Same store sales1 increase 4.1% in
the quarter, while revenues grow to $265
million, up 90.6%
TORONTO, Feb. 14,
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 sixteen-week period ended December 31, 2022 (the "third quarter
2023").
"Neighbourly's third quarter results reflect the strength of our
business and its continued resilience" stated Chris Gardner, Neighbourly's outgoing Chief
Executive Officer. "I am thrilled to pass the baton over to
Skip Bourdo as Neighbourly embarks
on its next phase of growth. I look forward to supporting Skip and
the team as they continue to execute our successful strategy,"
concluded Mr. Gardner.
Mr. Bourdo, the Company's newly appointed CEO said: "I feel
privileged to be taking over the CEO role and along with the
exceptional team, I look forward to continuing our focus on growing
Neighbourly's network of independent pharmacies, while driving the
health and profitability of the business and supporting the health
needs of the communities we serve every day across Canada."
Third Quarter 2023 Highlights
- Same store sales1 in the third quarter increased
4.1%.
- Revenue for the third quarter increased to $265.3 million, up $126.1
million or 90.6%.
- Adjusted EBITDA2 for the third
quarter increased to $28.5 million,
up $14.1 million or 97.2%, driven by
the incremental profitability of acquired pharmacies added to the
Company's network.
- Network of pharmacies now at 284 locations, following the
successful integration of 6 pharmacies acquired in Atlantic Canada and 2 in British Columbia.
- Adjusted Earnings per Share3 of $0.17 for the third quarter 2023, increased from
$0.15 in the third quarter 2022.
- Pro-Forma Revenue3 of $842.2
million and Pro-Forma Adjusted EBITDA3 of
$94.4 million.
_____________________________
|
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 Third Quarter 2023 Results
|
|
|
Third
quarter
|
|
|
Year to Date
|
|
in 000's
|
|
|
2023
|
2022
|
|
|
2023
|
2022
|
|
Store count
|
|
|
284
|
170
|
|
|
284
|
170
|
|
|
|
|
|
|
|
|
|
|
|
Total
Prescriptions
|
|
|
4,379
|
2,311
|
|
|
9,341
|
5,352
|
|
Same-store
prescription growth (%)
|
|
|
-2.2 %
|
2.7 %
|
|
|
-1.4 %
|
1.4 %
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
265,286
|
$
139,180
|
|
|
$
558,537
|
$
315,192
|
|
Same-store sales
growth (%)1
|
|
|
4.1 %
|
2.2 %
|
|
|
3.3 %
|
3.4 %
|
|
Pharmacy revenue as
a % of revenue
|
|
|
77.4 %
|
78.4 %
|
|
|
78.3 %
|
77.9 %
|
|
|
|
|
|
|
|
|
|
|
|
Corporate, general
& administrative ("CG&A") costs2
|
|
|
$
9,853
|
$
5,456
|
|
|
$
21,269
|
$
11,845
|
|
CG&A as a % of
revenue
|
|
|
3.7 %
|
3.9 %
|
|
|
3.8 %
|
3.8 %
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA3
|
|
|
$ 28,539
|
$
14,470
|
|
|
$ 59,575
|
$ 34,589
|
|
Adjusted EBITDA
margin (%)
|
|
|
10.8 %
|
10.4 %
|
|
|
10.7 %
|
11.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Pro-Forma Adjusted
EBITDA for the 52 weeks ended4
|
|
|
$ 94,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro-Forma Revenue
for the 52 weeks ended5
|
|
|
$
842,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________________________
|
|
|
|
|
|
|
|
|
|
|
|
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.
