MIAMI – August 15, 2019 – Progressive Care Inc. (OTCQB: RXMD), a personalized healthcare services and technology company, today issued 2nd Quarter 2019 Quarterly Report Conference Call highlights.
The Company announced nearly $7 million in net revenues, a 40% increase over the second quarter of 2018. Prescriptions filled increased 46% to 98,000 during 2nd quarter 2019. The Company reported a non-GAAP loss of $672,000 which is caused by decreasing reimbursements and increasing fees associated with insurance prescription claims resulting in a reduction of net gross margins to approximately 21% for 2019. This loss is partially offset by the addition of Family Physicians Rx (FPRX) which carries higher gross profit margins and net profitability.
The Company completed the acquisition of FPRX on June 1st, 2019, at which time $1 million was released from escrow. FPRX has lower relative operating costs and higher gross margins than the Company as a whole and is poised to add cash flow and profitability to financial performance of the Company through the rest of the year. The Company recorded approximately $1.4 million in sales from FPRX for June 2019 and estimates that $9.8 million in revenues will be added in total for 2019. FPRX will also add approximately $300,000 in net profitability to the bottom line of the Company.
The Company reiterated to listeners that it is focused on expansion in other geographical areas of Florida and is exploring opportunities in Georgia. These areas present opportunities for better reimbursements and avenues for securing revenue streams not directly tied to insurance billing. The Company continues to pursue the development of its own CBD line through local manufacturers that abide by state regulations. In the interim term the pharmacy does offer access to 4 CBD brands that is has verified the purity and analysis. The pharmacy is actively promoting its expertise in CBD therapies as well other herbal and OTC products to increase the flow of cash-based purchases.
A dedication to performance scores with insurance carriers like Humana continue to be a bright spot for the Company. Humana is the only carrier which offers the opportunity to earn all DIR fees back through performance. Performance metrics have not yet been released for 2019, resulting in over $200,000 in Humana DIR fees being charged to net revenues for the first 6 months of 2019. The Company currently expects to receive the bulk of these fees plus a bonus in the 4th Quarter of 2019.
The Company discussed 340B contracts during the call, explaining that new contracts have been signed to bolster the profitability of the Company. The Company intents to expand its 340B offerings by showcasing its expertise in compliance in accounting which is needed by covered entities subject to increasing audits from regulating agencies.
Other opportunities for growth include indications of interest in the Company’s Tele-PharmCo and Discharge Rx programs by hospitals and large-scale clinics. Telepharmacy is being recognized in Florida as way of improving care in rural parts of the state and the Company is working to secure the ability to provide our services virtually to these areas without the need of additional physical brick and mortar pharmacies. Satellite offices and digital kiosks will allow the Company to expand its delivery capabilities throughout Florida at lower costs than establishing new stand-alone pharmacies.
“2019 has presented new challenges and opened new doors,” said S. Parikh Mars, CEO of Progressive Care. “We are pushing with great intensity to increase revenues across the board by focusing on avenues with greater gross profitability. We expect to achieve efficiency and financial gains through addition of FPRX and will leverage them to achieve greater growth.”
The article has been revised to reflect to corrected data from the Company’s financial statements. In a previous version of this article, the Non-GAAP loss was misstated.
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About Progressive Care Inc.
Progressive Care Inc. (OTCQB: RXMD), through its PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals, compounded medications, provider of tele-pharmacy services, the sale of anti-retroviral medications, medication therapy management (MTM), the supply of prescription medications to long-term care facilities, and health practice risk management.
Cautionary Statement Regarding Forward-Looking Statements
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. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. 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 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.
Investor Relations Contact:
Armen Karapetyan, Progressive Care
Senior Advisor Business Development
Public Relations Contact:
Kathleen Gonzales, CMW Media
Web and Application Development Contact:
Marcello Jaspan, Mass Ventures Corp