KELOWNA, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2009) - Paragon Pharmacies Limited ("Paragon" or the "corporation") (TSX VENTURE:PGN) today reported its financial results for the first quarter of 2008-09, ending November 30, 2008.
Revenue was $21.783 million compared to $17.677 million in the same period last year, an increase of $4.106 million or 23.2 per cent. Gross margin was up 31.3 per cent or $7.644 million in the first quarter compared to $5.824 million in the same period last year. Both increases were primarily the result of last year's acquisitions of Alentex, Teulon, and Westcoast and Okanagan central fill pharmacies.
Operating income was $1.772 million in the first quarter compared to $1.260 million in the same period last year, an increase of $0.512 million or 40.7 per cent. The net loss for the quarter was $6.392 million compared to $1.893 million in the same period last year. The increase was principally due to costs associated with the completion of the note conversion and share subscription agreement with Canterbury Park.
The corporation increased its total retail square footage to approximately 130,000 square feet with the opening of its 5th retail pharmacy in the Kelowna, BC marketplace. This progressive, full format pharmacy features signature cosmetics, giftware and home healthcare departments along with an adjacent medical clinic.
Paragon president Lorraine McGrath, named to the position during the quarter, said the management team is embarking on a corporate-wide evaluation of the business.
"We have been reviewing all opportunities to improve our bottom line including revenue, gross margins, operating and corporate costs. Aggressive initiatives are underway which we anticipate will result in improved company performance in future quarters."
Ms. McGrath also noted that another member of Paragon's executive team, Ron Lane, President of Operations, was also appointed during the quarter. Mr. Lane was previously responsible for pharmacy and health and beauty care operations for a large Western Canadaian based retailer. In addition, Denis Taillieu was appointed as interim CFO. Mr. Taillieu is a director of the corporation and serves as CFO of Canterbury Park, a shareholder.
In addition to bottom line initiatives, the management team will be integrating its systems, processes and operations to become more efficient, as the company positions for future growth opportunities.
The Company's unaudited consolidated financial statements and Management's Discussion and Analysis for the three month period ended November 30, 2008 are available at the Investor Relations section of the Company's website at www.paragonpharmacies.com, or under the Company's profile on SEDAR at www.sedar.com.
Paragon owns and operates a network of community pharmacies in British Columbia, Alberta and Manitoba. The publicly-traded company owns 18.5 community pharmacies, three central fill pharmacies and one home healthcare store. As one of the largest providers of community-based pharmacy and health-related services in Western Canada, Paragon is committed to offering the best treatments, products and services to restore, maintain and improve its customers' quality of life. Headquartered in Kelowna, BC, Paragon currently employs over 450 full and part time staff.
FOR FURTHER INFORMATION PLEASE CONTACT:
Paragon Pharmacies Limited
Lorraine McGrath
President
(250) 491-3936
(250) 491-3950 (FAX)
Website: www.paragonpharmacies.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