Declaration of Dividend
Neighbourly announced today that a quarterly dividend will be
paid on April 11, 2023, to the
Company's common shareholders of record as of March 14, 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 February
14, 2023, to discuss Neighbourly's financial results for the
third quarter 2023. Participants may join the Company's conference
call by dialing 416-764-8650 or 1-888-664-6383 (ID: 34289453). 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 289453#. 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 third 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 February 13, 2023 for sixteen weeks ended
December 31, 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 sixteen
weeks ended December 31, 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)
|
|
|
16 weeks
ended
|
|
40 weeks
ended
|
000's
|
|
Dec 31,
2022
|
Jan 1,
2022
|
|
Dec 31,
2022
|
Jan 1,
2022
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
265,286
|
139,180
|
|
558,537
|
315,192
|
Cost of
sales
|
|
161,742
|
88,475
|
|
342,259
|
198,641
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
103,544
|
50,705
|
|
216,278
|
116,551
|
|
|
|
|
|
|
|
|
Operating, general and
administrative expenses
|
|
76,786
|
37,702
|
|
160,623
|
85,625
|
Acquisition,
transaction and integration costs
|
|
3,437
|
1,824
|
|
15,547
|
23,743
|
Depreciation and
amortization
|
|
27,398
|
7,996
|
|
43,601
|
18,155
|
Impairment
loss
|
|
-
|
320
|
|
-
|
343
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
(4,077)
|
2,863
|
|
(3,493)
|
(11,315)
|
|
|
|
|
|
|
|
|
Finance costs (income),
net
|
|
9,016
|
2,652
|
|
6,350
|
(2,452)
|
Change in fair value of
financial assets and liabilities
|
|
(2,568)
|
-
|
|
(2,605)
|
67,228
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes
|
|
(10,525)
|
211
|
|
(7,238)
|
(76,091)
|
|
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
(1,911)
|
863
|
|
1,984
|
4,890
|
|
|
|
|
|
|
|
|
Net loss and
comprehensive loss for the period
|
|
(8,614)
|
(652)
|
|
(9,222)
|
(80,981)
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
$
(8,975)
|
(889)
|
|
(10,189)
|
(81,666)
|
|
Non-controlling
interest
|
|
361
|
237
|
|
967
|
685
|
|
|
|
(8,614)
|
(652)
|
|
(9,222)
|
(80,981)
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to shareholders of the Company
|
|
|
|
|
|
|
basic and
diluted
|
|
$
(0.20)
|
(0.03)
|
|
(0.25)
|
(3.05)
|
Condensed Consolidated Interim Statements of Financial
Position
|
|
|
|
|
000's
|
|
|
December 31,
2022
|
March 26,
2022
|
Assets
|
|
|
|
|
Current
|
|
|
|
|
Cash
|
|
|
$
19,788
|
40,410
|
Trade and other
receivables
|
|
|
39,644
|
24,616
|
Inventory
|
|
|
90,149
|
55,721
|
Prepaid expenses and
other assets
|
|
4,641
|
2,009
|
Assets held for
sale
|
|
|
15,573
|
-
|
Total Current
Assets
|
|
|
169,795
|
122,756
|
|
|
|
|
|
Property and equipment,
net
|
|
|
28,937
|
12,366
|
Right-of-use assets,
net
|
|
|
66,092
|
47,163
|
Intangible assets,
net
|
|
|
401,396
|
134,798
|
Goodwill
|
|
|
427,716
|
238,267
|
Deferred tax
assets
|
|
|
21,188
|
13,288
|
Other assets
|
|
|
4,365
|
627
|
Total Non-current
Assets
|
|
|
949,694
|
446,509
|
|
|
|
|
|
Total
Assets
|
|
|
$
1,119,489
|
569,265
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
Accounts payable and
other liabilities
|
|
$
101,215
|
61,226
|
Promissory notes
payable
|
|
|
62
|
62
|
Current portion of
long-term borrowings
|
|
2,500
|
2,500
|
Current portion of
lease liabilities
|
|
21,074
|
14,705
|
Total Current
Liabilities
|
|
|
124,851
|
78,493
|
|
|
|
|
|
Long-term
borrowings
|
|
|
233,991
|
83,656
|
Lease
liabilities
|
|
|
51,101
|
37,177
|
Deferred tax
liabilities
|
|
|
88,834
|
21,317
|
Total non-current
liabilities
|
|
|
373,926
|
142,150
