Progressive Care Inc. Announces Second Quarter 2024 Revenues of $13.5 Million, an Increase of 17% as Gross Margin Expands to 35%
Progressive Care Inc. (OTCQB: RXMD) reported Q2 2024 revenues of $13.5 million, a 17% increase from Q2 2023. Key highlights include:
- Gross margin expanded to 35%, up from 31% in Q2 2023
- 340B contract revenue grew 41% to $3.0 million
- Prescription revenue increased 11% to $10.5 million
- Positive cash flow from operations, with cash balance of $8.5 million
- Non-cash impairment charges of $9.8 million for goodwill and intangible assets
The company's growth was driven by new 340B contracts and increased prescription volumes. Progressive Care is pursuing a merger with NextPlat, with a shareholder vote scheduled for September 13, 2024.
Progressive Care Inc. (OTCQB: RXMD) ha riportato ricavi del Q2 2024 pari a 13,5 milioni di dollari, un aumento del 17% rispetto al Q2 2023. Tra i principali punti salienti ci sono:
- Il margine lordo è cresciuto al 35%, rispetto al 31% del Q2 2023
- I ricavi da contratto 340B sono aumentati del 41% a 3,0 milioni di dollari
- I ricavi da prescrizione sono aumentati dell'11% a 10,5 milioni di dollari
- Flusso di cassa positivo dalle operazioni, con un saldo di cassa di 8,5 milioni di dollari
- Oneri di impairment non monetari di 9,8 milioni di dollari per avviamento e attività immateriali
La crescita dell'azienda è stata sostenuta da nuovi contratti 340B e dall'aumento dei volumi di prescrizione. Progressive Care sta perseguendo una fusione con NextPlat, con un voto degli azionisti fissato per il 13 settembre 2024.
Progressive Care Inc. (OTCQB: RXMD) reportó ingresos del Q2 2024 de 13,5 millones de dólares, un aumento del 17% en comparación con el Q2 2023. Entre los aspectos más destacados se encuentran:
- El margen bruto se amplió al 35%, frente al 31% en el Q2 2023
- Los ingresos por contrato 340B crecieron un 41% a 3,0 millones de dólares
- Los ingresos por prescripción aumentaron un 11% a 10,5 millones de dólares
- Flujo de efectivo positivo de las operaciones, con un saldo de efectivo de 8,5 millones de dólares
- Cargos por deterioro no monetarios de 9,8 millones de dólares por plusvalía y activos intangibles
El crecimiento de la compañía fue impulsado por nuevos contratos 340B y un aumento en los volúmenes de prescripción. Progressive Care está buscando una fusión con NextPlat, con una votación de accionistas programada para el 13 de septiembre de 2024.
Progressive Care Inc. (OTCQB: RXMD)는 2024년 2분기 수익이 1,350만 달러에 달하며, 2023년 2분기 대비 17% 증가했다고 보고했습니다. 주요 하이라이트는 다음과 같습니다:
- 총 마진이 35%로 확대됨, 2023년 2분기의 31%에서 상승
- 340B 계약 수익이 41% 증가하여 300만 달러
- 처방 수익이 11% 증가하여 1,050만 달러
- 운영에서 긍정적인 현금 흐름을 기록하며 현금 잔고는 850만 달러
- 영업권과 무형자산에 대한 980만 달러의 비현금 손상차손
회사의 성장은 새로운 340B 계약과 증가한 처방량에 의해 주도되었습니다. Progressive Care는 NextPlat와의 합병을 추진하고 있으며, 주주 투표는 2024년 9월 13일로 예정되어 있습니다.
Progressive Care Inc. (OTCQB: RXMD) a rapporté des revenus de 13,5 millions de dollars au Q2 2024, soit une augmentation de 17% par rapport au Q2 2023. Les points forts incluent :
- La marge brute a grimpé à 35%, contre 31% au Q2 2023
- Les revenus provenant des contrats 340B ont augmenté de 41% pour atteindre 3,0 millions de dollars
- Les revenus des prescriptions ont augmenté de 11% pour atteindre 10,5 millions de dollars
- Flux de trésorerie positif provenant des opérations, avec un solde de trésorerie de 8,5 millions de dollars
- Charges de dépréciation non monétaires de 9,8 millions de dollars pour le goodwill et les actifs incorporels
La croissance de l'entreprise a été alimentée par de nouveaux contrats 340B et une augmentation des volumes de prescriptions. Progressive Care poursuit une fusion avec NextPlat, avec un vote des actionnaires prévu pour le 13 septembre 2024.
