NextPlat Reports $49.8 Million in Consolidated Revenue for the Nine Months Ended September 30, 2024, Representing a 136% Increase Over 2023 Results
Company Sees Initial Sales Momentum in
"Top-line results for the first nine months of 2024 reflect the positive contributions of Progressive Care, providing us access into the large healthcare contracted services market, and our most recent acquisition, Outfitter Satellite, bolstering our e-Commerce business. These transactions are expected to bring both significant long-term growth in their respective markets and importantly, drive positive cashflows as our team works to fully integrate them and implement cost-cutting measures through the fourth quarter of 2024, improving efficiencies and removing redundancies across the organization into 2025," said
Third Quarter 2024 Financial Highlights:
- Consolidated revenue for the third quarter of 2024 was approximately
$15.4 million compared to approximately$15.3 million in the same period last year. Total e-Commerce revenues were approximately$3.8 million and$2.9 million for the three months endedSeptember 30, 2024 , and 2023, respectively, an increase of approximately 31% mainly due to the Outfitter acquisition onApril 1, 2024 . Total Healthcare Operations revenues were approximately$11.5 million and$12.4 million for the three months endedSeptember 30, 2024 , and 2023, respectively, a decrease primarily due to a decline in retail pharmacy prescription reimbursement rates in line with continuing industry trends occurring with U.S. independent pharmacies. Consolidated revenue for the nine months endedSeptember 30, 2024 , was approximately$49.8 million , an increase of over 136% versus revenue of approximately$21.1 million for the nine months ended September 30, 2023, primarily attributable to an increase of approximately$27.3 million from Healthcare Operations as a result of the Progressive Care acquisition onJuly 1, 2023 . Based upon current expectations, available product inventory and the number of new and existing pharmacy service contracts, the Company currently expects full-year 2024 revenue to be in the range of approximately$60 million to$65 million . - Gross profit margin for the quarter ended
September 30, 2024 , declined to 22.9% primarily attributable to the decrease in retail prescription drug reimbursement rates in Healthcare Operations. For the nine months endedSeptember 30, 2024 , overall gross profit margin remained consistent at approximately 28% when compared to the prior year period. Gross profit margin for e-Commerce Operations was 28.1%, remaining at near record levels largely due to continued increases in higher margin recurring airtime revenue. Gross profit margin for Healthcare Operations in the third quarter of 2024 was 21.2%. Healthcare Operations continues to experience pressures from medication price increases despite reimbursement rates not keeping pace with those increases. - Operating expenses for the quarter ended
September 30, 2024 , were approximately$11.5 million compared to approximately$8.1 million for the same period in 2023. A significant 45.2% decrease in recurring selling, general and administrative expenses in the quarter were offset by a non-cash impairment loss of approximately$3.7 million related to intangible assets recognized in the Progressive Care acquisition. Additional expenses included professional fees of approximately$2.1 million mainly attributable to costs related to the merger with Progressive Care as well as non-recurring litigation and other legal fees. - As a result of acquiring a controlling interest in Progressive Care on
July 1, 2023 , underU.S. GAAP for mergers and acquisitions, the Company recorded previously unrecognized goodwill and other intangibles which were recorded at fair values based on Progressive Care's stock price onJuly 1, 2023 as well as estimates of future book of business. Declines in Progressive Care's stock price and changes in its estimated book of business caused a decline in the fair value of the goodwill and intangibles. Thus, underU.S. GAAP, the Company was required to adjust its fair value estimates for goodwill and the intangibles resulting in non-cash impairment losses totaling$13 .7 million recognized during the nine months endedSeptember 30, 2024 . The Company now expects no further impairment losses from the acquisition of Progressive Care.- Year-to-date, the Company recorded a total of approximately
$34.9 million in operating expenses, which included non-recurring expenses of approximately$13.7 million in non-cash impairment losses and approximately$3.4 million in expenses related to the merger with Progressive Care. - The Company expects significant annual reductions in operating costs through cost savings from ongoing integration efforts of Progressive Care. These efforts include trimming delivery costs, rightsizing staffing, and removing duplicated public company expenses including professional services such as legal and accounting services, as well as the reduction of other selling, general and administrative costs by eliminating existing redundancies.
