|
_____________
|
|
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.
|
Dividend
Pursuant to the Arrangement Agreement, the Company will not pay
any dividends (including the historical quarterly dividend of
$0.045) to its shareholders until the
closing of the Privatization transaction.
Third Quarter Financial Results
Neighbourly's unaudited consolidated financial statements and
accompanying notes, and Management's Discussion and Analysis for
the third quarter 2024 are available on the Company's website at
www.neighbourlypharmacy.ca and on SEDAR at www.sedar.com.
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 294 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 February 13, 2024 for the sixteen weeks ended
December 30, 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 sixteen weeks ended December 30,
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)
|
|
|
16 weeks
ended
|
|
40 weeks
ended
|
|
000's
|
|
Dec 30,
2023
|
Dec 31,
2022
|
|
Dec 30,
2023
|
Dec 31,
2022
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
283,958
|
$
265,286
|
|
$
684,000
|
558,537
|
|
Cost of
sales
|
|
170,610
|
161,742
|
|
413,397
|
342,259
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
113,348
|
103,544
|
|
270,603
|
216,278
|
|
|
|
|
|
|
|
|
|
Operating, general and
administrative expenses
|
|
85,254
|
76,786
|
|
206,595
|
160,623
|
|
Acquisition,
transaction and integration costs
|
|
3,619
|
3,437
|
|
6,402
|
15,547
|
|
Depreciation and
amortization
|
|
21,515
|
27,398
|
|
53,333
|
43,601
|
|
Impairment
loss
|
|
-
|
-
|
|
628
|
-
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
2,960
|
(4,077)
|
|
3,645
|
(3,493)
|
|
|
|
|
|
|
|
|
|
Finance costs,
net
|
|
11,211
|
9,016
|
|
26,779
|
6,350
|
|
Change in fair value of
financial assets and liabilities
|
|
(3,227)
|
(2,568)
|
|
9,210
|
(2,605)
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes
|
|
(5,024)
|
(10,525)
|
|
(32,344)
|
(7,238)
|
|
|
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
(482)
|
(1,911)
|
|
(5,581)
|
1,984
|
|
|
|
|
|
|
|
|
|
Net loss and
comprehensive loss for the period
|
|
(4,542)
|
(8,614)
|
|
(26,763)
|
(9,222)
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
$
(4,827)
|
(8,975)
|
|
(27,391)
|
(10,189)
|
|
Non-controlling
interest
|
|
285
|
361
|
|
628
|
967
|
|
|
|
(4,542)
|
(8,614)
|
|
(26,763)
|
(9,222)
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to shareholders of the Company
|
|
|
|
|
|
|
basic and
diluted
|
|
$
(0.11)
|
(0.20)
|
|
(0.61)
|
(0.25)
|
Condensed Consolidated Statements of Financial Position
|
in
000's
|
|
December 30,
2023
|
March 25,
2023
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
17,488
|
22,889
|
|
Trade and other
receivables
|
|
38,479
|
38,236
|
|
Inventory
|
|
96,952
|
94,277
|
|
Prepaid expenses and other
assets
|
|
4,598
|
3,898
|
|
Assets held for sale
|
|
2,593
|
2,099
|
|
|
|
160,110
|
161,399
|
|
|
|
|
|
|
Property and equipment,
net
|
|
26,329
|
27,986
|
|
Right-of-use assets,
net
|
|
73,086
|
80,207
|
|
Intangible assets,
net
|
|
343,242
|
353,219
|
|
Goodwill
|
|
487,786
|
456,311
|
|
Deferred tax
assets
|
|
20,238
|
19,750
|
|
Other assets
|
|
1,688
|
3,129
|
|
|
|
952,369
|
940,602
|
|
|
|
|
|
|
|
|
1,112,479
|
1,102,001
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and other
liabilities
|
|
109,278
|
105,697
|
|
Promissory notes
payable
|
|
-
|
62
|
|
Current portion of long-term
borrowings
|
7,500
|
3,750
|
|
Current portion of lease
liabilities
|
|
23,715
|
22,808
|
|
|
|
140,493
|
132,317
|
|
|
|
|
|
|
Long-term
borrowings
|
|
255,566
|
225,237
|
|
Lease
liabilities
|
|
57,509
|
64,637
|
|
Deferred tax
liabilities
|
|
61,838
|
64,322
|
|
Other
liabilities
|
|
|
6,428
|
-
|
|
|
|
381,341
|
354,196
|
|
|
|
521,834
|
486,513
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
Share capital
|
|
868,284
|
867,052
|
|
Contributed surplus
|
|
19,271
|
10,876
|
|
Deficit
|
|
(300,945)
|
