Progressive
Care Inc. Releases Shareholder Letter from CEO
MIAMI, FL – January
23, 2020 – InvestorsHub NewsWire -- Progressive Care Inc. (OTCQB: RXMD) ("Progressive Care" or the
"Company"), a personalized healthcare services and technology
company, issues the following Letter to Shareholders from the
CEO:
Dear Valued
Shareholder,
Allow me to begin
by expressing our heartfelt gratitude to all of our committed
shareholders for your faith and patience as we move toward what we
sincerely believe will be the most exciting and gratifying period
in the Company's history. None of this would be possible without
you.
Before we talk
about where we are headed next, we must take a moment to appreciate
how far we have come.
2019 was a
formative year for Progressive Care as a company, both in terms of our culture
and our character. Presented with unforeseeable exogenous obstacles
early in the year, could we muster the will and determination to
adapt and create success despite that adversity?
I am extremely
proud to proclaim here today – as we kick off a very promising new
year – that our team successfully rose to the challenges we faced
early last year, and we enter 2020 stronger than we have ever been,
more efficient than we have ever been, and equipped with a more
scalable model than we have ever had in place before in our
history.
A year ago, we
closed 2018 on a very strong note, having just secured our flagship
building in Hallandale as well as funding of $1 million earmarked
for an ambitious tech-centric 2019 vision – we are true believers
in the potential for new and innovative technology solutions to
deliver personalized patient-centered care, and we had formulated a
plan to deliver on that promise in 2019.
However, early last
year, we were hit with deep cuts to reimbursements and monumental
hikes in fees in our PBM relationships. Those exogenous shocks refocused our team on
growth and adaptation. The infusion of capital served as the
company's lifeblood during this difficult but enormously valuable
period. We strategized and found multiple ways to become leaner and
to effectively brace ourselves for the impact of a more
exploitative PBM landscape. But we also recognized that it would
take more than just good defense to successfully navigate the
transition, so we ured our focus to growth and
innovation.
In the first half
the year, we saw extended growth in prescription
counts and revenues. With a full year of PharmCo Rx Palm Beach to
look forward to, we optimized our branding, workflow, and sales
methods to deliver organic growth in the South Florida
area.
We also found a
tremendous M&A opportunity in Family Physicians Rx ("FPRx" or
"FSRx"). With 2 locations, prescription counts that exceeded 15,000
per month, revenues of more than $1 million per month, and a
pharmacy mindset that closely mirrored the Progressive Care model,
we knew we had found a powerful value-add acquisition opportunity.
After securing funding for the deal and working through an intense
round of due diligence that coincided with the completion of our
2018 audit, we were able to close the acquisition on June 3,
2019.
There were other
trials and obstacles during the second half of the year, including
a frightening personal health emergency (I'm 100% healthy now).
But, in each and every case, we rallied and overcame those
challenges with a tenacity that will continue to define the
Progressive Care corporate culture in the quarters and years ahead.
From the C-suite on down through the front line, every single one
of us took up the mantle of "survive and build at all
costs".
In particular, I am
extremely proud of the way this team performed in terms of the FSRx
integration and overall streamlining on the cost side. And, as Q3
2019 drew to a close, we started to see the fruits of our
labor.
By October 2019,
new contractual relationships with not-for-profit clinics and
health care institutions began to come online and drive revenue and
profitability growth. The collection of the buying power of all of
our locations (North Miami Beach, Davie, Palm Springs, and Orlando)
allowed us to negotiate more favorable discounts and purchasing
terms. We received our first 2019 performance bonus payout that
injected the adrenalin we needed to close out the year stronger
than ever. We began seeing payments from PBMs on a timely and less
cumbersome basis. We renegotiated the terms of our purchase of FSRx
to the benefit of both our shareholders and previous owners. We saw
a $10 million revenue quarter, the highest in company history. We
filled more than 450,000 prescriptions in 2019, the highest in
company history. We had over $32 million in sales, the highest in
company history. All of these continue our trend of year-over-year
growth for the last 5 years. Our cash flow dramatically improved,
as did our profitability, reputation, and ability to execute
on new
levels.
Additional
2019 Key Highlights.
- Completion of 2018 Audited
Financial Statements
- Secured second acquisition:
Family Physicians Rx (aka FPRx, FSRx)
- Over 450,000 prescriptions
filled an increase of 54% (record)
- Over 45,000 prescriptions
filled in a single month (record)
- Approx. $32 million in net
revenues (record, and 56% year-over-year
growth)
- 5-star
rating
- Top 20% Pharmacy in the
nation
- Highest Humana Scores in
Company history
(record)
- Six active Third-Party
HealthCare Contracts
(record)
- Increased not-for-profit
healthcare claims to over $1 million per month
(record)
- Processed over $7.5 million in
claims on behalf of not-for-profit entities
(record)
- Reached over 125 employees
(record
- Licensed in the following
states: Colorado, Connecticut, Florida, Georgia, Illinois, Nevada,
New Jersey, New York, Pennsylvania, Texas, Utah, Arizona,
Massachusetts,
Minnesota
- Contributed Articles published
in prestigious online magazines: Forbes, Authority, HuffPost, and
Fast
Company
Outlook
Looking to the year
ahead of us, we have a very ambitious agenda that will test us on
many levels.
