Progressive Care Inc. (OTCQB: RXMD)
A follow up to last week's post and a look into what was discussed in Progressive Care Inc's ($RXMD) Annual and Quarterly Financial results. They're still trading at just 1.5x their annual revenue ($40.6m revenue vs $66m market cap). Ready to expand nationwide and complete its NASDAQ uplist in 2021.
DD
Hello, last week I posted a brief summary of why I and many others are very excited about Progressive Care Inc for 2021 and beyond, and invited potential investors to attend their Annual and Quarterly Financial results earning call. In this post I will summarise what we learnt in the earnings call and the strategic targets for 2021. You can view my post from last week here. You can view the financial results here. You can listen to the earnings call here.
Progressive Care Inc. (OTCQB: RXMD)
Progressive Care Inc, through its wholly-owned subsidiaries, is a Florida technology and health services organization that provides prescription pharmaceuticals, compounded medications, tele-pharmacy services, anti-retroviral medications, medication therapy management, the supply of prescription medications to long term care facilities, 340B services to charitable organizations, and health practice risk management.
Financial highlights for Fiscal Year Ended Dec 31, 2020
Consolidated Revenue was $40.3 million, representing an increase of 22% compared to fiscal 2019.
Prescriptions filled was approximately 530,000, representing an increase of 16% compared to fiscal 2019.
340B revenue was approximately $2.8 million, representing a sharp increase of over 300% compared to fiscal 2019.
COVID testing revenue was approximately $600K, most of which was earned in Q4 2020.
Realized positive EBITDA of $7K when compared to $479K negative EBITDA in 2019.
Cash provided by operations was $1.1 million in 2020, compared to $600K cash used in 2019.
Net Cash balances as of Dec 31, 2020 was $2.1 million vs $816K compared to 2019.
As you can see - even during a pandemic when most businesses across America faced substantial pressures - Progressive Care Inc continued their astounding growth. Revenues increased across both subsidiaries (22%) and cash has nearly tripled. Very few micro-cap companies have balance sheets this strong. If you know of another cash flow positive penny stock with over $40m revenue trading at 1.5x their revenue... please do share!
2021 Strategic Goals
Strive to achieve over $50 million in sales
This looks to be a perfectly achievable goal. Here are their annual sales from 2015 to 2020. As you can see, their sales have been increasing at a very impressive rate since 2015. The company's stock price peaked in 2018 at $0.23 per share. That was at a time when the company reported $21m in sales. Progressive Care Inc achieved $40.6m in sales in 2020, yet as of this post the stock price has not caught up to reflect this - trading at just $0.13 per share (1.5x revenue) like I keep mentioning. This is why Progressive Care Inc is so substantially undervalued. Although not in the same sector as ALPP - the comparisons regarding the stock price lagging behind the company's balance sheet are fair and both are attributed only to a lack of volume trading the stock.
Financial Year 2015 2016 2017 2018 2019 2020
Annual Sales $14m $18m $20m $21m $33m $40.6m
This explosive growth was planned accordingly by the chairman, Alan Weisberg. This was no fluke, and therefore we have every reason to believe his next target of $100m in sales is perfectly achievable.
"Several years ago, when our revenue was $15 million, we saw our path to $40 million in sales and described this to our shareholders. Now, we are running at over $40 million on the top line and see a path to $100 million and beyond as a basic extrapolation of our organic growth curve paired with our strategic agenda, which provides for an open run to serve all 50 states in prescriptions and data management. We have strong reason to believe we will have an exceptional executive team in place, with the experience, skills, and drive to foster that next step, very soon.”
Expansion of COVID-19 Testing and Vaccination Programs
Don't be alarmed - COVID-19 testing makes up just a fraction of Progressive Care's business. This is an example of how the leadership reacted swiftly to new business opportunities and rapidly executed a business plan to capture a percentage of this new market for Progressive Care. The company begun offering testing for COVID-19 in Q4 2020. They only tested 5,000 people, yet generated a whopping $600,000 in sales from those 5,000 tests. The CEO commented how they're continuing to expand their market share in COVID-19 testing throughout Florida in 2021 for as long as the market exists.
Completion of Telehealth Integration and the rollout of the Eagle Force Digital Passport Program
Progressive Care have been striving towards developing their own proprietary Telehealth software for a number of years. You can see a video of the software in action here. Eagle Force LLC identified the potential of Progressive Care's Telehealth software and have partnered with Progressive Care to integrate it as part of the COVID-19 Digital Passport they have been developing. Again, much like with COVID-19 testing, this does not represent Progressive Care's core business. This is simply another avenue the company is exploring to drive new sources of revenue.
