Progressive Care Announces Financial and Operational Performance for Three and Six Months Ended June 30, 2021

Rhea-AI Summary

Progressive Care Inc. (OTCQB:RXMD) reported a solid financial performance for Q2 and first half of 2021, with consolidated revenue of approximately $9.6 million for the quarter and $19.2 million for six months, marking year-over-year increases of 4% and 5%, respectively. Gross profits surged to over $2.6 million for Q2, a 43% rise from 2020. The 340B revenue climbed by 65% year-over-year to about $725k, while COVID testing revenue soared by over 120%. Positive EBITDA of nearly $78k was achieved in Q2, compared to a loss of $311k in 2020. Challenges included temporary prescription volume setbacks due to tech transition and workforce shortages.

Positive

• Q2 revenue increased by 4% year-over-year to approximately $9.6 million.
• Gross profits reached over $2.6 million for the quarter, up 43% from 2020.
• 340B revenue contribution rose by 65% year-over-year to approximately $725k.
• COVID testing revenue grew over 120% sequentially, totaling approximately $1.1 million.
• Achieved positive EBITDA of nearly $78k for Q2, compared to a negative $311k in 2020.

Negative

• Pharmacy prescription volume decreased due to technology platform transition.
• Workforce shortages impacted pharmacy operations.

MIAMI, FL, Aug. 17, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Progressive Care Inc. (OTCQB:RXMD) (“Progressive Care” or the “Company”), a personalized healthcare services and technology company, is pleased to announce the filing of the Company’s financial performance data for the three and six months ended June 30, 2021, which featured strong growth in Gross Profitability, as well as Revenues from Covid-19 Testing and 340B services.

“The quarter was phenomenal despite temporary setbacks in pharmacy prescription volume due to a technology platform transition as well as a shortage in available workers as people slowly shift gears in the wake of the pandemic,” commented Alan Jay Weisberg, CEO, and Chairman of Progressive Care. “Strong growth in profitability was highlighted by material operational efficiency improvements and dramatic sequential growth in testing revenues as well as robust 340B business expansion.”

Highlights for Three and Six Months Ended June 30, 2021

• Consolidated Revenue for the quarter was approximately $9.6 million, representing a year-over-year increase of 4% compared to the second quarter of 2020. Revenue for the six months was approximately $19.2 million, representing a 5% year-over-year increase.

• Gross Profits came in at over $2.6 million for the quarter, and over $5.0 million for the six months ended June 30, 2021, up 43% and 46% when compared to the same periods in 2020.

• 340B Revenue contribution for the quarter ended June 30, 2021, was approximately $725k, up 65% on a year-over-year basis. Total revenue for the six months under the 340B contracts were $1.4 million and $600k for 2021, and 2020, respectively. That is a 127% year-over-year increase.

• Revenues associated with COVID testing totaled approximately $1.1 million for the quarter, up over 120% on a sequential quarterly basis.

• Positive EBITDA of nearly $78k for the second quarter of 2021, and over $219k for the six months ended June 30, 2021. This was compared to negative EBITDA of $311k and $955k, respectively, for the same periods in 2020.

Results for the three months ended June 30 reflect very strong growth in all aspects of the business other than the volume of prescriptions filled, which was hampered by difficulties finding willing and available workers as well as the learning curve and challenges associated with integrating and implementing the Company’s new pharmacy management software platform. Management believes both of these dynamics are temporary and do not alter Company assumptions about long-term growth among core metrics.

Weisberg added, “We are very proud of our team from top to bottom. This is an uncertain time for many companies, with fears about the rise of the Delta variant and widespread problems finding new team members. We pass the mid-year point with tremendous growth evident in our alternative revenue drivers, growing margins, increasing profitability, and strong conviction in our major strategic assumptions and that our current obstacles are temporary and surmountable. In addition, we have recently hired a new investment banking firm that we believe will be able to help us complete the process of uplisting RXMD shares onto a major national listed exchange.”

For more information about Progressive Care, please visit the company’s website. Connect and stay in touch with us on social media:

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https://twitter.com/ProgressCareUS

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About Progressive Care: Progressive Care Inc. (OTCQB: RXMD), through its subsidiaries, is a Florida health services organization and provider of Third Party Administration (TPA), data management, COVID-19 related diagnostics and vaccinations, 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 Disclosure Regarding Forward-Looking Statements Forward-Looking 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 

carlosr@pharmcorx.com

FAQ

What were the Q2 2021 financial results for Progressive Care (RXMD)?

Progressive Care reported Q2 2021 revenue of approximately $9.6 million, a 4% year-over-year increase, with gross profits of over $2.6 million, up 43%.

How did COVID-19 testing revenue impact Progressive Care's performance in Q2 2021?

COVID testing revenue for Q2 totaled approximately $1.1 million, marking an increase of over 120% on a sequential basis.

What is the status of Progressive Care's 340B revenue for the second quarter of 2021?

The 340B revenue contribution for Q2 2021 was approximately $725k, reflecting a year-on-year increase of 65%.

What challenges did Progressive Care face in Q2 2021?

Challenges included decreased pharmacy prescription volume due to a technology transition and a shortage of available workers.

What is the EBITDA performance for Progressive Care as of Q2 2021?

Progressive Care achieved positive EBITDA of nearly $78k for Q2 2021, compared to a negative EBITDA of $311k in the same period of 2020.