Progressive Care Inc. (OTCQB: RXMD) berichtete von Umsätzen im Q2 2024 in Höhe von 13,5 Millionen Dollar, eine Steigerung von 17% im Vergleich zum Q2 2023. Wichtige Highlights sind:
- Die Brutto-Marge hat sich auf 35% erhöht, gegenüber 31% im Q2 2023
- Die 340B-Vertragsumsätze sind um 41% auf 3,0 Millionen Dollar gewachsen
- Die Rezeptumsätze haben sich um 11% auf 10,5 Millionen Dollar erhöht
- Positiver Cashflow aus dem operativen Geschäft, mit einem Kassenbestand von 8,5 Millionen Dollar
- Nicht-monetäre Wertminderungsaufwendungen von 9,8 Millionen Dollar für Geschäfts- und immaterielle Vermögenswerte
Das Wachstum des Unternehmens wurde durch neue 340B-Verträge und steigende Rezeptvolumina vorangetrieben. Progressive Care strebt eine Fusion mit NextPlat an, mit einer Aktionärsabstimmung, die für den 13. September 2024 geplant ist.
- Revenue increased 17% year-over-year to $13.5 million
- Gross margin expanded from 31% to 35%
- 340B contract revenue grew 41% to $3.0 million
- Prescription revenue increased 11% to $10.5 million
- Generated $0.8 million in cash from operating activities
- Cash balance increased to $8.5 million from $7.9 million at end of 2023
- Prescription volume increased 10% year-over-year
- Reported net loss of $9.3 million, compared to $4.6 million loss in Q2 2023
- Recorded $9.8 million in non-cash impairment charges for goodwill and intangible assets
- Operating expenses increased by $11.1 million year-over-year
Insights
Progressive Care's Q2 2024 results show strong growth, with revenue up
However, the non-cash impairment charges of
The positive cashflow from operations is encouraging, but investors should monitor the sustainability of this trend given the competitive pressures in the pharmacy sector.
Progressive Care's focus on high-touch, data-driven personalized patient care is a smart strategic move. This approach differentiates them from the broader retail pharmacy sector, which is facing challenges as evidenced by widespread store closures.
The company's success in securing new 340B contracts is noteworthy. However, the impairment charges related to 340B agreements suggest potential risks in this area. Changes in patient outcomes or program compliance could impact future cash flows, making this a key area for investors to watch.
The planned merger with NextPlat could provide synergies and cost reductions, potentially strengthening Progressive Care's market position in an increasingly competitive healthcare services landscape.
"Progressive Care continues to benefit from strong momentum in our 340B and pharmacy business, contributing to record-setting growth and margins, and most importantly, driving positive cashflow from operations," said Charles M. Fernandez, Chairman and CEO of Progressive Care Inc. "Our results clearly demonstrate our ability to successfully deliver value to the entire spectrum of healthcare stakeholders including patients, providers, long-term care facilities and covered 340B entities. In the months ahead, through our combination with NextPlat and our plans to invest in the further expansion of our services and technology platforms, we believe we can continue to further execute on our mission to improve the business of healthcare and the quality of care delivered to patients."
