Progressive Care, Inc.
Q2 2020 Earnings Call Transcript
Published:
- Stuart Smith:
- All right, everybody. Thanks so much for waiting patiently for this call to begin. I want to welcome everyone to the Second Quarter 2020 Quarterly Call and Business Update with Progressive Care, ticker symbol RXMD. Today, on the call, I will be joined by Interim CEO, CFO, and Chairman of the Board, Alan Jay Weisberg; Controller for the Company, Robert Bedwell; and Senior Advisor of Business Development, Armen Karapetyan. Now, before we begin, I must start-off with the cautionary statements, regarding forward-looking statements. Statements contained here in this conference call are not based upon current or historical fact and are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the company's expectations about its future operating results, performances and opportunities that involve substantial risk and uncertainties.
- Alan Jay Weisberg:
- Hello everybody. I'm Alan Jay Weisberg, Chairman of the Board, CFO, and as of Friday Interim CEO. As everybody should be aware by now on Monday, August 10th, Shital resigned as our Chief Executive Officer. We accepted her resignation Friday morning. We're going to miss Shital. She was a friend and integral art of the company. We wish her the best. As I go by Jay for those of you who don't know, so you're going to hear everybody mentioning Jay not Alan and I get confused when people call me Alan. We're very pleased with our results for the second quarter. We believe based upon our Executive Committee, the people who are with us that will still be able to execute our business plan, and we're looking forward to continuing to serve the community and our stockholders, our shareholders. And I guess I'm supposed to turn it over to Armen now. And Armen is going to give you an update on the company for the quarter.
- Armen Karapetyan:
- Right. Hi, everybody. This is Armen. Some of you know me for many, many years. I've been with a company since the inception of it. And Jay, as a matter of fact, has been with the company since 2010 and known Jay since -- going back to 2003 I believe. So, it is my pleasure actually because we want to talk about the financials, we want to talk about the operations as well and development and things going forward, but before I do that, I would like to get on to Robert Bedwell, who's our Controller. So he can go over the financials of the company's financial performances during the second quarter and the last six months.
- Robert Bedwell:
- Good afternoon, everyone. My name is Rob Bedwell. I’ve been Controller for the company for about over a -- little over two years. And prior to that, I worked I worked them as a CPA. I've been in finance accounting for about 36 years, retired and very fortunate to be asked to join the company by both, Armen and Shital. I worked with both the CEO and CFO, Jay and Shital in preparing up of the quarterly interim financial reporting, as well as the annual financial reporting. I also work as the liaison between our auditors, our Independent Public Accounting firm on our audit as well. So I want to give you a little bit of a summary of the results for both the three and six- month period that ended June 30, 2020, hopefully give you a little bit of background besides the information that you'll find in both our financial statements -- related notes to the financial statements, as well as the management discussion and analysis section of our quarterly interim financial report, okay? So the highlights, I think from the standpoint of our financial reporting for this six month period is that we have year-over-year, period-over-period increases in our overall revenue. The amount that we earned from operations for the three months was approximately $9.2 million, which was a $2.2 million increase over revenue from that same period in 2019. There are two reasons for that. One is efforts of our marketing group, in terms of increasing our organic growth. So it's very important that along with the acquisitions that we've made over the last two years, that our marketing team continues to build on our existing base of practitioners and managed care organizations, clinics, et cetera continue to refer clients to us, and so our numbers reflect that. Obviously, the biggest source of that increase was our acquisition of the two pharmacies in Davey and Orlando, Florida, okay? So of that, total increase of $9.2 million, we had an additional amount of revenue about $2.4 million just from the FPRX acquisition. For the same period end June 30, 2020 for the six months, we realized overall revenue from operations of about $18.3 million that increased about $6.1 million from the same period in 2019, again for the same reasons. Now what you're -- an overall theme here in terms of my discussion of our financial results and financial reporting, one of the major significant differences in our reported six months, January through June 2020 versus six months, January through June 2019, is that our 2019 results of operations only reflect one month of operating results from FPRX.
- Armen Karapetyan:
- Thank you, Bob. Thank you very much. Hey, guys. Yes, I just want to add a couple of things to what Bob has said. PBMs, so of course, with some of the PBMs, we actually have the opportunity to earn those fees back. One of our contracts with a major payer gives us the opportunity to make those fees back and earn a small bonus on top of it.
- Stuart Smith:
- All right. That concludes our call today. I want to thank everybody for sending in their questions, as Armen said, at the outset. They weren't going to address the S-1, had a lot of great questions and Armen covered so much of that, the CBD division and other items as well, but please continue. As always, to continue to send in those questions to us, we will be doing other audio interviews aside these conference calls. So, we will get your questions in, if they weren't addressed today. Thanks everybody for your time and your support of Progressive Care.
- End of Q&A: