Business almost doubles as revenue grows over
97% while same store sales1 increase 3.6% in the
quarter
Continued M&A momentum to add another 8
locations to Neighbourly's store network since the close of the
second quarter
TORONTO, Oct. 25,
2022 /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 10, 2022 (the "second quarter
2023").
"Neighbourly's second quarter results reflect the strength and
resilience of our underlying business and the continued focus on
executing against our acquisition strategy. Since closing on
Rubicon, we have once again accelerated our acquisition momentum,
adding one new location in the second quarter and welcoming 8
additional locations to Neighbourly in November," stated
Chris Gardner, the Company's Chief
Executive Officer. "With our growing network we are well positioned
as a leader in health care in communities across Canada for decades to come."
Second Quarter 2023 Highlights
- Same store sales1 in the second quarter increased
3.6%.
- Revenue for the second quarter increased to $178.9 million, up $88.2
million or 97.3%.
- Net income and comprehensive income of $0.1 million, an improvement of $3.5 million, when compared to a loss of
$3.4 million in the second quarter
2022
- Adjusted EBITDA2 for the second
quarter increased to $19.8 million,
up $9.8 million or 98.3%, primarily
from the incremental profitability of pharmacies added to the
Company's network including Rubicon.
- Adjusted Earnings per Share3 of $0.12 for the second quarter 2023, up from
$0.09 in the second quarter
2022.
- Pro-Forma Revenue3 of $828.5
million and Pro-Forma Adjusted EBITDA3 of $96.8 million.
- Network of pharmacies now at 284 locations, after giving effect
to the recently announced acquisitions of 6 pharmacies in
Atlantic Canada and another 2 in
British Columbia, both
transactions expected to be completed in November.
|
_________________________
|
|
1
|
Same store sales
is a supplementary measure which represents sales from stores that
were owned and operated by the Company for the entirety of both
periods and is a supplementary financial measure that is commonly
used in the industry.
|
|
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
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 2023 Results
|
|
|
Second
quarter
|
|
|
Year to Date
|
|
in 000's
|
|
|
2023
|
2022
|
|
|
2023
|
2022
|
|
|
|
|
|
|
|
|
|
|
Store count
|
|
|
276
|
95
|
|
|
276
|
95
|
|
|
|
|
|
|
|
|
|
|
Total
Prescriptions
|
|
|
3,058
|
1,571
|
|
|
4,962
|
3,040
|
|
Same-store
prescription growth (%)
|
|
|
-1.9 %
|
2.9 %
|
|
|
-0.8 %
|
0.3 %
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
178,875
|
$
90,668
|
|
|
$
293,251
|
$
176,012
|
|
Same-store sales
growth (%)1
|
|
|
3.6 %
|
1.2 %
|
|
|
2.7 %
|
4.6 %
|
|
Pharmacy revenue as
a % of revenue
|
|
|
78.8 %
|
78.2 %
|
|
|
79.2 %
|
77.5 %
|
|
|
|
|
|
|
|
|
|
|
Corporate, general
& administrative ("CG&A") costs2
|
|
|
$
6,879
|
$
3,595
|
|
|
$ 11,416
|
$
6,379
|
|
CG&A as a % of
revenue
|
|
|
3.8 %
|
4.0 %
|
|
|
3.9 %
|
3.6 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA3
|
|
|
$
19,776
|
$
9,972
|
|
|
$ 31,037
|
$ 20,118
|
|
Adjusted EBITDA
margin (%)
|
|
|
11.1 %
|
11.0 %
|
|
|
10.6 %
|
11.4 %
|
|
|
|
|
|
|
|
|
|
|
Pro-Forma Adjusted
EBITDA for the 52 weeks ended4
|
|
|
$
96,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro-Forma Revenue
for the 52 weeks ended5
|
|
|
$ 828,539
|
|
|
|
|
|
|
|
____________
|
|
1
Same-store sales represents sales from
stores that were owned and operated by the Company for the entirety
of both periods and is a supplementary financial measure that is
commonly used in the industry.