Upon completion of
our 2019 audit, we intend to prepare a new S-1 filing for
submission to the SEC. Our many accomplishments in 2019 have made
previous drafts out-of-date. After registration with the SEC is
complete, we will begin the process of uplisting to a national
exchange. We believe that our development as a company now warrants
that transition, which will provide us with access to a much
larger, more diverse pool of prospective investors, including a
much wider institutional investor audience.
We also look
forward to further developing our contract services segment,
targeting not-for-profit healthcare organizations. The robust
growth we have seen in this domain now necessitates the development
of a backend administration platform. We believe that our expertise
in this area can lead to a significant new revenue stream that will
allow us to further capitalize on our sophisticated data analytics
capabilities even when we aren't the dispensing
pharmacy.
In addition, we
established RXMD Therapeutics last year to deliver our own
proprietary brands, including our exclusive line of CBD products.
We do believe in the therapeutic benefits of CBD and continue to
move forward on building our portfolio of products while we create
the most efficient pathways for marketability.
We will also focus
a great deal of our attention on building out the Hallandale
location and
the consolidation of the North Miami and Davie pharmacies.
We will realize
significant savings in 2021 from this consolidation process and we
firmly believe the building can support continued expansion in
demand for our products and services.
Above and beyond
these goals, my vision for the future will require an evolution
into a new and more scalable kind of healthcare company. We have
been seeking a platform upon which we can build a unique
telemedicine product. We are currently in discussions related to
achieving this goal and we strongly feel such a product will play a
key role for us in the future.
2020
Strategic Goal.
- Achieve 60,000 prescriptions
filled in a single month
- Strive to achieve over $44 million in
sales
- Recognize performance bonuses
for all 4 locations
- Consolidate locations to the
Hallandale Beach location
- Expand market presence to
account for all urban centers in Florida
- Secure additional
not-for-profit
healthcare
contracts and long-term care facility relationships
- Achieve full enterprise
profitability and earnings growth
- Launch RXMD Therapeutics
exclusive line of CBD products
- Acquire software platform for
the development of proprietary telemedicine product
- Develop backend healthcare
administration platform for monetization of expertise in data
analytics
- Become SEC-registered and fully
reporting
- File an application to uplist
to a national exchange
Closing
Remarks
2019 was
indescribably important in defining the future for Progressive Care
because we faced tremendous adversity, and not only survived, but
thrived, and in the process proved to ourselves that we are capable
of responding to a worst-case scenario by turning it into
unprecedented success and new avenues of growth and opportunity.
That's a priceless lesson for an organization to learn.
We have also been
reminded of how grateful we are for our faithful shareholders, who
continue to believe in us, and for the strength of our employees,
who carried us through 2019. We have employees that have been with
us since the beginning, and we acquired a tremendous wealth of new
talent through our FSRx transaction, all of whom continue to
surprise us and enrich this company with their talents and hard
work.
I have a unique
vision of the future and have always had a unique vision of what it
means to be Progressive Care. That vision, and my purpose
specifically, was never tested to the extent it was last year. Yet
it was our unwavering faith in purpose and the hard work that we do
that produced record-breaking results. I am looking forward to the
future with a sense of renewed energy to achieve and revolutionize
healthcare beyond the pharmacy. I fundamentally believe that this
Company cannot be stopped no matter the obstacle and I know beyond
a shadow of a doubt that the future of Progressive Care is
bright.
Graciously
Yours,
Shital
Mars
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
PharmCo,
LLC
https://www.facebook.com/pharmcorx/
https://twitter.com/PharmCoRx
Five Star
RX
https://www.fivestarrx.com/
https://www.facebook.com/fivestarrx/
About
Progressive Care Inc.
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 Statement Regarding 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. These statements
include but are not limited to statements regarding the intended
terms of the offering, closing of the offering and use of any
proceeds from the offering. 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.
Investor
Relations Contact:
Armen
Karapetyan, Progressive Care
Senior
Advisor Business Development
Armen@progressivecareus.com
www.progressivecareus.com
www.pharmcopharmacy.com
Public
Relations Contact:
Caitlin
Franscell, CMW Media
caitlin@cmwmedia.com
www.cmwmedia.com
Web
and Application Development Contact:
Marcello
Jaspan, Mass Ventures Corp
Marcello@massventurescorp.com
www.massventurescorp.com