MedAvail Reports First Quarter 2021 Financial Results

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earnings

Rhea-AI Summary

MedAvail Holdings, Inc. (Nasdaq: MDVL) reported a strong first quarter for 2021, with total net revenue of $4.0 million, marking a 185% increase year-over-year. Retail Pharmacy Services revenue surged 164% to $3.4 million, while Pharmacy Technology revenue rose 430% to $0.6 million. Despite a net loss of $9.5 million, the company anticipates significant growth opportunities in Florida, with a potential market of $3.7 billion. MedAvail has narrowed its revenue guidance for 2021 to $27-$31 million, reflecting growth of 93% to 121% over 2020. A conference call is scheduled for May 12, 2021.

Positive

Net revenue increased by 185% year-over-year to $4.0 million.
Retail Pharmacy Services revenue rose 164% to $3.4 million.
Pharmacy Technology revenue increased by 430% to $0.6 million.
Expansion into Florida presents a market opportunity of $3.7 billion.
Confidence to double revenue in 2021 from new geographic expansions and existing customers.

Negative

Net loss increased to $9.5 million from $5.7 million year-over-year.
Adjusted EBITDA losses widened to $8.9 million from $5.2 million.
Revenue guidance narrowed, indicating potential slower growth expectations.

05/12/2021 - 04:05 PM

MedAvail Holdings, Inc. (Nasdaq: MDVL) (“MedAvail”) a technology-enabled pharmacy company, today reported financial results for the three months ended March 31, 2021.

“Our first quarter results illustrate a strong start to the year, as our revenue grew over 30% on a sequential basis,” said Ed Kilroy, Chief Executive Officer of MedAvail. “We continue to make substantial progress on expanding into new geographies and fostering our enterprise customer relationships. Moreover, we are very excited to be entering the Florida region in the second half of 2021, with our first central pharmacy in Florida expected to open in the Orlando area in July. We believe we have a significant annual market opportunity of $3.7 billion in Florida with hundreds of potential clinics for our SpotRx solution.”

Mr. Kilroy continued, “We remain very excited about what we believe is our opportunity to approximately double our revenue this year as a result of expansions into new geographies as well as with current customers. With strong interest in our SpotRx pharmacy model and technology, and the backdrop of the recovery from COVID-19 we are beginning to see across the U.S., we are confident that we are well-positioned to drive further momentum during 2021 and beyond.”

First Quarter 2021 Financial and Operational Highlights

All comparisons, unless otherwise noted, are to the three months ended March 31, 2020.

Total net revenue was $4.0 million, an increase of 185%
Total net revenue by segment
- Retail Pharmacy Services revenue increased 164% to $3.4 million
- Pharmacy Technology revenue increased 430% to $0.6 million
1 MedCenter deployment compared to 5 total MedCenter deployments
Net Loss was $9.5 million compared to a net loss of $5.7 million
Adjusted EBITDA losses of $8.9 million compared to $5.2 million
Cash, cash equivalents, and restricted cash totaled $47.6 million as of quarter-end

Full Year 2021 Financial Outlook

With the healthcare industry beginning to emerge from the COVID-19 challenges and return to a more normal environment, many clients who had delayed scheduled installations in the first quarter of 2021 or early in the second quarter of 2021 are beginning to reschedule deployments. As such, the minimum number of new clinics we expect to deploy in 2021 remains unchanged at 45. Based on these delays and impacts on installed sites in the first quarter and early second quarter of 2021, MedAvail has narrowed its 2021 net revenue guidance expectation from the prior range of between $27 to $34 million to a new range of between $27 to $31 million, which represents growth of between 93% to 121% over 2020 revenue of $14 million.

We do not expect the impact of the implementation delays on revenue to persist as we return to a normalized healthcare environment, and we continue to expect strong sequential revenue growth throughout the year.

Conference Call

MedAvail will host a conference call at 1:30 p.m. PT / 4:30 p.m. ET on Wednesday, May 12, 2021 to discuss its first quarter 2021 financial results. A webcast of the conference call can be accessed at https://investors.medavail.com/. The webcast will be archived and available for replay for at least 90 days after the event.

About MedAvail

MedAvail Holdings, Inc. (NASDAQ: MDVL) is a technology-enabled pharmacy organization, providing turnkey in-clinic pharmacy services through its proprietary robotic dispensing platform, the MedAvail MedCenter, and home delivery operations, to Medicare clinics. MedAvail helps patients to optimize drug adherence, resulting in better health outcomes. Learn more at www.medavail.com.

Forward Looking Statements

Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," "project," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding MedAvail's business strategy and market opportunity; potential future revenue projections and expectations for growth; expansion plans; and customer partnerships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of MedAvail's management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, including but not limited to general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; the potential effects of COVID-19; the outcome of judicial proceedings to which MedAvail is, or may become a party; changes in competitive conditions prevailing in the healthcare sector; the availability of capital; and the other risks discussed under the heading "Risk Factors" in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 31, 2021, and other documents MedAvail files with the SEC in the future. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and MedAvail specifically disclaims any obligation to update these forward-looking statements.

SOURCE MedAvail Holdings, Inc.

MEDAVAIL HOLDINGS, INC. Consolidated Condensed Statements of Operations (US Dollars in thousands, except share and per share data) (Unaudited)

	Three Months Ended March 31,
	2021			2020
Sales:
Pharmacy and hardware sales	$	3,781		$	1,402
Service sales	246			10
Total sales	4,027			1,412
Cost of sales:
Pharmacy and hardware cost of sales	3,526			1,385
Service cost of sales	181			47
Total cost of sales	3,707			1,432
Gross profit (loss)	320			(20		)
Pharmacy operations	1,911			1,089
General and administrative	6,515			3,500
Selling and marketing	1,377			703
Research and development	168			215
Operating loss	(9,651		)	(5,527		)
Other gain (loss), net	161			8
Interest income	40			8
Interest expense	(2		)	(179		)
Loss before income taxes	(9,452		)	(5,690		)
Income tax	—			—
Net loss	$	(9,452	)	$	(5,690	)
Net loss per share - basic and diluted	$	(0.29	)	$	(3.15	)
Weighted average shares outstanding - basic and diluted	32,439,953			1,808,105

MEDAVAIL HOLDINGS, INC.
Consolidated Condensed Balance Sheets
(US Dollars in thousands, except share amounts)
(Unaudited)

March 31,

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