Neighbourly calculates same-store sales using revenue determined in
accordance with IFRS.
|
|
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.
|
Impact of COVID-19
The COVID-19 pandemic has had a lasting impact on non-urgent
trips to doctors' offices, resulting in lower than expected count
of new prescriptions, particularly in clinic format pharmacies.
Declaration of Dividend
Neighbourly announced today that a quarterly dividend will be
paid on December 20, 2022, to the
Company's common shareholders of record as of November 22, 2022. 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
25, 2022, to discuss Neighbourly's financial results for the
second quarter 2023. Participants may join the Company's conference
call by dialing 416-764-8650 or 1-888-664-6383 (ID: 66469370). 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 469370#. 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 2023 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 284 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 October 24, 2022 for twelve weeks ended
September 10, 2022, 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 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 twelve weeks
ended September 10, 2022 (the
"MD&A") and under the heading "Risk Factors" in the
Company's annual information form (the "AIF") filed on
June 23, 2022, which are available on
SEDAR at www.sedar.com under the Company's profile. 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 news release
represents the Company's expectations as of the date of this news
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 Interim Statements of Income (Loss)
and Comprehensive Income (Loss)
|
12 Weeks
Ended
|
|
24 weeks
Ended
|
|
In
000's
|
Sept 10,
2022
|
Sept 11,
2021
|
|
Sept 10,
2022
|
Sept 11,
2021
|
|
|
|
|
|
|
|
Revenue
|
$
178,875
|
$
90,668
|
|
$
293,251
|
$
176,012
|
|
Cost of
sales
|
108,506
|
57,029
|
|
180,518
|
110,166
|
|
|
|
|
|
|
|
Gross
profit
|
70,369
|
33,639
|
|
112,733
|
65,846
|
|
|
|
|
|
|
|
Operating, general and
administrative expenses
|
51,758
|
25,252
|
|
83,837
|
47,923
|
|
Acquisition,
transaction and integration costs
|
10,997
|
3,567
|
|
12,110
|
21,919
|
|
Depreciation and
amortization
|
9,314
|
5,414
|
|
16,203
|
10,159
|
|
Impairment
loss
|
—
|
23
|
|
—
|
23
|
|
Operating (loss)
income
|
(1,700)
|
(617)
|
|
583
|
(14,178)
|
|
|
|
|
|
|
|
Finance (income) costs,
net
|
(5,180)
|
2,003
|
|
(2,665)
|
(5,104)
|
|
Change in fair value of
financial assets and liabilities
|
(37)
|
—
|
|
(37)
|
67,228
|
|
Loss before income
taxes
|
3,517
|
(2,620)
|
|
3,285
|
(76,302)
|
|
|
|
|
|
|
|
Provision for income
taxes
|
3,383
|
774
|
|
3,895
|
4,027
|
|
Net income (loss)
and comprehensive income (loss) for the period
|
134
|
(3,394)
|
|
(610)
|
(80,329)
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
Shareholders of the
Company
|
$
(216)
|
$
(3,651)
|
|
$
(1,216)
|
$
(80,778)
|
|
Non-controlling
interest
|
350
|
257
|
|
606
|
449
|
|
134
|
(3,394)
|
|
(610)
|
(80,329)
|
|
Net loss per share
attributable to shareholders of the Company
|
|
|
|
|
|
|
Basic and
diluted
|
$
(0.00)
|
$
(0.11)
|
|
$
(0.03)
|
$
(3.69)
|
Consolidated Statements of Financial Position
|
in
000's
|
September 10,
2022
|
March 26,
2022
|
|
Assets
|
|
|
|
|
|
|
Current
|
|
|
|
Cash
|
$
9,094
|
$
40,410
|
|
Trade and other
receivables
|
34,323
|
24,616
|
|
Inventory
|
88,007
|
55,721
|
|
Prepaid expenses and
other assets
|
