Progressive Care Releases Open Letter to Shareholders
Marketwired
MIAMI, FL--(Marketwired - Dec 29, 2014) - Progressive Care, Inc. (OTC PINK: RXMD) ("Progressive" or the "Company"), a South Florida provider of prescription pharmaceuticals specializing in health practice risk management, the sale of anti-retroviral medications and related medication therapy management, the sale and rental of durable medical equipment ("DME") and the supply of prescription medications to long term care facilities, releases the following letter to Shareholders from the Company's Chief Operating Officer, Shital Mars:
Dear Progressive Care Shareholders,
As we close out the year, I would like to take this time to reflect on an incredible year for the company and highlight some of our most significant accomplishments. These achievements have helped the company grow and thrive as well as position it for financial success in the future.
I would first like to thank all of the shareholders for their continued support of the company. We greatly appreciate the trust you have placed in Progressive Care's operations, management, and mission. As we move forward, we will strive to create increased shareholder value and we believe that the improvements we have made over the past year will further that goal.
Significant Achievements
Towards the end of 2013, the company was facing many challenges. Our Medicare Competitive Bidding Contract for DME was expiring, we were facing increasing competitive pressure from other independent pharmacies, pharmaceutical costs were rising and the average turn-around times on claim payments from provider benefit management ("PBM") companies were increasing. We had to act quickly so that we could fortify the company and position it for long term growth.
In August, we reached our first major accomplishment of the year. After months of negotiation and hard work, the company finalized our debt exchange transaction with Tarpon Bay Partners, LLC. Through the execution of the deal with Tarpon Bay and approval by the Circuit Court for the 3(a)(10) transaction to proceed, the company will be able to eliminate approximately $1.8 million in debt off of its balance sheet in the coming year. This transaction allowed the company to settle its litigations with creditors and note holders and has significantly improved our cash flow.
The success of the 3(a)(10) is greatly dependent on our ability to prepare and report on our financial condition in an accurate and timely manner. In September, we took a great leap forward in this regard by filing our unaudited year-end financial statements for 2012 and 2013 through OTCMarkets. These financial statements were then quickly followed up by the filing of our unaudited financial statements for all three quarters of 2014 on November 22nd. The filings not only presented the company's current financial position to the public, but also presented the great strides the company has made towards achieving profitability by reducing operating costs and liabilities and increasing sales.
After management restructuring and over 18 months of aggressive cost cutting measures that included reductions in payroll expenses, overhead, accounting fees, and medication costs, we have been able to reach the point of operational stability. These measures helped the company weather the storm and come out poised for growth. In the fall of this year we began hiring new employees and renovating the pharmacy facility. The renovations including updating aesthetics of the retail storefront, updating the computer hardware, and installing a room with essential equipment for non-sterile compounding services. These improvements will provide the tools and environment for continued diversification of product lines and future success.
Lastly, despite the expiration of our Medicare Competitive Bidding Contract, we were able to grow overall sales this year. The number of prescriptions filled in our facility increased from approximately 8,500 prescriptions per month to just under 13,000 prescriptions per month, an increase of 50% year over year, which has yielded at 35% increase in pharmacy revenue. Through the first nine months of 2014, the company has received almost as much revenue from the pharmacy as it had in the whole year of 2013 at approximately $8.1 million.
2014 Key Highlights
Agreement and court approval to execute a 3(a)(10) transaction through Tarpon Bay Partners, LLC to eliminate $1.8 million in debt in the coming year
Filed unaudited financial statements with OTCMarkets through the most recent completed quarter
Restructured Management
Aggressively cut costs
Began a hiring program to recruit talent and meet growing demand
Renovated our PhamCo facility
Increased filled prescription counts by approx. 50% from 8,500 scripts per month to almost 13,000
Increased pharmacy sales by 35% to $8.1 million through September 30, 2014
Outlook
Moving forward, we will pursue new avenues of advancement of the PharmCo brand through mergers and acquisitions. We believe that key partnerships with similarly positioned independent pharmacies will yield economies of scale and unlock unrealized growth potential. We will also continue to seek other options for raising capital to reduce the dilutive pressure associated with the 3(a)(10) transaction.
As we enter into 2015, we will look to take advantage of our marketing efforts with doctors' offices, clinics, and hospitals, as well as seek licensures in additional states in order to begin positioning PharmCo as a national brand. We will develop our new non-sterile compounding department which carries much higher gross margins than standard pharmaceuticals. We will also seek to expand our charitable presence in the community which currently includes weekly deliveries of food and necessary services to the local food bank and the less fortunate.
The following are our strategic goals for 2015:
Increase filled prescription counts to 20,000 per month by December 2015
Increase annual overall sales to $15 million
Achieve full enterprise profitability
Eliminate approximately $1.8 million in debt from the balance sheet
Merge, acquire or otherwise align ourselves with a synergistic independent pharmacy to create economies of scale
We greatly anticipate that our continued marketing presence, strong community relationships and growth endeavors will produce significant results for the company and its shareholders in 2015. On behalf of the entire Progressive Care family, thank you for sharing in our success and being a partner in our future.
About Progressive Care (RXMD) Progressive Care, Inc. (RXMD), through its subsidiary PharmCo, LLC is a South Florida provider of prescription pharmaceuticals specializing in prescription pharmaceuticals specializing in health practice risk management, the sale of anti-retroviral medications and related medication therapy management, the sale and rental of durable medical equipment ("DME") and the supply of prescription medications to long term care facilities.
Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, whether Progressive Care or its business continues to grow and whether any additional financing can be secured by Progressive Care and whether such additional financing will be adequate to meet the Company's objectives. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Progressive Care and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to: (i) Progressive Care's ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Progressive Care's ability to successfully expand in existing markets and enter new markets; (iii) Progressive Care's ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (iv) unanticipated operating costs, transaction costs and actual or contingent liabilities; (v) the ability to attract and retain qualified employees and key personnel; (vi) adverse effects of increased competition on Progressive Care's business; (vii) changes in government licensing and regulation that may adversely affect Progressive Care's business; (viii) the risk that changes in consumer behavior could adversely affect Progressive Care's business; (ix) local, industry and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report contained in our Condensed Interim Consolidated Financial Statements for the Years Ended December 31, 2013 and 2012 and the subsequently filed quarterly reports in our Consolidated Financial Statements for the Quarter Ended March 31; June 30; and September 30, 2014 (Unaudited) filed with OTC Disclosure and News Service and current reports on Form 8-K filed by Progressive Care with the Securities and Exchange Commission. Progressive Care anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Progressive Care assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.
