Paragon Pharmacies Limited

Paragon Pharmacies Limited

February 23, 2012 21:00 ET

Paragon Pharmacies Limited Reports First Quarter Financial Results

KELOWNA, BRITISH COLUMBIA--(Marketwire - Feb. 23, 2012) - Paragon Pharmacies Limited (TSX VENTURE:PGN) ("Paragon" or "the Company") today reported its financial results for the first quarter ended November 30, 2011.

"The first quarter gross profit improved as a result of the continued redevelopment of the Company's retail programs and more favorable supply agreements. Management continues to focus on revenue growth opportunities within all areas of the business and strengthening cost control measures to ensure the Company remains on track to increase EBITDA in fiscal 2012." said R. Gordon Gooding, Chief Executive Officer.

Revenue for the three month period was $18.981 million compared to $19.478 million in the same period last year. Comparable store pharmacy revenue was down 3.7% impacted mainly by reductions in generic drug prices due to regulatory reform implemented in British Columbia. Front store revenue, excluding post office and other revenue, increased by 3.2% with a continued focus on strengthening the Company's merchandising and promotional offerings.

Gross profit for the three month period was $7.780 million compared to $7.714 million in the same period last year. Pharmacy margins as a percentage of revenue increased 1.8% in the first quarter compared to the same period last year. Front store margins as a percentage of revenue increased 0.7% in the first quarter compared to the same period last year.

EBITDA was $0.753 million for the three months ended November 30, 2011 compared to $0.785 million in the same period last year, a decrease of $0.032 million or 4.1%. In addition to the downward pressure on revenue which was offset by strengthening gross margin, the Company experienced a modest increase in operating and corporate costs.

The net loss for the first quarter was $0.507 million, compared to $0.765 million in the same period last year, a decrease in the net loss of $0.258 million or 33.7%. This decrease in the net loss is primarily due to a reduction in depreciation and amortization and net finance costs.

The pharmacy industry continues to face ongoing regulatory change which will alter the way generic drugs are priced. The Company's assessment of these changes is more fully described in Management's Discussion & Analysis for the first quarter ended November 30, 2011 in the section entitled Regulatory Changes That Impact the Company's Industry.

The Company's unaudited condensed consolidated financial statements and Management's Discussion and Analysis for the three month period ended November 30, 2011 are available at the Investor Relations section of Paragon's website at or under the Company's profile on SEDAR at

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.


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 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Paragon Pharmacies Limited
    R. Gordon Gooding, CA
    Chief Executive Officer
    (250) 868-8400
    (250) 868-8402 (FAX)