NextPlat Reports Record Consolidated Q1 2024 Revenues of $17.5 Million Compared to $2.9 Million in Q1 2023 (508% Increase) as Quarterly Margins Improve to 27.5%
NextPlat Corp (NASDAQ: NXPL, NXPLW) announced record financial results for Q1 2024, with revenues soaring to $17.5 million from $2.9 million in Q1 2023, marking a 508% increase. The company's gross margin also improved to 27.5%. The revenue boost was driven by $2.9 million from e-commerce and $14.6 million from healthcare operations, specifically Progressive Care Inc. Key developments include the proposed merger with Progressive Care, the acquisition of Outfitter Satellite Inc., and the launch of an e-commerce program with Alibaba's Tmall Global. However, the quarter ended with a net loss of $1.5 million.
- Q1 2024 revenue increased by 508% to $17.5 million.
- Gross margins improved to 27.5%, up from 21.6% in Q1 2023.
- E-commerce profit margins grew to 28%, driven by higher-margin recurring revenue.
- Healthcare operations contributed $14.6 million in revenue, driven by Progressive Care acquisition.
- Progressive Care's revenue increased by 28%, driven by growth in pharmacy prescriptions and contract services.
- Acquisition of Outfitter Satellite Inc. expands North American footprint.
- Exclusive OPKO-branded storefront launched on Alibaba's Tmall Global platform.
- Strong cash position with $23.5 million in cash at the end of Q1 2024.
- Net loss of $1.5 million for Q1 2024, up from $1.2 million in Q1 2023.
- Operating expenses increased to $6.7 million from $1.9 million, an increase of $4.8 million.
- Significant increase in SG&A expenses and stock-based compensation.
- Salaries, wages, and payroll taxes rose by $2.0 million, primarily due to the Progressive Care acquisition.
- Increase in professional fees, primarily legal and consulting, by $0.7 million.
- Higher depreciation and amortization expenses, increasing by $0.7 million.
Insights
The reported consolidated revenues of
The gross margin improvement to
This financial data suggests that NextPlat is on a positive trajectory in terms of revenue growth and margin improvements. However, the increase in operating expenses and net loss must be monitored to ensure long-term profitability.
NextPlat's merger with Progressive Care Inc. and the launch of its e-commerce development program with Alibaba’s Tmall Global introduces strategic growth avenues. The merger is expected to yield revenue synergies and cost reductions, enhancing operational efficiency. The expansion into healthcare and technology e-commerce through acquisitions like Outfitter Satellite Inc. highlights a diversified growth strategy. The significant revenue contribution from Progressive Care indicates the potential for sustained growth in the healthcare sector.
Launching an exclusive storefront on Alibaba's Tmall Global with OPKO-branded products signifies a strategic move to tap into the Chinese market, known for its extensive consumer base. This is complemented by the upcoming launch of the Florida Sunshine line, which could further bolster e-commerce sales. If executed well, these initiatives could drive top-line growth and strengthen NextPlat’s market position.
The adoption of Alibaba’s platform for global expansion aligns with current trends where companies leverage established e-commerce giants to rapidly penetrate new markets. This approach could provide NextPlat with a competitive edge in the global marketplace.
The healthcare sector remains a significant growth driver for NextPlat, as demonstrated by the
The proposed all-stock merger with Progressive Care Inc. is expected to bring additional revenue streams and operational efficiencies. It also indicates NextPlat’s commitment to deepening its footprint in the healthcare industry. This strategic focus may provide resilience against market fluctuations, given the relatively stable demand for healthcare services.
Investors should monitor the integration process closely, as successful consolidation and synergy realization will be critical for capturing the projected benefits.
Proposed Merger Agreement with Progressive Care Inc., Launch of its E-Commerce Development Program with Alibaba's Tmall Global and Acquisition of Outfitters Expected to Drive Continued Top-Line Growth
"First quarter results continued to demonstrate the fundamental strength of NextPlat's focus on the large healthcare services and global e-commerce technology markets and further demonstrates our team execution against its global growth plans," said Charles M. Fernandez, Executive Chairman and CEO of NextPlat Corp. "Throughout the remainder of 2024, we are committed to maximizing and unlocking the unrealized value in our business, further building upon the strong financial and technical foundation we have created and our growing list of global partners and customers. We intend to achieve our near-term goals by capitalizing on our ability to significantly improve the efficiency of our business through our proposed merger with Progressive Care and the opportunity to add multiple new high value healthcare and e-commerce revenue streams to our platform."
