MIAMI, FL – January 23, 2020 – Progressive Care Inc. (OTCQB: RXMD) (“Progressive Care” or the “Company”), a personalized healthcare services and technology company, issues the following Letter to Shareholders from the CEO:
Dear Valued Shareholder,
Allow me to begin by expressing our heartfelt gratitude to all of our committed shareholders for your faith and patience as we move toward what we sincerely believe will be the most exciting and gratifying period in the Company’s history. None of this would be possible without you.
Before we talk about where we are headed next, we must take a moment to appreciate how far we have come.
2019 was a formative year for Progressive Care as a company, both in terms of our culture and our character. Presented with unforeseeable exogenous obstacles early in the year, could we muster the will and determination to adapt and create success despite that adversity?
I am extremely proud to proclaim here today – as we kick off a very promising new year – that our team successfully rose to the challenges we faced early last year, and we enter 2020 stronger than we have ever been, more efficient than we have ever been, and equipped with a more scalable model than we have ever had in place before in our history.
A year ago, we closed 2018 on a very strong note, having just secured our flagship building in Hallandale as well as funding of $1 million earmarked for an ambitious tech-centric 2019 vision – we are true believers in the potential for new and innovative technology solutions to deliver personalized patient-centered care, and we had formulated a plan to deliver on that promise in 2019.
However, early last year, we were hit with deep cuts to reimbursements and monumental hikes in fees in our PBM relationships. Those exogenous shocks refocused our team on growth and adaptation. The infusion of capital served as the company’s lifeblood during this difficult but enormously valuable period. We strategized and found multiple ways to become leaner and to effectively brace ourselves for the impact of a more exploitative PBM landscape. But we also recognized that it would take more than just good defense to successfully navigate the transition, so we ured our focus to growth and innovation.
In the first half the year, we saw extended growth in prescription counts and revenues. With a full year of PharmCo Rx Palm Beach to look forward to, we optimized our branding, workflow, and sales methods to deliver organic growth in the South Florida area.
We also found a tremendous M&A opportunity in Family Physicians Rx (“FPRx” or “FSRx”). With 2 locations, prescription counts that exceeded 15,000 per month, revenues of more than $1 million per month, and a pharmacy mindset that closely mirrored the Progressive Care model, we knew we had found a powerful value-add acquisition opportunity. After securing funding for the deal and working through an intense round of due diligence that coincided with the completion of our 2018 audit, we were able to close the acquisition on June 3, 2019.
There were other trials and obstacles during the second half of the year, including a frightening personal health emergency (I’m 100% healthy now). But, in each and every case, we rallied and overcame those challenges with a tenacity that will continue to define the Progressive Care corporate culture in the quarters and years ahead. From the C-suite on down through the front line, every single one of us took up the mantle of “survive and build at all costs”.
In particular, I am extremely proud of the way this team performed in terms of the FSRx integration and overall streamlining on the cost side. And, as Q3 2019 drew to a close, we started to see the fruits of our labor.
By October 2019, new contractual relationships with not-for-profit clinics and health care institutions began to come online and drive revenue and profitability growth. The collection of the buying power of all of our locations (North Miami Beach, Davie, Palm Springs, and Orlando) allowed us to negotiate more favorable discounts and purchasing terms. We received our first 2019 performance bonus payout that injected the adrenalin we needed to close out the year stronger than ever. We began seeing payments from PBMs on a timely and less cumbersome basis. We renegotiated the terms of our purchase of FSRx to the benefit of both our shareholders and previous owners. We saw a $10 million revenue quarter, the highest in company history. We filled more than 450,000 prescriptions in 2019, the highest in company history. We had over $32 million in sales, the highest in company history. All of these continue our trend of year-over-year growth for the last 5 years. Our cash flow dramatically improved, as did our profitability, reputation, and ability to execute on new levels.