Second Quarter 2024 Financial Highlights:
- Total revenues increased by approximately
, or$1.9 million 17% , to approximately during the three months ended June 30, 2024, compared to approximately$13.5 million in the prior year period.$11.6 million - Prescription revenue, net of pharmacy benefit managers ("PBM") fees, increased by approximately
, or$1.1 million 11% , to approximately during the second quarter of 2024, compared to approximately$10.5 million in the prior year period.$9.4 million - 340B contract revenue was approximately
during the second quarter of 2024, an increase of approximately$3.0 million , or$0.9 million 41% , compared to approximately in the same prior year period. The increase was primarily attributable to an increase in new 340B contracts that were secured late last year.$2.1 million - Overall gross profit margin in the second quarter of 2024 was approximately
35% , versus approximately31% in the second quarter of 2023. - Second quarter of 2024 results include a non-cash goodwill impairment charge of approximately
and a non-cash intangible assets impairment charge of approximately$0.7 million . The Company conducts ongoing impairment testing on the estimated fair value of goodwill and intangible assets in accordance with$9.1 million U.S. generally accepted accounting principles ("U.S. GAAP"). Fair value methodologies for intangible assets include estimates of future cashflows related to the Company's 340B pharmacy service agreements. These estimates of future cash flows are subject to change due to multiple external factors including the 340B covered entity's patient outcomes and adherence with program compliance requirements. As of June 30, 2024, there was no remaining goodwill and approximately of intangibles assets to be amortized over the next four years.$4.0 million - Cash balance as of June 30, 2024 was approximately
as compared to approximately$8.5 million as of December 31, 2023. The Company generated approximately$7.9 million of cash from operating activities for the second quarter of 2024.$0.8 million
Organizational Highlights and Recent Business Developments:
- On April 12, 2024, NextPlat announced a proposed merger with Progressive Care Inc. in an all-stock transaction which is expected to provide annual operating cost reductions. On August 6, 2024, the Company filed the definitive proxies regarding the proposed business combination and set September 13, 2024, as the Annual Meeting date for the shareholder vote. If approved by shareholders at the Annual Meeting, and subject to customary closing conditions and requirements, the Company anticipates completing the transaction in early October.
- Business development activities targeting 340B covered entities conducted late last year combined with enhanced sales efforts and resources dedicated to long-term care and assisted living facilities launched earlier this year, have contributed to increased revenue and growth in prescription volumes at its PharmcoRx pharmacies.
- The Company's focus on providing high-touch, data-driven personalized patient care services at its concierge PharmcoRx pharmacies is a significant differentiator in the market compared to the broader "commodity" retail sector which is currently closing thousands of locations.
Summary Financials for the Three Months Ended June 30, 2024 and 2023:
Note on Financial Presentation
On July 1, 2023, NextPlat, Mr. Charles Fernandez, Chairman and Chief Executive Officer of the Company, and Mr. Rodney Barreto, Vice-Chairman of the Company, exercised their common stock purchase warrants in Progressive Care and collectively owned
Successor | Predecessor | |||||||||||||||
Three Months | Three Months | $ Change | % Change | |||||||||||||
Total revenues, net | $ | 13,477 | $ | 11,556 | $ | 1,921 | 17 | % | ||||||||
Total cost of revenue | 8,782 | 7,997 | 785 | 10 | % | |||||||||||
Total gross profit | 4,695 | 3,559 | 1,136 | 32 | % | |||||||||||
Operating expenses | 13,994 | 2,935 | 11,059 | 377 | % | |||||||||||
(Loss) income from operations | (9,299) | 624 | (9,923) | nm | ||||||||||||
Other income (expense) | 23 | (5,261) | 5,284 | (100) | % | |||||||||||
Loss before income taxes | (9,276) | (4,637) | (4,639) | 100 | % | |||||||||||
Provision for income taxes | — | — | — | — | ||||||||||||
Net loss attributable to common shareholders | $ | (9,276) | $ | (4,637) | $ | (4,639) | 100 | % |
nm = not meaningful |
For the second quarter of 2024, the Company recognized overall revenue from operations of approximately
Overall gross profit margins increased from
Loss from operations was approximately
Financial Results for the three months ended June 30, 2024
Revenue
Prescription revenue, net of PBM fees increased by approximately
The Company filled approximately 133,000 and 118,000 prescriptions during the three months ended June 30, 2024 and 2023, respectively, a
Dispensing fees and third-party administration ("TPA") revenue earned on our 340B contracts for the three months ended June 30, 2024 and 2023 were approximately
Operating Expenses
Our operating expenses increased by approximately
- approximately
of impairment losses related to goodwill and long-lived assets impairments (see further explanations below);$9.8 million - approximately
increase in the amortization of newly identifiable intangible assets as a result of the push-down accounting;$0.7 million - approximately
increase in salaries and wages due to a combination of performance-based salary adjustments and additional headcount, net of attrition due to normal employee turnover; and$0.5 million - approximately
increase in franchise taxes.$0.1 million
The Company performed a goodwill impairment test during the three months ended June 30, 2024 and determined that the carrying amount of goodwill at June 30, 2024 exceeded its fair value resulting in the Company recording a non-cash impairment charge of approximately
The Company performed a long-lived assets impairment test during the three months ended June 30, 2024 and determined that the carrying amount of the asset group at June 30, 2024 exceeded its fair value resulting in the Company recording a non-cash impairment charge to certain long-lived assets, primarily intangible assets, of approximately
Other Income (Expense)
Other income (expense) increased by approximately
Net Loss
Net loss was approximately
Quarterly Report on Form 10-Q Available
The Company's Quarterly Report on Form 10-Q, available at www.sec.gov and on the Company's website, contains a thorough review of its financial results for the three months ended June 30, 2024.
