Replies to post #79317 on Progressive Care Inc (fka RXMD)

[TrackDude]

If you read the financials, there's a perfectly good explanation regarding uncontrolled increased costs that resulted in the lower bottom line. Context is always important.

[Jimmy Quick]

Wow that's being pretty naïve, to not look at what they really did and why profit was fractionally lower.

Read Below: And they paid off $134K in debt in the 4th quarter. Oh, and they renegotiated the pharmacist salary, and we won't see that impact until quarter 1 2018, because payments for commission are made in accruals after quarters end.

Net loss for 2nd quarter can be attributed to 3 things outside of pharmacist salary and bonus. (Auditing fees, 4 year old employee grievance litigation, and DIR fees to combine for $195,000). Also, it appears we have ramped up staff, in anticipation to handle larger amounts of business. As this business is recognized, we should see margins start to improve.

For the three months ended June 30, 2017, the Company increased overall revenue to approximately $5.2 million, which resulted from 15% organic revenue growth over the same period in 2016. Gross profit margins decreased from 26% in 2016 to 25% in 2017. Operating income decreased by approximately $246,000 in 2017 as compared to 2016. Second quarter operating income was negatively impacted by an incremental increase of approximately $50,000 in
accrued direct and indirect remuneration fees (“DIR fees”) (total of approximately $85,000), costs associated with the settlement of a non-recurring legal action (approximately $105,000), increased auditing and accounting fees (approximately $40,000), and an increase in personnel (approximately 12 positions) associated with the continued growth and development of the Company.

For the six months ended June 30, 2017, the Company increased overall revenue to approximately $10.2 million, an 18% increase over the same period in 2016. Gross profit margins increased from 25% in 2016 to 28% in 2017, a 35% increase when compared to 2016. Operating income decreased by approximately $164,000 in 2017 as compared to 2016 as a result of an incremental increase of approximately $136,000 in DIR fees, costs totaling approximately $105,000 associated with the settlement of a non-recurring legal action, increased auditing and accounting fees (approximately $77,000), and an increase in personnel (approximately 18 positions) associated with the continued growth and development of the Company.