Good morning, everyone, and welcome to CareRx's second quarter 2022 financial results conference call. Please note that this call is being broadcast live over the Internet, and the webcast will be available for replay beginning approximately one hour following the completion of the call. Details on how to access the webcast replay are available in today's news release announcing the company's financial results, as well as on the company's website at www.carerx.ca. Today's call is accompanied by a slide presentation. Those listening on their phones can access the slide presentation from the company's website in the Investors section under Events and Presentations by loading the webcast and choosing the non-streaming audio option. Certain matters discussed in today's call or answers that may be given to questions asked could constitute forward-looking statements that are subject to risks or uncertainties relating to CareRx's future financial and business performance. Actual results could differ materially from those anticipated in these forward-looking statements. The risk factors that may affect results are detailed in CareRx's periodic reports and registration statements, and you can access these documents in the SEDAR database under www.sedar.com. CareRx is under no obligation to update any forward-looking statements discussed today, and investors are cautioned not to place any undue reliance on these statements. I would now like to turn the call over to David Murphy, President and CEO of CareRx Corporation. Please go ahead, Mr. Murphy. Thank you, and good morning, everyone. Welcome to our second quarter 2022 earnings call. With me this morning is our Chief Financial Officer, Andrew Mok. Once again, during the second quarter, we delivered strong year-over-year growth in revenue and Adjusted EBITDA. The three acquisitions we made in 2021 were a significant driver of that growth, with each of these acquisitions continuing to contribute revenue and Adjusted EBITDA in line with expectations. Our year-over-year performance was also driven by organic growth and in particular, the 5,000 beds we added during the second half of 2021 from new customer contracts. On May 30th, we closed our fifth acquisition in the past two years, the purchase of Hogan Long Term Care Pharmacy. During the second quarter, we also commenced operations at our new state-of-the-art high volume fulfillment center in Oakville. Turning to some of the specific financial highlights, revenue for the second quarter grew 95% to just under CAD 97 million, with growth driven primarily by an 82% year-over-year increase in the average number of beds serviced to 96,746. Our bed count at the end of the quarter was 97,760, an increase of 2,000 beds from the end of the first quarter. As I mentioned, the year-over-year increase was mainly driven by our acquisitions, but also included organic growth from new contracts onboarded over the last 12 months. Adjusted EBITDA for the first quarter increased 103% year-over-year to CAD 8.8 million. This growth was driven primarily by the organic and acquisitive growth I just described. With another quarter of strong year-over-year growth in Q2, our business continues to deliver an outstanding growth trajectory. Over a three-year period, we have more than tripled our bed count and revenue, and we have increased quarterly Adjusted EBITDA just under three times to CAD 8.8 million, which represents a compound annual growth rate of 36%. Turning to the integration of our Medical Pharmacies acquisition. During the second quarter, we completed an additional three pharmacy site consolidations. All site consolidations related to the integration are now complete, with the exception of the previously disclosed decision to defer one of the planned consolidations to the first half of 2023. Our second quarter results reflect an annualized run rate of approximately CAD 2.8 million in cost saving synergies from the transaction, and we continue to expect total annual cost saving synergies of approximately CAD 5 million to be realized upon the completion of the integration. With the exception of the one deferred site consolidation, we expect all integration activities to be completed by the end of 2022. In May of this year, we completed our previously announced acquisition of the long-term care pharmacy business of Hogan Pharmacy Partners. This acquisition adds 800 beds and is expected to contribute run rate annualized revenue and Adjusted EBITDA of approximately CAD 4 million and CAD 600,000, respectively. On closing, we signed a new seven year contract with Hogan's largest customer, and over the course of the next four years, we expect Hogan's customers to increase their bed service by over 1,200 to approximately 2,000 beds. To date, this acquisition is contributing in line with our expectations. As previously disclosed, during the first half of 2022, we secured long-term contract extensions with three of our four largest customers, including our two largest customers, representing approximately 18,000 beds serviced in total. Importantly, these beds will be under contract for an average of 5.5 years from the end of 2021. We regard these long-term