Carebook Announces First Quarter Results
Successful Integration of Acquisitions Yielding Early Benefits
- $6.4 million in new multi-year contracts signed since November 1, 2021, including new landmark contracts announced with LifeLabs and Air Canada
- Revenue up 178% to a record $2.40 million in Q1 2022 compared to $0.86 million in Q1 2021
- Increased number of clients to 96 in Q1 2022 compared to 2 in Q1 2021
- 3.5 million members currently connected on expanding Carebook platform
- Opportunities for synergies and further expansion into the fast-growing US market identified following successful completion of integration of InfoTech acquired in Q2 2021 and CoreHealth acquired in Q3 2021
- Rights Offering successfully completed with aggregate proceeds of $4.5 million
- Olivier Giner appointed as new CFO effective June 1, 2022
MONTREAL, May 30, 2022 /CNW Telbec/ - Carebook Technologies Inc. ("Carebook" or the "Company") (TSXV: CRBK) (OTCPK: CRBKF) (XFRA: PMM1), a leading Canadian provider of innovative digital health solutions today announced its results for its first quarter ended March 31, 2022.
"Our record first quarter results provide an early illustration of the improved performance trends in place within the company following the successful integration of our acquisitions of Wellness Checkpoint and CoreHealth," commented Michael Peters, Carebook CEO. "We expect to see continued improvement and strong growth as we benefit from our shift in strategic focus to the Employer vertical. The recent landmark contracts signed with LifeLabs and Air Canada are two very strong indications of the success of our strategy and we are currently in discussions with many other potential major clients both in Canada and the U.S. Of particular note is the fact that we are now providing services to 96 clients compared to 2 clients during the same first quarter period 2021. On the leadership front, we are thrilled to welcome Olivier Giner to the Carebook team as our new CFO. With Olivier's strong background in both finance and operations, I know that he will play an integral role as Carebook takes the lead in the global digital healthcare market offering a comprehensive suite of assessment and wellness solutions."
Revenue for the quarter ended March 31, 2022, was $2.40 million, compared to $0.86 million in the quarter ended March 31, 2021, an increase of $1.53 million or 178% which is driven by the acquisitions of InfoTech and CoreHealth. Revenue generated in 2021 was entirely from the pharmacy vertical, whereas revenue generated in 2022 was 21% pharmacy and 79% employer.
Total comprehensive loss
Total comprehensive loss was $1.80 million for the quarter ended March 31, 2022, compared to a loss of $2.26 million for the quarter ended March 31, 2021, a decrease of $0.45 million. The loss from operations decreased by 19% from $2.06 million in first quarter of 2021 to $1.67 million in the first quarter of 2022. While the acquisitions of InfoTech and CoreHealth increased operating expenses for the quarter ended March 31, 2022, this was more than offset by the incremental revenue and cost reductions that were implemented as of November 1, 2021.
New Contracts Booked
Carebook has booked a record $6.4 million in new multi-year contracts since November 1, 2021. These contracts, from a diverse base of clients located in the U.S. and Canada, provide confirmation of the success of Carebook's strategy and renewed focus on the fast-growing employer vertical. Included in the new bookings are the landmark contracts signed with LifeLabs and Air Canada highlighted below.
On January 10, 2022, Carebook announced that it will be working with LifeLabs, Canada's largest community medical laboratory network, to deliver valuable insights to LifeLabs' MyCareCompass customers through integration with Carebook's CoreHealth digital platform. This multi-year licensing agreement will deliver even greater value to LifeLabs' customers, empowering them to conveniently manage their healthcare through MyCareCompass. The CoreHealth assessment tool is an innovative solution that can integrate with existing digital systems to provide a greater understanding of immediate and long-term health care needs of users. Through integration with LifeLabs' free and secure MyCareCompass portal, over six million users will have access to personalized insights from the CoreHealth solution. These easily accessible insights are critical in supporting better healthcare outcomes for customers.
On April 25, 2022, Carebook announced a contract with Air Canada for the inclusion of the Carebook CoreHealth Platform in its Employee Portals.
Air Canada is using Carebook's CoreHealth total well-being platform to connect their employees to a comprehensive suite of leading health and wellness programs, content and solutions. CoreHealth's platform is easy to use and highly configurable giving Air Canada the ability to deliver specific wellness programming to meet the individual needs of their employees. The CoreHealth solution builds upon the current organizational understandings provided by Carebook's Wellness Checkpoint assessment tool which has been in use with Air Canada since 2017. When coupled together, these two leading solutions offer Air Canada an unparalleled opportunity to curate relevant programming that will help improve the health and wellness of all Air Canada employees. Air Canada will be one of the first world-class employers to benefit from the combined power of Carebook's integrated assessment and wellness solutions and provides the company with an international showcase for its solutions capability.
Integration of Acquisitions Complete
On April 6, 2021, Carebook completed the acquisition of InfoTech, doing business as Wellness Checkpoint®, a global web-based service used by many Global Fortune 500 companies in over 100 countries that is translated into 26 languages. InfoTech's proprietary software platform Wellness Checkpoint®, IP and metrics are supported by advanced analytics and focus on employees' physical health, mental health and well-being, and their impact on work and business effectiveness. Representative clients include multinational companies in the aerospace, financial, food processing, technology, pharmaceutical, manufacturing and resource sectors, many of whom have been utilizing the platform for over ten years.
On August 6, 2021, Carebook completed its acquisition of CoreHealth. The CoreHealth solution is an industry leading platform that powers health and wellness programs. CoreHealth offers corporate wellness providers and group benefits providers a robust technology platform-as-a-service to power programs and engage employees with various interventions like coaching, self-directed programs, group challenges, and habit trackers. The platform offers over 30 services in the form of APIs including scheduling, teleconferencing, questionnaires, content feeds, messaging and more. These services are offered by an expanding network of direct health and wellness providers and resellers. The technology is flexible, configurable, scalable, and easy to integrate.
