Progressive Care Inc., a personalized healthcare services and technology provider, has reported record third-quarter revenues of $12.4 million, representing a significant 22% increase compared to the same period last year. The growth was primarily driven by the strong performance of its PharmcoRx pharmacies.
The company’s Chairman and CEO, Charles M. Fernandez, expressed excitement about the results, highlighting the success in their pharmacy and 340B contract businesses. Fernandez emphasized their commitment to improving patient outcomes through medical adherence, which has contributed to their continued growth.
In the face of mounting pressure in the pharmacy and healthcare sectors to improve care while reducing costs, Progressive Care continues to capitalize on growth opportunities. They plan to expand their services for existing patients and form partnerships that can help them reach new customers.
Notably, the company experienced an overall revenue increase of approximately $2.2 million, primarily due to higher prescription revenue, net of pharmacy benefit manager fees, and increased revenue from 340B contracts. However, there was a slight decrease in COVID-19 testing revenue compared to the prior year period.
Sequentially, Progressive Care saw a 7% increase in overall revenue during the third quarter of 2023 compared to the previous quarter. This growth was driven by an 18% increase in 340B contract revenue and a 4% increase in prescription revenue, net of pharmacy benefit manager fees. The company also filled approximately 122,000 prescriptions during the third quarter, an increase of 4% year-over-year.
The company’s gross profit margins increased from 21% to 31% during the third quarter of 2023 compared to the same period in 2022. This improvement was primarily attributed to the higher margins of 340B contract revenue.
Progressive Care also reported a decrease in loss from operations, which can be attributed to the increase in gross profit, partially offset by higher operating expenses. The operating expenses increased by approximately $1.1 million, mainly due to increased amortization expenses for newly identifiable intangible assets, franchise taxes, and salaries and wages.
Furthermore, other losses decreased by approximately $7.1 million for the third quarter of 2023 compared to the same period in 2022. This decrease was mainly due to a reduction in NextPlat transaction-related expenses and losses recognized in the prior year period.
Despite these positive results, Progressive Care reported a net loss of approximately $1.4 million for the third quarter of 2023, albeit significantly lower than the $9.0 million loss reported in the same period last year. The decrease in net loss can be attributed to the decrease in other losses.
Looking ahead, Progressive Care is confident in its future growth potential, thanks to its continued business expansion and the upcoming launch of new consumer services at its PharmcoRx pharmacies. The company remains focused on delivering value to patients, healthcare providers, and shareholders.
Investors and stakeholders can access a thorough review of Progressive Care’s financial results for the third quarter of 2023 in the company’s Quarterly Report on Form 10-Q, available on the Securities and Exchange Commission’s website and Progressive Care’s official website.
Progressive Care Inc. RXMD is a Florida-based health services organization that provides Third-Party Administration (TPA), data management, COVID-19-related diagnostics and vaccinations, 340B contracted pharmacy services, prescription pharmaceuticals, compounded medications, tele-pharmacy services, anti-retroviral medications, medication therapy management (MTM), and prescription medication supply to long-term care facilities, among other services. The company also specializes in health practice risk management.