extensions as further validation of the strength of our service offering and the uniqueness of our value proposition as the only national pharmacy services provider that is focused solely on congregate care communities. As I discussed last quarter, one of our existing large customers awarded a request for proposal to another pharmacy services provider. This contract loss will result in us off-boarding approximately 5,800 beds, which is now scheduled to occur throughout the second half of the year. The impact to Adjusted EBITDA from the off-boarding is expected to be up to CAD half a million in the third quarter of 2022, up to CAD 1.5 million for the fourth quarter of 2022, and in the range of CAD 6 million-CAD 6.5 million on an annualized basis following the completion of the off-boarding. Although we are disappointed by this outcome, we are proud of our consistent track record of retaining a very high percentage of our existing customers, and we are confident that we will continue to deliver new organic contract wins as we did in 2021 that will allow us to continue to deliver a strong long-term growth trajectory. I would now like to turn the call over to Andrew to discuss our second quarter results in more detail. Andrew. Thank you, David, and good morning, everyone. Before I begin, a reminder that our financial statements and MD&A for the second quarter have been filed with SEDAR and are also available on our website. Revenue for the second quarter of 2022 increased CAD 47.2 million or 95% to CAD 96.9 million from CAD 49.7 million for the second quarter of 2021. Growth was driven primarily by the Rexall and Medical Pharmacies acquisitions completed during the second and third quarters of last year, respectively, as well as approximately one month of contribution from the acquisition of the Hogan Long Term Care Pharmacy business that we completed at the end of May. To date, as David mentioned, the Hogan acquisition is contributing in line with expectations. The increase was also driven by organic growth resulting from beds from new contracts onboarded over the last 12 months. Adjusted EBITDA for Q2 increased four and a half million dollars or 103% to CAD 8.6 million from CAD 4.3 million for the second quarter of last year. As was the case for revenue, Adjusted EBITDA growth was driven primarily by the contributions of the acquisitions completed during last year, a partial quarter's contribution from the Hogan acquisition completed in May, as well as organic growth. Adjusted EBITDA for Q2 of this year was dampened by approximately CAD 600,000 of costs related to overtime, contract labor, and recruitment, resulting from a higher than average number of open pharmacy staff positions due to the current challenges in the labor market. These incremental costs are expected to persist for the remainder of the year. Our net loss in the quarter increased to CAD 25.1 million from CAD 8.5 million last year, primarily due to non-cash adjustments, including impairment losses related to goodwill and intangible assets totaling CAD 24.3 million. The goodwill impairment loss was primarily attributable to the loss of the large customer contract and increases in the input costs of the business. These adjustments were partially offset by the contribution of the prior year acquisitions and other non-cash adjustments. Turning to our balance sheet, cash at June 30th was CAD 15.2 million, down CAD 13.3 million from CAD 28.5 million at the end of the first quarter. This reduction was primarily due to the cash used in operations during the second quarter, which was driven by working capital movements, with the most significant impact being from a pay down of accounts payable related to inventory purchases. The effect of this pay down on working capital reversed in July, resulting in a significant increase in our cash balance post-quarter end. Net debt at June 30th was CAD 79.4 million, an increase of CAD 14.8 million in the quarter, which related to the cash movement that I just discussed. Net debt to annualized run rate Adjusted EBITDA was 2.3x at the end of the quarter. With that, I will now turn the call back over to David for some concluding comments. David. Thank you, Andrew. With the successful execution of our growth strategy, we have expanded our current bed count to just under 98,000. Our growth strategy has been incredibly successful during the past few years and has truly transformed the company. At the same time, with more than three-quarters of the Canadian market still serviced by other pharmacy service providers, our growth potential remains very significant. Although short-term profitability is expected to be impacted over the next few quarters by the customer loss I discussed earlier and by the challenges and cost pressures created by the current labor market, we remain highly confident in our ability to deliver an outstanding long-term growth trajectory as we have done consistently over the past three years. We are seeing accelerated expansion in the number of long-term care beds across the country. We are benefiting from the expansion and acquisition activity of our current customers. We are competing aggressively to win new customer contracts, and we are actively exploring opportunities to expand our business to provinces that we do not currently operate in. Finally, our acquisition pipeline remains robust and active, and we expect to continue our track record of making disciplined and accretive acquisitions as part of our growth strategy. Just as importantly, we continue to build and strengthen our team, a team which I believe to be the very best in the industry. The team is committed to execution of our growth strategy, continued strengthening of our capabilities and service offering, and becoming a truly world-class institutional pharmacy partner for our customers and their residents. With that, I would now like to open the call to questions. Operator? Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by the number two. Please stand by for your first question. Your first question comes from Tania Armstrong-Whitworth of Canaccord. Please go ahead. Morning, gentlemen. Firstly, I'm hoping you can talk about organic contract wins. I know we've discussed this in the past, but the cadence of new RFPs coming up for tender, what do you see on the horizon for H2 2022? Good morning, Tania. We certainly are seeing a lot of activity. I think, really as the Omicron wave subsided late Q1, you know, really since then seen a lot of activity. It is, I think, fair to say that, based on our previous comments that the large contracts in the sector are generally settled. Below those sort of top five, top six, we're seeing a lot of activity and certainly bullish on our ability to get more than our fair share, in the second half of 2022 and beyond. And then in terms of the changes to generic drug pricing, did that have any impact in Q2, or is that expected to be more of a Q3, Q4 impact? Yeah. I think there was a partial quarter's contribution in Q2. Andrew, maybe you could help with the exact number for Q2. Yeah. We said the annualized impact, Tania, would be about CAD 750,000 or CAD 500,000 for this year. There was only one month of that in Q2, and it would be steady throughout the year. Perfect. Thank you, gentlemen. That's all. Thanks, Tania. Your next question comes from Gary Ho of Desjardins Capital Markets. Please go ahead. Hi. Good morning. My first question, just going back to the kinda labor cost issues. Kinda what gives you confidence that, you know, this will normalize by year-end? You know, are there certain initiatives that you're working on internally? Good morning, Gary. I think, you know, given what's going on in the world, I think we're probably living a quarter or two at a time. I think we don't think what we're dealing with will disappear before year-end. There's certainly certain macro factors that are outside of our control in terms of when things do subside. I think we are responding to the challenge. We have significantly increased our recruiting output and the resources devoted to filling open positions and training and onboarding new staff. You know, I won't get into too much detail, but we're also exploring other things in terms of how we can use technology to have certain work done remotely in order to, you know, get work done without driving things like incremental overtime costs. We're certainly acting on what we can act on, but some of this does depend on a normalization of the overall labor market and the labor market for healthcare workers in particular. Okay. Maybe as a related question, I know some of your contracts could be longer dated, but can you give us, you know, some details whether you have any ways to kind of pass through some of those cost increases to your customers? Anything in the contract that allows you to perhaps, put those through? Generally speaking, because of the extent to which our revenue is regulated and government paid, there's minimal opportunity to pass through cost pressures to our customers. Okay. Then maybe just last one, David. Yeah, thanks for providing the details on the impact. I think that's on the revenue side in your prepared remarks. Not sure if you can help us quantify or triangulate kind of the EBITDA impact of those lost contracts or maybe look at it on a margin basis looking out. Yeah. I mean, just one contract. To clarify, the amount disclosed is an EBITDA impact. That is our estimated projection on the impact to EBITDA in Q4. Excuse me, Q3. Okay. Q4 on an annualized basis once the off-boarding is completed. Got it. Okay. That's it for me. Thanks. Thanks, Gary. Your next question comes from Justin Keywood of Stifel. Please go ahead. Hi. Justin Keywood here. Thanks for taking my call. Just to follow the questioning on the lost contract. It seems to have an outsized impact on EBITDA versus the revenue, you know, calculating it around 5% or 6% of sales or beds under management, but having a far larger impact on EBITDA. My question is why is that impact so much more than the sales or beds under management? Yeah. Good morning, Justin, and good question. I think in terms of quantifying the impact, I would start with, I think we've generally used the rough number of about CAD 800 a bed, usually in the context of if we were to add additional beds, what the incremental contribution less the direct costs associated with servicing the beds would be. I think the starting point is that CAD 800 dollar number, which I think would cover about 75% of the impact that we're estimating. I think what's left really is a function of, you know, when you delete beds or when you remove beds from the network. You know, unfortunately, very few of the costs associated with servicing those beds disappear naturally. They have to be shed. In the context of off-boarding 5,800 beds, remember this isn't a national contract, so it's concentrated in Ontario, and I would say it's particularly concentrated in a handful of sites in Ontario. There just is not the ability to shed the full proportional costs associated with servicing that volume. You know, that in a nutshell is why the number, you know, is higher than CAD 800 per bed. If I interpret this correctly, there's not an opportunity to redeploy the staffing resources that were servicing that contract for perhaps the labor challenges you're experiencing elsewhere? Yeah. I think that general assumption would hold in terms of if we have open positions, there could be some movement between the two. But I think we've tried to keep those two things distinct. Really what we've said is, if you think about a facility that, you know, perhaps might be losing 25% or 30% of their volume, there just isn't an opportunity to reduce costs by that same percentage, even with the number of open positions we might have. Understood. In your opening remarks, you mentioned a new fulfillment center that's state-of-the-art. When would we start to see the impacts of this, the new center and perhaps some efficiency there show up in the financials? I think it's still premature. I mean, the facility just opened. You know, remember we only purchased two machines, high-speed machines as an opportunity to sort of prove the concept. I think we will, we'll have, I think, good learnings from that, you know, hopefully as early as by the end of the year. I think in terms of actually reflecting in something that will be noticeable in the financial statements, I don't think that's a 2022 thing. Okay. Thank you for taking my questions. Thanks, Justin. Your next question comes from Paul Stewardson of iA Capital Markets. Please go ahead. Good morning, guys. Just calling in for Chelsea. My question here is, it looks like prescriptions over the last year have grown significantly more than beds. Am I getting that right? If so, is that a change in LTC versus retirement mix, or is that a trend you're seeing generally that, you know, each patient is getting more prescriptions? Can you talk about that? Yeah. I think high level, you're probably best to look at that primarily as a bed mix, as a bed mix issue. In particular, Paul, Medical Pharmacies was much more skewed to long-term care than to retirement. I think some of this really is the impact of acquisitions in changing our bed mix. I don't think we're seeing anything at this point that we would characterize as any actual underlying change in prescription volume. I think it's primarily or maybe almost entirely bed mix. Okay. Okay, that's helpful. The only other one from me is just in terms of, you know, acquisition pipeline. Is there anything, sort of in the more what you'd call near-term outlook for targets in the pipeline? Yeah. There's definitely a lot of activity. We're always hesitant to be too specific about expected timing because these deals all have lives of their own. I can say we're doing as much work as we've done in the last few years and you know, confident that deals will happen. You know, when exactly is probably difficult to predict. Okay, great. Thanks for taking my question. Thanks, Paul. Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star one at this time. Your next question comes from Stefan Quenneville of Echelon Capital Markets. Please go ahead. Hi, guys, and thanks for taking my question. Just a couple of questions. First, can you give me kind of maybe a general sense of how many beds are up for contract in the second half of this year that you're looking at bidding on, just to give me a sense of that. Second of all, could you also give me a little more color on the sort of M&A target environment, you know, given the challenges you're seeing on inflation and filling positions? Obviously, a lot of the smaller non-scaled players are probably feeling those pressures even more acutely. I'm wondering if that's changing the dynamics in your discussions with them. And then finally, I just wanted to ask about your long-term bed targets. You didn't seem to mention it in the press release today or anything like that. Have you made any changes to those long-term targets? That's it. Thanks. Yeah. Thanks for the questions. On the first question, I don't think we've ever quantified pipeline, but I think it continues to be the case that, you know, in a market certainly below the top five or six largest home operators, you know, generally, contract lengths are three years or so. It's a large percentage of the market is potentially available at any given time. We believe that number is large. I think really for the first time now in probably nine quarters of a pandemic, we