Progressive Care Inc. Releases Shareholder Letter from CEO - Seite 2

In the first half of 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.