Progressive Care Inc. Announces Record Full Year 2023 Results with Revenues of $49.7 Million, an Increase of 22% with Annual Gross Margins of 30%
Results Driven by 17% Increase in Pharmacy Prescription Revenue and Over 136% Growth in 340B Contract Services Revenue
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2023 Annual Financial Highlights
- Total revenues increased by approximately
$9.1 million , or 22%, to approximately$49.7 million for the year endedDecember 31, 2023 , compared to$40.6 million in 2022. Sequentially, total revenues in the fourth quarter of 2023 increased by approximately 18% over revenue reported for the third quarter of 2023. - Prescription revenue, net of PBM fees, increased by approximately
$5.8 million , or 17%, to approximately$40.7 million in 2023, compared to approximately$34.9 million in 2022. - 340B contract revenue increased to approximately
$9.0 million in 2023, an increase of approximately$5.2 million , or 136%, compared to approximately$3.8 million in 2022. The increase was attributable to an increase in the number of 340B contracts being serviced by the Company. - Annual gross profit margin increased to approximately 30% in 2023, from approximately 24% in 2022.
- Fiscal 2023 results include a non-cash goodwill impairment charge of approximately
$13.9 million , mostly related to the pharmacy services reporting unit. The impairment charge represents approximately 48% of the total amount of goodwill and other intangible assets, net that were recognized in the change in control transaction withNextPlat Corp inJuly 2023 . - Cash balance as of
December 31, 2023 , was approximately$7.9 million , as compared to approximately$6.7 million as ofDecember 31, 2022 . The Company experienced a net cash provided by operations of approximately$0.9 million during the year endedDecember 31, 2023 .
Organizational Highlights and Recent Business Developments
- PharmcoRx added several additional 340B contracts during fiscal 2023 as it continues to support the unique needs of 340B covered entities. For the year ended
December 31, 2023 , approximately$0.8 million of the$5.2 million increase in 340B contract revenue was attributable to new 340B contracts, with the remaining$4.4 million increase related to increased prescription volume from existing 340B contracts. - Furthering its commitment to improving community access to valuable healthcare services, through partnerships with ProHealth Connect and NationsBenefits announced late in 2023, the Company began offering additional products and services for new and existing Medicare Advantage patients whose wish is to utilize their OTC benefits to purchase over-the-counter products at its PharmcoRx pharmacies. The Company also expanded its in-pharmacy offerings through an agreement with the
Mark Cuban Cost Plus Drug Company ("Cost Plus Drugs"). The Cost Plus Drugs program allows participating patients the ability to purchase generic and branded medicines at cost plus a low fixed markup. - On
June 30, 2023 ,NextPlat Corp (NASDAQ: NXPL, NXPLW) ("NextPlat "),Charles M. Fernandez , Chairman and Chief Executive Officer of the Company, andRodney Barreto , Vice-Chairman of the Company, exercised their common stock purchase warrants inProgressive Care and collectively owned 53% ofProgressive Care's voting common stock. As such, this constituted a change in control inProgressive Care and effective as ofJuly 1, 2023 , it is now a consolidated subsidiary ofNextPlat for accounting purposes.
Summary Financials for the Years Ended
Our results of operations as reported in our consolidated financial statements for the periods six months ended December 31, 2023 ("Successor"), six months ended
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Successor |
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Predecessor |
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Predecessor |
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Six Months |
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Six Months |
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Year Ended |
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Year Ended |
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$ Change |
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% Change |
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Total revenues, net |
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$ |
26,779 |
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$ |
22,948 |
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$ |
49,727 |
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$ |
40,602 |
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$ |
9,125 |
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22 |
% |
Total cost of revenue |
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18,323 |
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16,242 |
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34,565 |
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30,899 |
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3,666 |
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12 |
% |
Total gross profit |
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8,456 |
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6,706 |
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15,162 |
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9,703 |
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5,459 |
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56 |
% |
Operating expenses |
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23,114 |
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6,067 |
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29,181 |
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12,282 |
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16,899 |
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138 |
% |
(Loss) income from operations |
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(14,658) |
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639 |
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(14,019) |
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(2,579) |
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(11,440) |
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444 |
% |
Other income (expense) |
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10 |
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(5,406) |
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(5,396) |
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(3,324) |
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(2,072) |
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62 |
% |
Loss before income taxes |
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(14,648) |
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(4,767) |
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(19,415) |
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(5,903) |
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(13,512) |
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229 |
% |
Provision for income taxes |
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— |
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— |
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— |
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(1) |
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1 |
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(100) |
% |
Net loss |
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(14,648) |
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(4,767) |
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(19,415) |
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(5,904) |
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(13,511) |
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229 |
% |
Series A Preferred Stock dividend associated |
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— |
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— |
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— |
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(541) |
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541 |
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(100) |
% |
Net loss attributable to common shareholders |
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$ |
(14,648) |
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$ |
(4,767) |
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$ |
(19,415) |
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$ |
(6,445) |
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$ |
(12,970) |
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201 |
% |
Financial Results for the Year Ended
For the years ended
We have filled approximately 489,000 and 463,000 prescriptions during the years ended
Gross profit margins increased from 24% for the year ended
Loss from operations increased by approximately
Net Loss
We had a net loss of approximately
Annual Report on Form 10-K Available
The Company's Annual Report on Form 10-K, available at www.sec.gov and on the Company's website, contains a thorough review of its financial results for the year ended
About
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
Investor Contact for
917-397-2272
mike@mwgco.net
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