Results Driven by 17% Increase in Pharmacy Prescription Revenue and Over 136% Growth in 340B Contract Services Revenue
"Progressive Care's significant growth in 2023 reflects its continuing commitment to ensuring strong patient medical adherence through highly specialized care and its proven ability to support the unique needs of 340B covered entities. I am pleased with our team's success in greatly strengthening the Company's financial foundation and driving improved operational performance. We continue to seek opportunities to expand our pharmacy operations with new programs, such as the OTC benefit programs announced last year, and add additional clients within the 340B space," said
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 with NextPlat 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 in Progressive Care and collectively owned 53% of Progressive Care's voting common stock. As such, this constituted a change in control in Progressive Care and effective as ofJuly 1, 2023 , it is now a consolidated subsidiary of NextPlat 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
Successor | Predecessor | Predecessor | ||||||||||||||||||||||
Six Months | Six Months | Year Ended | Year Ended | $ Change | % Change | |||||||||||||||||||
Total revenues, net | $ | 26,779 | $ | 22,948 | $ | 49,727 | $ | 40,602 | $ | 9,125 | 22 | % | ||||||||||||
Total cost of revenue | 18,323 | 16,242 | 34,565 | 30,899 | 3,666 | 12 | % | |||||||||||||||||
Total gross profit | 8,456 | 6,706 | 15,162 | 9,703 | 5,459 | 56 | % | |||||||||||||||||
Operating expenses | 23,114 | 6,067 | 29,181 | 12,282 | 16,899 | 138 | % | |||||||||||||||||
(Loss) income from operations | (14,658) | 639 | (14,019) | (2,579) | (11,440) | 444 | % | |||||||||||||||||
Other income (expense) | 10 | (5,406) | (5,396) | (3,324) | (2,072) | 62 | % | |||||||||||||||||
Loss before income taxes | (14,648) | (4,767) | (19,415) | (5,903) | (13,512) | 229 | % | |||||||||||||||||
Provision for income taxes | ” | ” | ” | (1) | 1 | (100) | % | |||||||||||||||||
Net loss | (14,648) | (4,767) | (19,415) | (5,904) | (13,511) | 229 | % | |||||||||||||||||
Series A Preferred Stock dividend associated | ” | ” | ” | (541) | 541 | (100) | % | |||||||||||||||||
Net loss attributable to common shareholders | $ | (14,648) | $ | (4,767) | $ | (19,415) | $ | (6,445) | $ | (12,970) | 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 Progressive Care
Progressive Care Inc. (OTCQB: RXMD) through its subsidiaries, is a
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 discussed in our Annual Report on Form 10-K and other SEC filings 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. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those expressed or implied in the forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on management's beliefs and assumptions and on information currently available to Progressive Care, and Progressive Care does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
Investor Contact for Progressive Care
MWGCO, Inc.
917-397-2272
mike@mwgco.net