Nationwide launch of ClearMetrX 340B TPA Services.
ClearMetrX soft-launched in July 2020 and is a wholly-owned data management company with services designed to support health care organizations across the country. It uses AI to help physicians make informed decisions in the medication therapy management process. Through ClearMetrX, the company has increased its third party administrative and data management fees to over $700,000 in 2020. These fees have gross margins significantly greater than those generated from their pharmacy operations.
Secure additional not-for-profit healthcare contracts and long-term care facility relationships.
This is arguably the bread and butter of Progressive Care's business. They fulfil and deliver pharmaceutical prescriptions for organisations (and individuals) across the state of Florida. The company filled 530,000 prescriptions in 2021, an increase of 16% compared to 2019. The company opened a new 11,000 square feet facility in Miami and a 3,000 feet square feet facility in Orlando in late 2020/early 2021 to help accommodate the increase in prescription fulfilment demand the company is driving.
Achieve full enterprise profitability and earnings growth.
Achieving full enterprise profitability is incredibly difficult for any penny stock. They do not have access to low-interest credit and loans, hence most are forever stuck in pennystock hell where they must either dilute the stock or take on toxic debt to finance their growth. Progressive Care are now cash flow positive and therefore will not need to dilute their stock or take out any more toxic debt to fund their growth. This has been building for years, and many long term holders suspect they may have actually achieved profitability late into Q4 and are hoping to see this confirmed in the next earnings report.
Complete an uplist to a national exchange (NASDAQ)
This is the big one. This is the strategic goal that will rapidly accelerate the stock price. Progressive Care submitted a confidential S-1 form months ago and have been working with the SEC to dot the i's and cross the t's. They filed for the right to perform a reverse split at anytime before June to increase the share price if necessary prior to the uplist. Reverse splits have negative reputations on this subreddit. I can assure you that a company performing a reverse split in order to uplist to a national exchange is one of, if not the most exciting actions you could ever wish your penny stock could take. It is the ultimate sign that the company is ready to kick-on. Your shares do not lose any value - it solely tidies up the share structure. It is entirely possible a reverse-split may not be needed. I'm sure many here remember seeing ALPP's stock price increase after publicly announcing their NASDAQ application and therefore they cancelled their reverse split. Once Progressive Care completes it's uplist to the NASDAQ, it will provide them with access to a much larger, more diverse pool of prospective investors, including a much wider institutional investor audience. The CEO discussed in the earnings call how the company is already in the process of identifying acquisitions, paid for through the institutional funding to help accelerate their nationwide expansion. This isn't a dream for the latter half of the decade. Progressive Care are ready to up list and begin their nationwide expansion in 2021.
Potential Limitations
The one potential limitation I and other investors have identified with Progressive Care is the lack of volume trading the company's stock. This lack of volume is what is causing the stock price to lag behind the company's continuous revenue growth. This will likely be resolved as the NASDAQ uplist is imminent as is evidenced by the increase in volume we see occur every other time a OTC company completes its final stages of uplisting. Nevertheless, it is entirely possible the stock price catches up long before then as it has grown already from 5 cents to 12 cents in the past two months. Do not mistake this for a missed opportunity however. Even at 12 cents this company is, fundamentally, one of the most undervalued companies currently trading on an American exchange. As a comparison - GoodRX ($GDRX) and Progressive Care offer almost identical services, albeit GoodRX already operate nationwide. GoodRX currently trades at about 28x their annual revenue ($550m 2020 revenue vs $16.1b market cap). Progressive Care currently trades at 1.5x their annual revenue ($40.6m 2020 revenue vs $66m market cap).
Conclusion
RXMD offers a very unique opportunity to OTC investors. Where most stocks you see on this subreddit already trade at 10x, 20x, 50x and sometimes even 1,000x+ their revenue, RXMD has somehow remained under the radar - still trading at just 1.5x their revenue despite their rapid growth and unbelievable near and long term potential. The uplisting to the NASDAQ will help ensure their market cap catches up to their revenue and will enable the company to attract institutional funding to drive their expansion nationwide.
Their well-established foothold in Florida (logistics, warehousing and existing customer base) leads me to believe a bigger fish will pick them up sooner rather than later as they have everything already in place to dominate prescription delivery in Florida. We saw Amazon buy PillPack for $753,000,000 two years ago. However, if they are not acquired in the near future, I am so incredibly excited to witness their expansion into the rest of the United States.
https://www.reddit.com/r/pennystocks/comments...look_into/
A follow up to last week's post and a look into what was discussed in Progressive Care Inc's ($RXMD) Annual and Quarterly Financial results. They're still trading at just 1.5x their annual revenue ($40.6m revenue vs $66m market cap). Ready to expand nationwide and complete its NASDAQ uplist in 2021.