do feel like activity is normalized and the sales efforts are, you know, are there to be made as it relates to convincing customers to convert. Pretty bullish on the pipeline. On the M&A side, certainly what your comment is right that I think everyone's dealing with the same labor market issues that we are, and I think that's putting pressure on everyone. You know, I wouldn't observe a material change in what that means in terms of acquisition pipelines or valuations or anything, but it's definitely a factor that the whole industry is dealing with. Lastly, on the 130,000 bed target, which is, I think, what your question was. Yeah, we have not backed away from that at all. We are as we were, you know, when we set previous growth targets and we've got a pretty good track record at being able to both make and hit long-term bed growth targets. We still feel like there's a path to being 130,000 beds by the end of 2024. It's always been a target that required a mix of organic and non-organic. You know, we're certainly very bullish on continuing to get there by the end of 2024. Great. Thanks, guys. Thank you. Your next question comes from Sep Manochehry of Eight Capital. Please go ahead.k Good morning. Just wanted to ask about the new jurisdictions. When you guys had this Hogan pharmacy acquisition, you touched on the model being slightly different. Does that go hand in hand with you entering new jurisdictions? Will you be essentially deploying this new model? Can you kind of touch on the kind of areas of focus there? Sure, Sep. Good morning. So probably a two-part answer. I think the Hogan model, which entirely is focused on Ontario right now, we do think it has applicability outside the country, including in markets that we currently operate in Western Canada. I put that sort of separate from the question of entering new provinces. That's something that, as I've mentioned on past calls, we've done an increasing amount of work on in recent months. You know, I wouldn't say anything definitive at this stage, but I think you can expect to hear from us before the end of the year in terms of our plans to expand to other provinces. Understood. I guess, in terms of when you talk about labor challenges, is that particularly at the sites, or is that more at your distribution centers? If it's at the latter, does that kind of propel you towards more of these BD Rowa implementations, which in the past you'd mentioned require less staff oversight? Like, does that go hand in hand? Yeah, I think that the timelines are different. I think you're certainly right that the BD Rowa, if we prove the concept and use more of those in our facilities over the next few years, that would drive a level of automation that may reduce labor needs. I think that the current labor issues are more near term and they need to be managed, I think, by filling the positions. Although I think the labor market challenges are broad, the ones we would highlight are certainly related to our frontline folks in the pharmacies themselves. Understood. Just lastly, on the $130 target, from my assumption, I assume there's some of that will be new institutional care settings, if I understand correctly. Can you kind of touch on any initial prospecting or RFPs you're looking at or whether there's a timeline to kind of framing the opportunity and the maybe jurisdictions of focus for whether it's penitentiaries, group homes, or other settings that you're looking to get into? Yeah. Growth target assumes or includes expansion. It includes most significantly organic growth. It does include, as you mentioned, increasing penetration in congregate communities other than seniors living. We already do business in those spaces and things like group homes and corrections facilities, but we consider our penetration to be minimal relative to the overall opportunity. There have been RFPs and other opportunities that we've bid on in the last few months. Yeah, certainly that other congregate care communities is part of the growth strategy. You've bid on some RFPs, I guess, in that setting like what's the timeline to maybe breaking out where you are in the core business of senior care and then what proportion of the beds is outside of senior care? Do you see doing that? It's a good question. We'd have to think about that. I think it's still, you know, it's not immaterial now. It's a few thousand beds, I think. But I think about whether we should break out with more specificity. Remembering that the senior living business is still beds will be, you know, and I don't think that will change through the three-year period we're talking about. Understood. Well, thanks for taking my questions and congrats on the continued growth. Thanks, Sep. There are no other questions from the phone lines. I will turn the conference back to Mr. Murphy for closing remarks. Thank you. Thank you everyone for participating in today's call and for your continued interest in CareRx. We look forward to reporting on our continued progress next quarter. Thank you. Ladies and gentlemen, this concludes your conference call for this morning. We would like to thank you all for participating and ask you to please disconnect your.