MIAMI, FL, Nov. 15, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Progressive Care Inc. (OTCQB: RXMD) (“Progressive Care” or the “Company”), a personalized healthcare services and technology company, is pleased to report financial results for the third quarter ended September 30, 2019.
“Q3 set new records across basically all metrics,” commented S. Parikh Mars, Progressive Care CEO. “We saw accelerating growth in sales and prescriptions while continuing our strong multi-quarter trends of falling costs and expanding gross margins. Beyond the numbers, we are seeing a major positive impact from our recent Family Physicians Rx acquisition, and the Company is firing on all cylinders post-integration. Ultimately, this creates a very favorable backdrop for continued aggressive expansion in the months and quarters ahead as we prepare to launch several powerful new initiatives in Q4 and 2020.”
Third Quarter 2019 Financial Highlights
- Consolidated quarterly year-over-year Revenue Growth of 91% to $10.14 million
- Q3 Gross Margins expanded to 24.4% (versus Q2 22.7%, Q1 19.8%)
- Gross Profit up 128% year-over-year to $2.47 million
- Prescriptions Filled up 52% to 323k for nine months ended Sep. 30 (vs 2018 comparable period)
- Prescriptions Filled up 70% to 136k in Q3, on quarterly year-over-year basis
- Cash level up 774% year-to-date to $759,016
- Accounts Receivable up 96% year-to-date to $2,372,177
Third Quarter 2019 Business Highlights
- Achieved record performance in Q3 driven by expanding operations, targeting higher margin strategies, and M&A
- Renegotiated Family Physicians Rx (FPRX) acquisition, reducing price by 36%, saving shareholders $1.1 million
- FPRX renegotiation generates $400k reduction in existing and outstanding liabilities and significant reduction in outstanding shares (10 million)
- Realized Maximum benefits at 3 of 4 locations in Q3
- Expects to begin shipping proprietary branded CBD-based products by January 2020
- Anticipates SEC filing by April 2020 as prefatory step to planned major US exchange listing
- Plans transformative expansion into Telehealth marketplace with disruptive monetization model in 2020
Management discussed the breakout quarter in an in-depth conference call, a replay of which can be found here.
Conference Call Highlights
In addition to comprehensively covering the record-breaking financial performance metrics for the quarter ended September 30, the Company also discussed the impact of its recent FPRX acquisition, the driving forces behind the recent trend in expanding gross margins, a planned move to full SEC reporting status leading to an uplisting of shares onto a major US exchange, and its transformative vision for 2020.
The Company noted that the FPRX acquisition and PharmcoRx growth is driving material positive impact on balance sheet metrics, with positive cash flows now translating into additional ammunition for continued high-ROI investments. FPRX integration is also significantly boosting accounts receivable. The Company expects this dynamic to continue to significantly drive positive balance sheet effects in Q4 results.
The Company also discussed consolidation of physical locations and relocation of corporate offices, which will contribute to additional bottom line gains over time, including a $300k reduction in costs through lease savings that will appear in Q1 2021 results.
The Company also discussed its vision for the future, and noted that a dramatic realignment toward a scalable model with national reach is in progress, including a transformation from a pharmacy model to a comprehensive health services model that includes significant expansion in products and services, including RXMD Therapeutics branded products in the CBD and nutraceutical space, as well as a defining expansion into the Telehealth marketplace.
The Company believes its vision for monetization in telemedicine has the potential to be disruptive in the healthcare space, and will have powerful synergies with its existing legacy pharmacy business and its emerging RXMD Therapeutics. The opportunity to capitalize on its in-house expertise to expand through disruptive technology while providing needed care and services to underserved populations is a powerful step that will drive shareholder value while achieving a tremendous positive social impact. Targeting a leadership position in this market will be a signature objective for the Company in 2020.
“Get ready for a transformation,” continued Mars. “We are extremely excited about the opportunity to monetize telemedicine in a manner that will truly change the game as it is currently played. We look forward to introducing current and prospective shareholders to this vision in the months ahead. 2019 has been a breakout year. But the core message that we have right now for our shareholders is this: expect a transformative evolutionary leap to a vastly more scalable, diversified, and higher margin Progressive Care in 2020 and beyond.”
For more information about Progressive Care, please visit the company’s website.
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About Progressive Care Inc.
Progressive Care Inc. (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
Public Relations Contact:
Caitlin Franscell, CMW Media
Web and Application Development Contact:
Marcello Jaspan, Mass Ventures Corp