Carebook's acquisitions of InfoTech and CoreHealth establish the Company as a leader in the provision of digital health and wellness with customers across the globe. Carebook is delivering on its stated objective to be the connector to a new model of healthcare. With the integration of these acquisitions substantially completed late in 2021, the Company can now offer a wide range of best-in-class health and wellness assessments and solutions to add depth to its offerings targeting employers and insurers. Both InfoTech's Wellness Checkpoint® platform and CoreHealth's leading wellness technology platform are used by global businesses of significant size, providing considerable market recognition and validation. The combination of these solutions allows Carebook to offer employers not only the means to assess and understand their employees' health challenges, but also to provide specific, targeted, and customized solutions to improve employee health, wellness, and productivity.
The Be Well app for Rexall Pharmacy in Canada on iOS, Android and web was launched in May 2020. The launch and subsequent usage of the app has been a success and users have been responding positively to the platform. As at April 2, 2022, App Store ratings (iOS users) were 4.5/5 stars, and Google Store (Android users) were 4.6/5 stars. During the first quarter of 2022, the Be Well program maintained an average Net Promoter Score of 75%, which is above the industry average.
Olivier Giner Appointed as New CFO
Carebook announced last week the appointment of Mr. Olivier Giner as the Company's new Chief Financial Officer effective as of June 1, 2022. Olivier, a lawyer by training, was most recently the Chief Executive Officer of Adracare, a virtual care software company based in Toronto which was sold to Well Health Technologies in 2021. Prior to Adracare, Olivier was Vice President and Chief Operating Officer of iGan Partners, a healthcare venture capital fund. Olivier also spent 5 years at CIBC World Markets as a technology, media and telecom investment banker. Olivier will take over from Carebook's Interim CFO, Jeffrey Kadanoff.
Rights Offering and Stand-by Commitment Agreement
On May 17, 2022, Carebook announced the completion of its previously announced rights offering. The Offering resulted in the issuance of 17,107,749 common shares of Carebook at a price of $0.15 per share for proceeds to the Company of approximately $2.57 million.
In accordance with the terms of the stand-by commitment agreement dated April 11, 2022 between the Company and UIL Limited, the Company also issued 12,892,251 additional common shares to UIL Limited, at a price of $0.15 per share, for additional proceeds to the Company of approximately $1.93 million, resulting in the Company receiving aggregate proceeds of $4.5 million under the Rights Offering.
Following closing of the Rights Offering and including the common shares issued to UIL Limited pursuant to the Stand-by Commitment Agreement, Carebook now has 77,752,356 common shares issued and outstanding.
The proceeds from the Rights Offering will be used by the Company to repay indebtedness, for working capital and for other general corporate purposes.
Conference Call Details
A conference call will be held at 8:30 AM Eastern on May 31, 2022 to discuss Carebook's year end financial results. Participants may join the Company's conference call by using an appropriate dial-in number or via webcast (ID: 6204460). For those unable to participate, playback will be made available an hour after the event at 647-436-0148, or 1-888-203-1112, utilizing passcode 6204460.
Carebook's unaudited consolidated financial statements and accompanying notes, and related Management's Discussion and Analysis for the three-month period ended March 31, 2022 are available on the Company's website at www.carebook.com and on SEDAR at www.sedar.com.
About Carebook Technologies
Carebook's digital health platform empowers its clients and more than 3.5 million members to take control of their health journey. During 2021, the Company completed the acquisitions of InfoTech Inc., a global leader in health and productivity risk management, and CoreHealth Technologies Inc., owner of an industry-leading wellness platform. In combination, these companies create a comprehensive digital health platform that includes both assessment tools and the technology to deliver complementary solutions. Carebook's shares trade on the TSXV under the symbol "CRBK," on the OTC Markets under the symbol "CRBKF," and are listed on the Open Market of the Frankfurt Stock Exchange under the symbol "PMM1."
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding forward-looking statements:
This release includes forward-looking information and forward-looking statements within the meaning of Canadian securities laws regarding Carebook, its subsidiaries and their business. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this release include statements with respect to the appointment of a new CFO and expected timing thereof, the expected benefits from completed and integrated acquisitions and timing thereof, and the expected use of proceeds received by Carebook under the rights offering. Such statements are based on the current expectations of the management of Carebook and are based on assumptions and subject to risks and uncertainties. Although the management of Carebook believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and undue reliance should not be placed on such forward-looking statements. The forward-looking statements reflect the Company's current views with respect to future events based on currently available information and are inherently subject to risks and uncertainties. The forward-looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company, including economic factors, management's ability to manage and to operate the business of Carebook, management's ability to successfully integrate the Company's completed acquisitions and to realize the synergies of such acquisitions, management's ability to successfully complete product studies, the equity markets generally and risks associated with growth and competition, as well as the risk factors identified in the Company's management's discussion and analysis for the year ended December 31, 2021 and described under the heading "Item 21 – Risk Factors" in the Listing Application of the Company dated September 28, 2020, each of which can be found on SEDAR under the Company's profile at www.sedar.com. Although Carebook has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Carebook does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. In addition, the current situation and future developments with respect to the COVID-19 pandemic could cause certain of the assumptions and information set forth herein or the fact that on which such assumptions are based to differ materially from previous expectations including in respect of demand for our products, access to debt and equity capital and other factors.
SOURCE Carebook Technologies Inc.
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