The action in shares of Progressive Care Inc. (OTCMKTS:RXMD) suggests a healthy and well-earned consolidation coming to an end following a big surge higher in November. Traders are looking for the next directional move, and the company may have just offered up a key catalyst that suggests that next direction is likely going to be “higher”.
Specifically, the company just reported its December performance data and pointed to a beat of $32 million in full-year 2019 sales.
In December, the company saw consolidated monthly gross sales across all locations totaling $3.1 million, representing year-over-year growth of 82% compared to December 2018. That came on about 45K filled prescriptions, which were also up big y/y (growth of 59%). In addition, the company set a new record for its third-party billing services for not-for-profit client organizations, generating an additional $1 million in total transactions during the month.
That helped it to better than $32 million in 2019 sales (up 54% y/y) on more than 450K prescriptions filled (up 50% y/y), with its recent FPRX acquisition contributing from June 1 through December 31, 2019 to boost those numbers.
“We closed out 2019 with another month of tremendous growth and execution,” commented S. Parikh Mars, CEO of Progressive Care. “December featured organic same-store growth in our core footprint in both sales and cash flows as well as additional strength from our seamless integration of recently acquired Family Physicians Rx (FPRX), which has begun to move the needle on all fronts. If we back in the FPRX impact on an annualized basis into 2019, that gives us a baseline of $38 million in annual sales as a point of reference from which to grow in 2020.”
Where To Next?
Progressive Care Inc also pointed to the future, noting that its plans to uplist shares onto either the NYSE or Nasdaq are still fully geared up, and it plans to file the S-1 in April ahead of formally applying for the listing. That will follow its submission of full-year 2019 audited financials by quarter end.
In addition management pointed to a focus on continued execution, leading to accelerating sales growth and expanding profitability, the completion of fully-audited financials for the 2019 fiscal year, movement toward another value-add acquisition or strategic partnership, and the build-out of the company’s primary location at 400 Ansin Blvd in Hallandale Beach, FL, allowing for the full consolidation of operations in 2020.
Mars continued, “The holidays were good to us, thanks in large part to the generous work of our community organizations, the support of our providers and patients, and an unwavering focus by our staff and management to run as tight a ship as possible.”
All of this looks promising in terms of the likelihood that we see a continuation of the current momentum that has defined this company since October. The market didn’t see it then. And we would guess the market doesn’t quite see it now. But the upside potential for this stock continues to be dramatic as the chips fall into place.
The model in play here is still not benefitting from larger numbers, but this is all very scalable. And we have seen how well they execute in terms of integration following M&A moves. We would anticipate that element to come into play soon here once again, as they alluded to in the press release: “movement toward another value-add acquisition or strategic partnership”. Given the huge positive impact we have seen from the FPRX move, headlines on this front should really move the needle for the stock going forward.
And, needless to say, further development of the major US exchange listing will be obvious fodder for bulls in the weeks ahead as well.