Progressive Care Inc. Announces Record First Quarter 2024 Revenues of $14.6 Million, an Increase of 28% Over First Quarter 2023 Results
340B Contract Service Revenue Grows 110% as New Contract Momentum Continues
"First quarter results clearly demonstrate the continued positive momentum in our business, highlighted by considerable growth in our 340B contract services segment. Our ability to deliver highly specialized care for patients and create enhanced value for providers remains critical to our success, attributes we believe will allow us to further expand our long-term care and OTC business going forward," said
First Quarter 2024 Financial Highlights:
- Total revenues increased by approximately
$3.2 million , or 28%, to approximately$14.6 million during the three months endedMarch 31, 2024 , compared to approximately$11.4 million in the prior year period. - Prescription revenue, net of PBM fees, increased by approximately
$1.6 million , or 16%, to approximately$11.3 million during the first quarter of 2024, compared to approximately$9.8 million in the prior year period. - 340B contract revenue was approximately
$3.3 million during the first quarter of 2024, an increase of approximately$1.7 million , compared to approximately$1.6 million in the prior year period. The increase was attributable to an increase in our existing 340B contracts of approximately$1.1 million and an increase in new 340B contract revenue of approximately$0.6 million . - Overall gross profit margin in the first quarter of 2024 was approximately 27% versus approximately 28% in the first quarter of 2023. The unfavorable significant increase in drug costs per prescription negatively impacted our overall gross profit margin.
- Cash balance as of
March 31, 2024 was approximately$5.5 million as compared to approximately$7.9 million as ofDecember 31, 2023 .
Organizational Highlights and Recent Business Developments:
- On
April 12, 2024 ,NextPlat Corp (NASDAQ: NXPL, NXPLW) ("NextPlat ") announced a proposed business combination withProgressive Care in an all-stock transaction which is expected to provide revenue synergies and significant initial annual operating cost reductions. The transaction has been unanimously approved by the Board of Directors of bothNextPlat andProgressive Care and is expected to close in the third quarter of 2024, subject to regulatory and stockholder approvals, and other customary closing conditions. OnJuly 1, 2023 ,NextPlat ,Mr. Fernandez , Chairman and Chief Executive Officer of the Company, and Mr.Rodney Barreto , Vice-Chairman of the Company, exercised their common stock purchase warrants inProgressive Care and collectively owned 53% ofProgressive Care's voting common stock. - PharmcoRx added several additional 340B contracts during late fiscal 2023 as it continued to support the unique needs of 340B covered entities. For the quarter ended
March 31, 2024 , approximately$0.9 million of the$1.7 million increase in 340B contract revenue was attributable to new 340B contracts, with the remaining$0.8 million increase attributable to existing 340B contracts. - During the first quarter of 2024, the Company began ramping-up additional sales and marketing activities targeting the long-term care market in
South Florida , engaging a team of dedicated sales personnel.
Summary Financials for the Three Months Ended
Note on Financial Presentation
In connection with the change in control on
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Successor |
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Predecessor |
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Three Months |
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Three Months |
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$ Change |
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% Change |
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Total revenues, net |
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$ |
14,628 |
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$ |
11,392 |
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$ |
3,236 |
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28 % |
Total cost of revenue |
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10,623 |
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8,245 |
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2,378 |
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29 % |
Total gross profit |
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4,005 |
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3,147 |
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858 |
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27 % |
Operating expenses |
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4,402 |
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3,133 |
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1,269 |
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41 % |
(Loss) income from operations |
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(397) |
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14 |
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(411) |
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(2936) % |
Other income (expense) |
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25 |
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(144) |
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169 |
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(117) % |
Loss before income taxes |
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(372) |
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(130) |
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(242) |
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186 % |
Provision for income taxes |
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— |
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— |
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— |
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— |
Net loss attributable to common shareholders |
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$ |
(372) |
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$ |
(130) |
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$ |
(242) |
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186 % |
We recognized overall revenue from operations of approximately
Overall gross profit margins decreased from 28% for the three months ended
Loss from operations was approximately
Financial Results for the three months ended
Revenue
We have filled approximately 134,000 and 120,000 prescriptions during the three months ended
Dispensing fees and TPA revenue earned on our 340B contracts for the three months ended
Operating Expenses
Our operating expenses increased by approximately
- approximately
$0.7 million increase in the amortization of newly identifiable intangible assets as a result of the push-down accounting; - approximately
$0.5 million 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; - approximately
$0.1 million of impairment loss related to the write-down of a right-of-use asset; and - approximately
$0.1 million increase in computer expenses.
During the three months ended
Other Income (Expense)
Other income (expense) increased by approximately
Net Loss
We had a net loss of 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
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
About
Important Information About the Merger and Where to Find It
In connection with the proposed merger between
Participants in the Solicitation
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.
Investor Contact for
917-397-2272
mike@mwgco.net
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