Progressive Care Reports First Quarter 2022 Financial Results Highlighted by 5% Growth in Revenue to $10.1 Million
Weisberg continued, Financially, we had a solid start to 2022, highlighted by our 5% revenue growth.
MIAMI, FL, May 17, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – 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.
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.
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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
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Investor Relations Contact:
ClearThink Capital
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phone: (917) 658-7878
