MIAMI, FL -- May 17, 2022 -- InvestorsHub NewsWire --
Progressive Care Inc. (OTCQB:
RXMD) (the “Company”), a personalized healthcare services and
technology provider, today announced financial and operational
results for the three months ended March 31, 2022.
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Key Financial Highlights for the Three Months Ended March 31,
2022 compared to the same period in 2021
- Revenue increased by 5%, from $9.6 million in 2021 to $10.1
million in 2022
- Gross margin decreased slightly to 24% in 2022 from 25% in
2021
- Operating loss decreased by 79%, from $0.6 million in 2021 to
$0.1 million in 2022
- Adjusted EBITDA increased by 53% from $66,349 in 2021 to
$101,646 in 2022
Business Highlights
- Strengthened management team with industry experts
- Expanded corporate services with enhanced COVID-19 platform
capabilities
- Approved as COVID-19 test vendor in the U.S. for travel to
Beijing Winter Olympic Games
- Engaged with Alteryx software implementation partner Aimpoint
Digital to streamline healthcare data management
workflows.
- Partnered with Podium to boost customer satisfaction,
efficiency and brand awareness
- Gained long-term pharmacy contracts with major
payors
- Announced expansion plans into the rapidly growing
multi-billion dollar Remote Patient Monitoring space
- Gained SEC reporting status on April 11, 2022 through the
filing of Form 10-12G Summary Financials for the Three Months Ended
March 31, 2022, as Compared with the Three Months Ended March 31,
2021
Management Commentary
Alan Jay Weisberg, Chairman and Chief Executive Officer of
Progressive Care, commented, ‘The first quarter of 2022 was an
exciting period for the Company as we have begun a number of
planned initiatives in line with our vision to become a diversified
healthcare company. We have begun to realize the benefits of the
operating efficiencies implemented and achieved reductions in
operating expenses which resulted in significant improvement in our
operating results. We also continued our progress towards uplisting
to a national exchange market.”
Weisberg continued, “Financially, we had a solid start to 2022,
highlighted by our 5% revenue growth. Our quarterly revenue of
$10.1 million demonstrates our team’s efforts in diversifying our
products and services. With a further reduction of operating
expenses as a percentage of revenue to 25% during the first
quarter, the Company’s operating efficiency continues to improve as
we scale our business. Our recent expansion into long-term care
pharmacy contracts provides Progressive Care with an opportunity to
significantly increase its sales that produce much better margins.
In addition, we expect that future growth will be driven by new
data management and virtual healthcare service lines; expansion of
340B Covered Entities Third Party Administrative services; market
penetration in existing geographies; development of enhanced
healthcare B2B services; development of cash-based products and
services; and continued implementation of MTM protocols.” Weisberg
concluded, “We expect that growth in these revenue components will
continue, as we have good momentum and we expect 2022 performance
to reflect that. We look forward to updating the market and our
shareholders with our progress on both our business and capital
market initiatives over the next few months.”
Financial Results for Three Months Ended March 31, 2022
For the three months ended March 31, 2022 and 2021, we
recognized overall revenue from operations of approximately $10.1
million and $9.6 million, respectively. Net pharmacy revenues
increased by approximately $0.4 million for three months ended
March 31, 2022 when compared to the same period in 2021. For the
three months ended March 31, 2022, the increase in net pharmacy
revenues was mainly attributable to an increase in COVID-19 testing
revenue of $0.7 million which was offset by a decrease in 340B
contract revenue of $0.3 million when compared to the same period
in 2021. Prescription revenue for the three months ended March 31,
2022 was flat as compared to the same period in 2021.
Prescription revenues represented 86% and 90% of all revenue for
the three months ended March 31, 2022 and 2021, respectively.
Revenue from 340B contracts is 4% and 8% as a percentage of total
net revenues for the three months ended March 31, 2022 and 2021,
respectively. Dispensing fee and third-party administration revenue
earned on our 340B contracts for the three months ended March 31,
2022, and 2021 were $0.4 million and $0.7 million, respectively,
and decreased by $0.3 million for the three months ended March 31,
2022, when compared to the same period in 2021. The decrease is due
to a significant decrease in the reimbursement rates for uninsured
patients enrolled in the Gilead PREP program effective beginning
the first quarter of 2022 that had an overall unfavorable impact on
our 340B contract revenue in the amount of $0.2 million. We believe
the decrease in 340B contract revenue will recover during the
second quarter of 2022 as our existing covered entities continue
enrolling patients in alternative programs and insurance plans that
provide greater reimbursements.