Forward-Looking Statements
The statements contained herein regarding our future plans and the anticipated effects of the proposed business combination between the Company and NextPlat is not based upon current or historical fact and 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 Exchange Act. Such forward-looking statements reflect the Company's expectations about the future operating results, performance, and opportunities of the combined company that involve substantial risks and uncertainties. Such forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors discussed in our Annual Report on Form 10-K and in the proxy statement/prospectus, as defined below, as well as other SEC filings, that could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statement. You should not rely on such forward-looking statements, as actual outcomes and results may differ materially from those expressed or implied therein as a result of such risks and uncertainties. Such forward-looking statements are based on management's beliefs and assumptions and on information currently available to Progressive Care, and Progressive Care does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
About Progressive Care
Progressive Care Inc. (OTCQB: RXMD) through its subsidiaries, is a
Important Information About the Merger and Where to Find It
In connection with the proposed merger between NextPlat and Progressive Care (the "Merger"), NextPlat filed with the Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 that was declared effective on August 6, 2024, which includes a proxy statement of each of NextPlat and Progressive Care and a prospectus of NextPlat with respect to the shares of NextPlat common stock to be issued in the Merger (the "proxy statement/prospectus"), as well as other relevant documents concerning the Merger. SECURITY HOLDERS OF NEXTPLAT AND PROGRESSIVE CARE, AND OTHER INTERESTED PERSONS, ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE MERGER THAT PROGRESSIVE CARE AND NEXTPLAT FILE WITH THE SEC BECAUSE THEY CONTAIN AND WILL CONTAIN IMPORTANT INFORMATION ABOUT PROGRESSIVE CARE, NEXTPAT AND THE MERGER. The proxy statement/prospectus, dated August 6, 2024, was mailed to stockholders of Progressive Care and NextPlat beginning on or about August 8, 2024. The Progressive Care and NextPlat stockholders' meetings are both scheduled for September 13, 2024. Progressive Care stockholders may also obtain copies of the proxy statement/prospectus and other related documents filed with the SEC, without charge, at the SEC's web site at www.sec.gov, or by directing a request to: Progressive Care Inc., 400 Ansin Blvd., Suite A,
Participants in the Solicitation
NextPlat and its directors and executive officers may be deemed participants in the solicitation of proxies from NextPlat's and Progressive Care's stockholders 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 the proxy statement/prospectus 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.
Progressive Care and its directors and executive officers may also be deemed to be participants in the solicitation of proxies from the stockholders of NextPlat and Progressive Care in connection with the Merger. A list of the names of those directors and executive officers and a description of their interests in Progressive Care is contained in Progressive Care'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 Progressive Care Inc, 400 Ansin Blvd., Suite A,
No Offer or Solicitation
This press release shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Merger. This press release 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 the proxy statement/ prospectus.
Investor Contact for Progressive Care
Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net
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SOURCE Progressive Care, Inc.
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