- Year-to-date, the Company recorded a total of approximately
- Net loss attributable to
NextPlat Corp common shareholders for the quarter endedSeptember 30, 2024 , was approximately$4 .2 million, or ($0.22 ) per diluted share, compared to a net income attributable toNextPlat Corp common shareholders of approximately$3 .4 million, or$0.17 diluted earnings per share, reported for the quarter endedSeptember 30, 2023 . For the nine months endedSeptember 30, 2024 , net loss attributable toNextPlat Corp common shareholders was approximately$11 .0 million, or ($0.58 ) per diluted share, compared to a net loss attributable toNextPlat Corp common shareholders of approximately$2 .1 million, or ($0.12 ) per diluted share. - The Company ended the third quarter of 2024 with approximately
$20.4 million in cash representing a net cash burn of approximately$5.9 million year-to-date. The use of cash primarily consisted of approximately$3.4 million in non-recurring operating expenses plus approximately$1.0 million related to the Outfitter acquisition, and approximately$1.5 million used in recurring operating expenses.
Organizational Highlights and Recent Business Developments:
-
On
October 1, 2024 , the Company completed its proposed merger with Progressive Care in an all-stock transaction, resulting in Progressive Care becoming a wholly owned subsidiary ofNextPlat . Representing the Company's Healthcare Operations, Progressive Care continues to support the needs of a growing number of 340B contracted healthcare entities as well as long-term care and assisted living facilities. - In the third quarter, Healthcare Operations filled approximately 128,000 pharmacy prescriptions, a 5% increase from the 122,000 pharmacy prescriptions filled in the year-ago quarter. The Company continues to add pharmacy service contracts with 340B covered entities which are expected to represent a greater proportion of Healthcare Operations revenue going forward, contributing to increased services and prescription revenues throughout the remainder of fiscal 2024 and into fiscal 2025. These contracts have a greater profit margin than the Company's traditional retail pharmacy business.
- The Company's technology e-commerce business continued to see increased global demand for satellite-enabled communications devices, producing sales to customers in 95 countries during the third quarter. Recurring, high-margin airtime revenue in the third quarter of 2024 increased to record levels, reflecting growth of 94% vs. 2023 levels driven by both organic growth and the addition of Outfitter Satellite which was acquired in
April 2024 . - In July, the Company significantly expanded the scope of its e-commerce program in
China to include broad retail distribution and digital/social media marketing capabilities through a new partner. Several online and offline marketing programs in support of theOPKO Healthcare (Nasdaq: OPK) ("OPKO")-branded site onAlibaba Group Holding Limited's (NYSE: BABA) ("Alibaba ") Tmall Global have already been conducted and product interest and sales continue to grow as in-country product availability increases. Recently, OPKO's "Artilane®" joint care product was featured as a Tmall "Top 10Most Popular New Products For Healthcare " list based upon comprehensive data such as product clicks, collections, and purchases. In October,NextPlat was awarded a four-year extension of theOPKO Healthcare e-commerce program forChina which was expanded to include product sales inJapan . - During the quarter, the Company continued to advance the launch of its Florida Sunshine line of branded vitamins and supplements with the initial launch of its international e-commerce storefronts in the
United Kingdom and on AmazonUK . International launch plans are currently in development and Florida Sunshine products are expected to be made available to Chinese consumers on multiple online marketplaces and be featured in campaigns conducted by social media influencers and bloggers starting late in the fourth quarter.