First Quarter 2024 Financial Highlights:
- Consolidated revenues for the quarter ended March 31, 2024, were approximately
$17.5 million 508% versus revenue of approximately$2.9 million $2.9 million $14.6 million - Gross margins for the quarter ended March 31, 2024, increased significantly to
27.5% , up from21.6% reported for the quarter ended March 31, 2023, primarily attributable to the healthcare operations because of the Progressive Care consolidation. Gross profit margin attributable to our healthcare operations was approximately27% (for the consolidation period). Our e-commerce profit margins improved to28% from22% reported in the quarter ended March 2024, driven largely by continued increases in the sales of higher margin, recurring airtime revenue. - Operating expenses for the quarter ended March 31, 2024, were approximately
$6.7 million $1.9 million $4.8 million $1.2 million $0.4 million $0.4 million $0.4 million $2.0 million $0.7 million $0.7 million - Net loss for the quarter ended March 31, 2024, was approximately
$1.5 million $0.08 $1.2 million $0.08 - The Company ended the first quarter of 2024 with approximately
$23.5 million
Organizational Highlights and Recent Business Developments:
- In the first quarter, the Company's technology e-commerce business saw positive sequential quarterly improvement including positive increases in global transaction volumes for satellite phones and tracking devices despite the expected seasonality in the business and continued tight inventory and product availability. Demand for high margin, recurring airtime contracts remains at monthly record levels, driving quarterly margins on airtime sales to near record levels. On April 1, 2024, NextPlat completed the acquisition of Outfitter Satellite Inc. ("Outfitter"), significantly expanding its North American technology e-commerce business. The Company is actively supporting Outfitter's new and existing customers while it quickly works to expand and modernize its e-commerce presence including integrating its operations onto its global ERP system expected to be completed by the end of the second quarter.
- The Company's healthcare business, Progressive Care, saw a significant
28% increase in revenue in the first quarter of 2024, driven by16% growth in pharmacy prescriptions and a110% increase in its 340B contract services business versus the first quarter of 2023. - On April 12, 2024, NextPlat announced a proposed business combination with Progressive Care Inc. in an all-stock transaction which is expected to provide revenue synergies and significant annual operating cost reductions. Effective as of July 1, 2023, Progressive Care became a consolidated subsidiary of NextPlat for accounting purposes as a result of the controlling interest in Progressive Care obtained by the Company in concert with the Company's Executive Chairman and CEO, Charles M. Fernandez, and its Director, Rodney Barreto.
- The Company's exclusive OPKO Healthcare ("OPKO")-branded storefront in
China on Alibaba's Tmall Global platform, was launched on March 1, 2024. Since its initial launch, the Company has continued to enhance the OPKO storefront with additional product listings. At launch, the OPKO-branded storefront initially listed health and wellness products including an assortment of nutraceuticals for bone, joint and eye health as well as supplements for nutrition and immunity defense. The OPKO online storefront will see significant expansion with the addition of a wide array of veterinary and animal health products starting in the second quarter of 2024 subject to receipt of the final government approvals. Product marketing programs supported by Alibaba's local trading partner is expected to commence later in the second quarter. - During the quarter, the Company continued to make progress as it prepares for the formal introduction of its Florida Sunshine line of branded vitamins and supplements. This new commerce development program is expected to be launched on Alibaba's Tmall Global platform in
China in the third quarter of 2024, further expanding its e-commerce and healthcare offerings.
David Phipps, President of NextPlat and CEO of Global Operations, added, "Healthcare, technology and e-commerce continue to be among the largest and most important sectors of the global economy today and is why NextPlat is committed to investing into near-term opportunities and launching multiple new offerings this year. By leveraging our e-commerce development program with Alibaba and its Tmall Global platform in
The financial information included in this press release should be read in conjunction with the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, which will be filed with the Securities and Exchange Commission later today.
For more information regarding the financial results of Progressive Care Inc. for the quarter ended March 31, 2024, investors should refer to its Quarterly Report on Form 10-Q which will be filed with the Securities and Exchange Commission later today.
