Progressive Care Announces Record Earnings and Revenue for Three Months Ended March 31, 2021

Rhea-AI Summary

Progressive Care Inc. (OTCQB:RXMD) reported record revenue and earnings for Q1 2021, totaling $9.6 million, a 6% increase year-over-year. The company achieved adjusted EBITDA of $141,000, significantly up by $780,000 from Q1 2020. COVID-19 testing revenue contributed approximately $550,000, while 340B revenue surged 264% year-over-year. Despite a 12% decline in prescriptions filled due to operational changes, management anticipates recovery and growth opportunities from new pharmacy locations and expanded testing services.

Positive

• Record Q1 revenue of $9.6 million, up 6% year-over-year
• Adjusted EBITDA increased by $780,000 to $141,000
• 340B revenue contribution rose by 264% year-over-year to approximately $724,000
• Cash position improved to over $2.4 million
• COVID-19 testing services generated approximately $550,000
• New pharmacy locations expected to drive organic growth

Negative

• 12% decline in prescriptions filled compared to Q1 2020
• Temporary operational downtime during pharmacy relocations

MIAMI, FL, May 18, 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 setting new revenue and earnings records for the three months ended March 31, 2021.

“Our first quarter results exceeded expectations, driven by COVID-19 testing service demand and continued strong growth in third-party administrative services performed for 340B covered entities,” commented Alan Jay Weisberg, CEO and Chairman of Progressive Care, “Our ClearMetrX data analytics platform is nearing completion and we expect to see business come online from pharmacies and medical practices over coming quarters.”

Financial Highlights for Quarter Ended March 31, 2021

•  Consolidated revenue for the quarter was $9.6 million, representing a year-over-year increase of 6% compared to Q1 2020

•  Adjusted EBITDA of $141 thousand, an increase of over $780k over the adjusted EBITDA from Q1 2020

•  Break even in cash flow from operating activities during Q1 2021

•  Increased cash position to over $2.4 million from December 31, 2020

•  Prescriptions filled during Q1 totaled approximately 116,000, representing a year-over-year decrease of 12% compared to Q1 2020

•  340B revenue contribution was approximately $724k, up 264% on a year-over-year basis when compared to Q1 2020

•  Revenues associated with COVID testing totaled approximately $550k for the quarter

Cecile Munnik, CFO stated, “We project that our testing services will remain at or above our present levels and expect to benefit from ongoing testing and vaccinations as travel restrictions are lifted. The rapid test model has proven to be very profitable. To capitalize on this proven model, we are looking to expand our testing to other illnesses, including STDs, testing for various allergies, woman’s health and more. Some of the tests will require our pharmacies to get additional licensing. Our compliance team is working diligently on getting all the regulatory information so we can put into action our ultimate goal to have a hybrid model that offers both Lab and Pharmacy services under one roof.”

Operational Highlights for Quarter Ended March 31, 2021

•  New Company record for Q1 performance in terms of both revenues and earnings

•  Expanded COVID-19 Rapid Testing to 7 days a week thereby maximizing our hours of operations

•  Completed relocations of PharmCo 901 and PharmCo 1103, providing expanded growth potential and access to a wider base of customers and providers

•  Expanded number of contracts for 340B pharmacy dispensing and TPA services

•  Received approval to administer Covid-19 vaccines to customers

Management notes that the 12% year-over-year decline in filled prescriptions was attributable to downtime related to relocation of pharmacy operations for PharmCo 901 and PharmCo 1103, and the implementation of a new pharmacy software platform. PharmCo 901 was moved from its former location at North Miami Beach to its new expanded 11,000 sq.ft location at Hallandale Beach, which necessitated a temporary closure of the North Miami Beach location prior to the opening of operations at Hallandale Beach. PharmCo 1103 was moved from a small location in Orlando to a much larger, 4,000 sq.ft location.

Management believes these factors represent temporary obstacles and anticipate that volume will pick back up during the remainder of 2021. Furthermore, the new locations for both PharmCo 901 and 1103 are expansions that we expect will allow for organic growth in core pharmacy operations. In conclusion, Mr. Weisberg added, “We believe that Q1 2021 has been a promising start to accomplishing each of the Company’s goals. As we progress through the year, it will be important to keep our management team’s vision for Progressive Care in mind. The healthier we make our patients, the more successful our business will be, and we will not lose sight of that vision, with the added goal of enhancing and creating more value for our shareholders.”

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

Progressive Care Inc.

https://www.facebook.com/ProgressiveCareUS/

https://twitter.com/ProgressCareUS

PharmCoRx

https://www.facebook.com/pharmcorx/

https://twitter.com/PharmCoRx

ClearMetrX

https://www.clearmetrx.com/

https://www.facebook.com/clearmetrx/

About Progressive Care: Progressive Care Inc. (OTCQB: 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 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 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 Progressive Care's earnings for Q1 2021?

Progressive Care reported earnings of $9.6 million for Q1 2021, a 6% increase compared to the previous year.

What contributed to the increase in revenue for RXMD in Q1 2021?

The increase in revenue was driven by COVID-19 testing services and a significant rise in 340B revenue.

How did the COVID-19 testing impact Progressive Care's financial performance?

COVID-19 testing services contributed approximately $550,000 to the revenue in Q1 2021.

What challenges did Progressive Care face in Q1 2021?

The company faced a 12% decline in prescriptions filled due to relocations of pharmacy operations and the implementation of a new software platform.