(267,513)
|
|
|
586,610
|
610,415
|
|
Non-controlling
interest
|
|
4,035
|
5,073
|
|
|
590,645
|
615,488
|
|
|
|
|
|
|
|
|
1,112,479
|
1,102,001
|
Condensed Consolidated Statements of Cash Flows
|
|
|
|
16 weeks
ended
|
|
40 weeks
ended
|
|
000's
|
|
December 30,
2023
|
December 31,
2022
|
|
December 30,
2023
|
December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
Net loss for the
period
|
|
(4,542)
|
(8,614)
|
|
(26,763)
|
(9,223)
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
21,515
|
27,398
|
|
53,333
|
43,601
|
|
Impairment
loss
|
|
-
|
-
|
|
628
|
-
|
|
Share-based
compensation
|
|
3,075
|
1,781
|
|
8,395
|
3,920
|
|
Gain (loss) on disposal
of property and equipment
|
|
-
|
16
|
|
-
|
27
|
|
Finance costs (income),
net
|
|
11,211
|
9,016
|
|
26,779
|
6,351
|
|
Change in fair value of
financial assets and liabilities
|
|
(3,227)
|
(2,568)
|
|
9,210
|
(2,605)
|
|
Provision for income
taxes
|
|
(482)
|
(1,911)
|
|
(5,581)
|
1,984
|
|
Lease renewals and
modifications
|
|
(55)
|
-
|
|
(13)
|
(137)
|
|
Loss on remeasurement
of held for sale assets
|
|
-
|
90
|
|
-
|
534
|
|
Change in non-cash
operating working capital
|
|
6,981
|
6,710
|
|
3,162
|
(8,408)
|
|
Income taxes recovered
(paid)
|
|
862
|
12
|
|
(595)
|
256
|
|
Payment of contingent
consideration
|
|
-
|
-
|
|
-
|
(12)
|
|
|
|
|
35,338
|
31,930
|
|
68,555
|
36,288
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common shares, net of issuance costs
|
|
-
|
-
|
|
-
|
282,784
|
|
Proceeds from exercise
of stock options
|
|
-
|
1,382
|
|
1,232
|
1,450
|
|
Proceeds from long-term
borrowings
|
|
5,109
|
6,452
|
|
42,375
|
157,626
|
|
Repayment of long-term
borrowing
|
|
(1,250)
|
-
|
|
(14,500)
|
-
|
|
Transaction costs
related to long-term borrowings
|
|
(60)
|
(60)
|
|
(60)
|
(2,036)
|
|
Interest
Paid
|
|
(6,814)
|
(4,883)
|
|
(16,347)
|
(10,079)
|
|
Dividends and
distributions paid
|
|
(4,622)
|
(4,337)
|
|
(9,004)
|
(9,149)
|
|
Payment of lease
liabilities
|
|
(6,457)
|
(6,512)
|
|
(19,196)
|
(16,230)
|
|
Proceeds from
cancellation of shares
|
|
-
|
-
|
|
-
|
900
|
|
|
|
|
(14,094)
|
(7,958)
|
|
(15,500)
|
405,266
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
Acquisition of property
and equipment
|
|
(1,936)
|
(2,020)
|
|
(4,415)
|
(7,062)
|
|
Acquisition of
intangible assets
|
|
(386)
|
(131)
|
|
(580)
|
(463)
|
|
Acquisition of other
assets
|
|
-
|
-
|
|
-
|
(3)
|
|
Business combinations,
net of cash acquired
|
|
(13,514)
|
(13,389)
|
|
(54,185)
|
(456,991)
|
|
Proceeds from sale of
assets held for sale
|
|
281
|
2,228
|
|
606
|
2,228
|
|
Interest
received
|
|
18
|
34
|
|
118
|
115
|
|
|
|
|
(15,537)
|
(13,278)
|
|
(58,456)
|
(462,176)
|
|
|
|
|
|
|
|
|
|
|
Net change in cash for
the period
|
|
5,707
|
10,694
|
|
(5,401)
|
(20,622)
|
|
Cash, beginning of the
period
|
|
11,781
|
9,094
|
|
22,889
|
40,410
|
|
Cash, end of
period
|
|
17,488
|
19,788
|
|
17,488
|
19,788
|
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:
|
|
16 weeks ended
|
|
40 weeks ended
|
|
12 weeks ended
|
|
in 000's (unless
otherwise stated)
|
|
2024
|
2023
|
|
2024
|
2023
|
|
2023
|
|
Income (Loss) and Comprehensive Income (loss) for the
period
|
|
(4,542)
|
(8,614)
|
|
(26,763)
|
(9,222)
|
|
(5,577)
|
|
Income tax expense
(recovery)
|
|
(482)
|
(1,911)
|
|
(5,581)
|
1,984
|
|
(6,546)
|
|
Finance Costs,
net
|
|
11,211
|
9,016
|
|
26,779
|
6,350
|
|
8,356
|
|
Fair value changes of
financial liabilities
|
|
(3,227)
|
(2,568)
|
|
9,210
|
(2,605)
|
|
2,157
|
|
Depreciation and
amortization
|
|
21,515
|
27,398
|
|
53,333
|
43,601
|
|
16,235
|
|
Impairment
loss
|
|
-
|
-
|
|
628
|
-
|
|
723
|
|
Acquisition,
transaction and integration costs
|
|
3,619
|
3,437
|
|
6,402
|
15,547
|
|
3,341
|
|
Share-based
compensation1
|
|
3,075
|
1,781
|
|
8,395
|
3,920
|
|
925
|
|
Adjusted EBITDA
|
|
31,169
|
28,539
|
|
72,403
|
59,575
|
|
19,614
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
283,958
|
265,286
|
|
684,000
|
558,537
|
|
190,612
|
|
Adjusted EBITDA margin
|
|
11.0 %
|
10.8 %
|
|
10.6 %
|
10.7 %
|
|
10.3 %
|
|
Pro-forma Adjusted
EBITDA
|
|
|
|
Adjusted EBITDA for the
40 weeks ended December 30, 2023
|
|
72,403
|
|
Adjusted EBITDA for the
12 weeks ended March 25, 2023
|
|
19,614
|
|
Incremental Adjusted
EBITDA for new stores acquired after December 31, 2022 as if owned
on December 31, 20222
|
|
5,302
|
|
Incremental Adjusted
EBITDA for stores acquired, or to be acquired on or after December
30, 2023 as if owned on December 31, 20223
|
|
688
|
|
Pro-forma Adjusted
EBITDA for the 52 weeks ended December 30, 2023
|
|
98,007
|
|
Pro-forma
Revenue
|
|
|
|
Revenue for the 40
weeks ended December 30, 2023
|
|
684,000
|
|
Adjusted EBITDA for the
12 weeks ended March 25, 2023
|
|
190,612
|
|
Incremental Revenue for
the new stores acquired after December 31, 2022 as if owned on
December 31, 20224
|
|
25,496
|
|
Incremental Revenue for
the stores acquired, or to be acquired on or after December
30, 2023 as if owned on December 31, 20225
|
|
5,765
|
|
Pro-forma Revenue
for the 52 weeks ended December 30, 2023
|
|
905,873
|
|
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 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 December 30, 2023 on December 31, 2022, it would
have recorded additional Adjusted EBITDA of $5,302 for the 52 weeks
ended December 30, 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 December 31, 2022, they would have actually generated such
budgeted EBITDA, nor is this estimate indicative of future
results.
|
|
3 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 December 30, 2023 on December 31, 2022, it
would have recorded additional Adjusted EBITDA of $688 for the 52
weeks ending December 30, 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 December 31, 2022, they would have actually generated such
budgeted EBITDA, nor is this estimate indicative of future
results.
|
|
4 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 December 30, 2023 on December 31, 2022, it would
have recorded additional Revenue of $25,496 for the 52 weeks ended
December 30, 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
December 31, 2022, they would have actually generated such budgeted
Revenue, nor is this estimate indicative of future
results.
|
|
5 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 December 30, 2023 on December 31, 2022, it
would have recorded additional Revenue of $5,765 for the 52 weeks
ended December 30, 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
December 31, 2022, they would have actually generated such Revenue,
nor is this estimate indicative of future results.
|
|
|
|
Third
quarter
|
|
|
40 weeks
ended
|
|
in 000's
|
|
|
2024
|
2023
|
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
|
|
Loss and
Comprehensive loss for the period
|
|
|
(4,542)
|
(8,614)
|
|
|
(26,763)
|
(9,222)
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
|
Fair value changes of
financial liabilities
|
|
|
(3,227)
|
(2,568)
|
|
|
9,210
|
(2,605)
|
|
Amortization on
customer lists
|
|
|
12,342
|
18,470
|
|
|
30,202
|
24,635
|
|
Impairment
loss
|
|
|
-
|
-
|
|
|
628
|
-
|
|
Acquisition,
transaction and integration costs
|
|
|
3,619
|
3,437
|
|
|
6,402
|
15,547
|
|
Share-based
compensation1
|
|
|
3,075
|
1,781
|
|
|
8,395
|
3,920
|
|
Gain on Debt
Modification2
|
|
|
-
|
-
|
|
|
-
|
(8,703)
|
|
Income tax impact on
non-GAAP adjustments
|
|
|
(931)
|
(3,221)
|
|
|
(1,927)
|
(7,595)
|
|
Deferred tax expense
(recovery)3
|
|
|
(1,856)
|
(1,616)
|
|
|
(7,141)
|
351
|
|
Adjusted net
income
|
|
|
8,480
|
7,667
|
|
|
19,006
|
16,327
|
|
|
|
|
|
|
|
|
|
|
Adjusted weighted
average number of shares (000's)4
|
|
|
44,808
|
44,350
|
|
|
44,725
|
40,997
|
|
Adjusted Earnings
per share
|
|
|
0.19
|
0.17
|
|
|
0.42
|
0.40
|
|
|
|
|
|
|
|
|
|
|
__________________________________
|
|
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.
