ScripsAmerica 2014 Q1 & Projections for FY14
As predicted, Scrips fundamentals have already vastly improved over 2013. Though the report filed this morning is unofficial (link here: http://www.sec.gov/Archives/edgar/data/152147...nt10q.htm), I believe the Q1 numbers expressed in the 12b-25 will not change by much. Some of the highlights in the draft report include as follows:
(1) $842,000 in net revenues (187% increase over 2013 Q1 , "mainly due to specialty pharmacy business for topical creams"
(2) $598,000 gross profit (609% increase over 2013 Q1)
(3) $601,000 in SG&A expenses, excluding $211K in share-based compensation ($812,000 in total SG&A expenses, including $426K selling and $386K to G&A)
(4) $1,045,000 in Other Expenses, BUT only was $67,710 was cash
(5) $70,710 net cash loss (an 86% decrease over 2013 Q1 ); $285,710 net cash loss if also include $211,000 in share-based compensation, which is still 61% less than 2013 Q1)
As a SCRC shareholder, it is difficult not to become excited about Q1 and where this company is headed over the next several quarters. I expect each quarter to improve. Based on today's report and April's specialty pharmacy revenues of $958K, I believe we have sufficient data to conservatively project Q2, Q3, Q4 and FY14. Per the report, the gross margins will be between 65% and 75% . The gross margin in Q1 was 71%. Here are my projections:
FY14: $16,231,000 revenues, $11,130,300 gross profit, and $3,314,410 net cash profit resulting in $0.017 net cash profit per share.
Q2: $3,735,000 revenues, $2,534,500 gross margins, $797,250 net cash profit
Q3: $5,227,000 revenues, $3,578,900 gross margins, $1,239,420 net cash profit
Q4: $6,427,000 revenues, $4,418,900 gross margins, $1,563,450 net cash profit
Assumptions: (1) 70% gross margins going for everything except RapiMeds, for which I will assume 30% margins based on COGS and Sales; (2) specialty pharmacy monthly revenues increase to $2 million by October and remain flat through December; (3) 50% commissions on specialty pharmacy gross margins, which I hope to see decrease over the next few quarters; (4) $200K RapiMeds order will ship to Hong Kong in Q2, as at least $200K in shipped orders in Q3 and Q4; (5) $0 from PIMD, which the company says will start generating revenues in June; (6) flat revenues from Wholesale Rx and the government contract (e.g., $227K per quarter per the Q1 draft report); (7) general and administrative expenses for of $400K Q2, $480K Q3, $576K Q4; (
$100K cash "Other Expenses"; (9) taxes excluded in FY14; (10) 200,000,000 total outstanding shares.
I reserve the right to amend my projections as the company provides more information to its shareholders on each of its three business models. Having said that, I sincerely anticipate any future amendments to be upward revisions.
Enjoy your weekend!
As predicted, Scrips fundamentals have already vastly improved over 2013. Though the report filed this morning is unofficial (link here: http://www.sec.gov/Archives/edgar/data/152147...nt10q.htm), I believe the Q1 numbers expressed in the 12b-25 will not change by much. Some of the highlights in the draft report include as follows:
(1) $842,000 in net revenues (187% increase over 2013 Q1 , "mainly due to specialty pharmacy business for topical creams"
(2) $598,000 gross profit (609% increase over 2013 Q1)
(3) $601,000 in SG&A expenses, excluding $211K in share-based compensation ($812,000 in total SG&A expenses, including $426K selling and $386K to G&A)
(4) $1,045,000 in Other Expenses, BUT only was $67,710 was cash
(5) $70,710 net cash loss (an 86% decrease over 2013 Q1 ); $285,710 net cash loss if also include $211,000 in share-based compensation, which is still 61% less than 2013 Q1)
As a SCRC shareholder, it is difficult not to become excited about Q1 and where this company is headed over the next several quarters. I expect each quarter to improve. Based on today's report and April's specialty pharmacy revenues of $958K, I believe we have sufficient data to conservatively project Q2, Q3, Q4 and FY14. Per the report, the gross margins will be between 65% and 75% . The gross margin in Q1 was 71%. Here are my projections:
FY14: $16,231,000 revenues, $11,130,300 gross profit, and $3,314,410 net cash profit resulting in $0.017 net cash profit per share.
Q2: $3,735,000 revenues, $2,534,500 gross margins, $797,250 net cash profit
Q3: $5,227,000 revenues, $3,578,900 gross margins, $1,239,420 net cash profit
Q4: $6,427,000 revenues, $4,418,900 gross margins, $1,563,450 net cash profit
Assumptions: (1) 70% gross margins going for everything except RapiMeds, for which I will assume 30% margins based on COGS and Sales; (2) specialty pharmacy monthly revenues increase to $2 million by October and remain flat through December; (3) 50% commissions on specialty pharmacy gross margins, which I hope to see decrease over the next few quarters; (4) $200K RapiMeds order will ship to Hong Kong in Q2, as at least $200K in shipped orders in Q3 and Q4; (5) $0 from PIMD, which the company says will start generating revenues in June; (6) flat revenues from Wholesale Rx and the government contract (e.g., $227K per quarter per the Q1 draft report); (7) general and administrative expenses for of $400K Q2, $480K Q3, $576K Q4; (
$100K cash "Other Expenses"; (9) taxes excluded in FY14; (10) 200,000,000 total outstanding shares. I reserve the right to amend my projections as the company provides more information to its shareholders on each of its three business models. Having said that, I sincerely anticipate any future amendments to be upward revisions.
Enjoy your weekend!