6,456
|
2,009
|
|
Assets held for
sale
|
16,697
|
—
|
|
Total Current
Assets
|
154,577
|
122,756
|
|
|
|
|
Property and equipment,
net
|
29,452
|
12,366
|
|
Right-of-use
assets
|
67,002
|
47,163
|
|
Intangible assets,
net
|
407,663
|
134,798
|
|
Goodwill
|
420,124
|
238,267
|
|
Deferred tax
assets
|
24,157
|
13,288
|
|
Other assets
|
1,746
|
627
|
|
Total non-current
assets
|
950,144
|
446,509
|
|
|
|
|
Total
Assets
|
$
1,104,721
|
$
569,265
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
Current
|
|
|
|
Accounts payable and
other liabilities
|
$
88,621
|
$
61,226
|
|
Promissory notes
payable
|
62
|
62
|
|
Current portion of
long-term borrowings
|
1,250
|
2,500
|
|
Current portion of
lease liabilities
|
20,929
|
14,705
|
|
Total Current
Liabilities
|
110,862
|
78,493
|
|
|
|
|
Long-term
borrowings
|
225,935
|
83,656
|
|
Lease
liabilities
|
51,445
|
37,177
|
|
Deferred tax
liabilities
|
87,896
|
21,317
|
|
Total non-current
liabilities
|
365,276
|
142,150
|
|
|
|
|
Total
liabilities
|
476,138
|
220,643
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Share
capital
|
862,686
|
585,764
|
|
Contributed
surplus
|
8,170
|
5,131
|
|
Deficit
|
(249,226)
|
(249,956)
|
|
Total shareholders'
equity
|
621,630
|
340,939
|
|
Non-controlling
interest
|
6,953
|
7,683
|
|
Total shareholders'
equity
|
628,583
|
348,622
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$
1,104,721
|
$
569,265
|
Condensed Consolidated Statements of Cash Flows
|
|
|
12 Weeks
Ended
|
|
24 Weeks
Ended
|
|
in
000's
|
|
Sept 10,
2022
|
Sept 11,
2021
|
|
Sept 10,
2022
|
Sept 11,
2021
|
|
|
|
|
|
|
|
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
Net income (los)s for
the period
|
|
134
|
(3,394)
|
|
(610)
|
(80,329)
|
|
Adjustments to net
income for non-cash items:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
9,314
|
5,414
|
|
16,203
|
10,159
|
|
Impairment
loss
|
|
-
|
23
|
|
-
|
23
|
|
Share based
compensation
|
|
1,165
|
1,586
|
|
2,139
|
2,196
|
|
(Loss) gain on disposal
of property and equipment
|
|
(6)
|
(3)
|
|
11
|
(11)
|
|
Finance (income) costs,
net
|
|
(5,180)
|
2,003
|
|
(2,665)
|
(5,104)
|
|
Fair value changes of
financial assets and liabilities
|
|
(37)
|
-
|
|
(37)
|
67,228
|
|
Provision for income
taxes
|
|
3,383
|
774
|
|
3,895
|
4,027
|
|
Lease renewals and
modifications
|
|
(33)
|
(11)
|
|
(137)
|
(32)
|
|
Expected credit loss
expense
|
|
-
|
-
|
|
-
|
11
|
|
Loss on remeasurement
of held for sale assets
|
|
444
|
-
|
|
444
|
-
|
|
Change in non-cash
operating working capital
|
|
(16,241)
|
(5,523)
|
|
(15,118)
|
(10,304)
|
|
Income taxes recovered
(paid)
|
|
490
|
(229)
|
|
244
|
(766)
|
|
Payment of contingent
consideration
|
|
(12)
|
-
|
|
(12)
|
-
|
|
Cash flows from (used
for) operating activities
|
|
(6,579)
|
640
|
|
4,357
|
(12,902)
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common shares, net of issuance costs
|
|
282,926
|
(178)
|
|
282,784
|
187,897
|
|
Proceeds from exercise
of stock options
|
|
68
|
-
|
|
68
|
-
|
|
Proceeds from exercise
of warrants
|
|
-
|
-
|
|
-
|
9
|
|
Repayment of promissory
notes payable
|
|
-
|
|
|
-
|
(740)
|
|
Proceeds from long-term
borrowings
|
|
151,174
|
-
|
|
151,174
|
-
|
|
Repayment of long-term
borrowing
|
|
-
|
-
|
|
-
|
(100,168)
|
|
Transaction costs
related to long-term borrowings
|
|
(1,976)
|
-
|
|
(1,976)
|
(1,915)
|
|
Repayment of mortgages
payable
|
|
-
|
(31)
|
|
-
|
(67)
|
|
Interest
Paid
|
|
(4,149)
|
(963)
|
|
(5,196)