DD
Hello, last week I posted a brief summary of why I and many others are very excited about Progressive Care Inc for 2021 and beyond, and invited potential investors to attend their Annual and Quarterly Financial results earning call. In this post I will summarise what we learnt in the earnings call and the strategic targets for 2021. You can view my post from last week here. You can view the financial results here. You can listen to the earnings call here.
Progressive Care Inc. (OTCQB: RXMD)
Progressive Care Inc, through its wholly-owned subsidiaries, is a Florida technology and health services organization that provides prescription pharmaceuticals, compounded medications, tele-pharmacy services, anti-retroviral medications, medication therapy management, the supply of prescription medications to long term care facilities, 340B services to charitable organizations, and health practice risk management.
Financial highlights for Fiscal Year Ended Dec 31, 2020
Consolidated Revenue was $40.3 million, representing an increase of 22% compared to fiscal 2019.
Prescriptions filled was approximately 530,000, representing an increase of 16% compared to fiscal 2019.
340B revenue was approximately $2.8 million, representing a sharp increase of over 300% compared to fiscal 2019.
COVID testing revenue was approximately $600K, most of which was earned in Q4 2020.
Realized positive EBITDA of $7K when compared to $479K negative EBITDA in 2019.
Cash provided by operations was $1.1 million in 2020, compared to $600K cash used in 2019.
Net Cash balances as of Dec 31, 2020 was $2.1 million vs $816K compared to 2019.
As you can see - even during a pandemic when most businesses across America faced substantial pressures - Progressive Care Inc continued their astounding growth. Revenues increased across both subsidiaries (22%) and cash has nearly tripled. Very few micro-cap companies have balance sheets this strong. If you know of another cash flow positive penny stock with over $40m revenue trading at 1.5x their revenue... please do share!
2021 Strategic Goals
Strive to achieve over $50 million in sales
This looks to be a perfectly achievable goal. Here are their annual sales from 2015 to 2020. As you can see, their sales have been increasing at a very impressive rate since 2015. The company's stock price peaked in 2018 at $0.23 per share. That was at a time when the company reported $21m in sales. Progressive Care Inc achieved $40.6m in sales in 2020, yet as of this post the stock price has not caught up to reflect this - trading at just $0.13 per share (1.5x revenue) like I keep mentioning. This is why Progressive Care Inc is so substantially undervalued. Although not in the same sector as ALPP - the comparisons regarding the stock price lagging behind the company's balance sheet are fair and both are attributed only to a lack of volume trading the stock.
Financial Year 2015 2016 2017 2018 2019 2020
Annual Sales $14m $18m $20m $21m $33m $40.6m
This explosive growth was planned accordingly by the chairman, Alan Weisberg. This was no fluke, and therefore we have every reason to believe his next target of $100m in sales is perfectly achievable.
"Several years ago, when our revenue was $15 million, we saw our path to $40 million in sales and described this to our shareholders. Now, we are running at over $40 million on the top line and see a path to $100 million and beyond as a basic extrapolation of our organic growth curve paired with our strategic agenda, which provides for an open run to serve all 50 states in prescriptions and data management. We have strong reason to believe we will have an exceptional executive team in place, with the experience, skills, and drive to foster that next step, very soon.”
Expansion of COVID-19 Testing and Vaccination Programs
Don't be alarmed - COVID-19 testing makes up just a fraction of Progressive Care's business. This is an example of how the leadership reacted swiftly to new business opportunities and rapidly executed a business plan to capture a percentage of this new market for Progressive Care. The company begun offering testing for COVID-19 in Q4 2020. They only tested 5,000 people, yet generated a whopping $600,000 in sales from those 5,000 tests. The CEO commented how they're continuing to expand their market share in COVID-19 testing throughout Florida in 2021 for as long as the market exists.
Completion of Telehealth Integration and the rollout of the Eagle Force Digital Passport Program
Progressive Care have been striving towards developing their own proprietary Telehealth software for a number of years. You can see a video of the software in action here. Eagle Force LLC identified the potential of Progressive Care's Telehealth software and have partnered with Progressive Care to integrate it as part of the COVID-19 Digital Passport they have been developing. Again, much like with COVID-19 testing, this does not represent Progressive Care's core business. This is simply another avenue the company is exploring to drive new sources of revenue.
