Paragon Pharmacies Limited
TSX VENTURE : PGN

Paragon Pharmacies Limited

December 08, 2009 18:45 ET

Paragon Pharmacies Limited Reports Fiscal 2009 Financial Results

KELOWNA, BRITISH COLUMBIA--(Marketwire - Dec. 8, 2009) - Paragon Pharmacies Limited ("Paragon" or "the Company") (TSX VENTURE:PGN) today reported its financial results for the fiscal year ended August 31, 2009.

Revenue for the year was $86.134 million compared to $83.718 million last year, an increase of 2.9%. Operating income, as defined was $8.640 million compared to $5.878 million in 2008, an increase of 47.0%. This increase was a result of additional revenues from prior year acquisitions, improved pharmacy margins and cost containment initiatives that were implemented during the year.

The net loss for the year was $7.181 million compared to $10.125 million the previous year, a decrease of 29.1%. Net loss includes $5.413 million of financing costs relating to the convertible debenture that was retired in November 2008 compared to $7.527 million in 2008. The reduction in net loss was due to the increase in operating income and the reduction in financing costs offset by increased amortization relating to the acquisitions in 2008.

The Company experienced a net loss of $0.449 million in the fourth quarter, compared to $4.029 million last year. This improvement relates primarily to an improvement in operating income of $1.204 million, reduction in corporate costs and financing costs of $0.761 and $1.968 million respectively.

Paragon continues to concentrate on business strategies designed to support revenue growth, build customer loyalty, improve profitability and expand brand awareness. The Company re-invested in its stores during the year including the relocation of the Airdrie, Alberta store, construction of a new clinical format pharmacy in Kelowna, BC, completion of rebranding its Calgary locations to operate as Paragon and began renovations to relocate one of its Kelowna retail pharmacies to a more prominent and visible location.

Denis Taillieu, Chief Executive Officer, said, "While the fiscal year end results reflect the economically difficult and competitive environment in which Paragon does business, the Company's primary focus will continue to be new business development and expanding its professional service offerings to its pharmacy customers. Paragon's success will be built on pharmacy first, supporting our customers' health and wellness goals. The talent, skill and dedication of our employees are primary contributors to establishing Paragon as the community pharmacy of choice."

The Company's audited consolidated financial statements and Management's Discussion and Analysis for the fiscal year ended August 31, 2009 are available at the Investor Relations section of Paragon's website at www.paragonpharmacies.com or under the Company's profile on SEDAR at www.sedar.com.

Paragon Pharmacies Limited is building a pharmacy with our customers in mind. Headquartered in Kelowna, BC and employing over 400 staff, Paragon currently owns and operates 19 retail pharmacies and three central fill pharmacies throughout British Columbia, Alberta and Manitoba. Paragon is a leading mid-market pharmacy, providing premier pharmacy services in a friendly, community-focused environment.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements regarding, among other things, the Company's beliefs, plans, objectives, strategies, estimates, intentions and expectations, including as they relate to its operating and financial results, capital expenditures and the ability to execute on its operating, investing and financing strategies. Consequently, actual results and events may differ materially from those included in, contemplated or implied by such forward looking statements for a variety of reasons. Forward-looking statements are subject to inherent risks and uncertainties including, but not limited to, market and general economic conditions, certain property and casualty risks, the ability to attract and retain pharmacists, the availability and terms of financing, changes in the Company's relationship with its key suppliers, competitive factors, changes in regulatory environments affecting the Company's business, and the accuracy in management's assumptions (see "RISKS AND RISK MANAGEMENT" as noted in the Company's Management's Discussion & Analysis posted on SEDAR at www.sedar.com). This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. Investors and others should carefully consider these and other factors and not place undue reliance on these forward-looking statements. In addition, these forward-looking statements relate to the date on which they were made and the Company disclaims and has no intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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