SeeThruEquity Issue Update on Progressive Care, Inc. (OTC: RXMD)
Highlighting Recent Achievements
New York, NY -- June 29, 2016 -- InvestorsHub NewsWire
-- SeeThruEquity, a leading independent equity research and
corporate access firm focused on smallcap and microcap public
companies, today announced it has issued an update on Progressive
Care, Inc. (OTC: RXMD) with a price target of $0.10.
The report is available here: RXMD June 2016 Update. SeeThruEquity is an approved
equity research contributor on Thomson First Call, Capital IQ,
FactSet, and Zacks. The report will be available on these
platforms. The firm also contributes its estimates to Thomson
Estimates, the leading estimates platform on Wall Street.
We are maintaining our $0.10 price target for RXMD at this time.
With strong recent results marked by positive Net Income and
operating cash flow, RXMD represents an attractive growth story in
the healthcare sector. It is also worth noting out that healthcare
and related companies have some shielding against many of the
factors recently affecting the broader equity markets given the
outsized role of regulation and healthcare-specific factors on the
industry. We would think this would be true for RXMD as well
especially if it is able to continue to execute on its business
objectives and show continued growth in revenues and cash flow
leverage., stated Ajay Tandon, CEO of SeeThruEquity.
Additional highlights from the update are as follows:
Rising prescription demand drives record revenues in 1Q16
Progressive Care reported strong results in its first reporting
quarter since we initiated coverage on the company in April.
Results bolstered by strong demand for prescriptions, which grew by
30%+ to approximately 51,000 during the quarter. Progressive Care
was able to grow revenue by 26.7% YoY, with the top line reaching
$3.95mn a record for the company versus $3.12mn in 1Q15. The
results position the company well to meet or exceed both our
estimated revenues of $16.1mn and RXMDs guidance of $16.0mn.
Importantly, Progressive Care was able to achieve margin expansion
as well, with gross margins improving by 280 basis points to 23.5%
versus 20.7% in 1Q15. The company also generated GAAP Net Income
and operating cash flow during the quarter.
Strong growth continues into 2Q16
Progressive Cares strategy appears to be gaining traction in the
market as the company has been successful in demonstrating strong
growth over the last two years and continues to expand in 2016.
After reporting strong April results in which prescriptions filled
rose by 20% YoY to 16,500 and revenues came in at $1.4mn, the
company reported nice sequential improvements in May, with $1.4mn
in revenue and prescriptions filled rising to 17,500. This
represented YoY growth of 22% and 28%, respectively.
Maintain price target of $0.10 for RXMD
We are maintaining our price target for RXMD at this time. We
are impressed by 1Q16 results and see the company as on track to
meet or exceed our estimates for the year. With strong recent
results marked by positive net income and operating cash flow, RXMD
represents an attractive growth story in the healthcare sector. It
is also worth pointing out that healthcare and related companies
have some shielding against the factors affecting the broader
markets given the important role of regulation and
industry-specific factors on the industry. We would think this
would be true for RXMD as well, if it is able to continue to
execute on its business objectives and show continued growth in
revenues and cash flow. If achieved, the price target of $0.10
represents potential upside of 200% from the recent price of $0.04
and a potential Enterprise Value of $33.7mn, which we see as
appropriate for a company growing at double-digit organic growth
rates with $16mn in sales in FY16E and several potential additional
catalysts ahead.
Please review important disclosures at www.seethruequity.com.
About Progressive Care, Inc.
Progressive Care, Inc. (OTC PINK: RXMD), through its subsidiary
PharmCo, LLC, is a South Florida health services organization and
provider of prescription pharmaceuticals specializing in health
practice risk management, compounded medications, the sale of
anti-retroviral medications and related medication therapy
management, and the supply of prescription medications to long term
care facilities.
For more information, please visit the companys website at
www.progressivecareus.com.
About SeeThruEquity
SeeThruEquity is an equity research and corporate access firm
focused on companies with less than $1 billion in market
capitalization. The research is not paid for and is unbiased.
The company does not conduct any investment banking or commission
based business. SeeThruEquity is approved to contribute its
research to Thomson One Analytics (First Call), Capital IQ,
FactSet, Zacks, and distribute its research to its database of
opt-in investors. The company also contributes its estimates to
Thomson Estimates, the leading estimates platform on Wall
Street.
For more information visit www.seethruequity.com.
Contact:
Ajay Tandon
SeeThruEquity
info@seethruequity.com