Nationwide launch of ClearMetrX 340B TPA Services.
ClearMetrX soft-launched in July 2020 and is a wholly-owned data management company with services designed to support health care organizations across the country. It uses AI to help physicians make informed decisions in the medication therapy management process. Through ClearMetrX, the company has increased its third party administrative and data management fees to over $700,000 in 2020. These fees have gross margins significantly greater than those generated from their pharmacy operations.
Secure additional not-for-profit healthcare contracts and long-term care facility relationships.
This is arguably the bread and butter of Progressive Care's business. They fulfil and deliver pharmaceutical prescriptions for organisations (and individuals) across the state of Florida. The company filled 530,000 prescriptions in 2021, an increase of 16% compared to 2019. The company opened a new 11,000 square feet facility in Miami and a 3,000 feet square feet facility in Orlando in late 2020/early 2021 to help accommodate the increase in prescription fulfilment demand the company is driving.
Achieve full enterprise profitability and earnings growth.
Achieving full enterprise profitability is incredibly difficult for any penny stock. They do not have access to low-interest credit and loans, hence most are forever stuck in pennystock hell where they must either dilute the stock or take on toxic debt to finance their growth. Progressive Care are now cash flow positive and therefore will not need to dilute their stock or take out any more toxic debt to fund their growth. This has been building for years, and many long term holders suspect they may have actually achieved profitability late into Q4 and are hoping to see this confirmed in the next earnings report.
Complete an uplist to a national exchange (NASDAQ)
This is the big one. This is the strategic goal that will rapidly accelerate the stock price. Progressive Care submitted a confidential S-1 form months ago and have been working with the SEC to dot the i's and cross the t's. They filed for the right to perform a reverse split at anytime before June to increase the share price if necessary prior to the uplist. Reverse splits have negative reputations on this subreddit. I can assure you that a company performing a reverse split in order to uplist to a national exchange is one of, if not the most exciting actions you could ever wish your penny stock could take. It is the ultimate sign that the company is ready to kick-on. Your shares do not lose any value - it solely tidies up the share structure. It is entirely possible a reverse-split may not be needed. I'm sure many here remember seeing ALPP's stock price increase after publicly announcing their NASDAQ application and therefore they cancelled their reverse split. Once Progressive Care completes it's uplist to the NASDAQ, it will provide them with access to a much larger, more diverse pool of prospective investors, including a much wider institutional investor audience. The CEO discussed in the earnings call how the company is already in the process of identifying acquisitions, paid for through the institutional funding to help accelerate their nationwide expansion. This isn't a dream for the latter half of the decade. Progressive Care are ready to up list and begin their nationwide expansion in 2021.
Potential Limitations
The one potential limitation I and other investors have identified with Progressive Care is the lack of volume trading the company's stock. This lack of volume is what is causing the stock price to lag behind the company's continuous revenue growth. This will likely be resolved as the NASDAQ uplist is imminent as is evidenced by the increase in volume we see occur every other time a OTC company completes its final stages of uplisting. Nevertheless, it is entirely possible the stock price catches up long before then as it has grown already from 5 cents to 12 cents in the past two months. Do not mistake this for a missed opportunity however. Even at 12 cents this company is, fundamentally, one of the most undervalued companies currently trading on an American exchange. As a comparison - GoodRX ($GDRX) and Progressive Care offer almost identical services, albeit GoodRX already operate nationwide. GoodRX currently trades at about 28x their annual revenue ($550m 2020 revenue vs $16.1b market cap). Progressive Care currently trades at 1.5x their annual revenue ($40.6m 2020 revenue vs $66m market cap).
Conclusion
RXMD offers a very unique opportunity to OTC investors. Where most stocks you see on this subreddit already trade at 10x, 20x, 50x and sometimes even 1,000x+ their revenue, RXMD has somehow remained under the radar - still trading at just 1.5x their revenue despite their rapid growth and unbelievable near and long term potential. The uplisting to the NASDAQ will help ensure their market cap catches up to their revenue and will enable the company to attract institutional funding to drive their expansion nationwide.
Their well-established foothold in Florida (logistics, warehousing and existing customer base) leads me to believe a bigger fish will pick them up sooner rather than later as they have everything already in place to dominate prescription delivery in Florida. We saw Amazon buy PillPack for $753,000,000 two years ago. However, if they are not acquired in the near future, I am so incredibly excited to witness their expansion into the rest of the United States.
https://www.reddit.com/r/pennystocks/comments...look_into/