About NextPlat Corp
NextPlat is a global e-commerce platform company created to capitalize on multiple high-growth sectors and markets including technology and healthcare. Through acquisitions, joint ventures and collaborations, the Company intends to assist businesses in selling their goods online, domestically, and internationally, allowing customers and partners to optimize their e-commerce presence and revenue. NextPlat currently operates an e-commerce communications division offering voice, data, tracking, and IoT products and services worldwide as well as pharmacy and healthcare data management services in
Important Information About the Merger and Where to Find It
In connection with the proposed merger between NextPlat and Progressive Care, NextPlat intends to file a registration statement/proxy on Form S-4 that will that also will constitute a prospectus of NextPlat with respect to the NextPlat Common Stock to be issued in the proposed transaction (the "proxy statement/prospectus"). The definitive proxy statement/prospectus (if and when available) will be delivered to NextPlat's and the Progressive Care's stockholders. NextPlat may also file other relevant documents regarding the proposed transaction with the SEC. NextPlat 's shareholders and other interested persons are advised to read, when available, the proxy statement/prospectus and the amendments thereto and the definitive proxy statement and documents incorporated by reference therein filed in connection with the Merger, as these materials will contain important information about the Progressive Care, NextPlat and the Merger. INVESTORS AND SECURITY HOLDERS OF NEXTPLAT ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT PROGRESSIVE CARE WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT PROGRESSIVE CARE, NEXTPAT AND THE MERGER. When available, the definitive proxy statement and other relevant materials for the Merger will be mailed to shareholders of NextPlat as of a record date to be established for voting on the Merger and the other related proposals. Shareholders will also be able to obtain copies of the proxy statement/prospectus, the definitive proxy statement and other documents filed with the SEC that will be incorporated by reference therein, without charge, once available, at the SEC's web site at www.sec.gov, or by directing a request to: NextPlat Corp, 3250 Mary St., Suite 410, Coconut grove, FL 33133, Attention: Chief Financial Officer, Telephone: (305) 560-5355.
Participants in the Solicitation
NextPlat and its directors and executive officers may be deemed participants in the solicitation of proxies from NextPlat's shareholders with respect to the Merger. A list of the names of those directors and executive officers and a description of their interests in NextPlat is contained in NextPlat's Annual Report on Form 10-K filed with the SEC on April 11, 2024 and is available free of charge at the SEC's web site at www.sec.gov, or by directing a request to NextPlat Corp, 3250 Mary St., Suite 410, Coconut grove, FL 33133, Attention: Chief Financial Officer, Telephone: (305) 560-5355. Additional information regarding the interests of such participants will be contained in the proxy statement for the Merger when available.
Progressive Care and its directors and executive officers may also be deemed to be participants in the solicitation of proxies from the shareholders of NextPlat in connection with the Merger. A list of the names of such directors and executive officers and information regarding their interests in the Merger will be included in the proxy statement for the Merger when available.
No Offer or Solicitation
This Current Report on Form 8-K shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Merger. This Current Report on Form 8-K shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, or an exemption therefrom.
Forward-Looking Statements
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services or solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including the Company's ability to launch additional e-commerce capabilities for consumer and healthcare products and its ability to grow and expand as intended, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating), including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), copies of which may be obtained from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.
Media and Investor Contact for NextPlat Corp:
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net
NEXTPLAT CORP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In thousands, except per shares data) | ||||||||
Three Months Ended | Three Months Ended | |||||||