We have filled approximately 111,000 and 116,000 prescriptions
during the three months ended March 31, 2022 and 2021,
respectively, a 4% period over period decrease in the number of
prescriptions filled. The decrease in the number of prescriptions
filled was due to our continued effort to decrease operating
expenses as it relates to delivery costs by synchronizing
dispensing of medications to the extent that we minimize the number
of trips necessary to one patient. The synchronization of
medication necessitates coordination of patient refills to ensure
all patient prescriptions are dispensed at the same time and
therefore cause a delay in some refills to be dispensed later. This
might have a short-term impact on the overall number of
prescriptions dispensed, however, it makes it simpler for the
patient to manage multiple medications and provides us with the
opportunity to manage costs associated with deliveries as well as
providing a more productive workflow for our pharmacy team. The
decrease in the number of dispensed prescriptions during the first
quarter of 2022 has also been adversely impacted by the recent
changes in the Gilead PREP program for uninsured patients and the
re enrollment requirements.
For the three months ended March 31, 2022 and 2021, we have
earned approximately $1.3 million and $0.6 million, respectively
from COVID-19 testing. We have recorded record COVID-19 testing
revenue in January 2022 as the country was dealing with the Delta
and Omicron outbreak during that period. Since January 2022 the
cases of COVID-19 infections and demand for COVID-19 testing have
slowed down. It is difficult to predict whether these conditions
will be recurring given recent COVID-19 pandemic conditions in
Florida. We are well positioned to react if another COVID-19
outbreak occurs as we have built a reputation of being a highly
reliable partner for COVID-19 testing solutions. We have built
reputable relationships with well-known productions companies and
these relationships provide us with recurring COVID-19 testing
revenue.
Gross profit margins decreased from 25% for the three months
ended March 31, 2021, to 24% when compared to the same period in
2022, largely due to the decrease in 340B contract revenue.
Our operating expenses decreased by approximately $0.6 million,
or 18%, for the three months ended March 31, 2022 when compared to
the same period in 2021. The decrease was mainly attributable to
the following:
- Decrease in salaries, wages an employee related expenses due to
period over period decrease in headcount, and less time invested in
training on pharmacy software when compared to 2021 in the amount
of $0.1 million;
- Decrease in consulting fees in the amount of $0.1
million;
- Decrease in rent expense due to non-recurring leasehold
improvement related expenses in the amount of $0.2
million;
- Decrease in amortization expense due to intangible assets being
fully amortized in the amount of $0.1 million;
- Decrease in other operating expenses in the amount of $0.1
million.
Operating expenses as a percentage of revenue declined to 25%
for the three months ended March 31, 2022, when compared to 32% for
the three months ended March 31, 2021, reflecting the Company’s
continued focus on operation optimization and efficiency.
Operating loss decreased by approximately $0.5 million, or 79%,
to $0.1 million for the three months ended March 31, 2022, when
compared to $0.6 million for the same period in 2021, because of
decreases in overall operating expenses.
Adjusted EBITDA increased by approximately $35,297, or 53%, to
$101,646 for the three months ended March 31, 2022, when compared
to $66,349 EBITDA for the same period in 2021.
Net loss for the three months ended March 31, 2022 was $1.4
million, compared to a net income of $26,852 for the same period in
2021. The increase in net loss is mainly attributable to
non-operating items such as gain on debt settlement and loss from
the adverse change in the fair value of the derivative liability,
offset by a reduction in the loss from operations period over
period.
Cash balance was $2.4 million at March 31, 2022, as compared to
$1.4 million at December 31, 2021.
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.
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.progressivecareus.com/
PharmCoRx https://www.pharmcorx.com/
ClearMetrX https://www.clearmetrx.com/
Forward-Looking Statements: 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
Investor Relations Contact:
ClearThink Capital
nyc@clearthink.capital
phone: (917) 658-7878
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