|
(2,641)
|
|
Dividends and
distributions paid
|
|
(4,484)
|
(963)
|
|
(4,812)
|
(1,503)
|
|
Payment of lease
liabilities
|
|
(5,824)
|
(3,074)
|
|
(9,718)
|
(5,790)
|
|
Proceeds from
cancellation of shares
|
|
|
-
|
|
900
|
-
|
|
Cash flows from
financing activities
|
|
417,735
|
(5,209)
|
|
413,224
|
75,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
Acquisition of property
and equipment
|
|
(2,698)
|
(739)
|
|
(5,041)
|
(928)
|
|
Acquisition of
intangible assets
|
|
(45)
|
(91)
|
|
(332)
|
(203)
|
|
Acquisition of other
assets
|
|
-
|
-
|
|
(3)
|
-
|
|
Business combinations,
net of cash acquired
|
|
(434,398)
|
(35,558)
|
|
(443,602)
|
(35,558)
|
|
Interest
received
|
|
39
|
98
|
|
81
|
141
|
|
|
|
(437,102)
|
(36,290)
|
|
(448,897)
|
(36,548)
|
|
|
|
|
|
|
|
|
|
Net change in cash for
the period
|
|
(25,946)
|
(40,859)
|
|
(31,316)
|
25,632
|
|
Cash, beginning of the
period
|
|
35,040
|
112,405
|
|
40,410
|
45,914
|
|
Cash, end of
period
|
|
9,094
|
71,546
|
|
9,094
|
71,546
|
Reconciliation from IFRS to Non-IFRS Measures
The following tables provide a reconciliation of income (loss)
and comprehensive income (loss) to Adjusted EBITDA, Adjusted Net
Income and Pro-Forma Adjusted EBITDA, and of Revenue to Pro-Forma
Revenue, for the periods indicated:
|
|
12 weeks
ended
|
|
24 weeks
ended
|
|
28 weeks
ended
|
|
in
000's
|
|
2023
|
2022
|
|
2023
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
Income (loss) and
comprehensive income (loss) for the period
|
|
134
|
(3,394)
|
|
(610)
|
(80,329)
|
|
7,934
|
|
Income tax expense
(recovery)
|
|
3,383
|
774
|
|
3,895
|
4,027
|
|
(10,071)
|
|
Finance costs,
net
|
|
(5,180)
|
2,003
|
|
(2,665)
|
(5,104)
|
|
5,108
|
|
Fair value changes of
financial assets and liabilities
|
|
(37)
|
-
|
|
(37)
|
67,228
|
|
-
|
|
Depreciation and
amortization
|
|
9,314
|
5,414
|
|
16,203
|
10,159
|
|
15,195
|
|
Impairment
loss
|
|
-
|
23
|
|
-
|
23
|
|
301
|
|
Acquisition,
transaction and integration costs
|
|
10,997
|
3,567
|
|
12,110
|
21,919
|
|
4,718
|
|
Share-based
compensation1
|
|
1,165
|
1,585
|
|
2,140
|
2,195
|
|
2,587
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
19,776
|
9,972
|
|
31,036
|
20,118
|
|
25,772
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
178,875
|
90,668
|
|
293,251
|
176,012
|
|
251,497
|
|
Adjusted EBITDA
margin
|
|
11.1 %
|
11.0 %
|
|
10.6 %
|
11.4 %
|
|
10.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro-Forma
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA for the
24 weeks ended September 10, 2022
|
|
31,036
|
|
Adjusted EBITDA for the
28 weeks ended March 26, 2022
|
|
25,772
|
|
Incremental Adjusted
EBITDA for new stores acquired after September 11, 2021 as if owned
on September 11, 20212
|
|
36,732
|
|
Incremental Adjusted
EBITDA for stores acquired, or to be acquired on or after September
10, 2022 to date as if owned on September 11,
20213
|
|
2,733
|
|
Adjustment for
professional, other fees and COVID-related for the 28 weeks ended
March 26, 20224
|
|
498
|
|
|
|
|
|
|
|
|
|
|
Pro-forma Adjusted
EBITDA for the 52 weeks ended September 10, 2022
|
|
96,771
|
|
|
|
|
|
|
|
|
|
|
Pro-Forma
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue for the
24 weeks ended September 10, 2022
|
|
293,251
|
|
Revenue for the 28
weeks ended March 26, 2022
|
|
251,497
|
|
Incremental Revenue for
new stores acquired after Septebmer 11, 2021 as if owned on
September 11, 20215
|
|
262,375
|
|
