MIAMI, FL -- April 1, 2021 -- InvestorsHub NewsWire --
Progressive Care Inc. (OTCQB:RXMD)
(“Progressive Care” or the “Company”), a personalized healthcare
services and technology company, is pleased to announce the filing
of the Company’s audited 2020 financial performance data, closing
the books on a momentous year that featured strong execution in the
face of historic obstacles, the establishment of new executive
leadership, the successful establishment of new scalable
strategies, and tremendous gains in net cash, EBITDA, and topline
results, which have helped to drive shareholder value so far in
2021.
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Financial Highlights for Quarter Ended Dec 31, 2020
- Consolidated Revenue for the quarter was $10.1 million,
representing an increase of 1% compared to Q4 2019.
- Prescriptions filled during Q4 totaled approximately 134,000,
representing an increase of 1% compared to Q4 2019.
- 340B revenue was approximately $879k, representing a sharp
increase of 200% compared to Q4 2019.
- EBITDA increased 104% to $667k in Q4 2020 when compared to the
same period in 2019.
Financial Highlights for Fiscal Year Ended Dec 31, 2020
- Consolidated Revenue was $40.3 million, representing an
increase of 22% compared to fiscal 2019.
- Prescriptions filled was approximately 530,000, representing an
increase of 16% compared to fiscal 2019.
- 340B revenue was approximately $2.8 million, representing a
sharp increase of over 300% compared to fiscal 2019.
- COVID testing revenue was approximately $600K, most of which
was earned in Q4 2020.
- Realized positive EBITDA of $7K when compared to $479K negative
EBITDA in 2019.
- Cash provided by operations was $1.1 million in 2020, compared
to $600K cash used in 2019.
- Net Cash balances as of Dec 31, 2020 was $2.1 million vs $816K
compared to 2019.
Operational Highlights for the Year Ended Dec 31, 2020
- Fundamental changes in management: Alan Jay Weisberg named CEO;
Cecile Munnik named CFO.
- Finished year with 5-Star rating earning Humana bonus of
approximately $904K.
- Paid off note for the building of $300K plus
interest.
- Generated $700K in third-party administration fees through
services provided to 340B Covered Entities.
- Strong execution and pro-growth strategic path resulted in
shareholder value, with RXMD shares rising more than 300% during
2020.
“We confronted adversity successfully in 2020, and we have hit
the ground running in 2021,” commented Alan Jay Weisberg, CEO and
Chairman of Progressive Care. “In addition to the pandemic and the
associated challenges, we adjusted well to a headwind in the form
of higher DIR and PBM fees. Over the past year, we have also
expanded operations and our overall strategic path to position for
a future that leans more heavily on scalable growth opportunities,
including data management, telehealth and virtual healthcare
services, and technology applications that leverage our built-in
market advantages.”
EBITDA and Net Cash Improvements. EBITDA increased by
approximately $500K for the year ended December 31, 2020 when
compared to the same period in 2019. This increase is primarily
attributable to increased interest expenses offset by a favorable
change in the fair value of embedded derivative exposure and
funding received to cover certain payroll expenses during the
pandemic.
Net cash provided by operating activities totaled $1.1 million
for the year ended December 31, 2020 compared to net cash used in
operating activities of $600K for the year ended December 31, 2019.
Operational cash flow was positively impacted by the increase in
accounts payable and accrued liabilities for the year ended
December 31, 2020, which was largely due to the significant
increase in billing activity from 340B contracts. Net cash used in
investing activities was $700K for the year ended December 31,
2020, which was attributable to equipment purchases, construction
in progress at the Hallandale Beach and Orlando buildings, and
leasehold improvements.
Pharmacy Fees. DIR fees and other PBM fees continued to apply
significant downward pressure on profitability. DIR fees are PBM
clawbacks of reimbursements based on factors that vary from plan to
plan. DIR fees are often applied retroactively, which has caused a
significant increase in the fees charged. During the year ended
December 31, 2020, DIR and other PBM fees were $1.4 million, an
increase of over 285% when compared to DIR and other PBM fees of
$400K in the same period in 2019.