Additional 2019 Key Highlights
- Completion of 2018 Audited Financial Statements
- Secured second acquisition: Family Physicians Rx (aka FPRx, FSRx)
- Over 450,000 prescriptions filled an increase of 54% (record)
- Over 45,000 prescriptions filled in a single month (record)
- Approx. $32 million in net revenues (record, and 56% year-over-year growth)
- 5-star rating
- Top 20% Pharmacy in the nation
- Highest Humana Scores in Company history (record)
- Six active Third-Party HealthCare Contracts (record)
- Increased not-for-profit healthcare claims to over $1 million per month (record)
- Processed over $7.5 million in claims on behalf of not-for-profit entities (record)
- Reached over 125 employees (record)
- Licensed in the following states: Colorado, Connecticut, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Pennsylvania, Texas, Utah, Arizona, Massachusetts, Minnesota
- Contributed Articles published in prestigious online magazines: Forbes, Authority, HuffPost, and Fast Company
Looking to the year ahead of us, we have a very ambitious agenda that will test us on many levels.
Upon completion of our 2019 audit, we intend to prepare a new S-1 filing for submission to the SEC. Our many accomplishments in 2019 have made previous drafts out-of-date. After registration with the SEC is complete, we will begin the process of uplisting to a national exchange. We believe that our development as a company now warrants that transition, which will provide us with access to a much larger, more diverse pool of prospective investors, including a much wider institutional investor audience.
We also look forward to further developing our contract services segment, targeting not-for-profit healthcare organizations. The robust growth we have seen in this domain now necessitates the development of a backend administration platform. We believe that our expertise in this area can lead to a significant new revenue stream that will allow us to further capitalize on our sophisticated data analytics capabilities even when we aren’t the dispensing pharmacy.
In addition, we established RXMD Therapeutics last year to deliver our own proprietary brands, including our exclusive line of CBD products. We do believe in the therapeutic benefits of CBD and continue to move forward on building our portfolio of products while we create the most efficient pathways for marketability.
We will also focus a great deal of our attention on building out the Hallandale location and the consolidation of the North Miami and Davie pharmacies. We will realize significant savings in 2021 from this consolidation process and we firmly believe the building can support continued expansion in demand for our products and services.
Above and beyond these goals, my vision for the future will require an evolution into a new and more scalable kind of healthcare company. We have been seeking a platform upon which we can build a unique telemedicine product. We are currently in discussions related to achieving this goal and we strongly feel such a product will play a key role for us in the future.
2020 Strategic Goals
- Achieve 60,000 prescriptions filled in a single month
- Strive to achieve over $44 million in sales
- Recognize performance bonuses for all 4 locations
- Consolidate locations to the Hallandale Beach location
- Expand market presence to account for all urban centers in Florida
- Secure additional not-for-profit healthcare contracts and long-term care facility relationships
- Achieve full enterprise profitability and earnings growth
- Launch RXMD Therapeutics exclusive line of CBD products
- Acquire software platform for the development of proprietary telemedicine product
- Develop backend healthcare administration platform for monetization of expertise in data analytics
- Become SEC-registered and fully reporting
- File an application to uplist to a national exchange
2019 was indescribably important in defining the future for Progressive Care because we faced tremendous adversity, and not only survived, but thrived, and in the process proved to ourselves that we are capable of responding to a worst-case scenario by turning it into unprecedented success and new avenues of growth and opportunity. That’s a priceless lesson for an organization to learn.
We have also been reminded of how grateful we are for our faithful shareholders, who continue to believe in us, and for the strength of our employees, who carried us through 2019. We have employees that have been with us since the beginning, and we acquired a tremendous wealth of new talent through our FSRx transaction, all of whom continue to surprise us and enrich this company with their talents and hard work.
I have a unique vision of the future and have always had a unique vision of what it means to be Progressive Care. That vision, and my purpose specifically, was never tested to the extent it was last year. Yet it was our unwavering faith in purpose and the hard work that we do that produced record-breaking results. I am looking forward to the future with a sense of renewed energy to achieve and revolutionize healthcare beyond the pharmacy. I fundamentally believe that this Company cannot be stopped no matter the obstacle and I know beyond a shadow of a doubt that the future of Progressive Care is bright.
For more information about Progressive Care, please visit the company’s website.
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About Progressive Care Inc.
Progressive Care Inc. (OTCQB: RXMD), through its subsidiaries, is a 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:
Caitlin Franscell, CMW Media
Web and Application Development Contact:
Marcello Jaspan, Mass Ventures Corp