Paragon Pharmacies Limited Reports Fiscal 2011 Financial Results
November 18 2011 - 12:26PM
Marketwired
Paragon Pharmacies Limited (TSX VENTURE:PGN) ("Paragon" or "the
Company") today reported its financial results for the fiscal year
ended August 31, 2011.
Fiscal 2011 showed steady improvement of store performance
through-out the year as a result of continued redevelopment of our
retail programs. Additional focus was also spent improving
compliance controls, and information systems to improve
management's ability to monitor the Company's progress. More
favorable supply agreements and enhanced operational cost controls
have improved operating income and we believe we are now well
positioned to increase EBITDA in 2012," said R. Gordon Gooding,
Chief Executive Officer.
Revenue for the year ended August 31, 2011 was $76.688 million
compared to $82.217 million in the prior year. Pharmacy revenue was
impacted by reductions in generic drug prices, primarily due to
regulatory reform implemented in British Columbia, combined with
increased generic prescription utilization rates. Front store
revenue continued to be impacted by competitive pressures in fiscal
2011, although the Company saw strengthening comparable store
trends in the fourth quarter.
Operating income, as defined, was $8.336 million compared to
$8.278 million in the prior year, an increase of $0.058 million or
0.7%. This increase was a result of continued operating cost
containment initiatives and stronger gross margins as a percentage
of revenue for both pharmacy and front store operations, which was
offset by the revenue impacts noted above.
EBITDA, as defined, was $2.861 million for fiscal 2011 compared
to $3.559 million in the prior year, a decrease of $0.698 million
or 19.6%. In addition to the downward pressure on revenue which was
offset by strengthening gross margin, the Company incurred
increased corporate costs.
The net loss for the fiscal year ending August 31, 2011 was
$3.238 million, compared to $2.594 million in the prior year. This
increased net loss of 0.644 million or 24.8% is primarily due to
the reasons noted in EBITDA above along with an increase in
amortization.
The pharmacy industry continues to face ongoing regulatory
change which will alter the way generic drugs are priced. The
Company's assessment of these changes is more fully described in
Management's Discussion & Analysis for the fiscal year ended
August 31, 2011 in the section entitled Regulatory
Changes That Impact the Company's Industry.
The Company's audited consolidated financial statements and
Management's Discussion and Analysis for the fiscal year ended
August 31, 2011 are available at the Investor Relations section of
Paragon's website at www.helloparagon.com or under the Company's
profile on SEDAR at www.sedar.com.
Paragon Pharmacies Limited is building a pharmacy with our
customers in mind. Headquartered in Kelowna, BC and employing over
400 staff, Paragon currently owns and operates 19 retail pharmacies
and three central fill pharmacies throughout British Columbia,
Alberta and Manitoba. Paragon is a leading mid-market pharmacy,
providing premier pharmacy services in a friendly,
community-focused environment.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements
regarding, among other things, the Company's beliefs, plans,
objectives, strategies, estimates, intentions and expectations,
including as they relate to its operating and financial results,
capital expenditures and the ability to execute on its operating,
investing and financing strategies. Consequently, actual results
and events may differ materially from those included in,
contemplated or implied by such forward looking statements for a
variety of reasons. Forward-looking statements are subject to
inherent risks and uncertainties including, but not limited to,
market and general economic conditions, certain property and
casualty risks, the ability to attract and retain pharmacists, the
availability and terms of financing, changes in the Company's
relationship with its key suppliers, competitive factors, changes
in regulatory environments affecting the Company's business, and
the accuracy in management's assumptions (see "RISKS AND RISK
MANAGEMENT" as noted in the Company's Management's Discussion &
Analysis posted on SEDAR at www.sedar.com). This list is not
exhaustive of the factors that may affect any of the Company's
forward-looking statements. Investors and others should carefully
consider these and other factors and not place undue reliance on
these forward-looking statements. In addition, these
forward-looking statements relate to the date on which they were
made and the Company disclaims and has no intention or obligation
to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Paragon Pharmacies Limited R. Gordon Gooding, CA Chief
Executive Officer (250) 868-8400 (250) 868-8402
(FAX)www.helloparagon.com
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