The increase in DIR and other PBM fees is primarily due to
insurance carriers changing PBMs starting at the beginning of 2020,
which has resulted in a high concentration of claims being
processed by a single PBM with significantly higher DIR and other
PBM fees. Management anticipates a positive shift to PBM fees due
to imposed regulations on PBMs and changes in policies that can
affect rates in the future. Any decrease in fees should have a
positive impact on profitability.
Physical Consolidation. In December 2020, the Company completed
the move of its PharmCo 901 pharmacy into its new 11,000 square
foot pharmacy facility in Hallandale Beach, Florida. PharmCo 901
will continue to operate at an approximately 1,050 square foot
location at the North Miami Beach, Florida location.
The consolidation of space is expected to save the Company
approximately $130,000 annually in lease and associated occupancy
expenses in 2021. In January 2021, we completed our move of our
PharmCo 1103 Orlando location into its new 3,700 square foot
location in January 2021. Management anticipates this expanded
facility in Orlando to drive important performance gains, including
advances in productivity, volume, and market reach due to expanded
space and associated efficiencies.
Covid-19 Testing and MyVax Operations. During the third quarter
of 2020, the Company launched an aggressive expansion of its
COVID-19 testing service registered through the FDA under its
Emergency Use Authorization (“EUA”) guidelines, featuring
Polymerase Chain Reaction (“PCR”) and Antigen testing systems that
produces rapid detection of the SARS-CoV-2 virus with
market-leading accuracy in 15 to 45 minutes. The Company has
successfully tested approximately 5,000 patients, earning a
reputation as a preferred provider for in-patient and out-patient
COVID-19 Rapid Testing solutions, and driving approximately $600k
in related revenues for the year ended December 31, 2020.
In February 2021, the Company entered into a service agreement
with EagleForce Health, LLC to integrate its proprietary telehealth
platform, “myVax”. This will include a Digital Passport or Digital
Wallet that is QR-coded for registration, verification, and
documentation of COVID-19 vaccination and/or test results.
Management anticipates this platform to be operational in the
second quarter of 2021. The MyVax platform will include complete
patient scheduling, telehealth, and tele-pharmacy platform
services.
For more information about Progressive Care, please visit the
company’s website.
Connect and stay in touch with us on social media:
Progressive Care Inc.
https://www.facebook.com/ProgressiveCareUS/
https://twitter.com/ProgressCareUS
PharmCoRx
https://www.facebook.com/pharmcorx/
https://twitter.com/PharmCoRx
ClearMetrX
https://www.clearmetrx.com/
https://www.facebook.com/clearmetrx/
About Progressive Care:
Progressive Care Inc. (OTCQB:
RXMD), through its subsidiaries, is a Florida health services
organization and provider of prescription pharmaceuticals,
compounded medications, provider of tele-pharmacy services, the
sale of anti-retroviral medications, medication therapy management
(MTM), the supply of prescription medications to long-term care
facilities, and health practice risk management.
Cautionary Disclosure Regarding Forward-Looking Statements
Forward-Looking Statements contained herein that are not based upon
current or historical fact are forward-looking in nature and
constitute forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements reflect the
Company’s expectations about its future operating results,
performance, and opportunities that involve substantial risks and
uncertainties. When used herein, the words “anticipate,” “believe,”
“estimate,” “upcoming,” “plan,” “target,” “intend” and “expect” and
similar expressions, as they relate to Progressive Care Inc., its
subsidiaries, or its management, are intended to identify such
forward-looking statements. These forward-looking statements are
based on information currently available to the Company and are
subject to a number of risks, uncertainties, and other factors that
could cause the Company’s actual results, performance, prospects,
and opportunities to differ materially from those expressed in, or
implied by, these forward-looking statements.
Public Relations Contact:
Carlos Rangel
carlosr@pharmcorx.com
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