NextPlat Reports 474% Increase in Consolidated Q2 Revenues to $17 Million and Record 34.2% Quarterly Margins; $70 Million in 2024 Annual Revenues Expected
Additional Healthcare Services Contracts and E-Commerce Expansion Expected to Drive Continued Growth Supported by Approximately
"We are pleased with our second quarter performance as our healthcare and global e-commerce technology operations continue to produce strong top-line growth and greatly improved margin performance, driven by new 340B services contracts, increased prescription volumes as well as contributions from our recently acquired Outfitter Satellite operations," said
Second Quarter 2024 Financial Highlights:
- Consolidated revenues for the quarter ended
June 30, 2024 were approximately$17.0 million , an increase of over 474% versus revenue of approximately$3.0 million for the quarter endedJune 30, 2023 . Results for the second quarter of 2024 reflect e-commerce revenue of approximately$3.5 million , including the contribution of Outfitter Satellite ("Outfitter") acquired inApril 2024 , and approximately$13.5 million in revenue contributed from the Company's healthcare operations. Results for the second quarter of 2023 reflect e-commerce revenue only because the business combination withProgressive Care occurred onJuly 1, 2023 . Based upon current expectations, available product inventory and the number of new and existing healthcare services contracts, the Company anticipates full-year revenue of approximately$70 million . - Gross margins for the quarter ended
June 30, 2024 , increased significantly to a record 34.2%, up from 28.5% reported for the quarter endedJune 30, 2023 . The increase is primarily attributable to the Company's healthcare operations because of theProgressive Care consolidation. Gross profit margin attributable to our healthcare operations was approximately 35% for the quarter endedJune 30, 2024 . E-commerce profit margins improved to approximately 32% from 29% reported for the same period in 2023 driven largely by continued increases in higher margin product sales, recurring airtime revenue, and Outfitter sales in the second quarter. - Operating expenses for the quarter ended
June 30, 2024 , were approximately$16.7 million compared to approximately$4.2 million for the same period in 2023. The increased operating expenses were primarily attributable to a non-cash impairment loss of approximately$9.8 million related to intangible assets and goodwill acquired in theProgressive Care acquisition in 2023.- The Company conducts ongoing impairment testing on the estimated fair value of goodwill and intangible assets in accordance with U.S. generally accepted accounting principles ("
U.S. GAAP"). Fair value methodologies for intangible assets include estimates of future cashflows related to the Company's 340B pharmacy service agreements. These estimates of future cash flows are subject to change due to multiple external factors including the 340B covered entity's patient outcomes and adherence with program compliance requirements. - The Company believes that annual reductions in operating costs, especially public company expenses, will contribute to improved operational profitability following the successful completion of the merger with
Progressive Care .
- The Company conducts ongoing impairment testing on the estimated fair value of goodwill and intangible assets in accordance with U.S. generally accepted accounting principles ("
- Net loss for the quarter ended
June 30, 2024 was approximately$5.3 million or ($0.28 ) per diluted share compared to a net loss of approximately$4.3 million or ($0.24 ) diluted earnings per share reported for the quarter endedJune 30, 2023 . - The Company ended the second quarter of 2024 with approximately
$24.9 million in cash, a sequential increase from approximately$23.5 million reported for the first quarter of 2024.
Organizational Highlights and Recent Business Developments:
- Growth at the Company's healthcare business,
Progressive Care , saw a 17% increase in quarterly revenue in the second quarter of 2024, driven by 11% growth in pharmacy prescriptions and a 41% increase in its 340B contract services business versus its standalone second quarter results in 2023. Additional 340B contracts and sales efforts targeting long-term care and assisted living facilities, started late last year and earlier this year, are contributing to increased revenue and growth in prescriptions filled. -
On
April 12, 2024 ,NextPlat announced a proposed merger withProgressive Care in an all-stock transaction that would result inProgressive Care becoming a wholly-owned subsidiary ofNextPlat which is expected to provide annual operating cost reductions. OnAugust 6, 2024 , the Company filed the definitive proxy statement/prospectus regarding the proposed merger and setSeptember 13, 2024 , as the Annual Meeting date for the shareholder vote. If approved by shareholders at the Annual Meeting, and subject to customary closing conditions and requirements, the Company anticipates completing the transaction in early October. - The Company's technology e-commerce business continued to see increased global demand for satellite-enabled communications devices, producing sales to customers in 92 countries. Demand for high margin, recurring airtime contracts remains at record levels increased further by the positive contribution of Outfitter, which predominately sells connectivity products compatible with the Iridium satellite network. Under its North American expansion plan, its website was updated, and an Amazon storefront was launched, generating new online sales in late July. Also, during the quarter, the Company expanded its portfolio of satellite-based connectivity solutions as a reseller of
SpaceX's Starlink through a joint venture agreement withPivotel Solutions Inc. - The Company advanced its e-commerce development program for
OPKO Healthcare ("OPKO")-branded products inChina on Alibaba's Tmall Global platform following longer than expected regulatory clearance, recording its first product sales in late July. In July, the Company also began promoting select OPKO products inChina through its new marketing and distribution partner ("the Marketing Partner") who is providing access to additional e-commerce sites including JD and Temu and is currently developing new digital and social media marketing programs expected to launch later this year. - To support the pending launch of
NextPlat's Florida Sunshine line of branded vitamins and supplements, initial products have been shipped to the Marketing Partner inChina for marketing program development. It is expected that Florida Sunshine products will be made available to Chinese consumers on multiple online marketplaces and be featured in campaigns conducted by social media influencers and bloggers starting later in the fourth quarter.