March 31, 2024 | March 31, 2023 | |||||||
(Unaudited) | (Unaudited) | |||||||
Sales of products, net | $ | 14,120 | $ | 2,876 | ||||
Revenues from services | 3,373 | - | ||||||
Revenue, net | 17,493 | 2,876 | ||||||
Cost of products | 12,620 | 2,255 | ||||||
Cost of services | 63 | - | ||||||
Cost of revenue | 12,683 | 2,255 | ||||||
Gross profit | 4,810 | 621 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 2,005 | 788 | ||||||
Salaries, wages and payroll taxes | 2,624 | 588 | ||||||
Impairment loss | 132 | - | ||||||
Professional fees | 985 | 321 | ||||||
Depreciation and amortization | 906 | 162 | ||||||
Total operating expenses | 6,652 | 1,859 | ||||||
Loss before other (income) expense | (1,842) | (1,238) | ||||||
Other (income) expense: | ||||||||
Interest expense | 21 | 5 | ||||||
Interest earned | (215) | (10) | ||||||
Other income | - | (50) | ||||||
Foreign currency exchange rate variance | 26 | (28) | ||||||
Total income expense | (168) | (83) | ||||||
Loss before income taxes and equity in net loss of affiliate | (1,674) | (1,155) | ||||||
Income taxes | (27) | - | ||||||
Loss before equity in net loss of affiliate | (1,701) | (1,155) | ||||||
Equity in net loss of affiliate | - | (32) | ||||||
Net loss | (1,701) | (1,187) | ||||||
Net loss attributable to noncontrolling interest | 220 | - | ||||||
Net loss attributable to NextPlat Corp | $ | (1,481) | $ | (1,187) | ||||
Comprehensive income (loss): | ||||||||
Net loss | $ | (1,701) | $ | (1,187) | ||||
Foreign currency loss | (27) | (23) | ||||||
Comprehensive loss | $ | (1,728) | $ | (1,210) | ||||
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (1,481) | $ | (1,187) | ||||
Weighted number of common shares outstanding – basic and diluted | 18,725 | 14,415 | ||||||
Loss per share - basic and diluted | $ | (0.08) | $ | (0.08) | ||||
NEXTPLAT CORP AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except shares and par data) | ||||||||
March 31, 2024 | December 31, 2023 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash | $ | 23,526 | $ | 26,307 | ||||
Accounts receivable, net | 12,928 | 8,923 | ||||||
Receivables - other, net | 2,068 | 1,846 | ||||||
Inventory, net | 5,610 | 5,135 | ||||||
Unbilled revenue | 185 | 189 | ||||||
VAT receivable | 357 | 342 | ||||||
Prepaid expenses | 404 | 640 | ||||||
Notes receivable due from related party | 260 | 256 | ||||||
Total Current Assets | 45,338 | 43,638 | ||||||
Property and equipment, net | 3,846 | 3,989 | ||||||
Goodwill | 731 | 731 | ||||||
Intangible assets, net | 13,725 | 14,423 | ||||||
Operating right of use assets, net | 1,303 | 1,566 | ||||||
Finance right-of-use assets, net | 18 | 22 | ||||||
Deposits | 39 | 39 | ||||||
Prepaid expenses, net of current portion | 61 | 61 | ||||||
Total Other Assets | 15,877 | 16,842 | ||||||
Total Assets | $ | 65,061 | $ | 64,469 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 14,893 | $ | 13,176 | ||||
Contract liabilities | 140 | 42 | ||||||
Notes payable | 233 | 312 | ||||||
Due to related party | 42 | 18 | ||||||
Operating lease liabilities | 532 | 532 | ||||||
Finance lease liabilities | 20 | 18 | ||||||
Income taxes payable | 90 | 139 | ||||||
Total Current Liabilities | 15,950 | 14,237 | ||||||
Long Term Liabilities: | ||||||||
Notes payable, net of current portion | 1,165 | 1,211 | ||||||
Operating lease liabilities, net of current portion | 853 | 929 | ||||||
Finance lease liabilities, net of current portion | - | 5 | ||||||
Total Liabilities | 17,98 | 16,382 | ||||||
Commitments and Contingencies | - | - | ||||||
Equity | ||||||||
Preferred stock ( | - | - | ||||||
Common stock ( | 2 | 2 | ||||||
Additional paid-in capital | 67,717 | 67,170 | ||||||
Accumulated deficit | (36,406) | (34,925) | ||||||
Accumulated other comprehensive loss | (90) | (63) | ||||||
Equity attributable to NextPlat Corp stockholders | 31,223 | 32,184 | ||||||
Equity attributable to noncontrolling interests | 15,870 | 15,903 | ||||||
Total Equity | 47,093 | 48,087 | ||||||
Total Liabilities and Equity | $ | 65,061 | $ | 64,469 | ||||
View original content to download multimedia:https://www.prnewswire.com/news-releases/nextplat-reports-record-consolidated-q1-2024-revenues-of-17-5-million-compared-to-2-9-million-in-q1-2023-508-increase-as-quarterly-margins-improve-to-27-5-302146440.html
SOURCE NextPlat Corp.
FAQ
What was NextPlat's revenue for Q1 2024?
What contributed to NextPlat's revenue increase in Q1 2024?
What was NextPlat's net loss for Q1 2024?
How did NextPlat's gross margins perform in Q1 2024?
What are the key developments for NextPlat in 2024?
What was the financial impact of Progressive Care's acquisition on NextPlat?