The financial information included in this press release should be read in conjunction with the Company's Quarterly Report on Form 10-Q for the quarter ended
About
Forward-Looking Statements
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services or solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including the Company's ability to launch additional e-commerce capabilities for consumer and healthcare products and its ability to grow and expand as intended, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating), including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the
Media and Investor Contact for
917-397-2272
mike@mwgco.net
|
NEXTPLAT CORP AND SUBSIDIARIES |
|
|||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
|
|||||||||||||||
|
(In thousands, except per share data) |
|
|||||||||||||||
|
(Unaudited) |
|
|||||||||||||||
|
|
|
|||||||||||||||
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
Sales of products, net |
|
$ |
12,865 |
|
|
$ |
12,789 |
|
|
$ |
41,015 |
|
|
$ |
18,622 |
|
|
Revenues from services |
|
|
2,502 |
|
|
|
2,501 |
|
|
|
8,834 |
|
|
|
2,501 |
|
|
Revenue, net |
|
|
15,367 |
|
|
|
15,290 |
|
|
|
49,849 |
|
|
|
21,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products |
|
|
11,799 |
|
|
|
10,634 |
|
|
|
35,539 |
|
|
|
15,003 |
|
|
Cost of services |
|
|
48 |
|
|
|
71 |
|
|
|
174 |
|
|
|
71 |
|
|
Cost of revenue |
|
|
11,847 |
|
|
|
10,705 |
|
|
|
35,713 |
|
|
|
15,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
3,520 |
|
|
|
4,585 |
|
|
|
14,136 |
|
|
|
6,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
2,293 |
|
|
|
4,187 |
|
|
|
6,516 |
|
|
|
7,496 |
|
|
Salaries, wages and payroll taxes |
|
|
2,875 |
|
|
|
2,483 |
|
|
|
8,284 |
|
|
|
4,039 |
|
|
Impairment loss |
|
|
3,729 |
|
|
|
— |
|
|
|
13,653 |
|
|
|
— |
|
|
Professional fees |
|
|
2,144 |
|
|
|
521 |
|
|
|
4,133 |
|
|
|
1,385 |
|
|
Depreciation and amortization |
|
|
478 |
|
|
|
871 |
|
|
|
2,287 |
|
|
|
1,201 |
|
|
Total operating expenses |
|
|
11,519 |
|
|
|
8,062 |
|
|
|
34,873 |
|
|
|
14,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before other (income) expense |
|
|
(7,999) |
|
|
|
(3,477) |
|
|
|
(20,737) |
|
|
|
(8,072) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale or disposal of property and equipment |
|
|
(98) |
|
|
|
— |
|
|
|
(98) |
|
|
|
— |
|
|
Interest expense |
|
|
22 |
|
|
|
46 |
|
|
|
62 |
|
|
|
56 |
|
|
Interest earned |
|
|
(183) |
|
|
|
(210) |
|
|
|
(596) |
|
|
|
(393) |
|
|
Other income |
|
|
(2) |
|
|
|
— |
|
|
|
(2) |
|
|
|
(316) |
|
|
Foreign currency exchange rate variance |
|
|
(119) |
|
|
|
165 |
|
|
|
(87) |
|
|
|
95 |
|
|
Total other (income) expense |
|
|
(380) |
|
|
|
1 |
|
|
|
(721) |
|
|
|
(558) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes and equity in net loss of affiliate |
|
|
(7,619) |
|
|
|
(3,478) |
|
|
|
(20,016) |
|
|
|
(7,514) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
(45) |
|
|
|
(23) |
|
|
|
(92) |
|
|
|
(75) |
|
|
Loss before equity in net loss of affiliate |
|
|
(7,664) |
|
|
|
(3,501) |
|
|
|
(20,108) |
|
|
|
(7,589) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on remeasurement of fair value of equity interest in affiliate prior to acquisition |
|
|
— |
|
|
|
6,138 |
|
|
|
— |
|
|
|
6,138 |
|
|
Equity in net loss of affiliate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,440) |
|
|
Net (loss) income |
|
|
(7,664) |
|
|
|
2,637 |
|
|
|
(20,108) |
|
|
|
(2,891) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to non-controlling interest |
|
|
3,448 |
|
|
|
811 |
|
|
|
9,100 |
|
|
|
811 |
|
|
Net (loss) income attributable to |