|
Total
liabilities
|
|
|
498,777
|
220,643
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Share
capital
|
|
|
864,295
|
585,764
|
Contributed
surplus
|
|
|
9,951
|
5,131
|
Deficit
|
|
|
(260,197)
|
(249,956)
|
Total shareholders'
equity
|
|
|
614,049
|
340,939
|
Non-controlling
interest
|
|
|
6,663
|
7,683
|
Total shareholders'
equity
|
|
|
620,712
|
348,622
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
$
1,119,489
|
569,265
|
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
16 weeks
ended
|
|
40 weeks
ended
|
000's
|
|
December
31,
2022
|
January
1,
2022
|
|
December
31,
2022
|
January
1,
2022
|
|
|
|
|
|
|
|
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
Net loss for the
period
|
|
(8,614)
|
(652)
|
|
(9,222)
|
(80,981)
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
27,398
|
7,996
|
|
43,601
|
18,155
|
|
Impairment
loss
|
|
-
|
320
|
|
-
|
343
|
|
Share-based
compensation
|
|
1,781
|
1,467
|
|
3,920
|
3,663
|
|
Gain (loss) on disposal
of property and equipment
|
|
16
|
-
|
|
27
|
(11)
|
|
Finance costs (income),
net
|
|
9,016
|
2,652
|
|
6,350
|
(2,452)
|
|
Change in fair value of
financial assets and liabilities
|
|
(2,568)
|
-
|
|
(2,605)
|
67,228
|
|
Provision for income
taxes
|
|
(1,911)
|
863
|
|
1,984
|
4,890
|
|
Lease renewals and
modifications
|
|
-
|
(32)
|
|
(137)
|
(64)
|
|
Expected credit loss
expense
|
|
-
|
-
|
|
-
|
11
|
|
Loss on remeasurement
of held for sale assets
|
|
90
|
-
|
|
534
|
-
|
|
Change in non-cash
operating working capital
|
|
6,710
|
4,910
|
|
(8,408)
|
(5,394)
|
|
Income taxes recovered
(paid)
|
|
12
|
(2,328)
|
|
256
|
(3,094)
|
|
Payment of contingent
consideration
|
|
-
|
-
|
|
(12)
|
-
|
|
|
|
|
31,930
|
15,196
|
|
36,288
|
2,294
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
Proceeds from issuance
of common shares, net of issuance costs
|
|
-
|
28,194
|
|
282,784
|
216,091
|
|
Proceeds from exercise
of stock options
|
|
1,382
|
125
|
|
1,450
|
125
|
|
Proceeds from exercise
of warrants
|
|
-
|
-
|
|
-
|
9
|
|
Repayment of promissory
notes payable
|
|
-
|
-
|
|
-
|
(740)
|
|
Proceeds from long-term
borrowings
|
|
6,452
|
-
|
|
157,626
|
-
|
|
Repayment of long-term
borrowing
|
|
-
|
-
|
|
-
|
(100,168)
|
|
Transaction costs
related to long-term borrowings
|
|
(60)
|
-
|
|
(2,036)
|
(1,915)
|
|
Repayment of mortgages
payable
|
|
-
|
(1,237)
|
|
-
|
(1,304)
|
|
Interest
Paid
|
|
(4,883)
|
(1,285)
|
|
(10,079)
|
(3,926)
|
|
Dividends and
distributions paid
|
|
(4,337)
|
(2,514)
|
|
(9,149)
|
(4,017)
|
|
Payment of lease
liabilities
|
|
(6,512)
|
(3,191)
|
|
(16,230)
|
(8,981)
|
|
Proceeds from
cancellation of shares
|
|
-
|
-
|
|
900
|
-
|
|
|
|
|
(7,958)
|
20,092
|
|
405,266
|
95,174
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
Acquisition of property
and equipment
|
|
(2,020)
|
(942)
|
|
(7,062)
|
(1,870)
|
|
Acquisition of
intangible assets
|
|
(131)
|
(282)
|
|
(463)
|
(485)
|
|
Acquisition of other
assets
|
|
-
|
(15)
|
|
(3)
|
(15)
|
|
Business combinations,
net of cash acquired
|
|
(13,389)
|
(65,587)
|
|
(456,991)
|
(101,145)
|
|
Proceeds from sale of
assets held for sale
|
|
2,228
|
-
|
|
2,228
|
-
|
|
Interest
received
|
|
34
|
85
|
|
115
|
226
|
|
|
|
|
(13,278)
|
(66,741)
|
|
(462,176)
|
(103,289)
|
|
|
|
|
|
|
|
|
|
Net change in cash for
the period
|
|
10,694
|
(31,453)
|
|
(20,622)
|
(5,821)
|
Cash, beginning of the
period
|
|
9,094
|
71,546
|
|
40,410
|
45,914
|
Cash, end of
period
|
|
19,788
|
40,093
|
|
19,788
|
40,093
|
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:
|
|
16 weeks
ended
|
|
40 weeks
ended
|
|
12
weeks
ended
|
in 000's (unless
otherwise stated)
|
|
2023
|
2022
|
|
2023
|
2022
|
|
2022
|
Income (Loss) and
