Progressive Care Inc (RXMD)

[stockforce]

This is really great news! Record $11.4M quarterly revenue, 28% profit margin (4% higher) due to higher 340 contracts. $300K less interest expense and $953K elimination of derivative liabilities! The Nextplat digital platform will push this to an even higher record revenue and profit margin. Absolutely great news.

https://www.progressivecareus.com/post/progressive-care-inc-announces-first-quarter-2023-financial-results-ofrecord-quarterly-total-revenues-of-11-4-million

Progressive CareInc. (OTCQB: RXMD) (“Progressive Care” or the “Company”), a personalized healthcare services and technology provider, today announced financial resultsfor the first quarter ended March 31, 2023. The Company experienced record quarterly total revenues of $11.4 million, a 13% growth from the prior year period.


First Quarter2023 Financial Highlights (at or for period ended March 31, 2023, as compared to March 31, 2022, and December 31, 2022):


? Total pharmacy revenue increased by $1.3 million, or 13%, to $11.4 million during the three months ended March 31, 2023, compared to $10.1 million in the prior year period.

? Prescription revenue increased by $1.8 million, or 21%, to $10.4 million during the first quarter of 2023, compared to $8.6 million in the prior year period, primarily reflecting an 8% year-over-year increase in the number of prescriptions filled period-over-period.

? 340B contract revenue was $1.6 million during the first quarter of 2023, an increase of $1.2 million, compared to $0.4 million in the prior year period. The increase was primarily attributable to an increase in our existing 340B contracts of approximately $0.9 million and an increase in new 340B contract revenue of approximately $0.3 million.

? Gross profit margin increased from 24% for the three months ended March 31, 2022, to 28% for the three months ended March 31, 2023 primarily due to the increase in 340B contract revenue, which has higher margins than revenue generated from pharmacy operations.

? Cash balance as of March 31, 2023 was approximately $7.5 million.


OrganizationalHighlights and Recent Business Developments

? On May 1, 2023, the Company appointed Dr. Pamela Roberts as Chief Operating Officer. Dr. Roberts formerly served as the Company’s Director of Pharmacy and Pharmacist in Charge.

? On May 9, 2023, the Company successfully completed a transaction of $1.0 million investment from NextPlat Corp.


Summary Financials for the Three Months Ended March 31, 2023 and 2022

FinancialResults for the Three Months Ended March 31, 2023

For the three months ended March 31, 2023 and 2022, we recognized overall revenue from operations of approximately $11.4 million and $10.1 million, respectively. Net pharmacy revenues increased by approximately $1.3 million during the three months ended March 31, 2023 when compared to the same period in 2022. The increase in revenue was primarily attributable to an increase in pharmacy revenue of approximately $1.8 million and an increase in 340B contract revenue of approximately $1.2 million, which was offset by an increase in PBM fees of approximately $0.4 million and a decrease in COVID-19 testing revenue of approximately $1.2 million, when compared to the prior year period.

Gross profit margins increased from 24% for the three months ended March 31, 2022, to28% for the three months ended March 31, 2023. The increase in gross profit margins during the first quarter of 2023 compared to the same period in 2022, was primarily attributable to the increase in 340B contract revenue, which has higher margins than revenue generated from pharmacy operations.

Income from operations increased by approximately $0.1 million for the three months ended March 31, 2023, when compared to the three months ended March 31, 2022, as a result of the increase in gross profit of approximately $0.7 million, partially offset by the increase in operating expenses of approximately $0.6million. The increase in operating expenses was mainly attributable to a settlement of a pharmacy claims audit in the ordinary course of business in the amount of approximately $0.3 million, as well as an increase in salaries and wages of approximately $0.1 million and an increase in non-recurring consulting fees of approximately $0.2 million.