|
$ |
(4,216) |
|
|
$ |
3,448 |
|
|
$ |
(11,008) |
|
|
$ |
(2,080) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(7,664) |
|
|
$ |
2,637 |
|
|
$ |
(20,108) |
|
|
$ |
(2,891) |
|
|
Foreign currency (loss) gain |
|
|
6 |
|
|
|
19 |
|
|
|
(30) |
|
|
|
(16) |
|
|
Comprehensive (loss) income |
|
$ |
(7,658) |
|
|
$ |
2,656 |
|
|
$ |
(20,138) |
|
|
$ |
(2,907) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS |
|
$ |
(4,216) |
|
|
$ |
3,448 |
|
|
$ |
(11,008) |
|
|
$ |
(2,080) |
|
|
Weighted number of common shares outstanding – basic |
|
|
18,982 |
|
|
|
18,703 |
|
|
|
18,844 |
|
|
|
17,079 |
|
|
Weighted number of common shares outstanding – diluted |
|
|
18,982 |
|
|
|
20,310 |
|
|
|
18,844 |
|
|
|
17,079 |
|
|
Basic (loss) earnings per share |
|
$ |
(0.22) |
|
|
$ |
0.18 |
|
|
$ |
(0.58) |
|
|
$ |
(0.12) |
|
|
Diluted (loss) earnings per share |
|
$ |
(0.22) |
|
|
$ |
0.17 |
|
|
$ |
(0.58) |
|
|
$ |
(0.12) |
|
|
NEXTPLAT CORP AND SUBSIDIARIES |
|
|||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|||||||
|
(In thousands, except shares and par data) |
|
|||||||
|
(Unaudited) |
|
|||||||
|
|
|
|||||||
|
|
|
|
|
|
|
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
20,360 |
|
|
$ |
26,307 |
|
|
Accounts receivable, net |
|
|
6,575 |
|
|
|
8,923 |
|
|
Receivables - other, net |
|
|
1,235 |
|
|
|
1,846 |
|
|
Inventories, net |
|
|
6,362 |
|
|
|
5,135 |
|
|
Unbilled revenue |
|
|
219 |
|
|
|
189 |
|
|
VAT receivable |
|
|
350 |
|
|
|
342 |
|
|
Prepaid expenses |
|
|
484 |
|
|
|
640 |
|
|
Notes receivable due from related party, net of allowances of |
|
|
206 |
|
|
|
256 |
|
|
Total Current Assets |
|
|
35,791 |
|
|
|
43,638 |
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
3,595 |
|
|
|
3,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
156 |
|
|
|
731 |
|
|
Intangible assets, net |
|
|
555 |
|
|
|
14,423 |
|
|
Operating right of use assets, net |
|
|
898 |
|
|
|
1,566 |
|
|
Finance right-of-use assets, net |
|
|
10 |
|
|
|
22 |
|
|
Deposits |
|
|
94 |
|
|
|
39 |
|
|
Prepaid expenses, net of current portion |
|
|
— |
|
|
|
61 |
|
|
Total Other Assets |
|
|
1,713 |
|
|
|
16,842 |
|
|
Total Assets |
|
$ |
41,099 |
|
|
$ |
64,469 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
8,531 |
|
|
$ |
13,176 |
|
|
Contract liabilities |
|
|
104 |
|
|
|
42 |
|
|
Notes payable |
|
|
461 |
|
|
|
312 |
|
|
Due to related party |
|
|
24 |
|
|
|
18 |
|
|
Operating lease liabilities |
|
|
381 |
|
|
|
532 |
|
|
Finance lease liabilities |
|
|
10 |
|
|
|
18 |
|
|
Income taxes payable |
|
|
162 |
|
|
|
139 |
|
|
Total Current Liabilities |
|
|
9,673 |
|
|
|
14,237 |
|
|
|
|
|
|
|
|
|
|
|
|
Long Term Liabilities: |
|
|
|
|
|
|
|
|
|
Notes payable, net of current portion |
|
|
1,080 |
|
|
|
1,211 |
|
|
Operating lease liabilities, net of current portion |
|
|
553 |
|
|
|
929 |
|
|
Finance lease liabilities, net of current portion |
|
|
— |
|
|
|
5 |
|
|
Total Liabilities |
|
|
11,306 |
|
|
|
16,382 |
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
Preferred stock ( |
|
|
— |
|
|
|
— |
|
|
Common stock ( |
|
|
2 |
|
|
|
2 |
|
|
Additional paid-in capital |
|
|
68,487 |
|
|
|
67,170 |
|
|
Accumulated deficit |
|
|
(45,933) |
|
|
|
(34,925) |
|
|
Accumulated other comprehensive loss |
|
|
(93) |
|
|
|
(63) |
|
|
Equity attributable to |
|
|
22,463 |
|
|
|
32,184 |
|
|
Equity attributable to non-controlling interests |
|
|
7,330 |
|
|
|
15,903 |
|
|
Total Equity |
|
|
29,793 |
|
|
|
48,087 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity |
|
$ |
41,099 |
|
|
$ |
64,469 |
|
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