Incremental Revenue for
stores acquired, or to be acquired on or after September 10, 2022
to date as if owned on September 11, 20216
|
|
21,416
|
|
|
|
|
|
|
|
|
|
|
Pro-forma Revenue
for the 52 weeks ended September 10, 2022
|
|
828,539
|
|
_______________________________________________________
|
|
|
|
|
|
|
|
|
|
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 September 10, 2022 on September 11, 2021, it
would have recorded additional Adjusted EBITDA of $36,732 for the
52 weeks ended September 10, 2022. 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 11, 2021, 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
September 10, 2022 on September 11, 2021, it would have recorded
additional Adjusted EBITDA of $2,733 for the 52
weeks ending September 10, 2022. 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 11, 2021, they would have actually generated such
budgeted EBITDA, nor is this estimate indicative of future
results.
|
|
4 Represents the acute incremental labour and releif
costs incurred during the third quarter 2022 as a result of
increased absenteeism related to the Omicron variant of the
COVID-19 pandemic that are not expected to recur. These costs were
estimated based upon incremental sick pay related to mandatory
quarantine requirements and the corresponding higher cost to cover
an absent employee shift including relief related travel and other
costs.
|
|
5
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 10, 2022 on September 11, 2021, it would
have recorded additional Revenue of $262,375 for the 52 weeks ended
September 10, 2022. 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 11, 2021, they would have actually generated such
budgeted Revenue, nor is this estimate indicative of future
results.
|
|
6
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 10, 2022 on September 11, 2021, it would have recorded
additional Revenue of $21,416 for the 52
weeks ended September 10, 2022. 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 11, 2021, they would have actually
generated such Revenue, nor is this estimate indicative of future
results.
|
|
|
12 weeks
ended
|
|
24 week
ended
|
|
in
000's
|
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
|
Income (loss) and
comprehensive income (loss) for the period
|
|
134
|
(3,394)
|
|
(610)
|
(80,329)
|
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
Fair value changes of
financial assets and liabilities
|
|
(37)
|
-
|
|
(37)
|
67,228
|
|
Amortization on
customer lists
|
|
3,041
|
2,543
|
|
6,166
|
4,983
|
|
Impairment
loss
|
|
-
|
23
|
|
-
|
23
|
|
Acquisition,
transaction and integration costs
|
|
10,997
|
3,567
|
|
12,110
|
21,919
|
|
Share-based
compensation1
|
|
1,165
|
1,585
|
|
2,140
|
2,195
|
|
Gain on Debt
Modification2
|
|
(8,703)
|
-
|
|
(8,703)
|
(10,356)
|
|
Income tax impact on
non-GAAP adjustments
|
|
(3,438)
|
(1,531)
|
|
(4,374)
|
(6,700)
|
|
Deferred tax
expense3
|
|
1,956
|
84
|
|
1,967
|
2,797
|
|
Adjusted net
income
|
|
5,116
|
2,877
|
|
8,658
|
1,760
|
|
|
|
|
|
|
|
|
Adjusted weighted
average number of shares (000's)4
|
|
43,216
|
33,443
|
|
38,762
|
29,232
|
|
Adjusted Earnings
per share
|
|
0.12
|
0.09
|
|
0.22
|
0.06
|
|
_______________________________________
|
|
|
|
|
|
|
|
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 and
further refinanced concurrent with the Rubicon acquisition with
extended principal repayments.
|
|
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.