Comprehensive Income (loss) for the period
|
|
(8,614)
|
(652)
|
|
(9,222)
|
(80,981)
|
|
8,586
|
Income tax expense
(recovery)
|
|
(1,911)
|
863
|
|
1,984
|
4,890
|
|
(10,933)
|
Finance Costs,
net
|
|
9,016
|
2,652
|
|
6,350
|
(2,452)
|
|
2,456
|
Fair value changes of
financial liabilities
|
|
(2,568)
|
-
|
|
(2,605)
|
67,228
|
|
-
|
Depreciation and
amortization
|
|
27,398
|
7,996
|
|
43,601
|
18,155
|
|
7,199
|
Impairment
loss
|
|
-
|
320
|
|
-
|
343
|
|
(19)
|
Acquisition,
transaction and integration costs
|
|
3,437
|
1,824
|
|
15,547
|
23,743
|
|
2,894
|
Share-based
compensation1
|
|
1,781
|
1,467
|
|
3,920
|
3,663
|
|
1,119
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
28,538
|
14,470
|
|
59,575
|
34,588
|
|
11,302
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
265,286
|
139,180
|
|
558,537
|
315,192
|
|
112,317
|
Adjusted EBITDA
margin
|
|
10.8 %
|
10.4 %
|
|
10.7 %
|
11.0 %
|
|
10.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro-forma Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
for the 40 weeks ended December 31, 2022
|
|
59,575
|
Adjusted EBITDA for the 12 weeks ended March 26,
2022
|
|
11,302
|
Incremental Adjusted
EBITDA for new stores acquired after January 1, 2022 as if owned on
January 1, 20222
|
|
23,538
|
|
|
|
|
|
|
|
|
|
Pro-forma Adjusted
EBITDA for the 52 weeks ended December 31, 2022
|
|
|
|
|
|
|
|
94,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro-forma
Revenue
|
|
|
|
|
|
|
|
|
Revenue for the 40
weeks ended December 31, 2022
|
|
558,537
|
Revenue
for the 12 weeks ended March 26, 2022
|
|
112,317
|
Incremental Revenue for
the new stores acquired after January 1, 2022 as if owned on
January 1, 20223
|
|
171,389
|
|
|
|
|
|
|
|
|
|
Pro-forma Revenue
for the 52 weeks ended December 31, 2022
|
|
|
|
|
|
|
|
842,242
|
____________________________________
|
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 31, 2022 on January 1, 2022, it would have
recorded additional Adjusted EBITDA of $23,538 for the 52 weeks
ended December 31, 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 January 1, 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 during the 52
weeks prior to December 31, 2022 on January 1, 2022, it would have
recorded additional Revenue of $171,389 for the 52 weeks ended
December 31, 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
January 1, 2022, they would have actually generated such budgeted
Revenue, nor is this estimate indicative of future
results.
|
|
|
16 weeks
ended
|
|
|
40 weeks
ended
|
in 000's
|
|
2023
|
2022
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Income (Loss) and
Comprehensive Income (loss) for the period
|
|
(8,614)
|
(652)
|
|
|
(9,222)
|
|
(80,981)
|
Adjustments,
pre-tax:
|
|
|
|
|
|
|
|
|
Fair value changes of
financial liabilities
|
|
(2,568)
|
-
|
|
|
(2,605)
|
|
67,228
|
Amortization on
customer lists
|
|
18,470
|
3,794
|
|
|
24,635
|
|
8,777
|
Impairment
loss
|
|
-
|
320
|
|
|
-
|
|
343
|
Acquisition,
transaction and integration costs
|
|
3,437
|
1,824
|
|
|
15,547
|
|
23,743
|
Share-based
compensation1
|
|
1,781
|
1,467
|
|
|
3,920
|
|
3,663
|
Gain on Debt
Modification2
|
|
-
|
-
|
|
|
(8,703)
|
|
(10,356)
|
Income tax impact on
non-GAAP adjustments
|
|
(3,221)
|
(1,470)
|
|
|
(7,595)
|
|
(5,426)
|
Deferred tax expense
(recovery)3
|
|
(1,616)
|
(220)
|
|
|
351
|
|
2,577
|
Adjusted net
income
|
|
7,667
|
5,063
|
|
|
16,327
|
|
9,569
|
|
|
|
|
|
|
|
|
|
Adjusted weighted
average number of shares (000's)4
|
|
44,350
|
34,038
|
|
|
40,997
|
|
31,154
|
Adjusted Earnings
per share
|
|
0.17
|
0.15
|
|
|
0.40
|
|
0.31
|
_____________________________________________
|
|
|
|
|
|
|
|
|
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.