The financial information included in this press release should be read in conjunction with the Company's Quarterly Report on Form 10-Q for the quarter ended
For more information regarding the financial results of
About
Important Information About the Merger and Where to Find It
In connection with the proposed merger between
Participants in the Solicitation
No Offer or Solicitation
This communication shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Merger. This communication shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, or an exemption therefrom.
Forward-Looking Statements
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services or solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including the Company's ability to launch additional e-commerce capabilities for consumer and healthcare products and its ability to grow and expand as intended, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating), including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the
Media and Investor Contact for
917-397-2272
mike@mwgco.net
NEXTPLAT CORP AND SUBSIDIARIES |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
Six Months Ended |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of products, net |
|
$ |
14,030 |
|
|
$ |
2,957 |
|
|
$ |
28,150 |
|
|
$ |
5,834 |
|
Revenues from services |
|
|
2,959 |
|
|
|
- |
|
|
|
6,332 |
|
|
|
- |
|
Revenue, net |
|
|
16,989 |
|
|
|
2,957 |
|
|
|
34,482 |
|
|
|
5,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products |
|
|
11,120 |
|
|
|
2,113 |
|
|
|
23,741 |
|
|
|
4,369 |
|
Cost of services |
|
|
63 |
|
|
|
- |
|
|
|
126 |
|
|
|
- |
|
Cost of revenue |
|
|
11,183 |
|
|
|
2,113 |
|
|
|
23,867 |
|
|
|
4,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
5,806 |
|
|
|
844 |
|
|
|
10,615 |
|
|
|
1,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
2,218 |
|
|
|
2,519 |
|
|
|
4,220 |
|
|
|
3,308 |
|
Salaries, wages and payroll taxes |
|
|
2,785 |
|
|
|
968 |
|
|
|
5,409 |
|
|
|
1,556 |
|
Impairment loss |
|
|
9,792 |
|
|
|
- |
|
|
|
9,924 |
|
|
|
- |
|
Professional fees |
|
|
1,004 |
|
|
|
544 |
|
|
|
1,989 |
|
|
|
865 |
|
Depreciation and amortization |
|
|
903 |
|
|
|
168 |
|
|
|
1,810 |
|
|
|
330 |
|
Total operating expenses |
|
|
16,702 |
|
|
|
4,199 |
|
|
|
23,352 |
|
|
|
6,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before other (income) expense |
|
|
(10,896) |
|
|
|
(3,355) |
|
|
|
(12,737) |
|
|
|
(4,594) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale or disposal of property and equipment |
|
|
- |
|
|
|
- |
|
|
|
(1) |
|
|
|
- |
|
Interest expense |
|
|
19 |
|
|
|
5 |
|
|
|
41 |
|
|
|
10 |
|
Interest earned |
|
|
(197) |
|
|
|
(172) |
|
|
|
(412) |
|
|
|
(183) |
|
Other income |
|
|
- |
|
|
|
(266) |
|
|
|
- |
|
|
|
(316) |
|
Foreign currency exchange rate variance |
|
|
5 |
|
|
|
(40) |
|
|
|
31 |
|
|
|
(69) |
|
Total other income |
|
|
(173) |
|
|
|
(473) |
|
|
|
(341) |
|
|
|
(558) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes and equity in net loss of affiliate |
|
|
(10,723) |
|
|
|
(2,882) |
|
|
|
(12,396) |
|
|
|
(4,036) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
(20) |
|
|
|
(52) |
|
|
|
(47) |
|
|
|
(52) |
|
Loss before equity in net loss of affiliate |
|
|
(10,743) |
|
|
|
(2,934) |
|
|
|
(12,443) |
|
|
|
(4,088) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in net loss of affiliate |
|
|
- |
|
|
|
(1,407) |
|
|
|
- |
|
|
|
(1,440) |
|
Net loss |
|
|
(10,743) |
|
|
|
(4,341) |
|
|
|
(12,443) |
|
|
|
(5,528) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to non-controlling interest |
|
|
5,432 |
|
|
|
- |
|
|
|
5,652 |
|
|
|
- |
|
Net loss attributable to |
|
$ |
(5,311) |
|
|
$ |
(4,341) |
|
|
$ |
(6,791) |
|
|
$ |
(5,528) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(10,743) |
|
|
$ |
(4,341) |
|
|
$ |
(12,443) |
|
|
$ |
(5,528) |
|
Foreign currency loss |
|
|
(27) |
|
|
|
(12) |
|
|
|
(9) |
|
|
|
(35) |
|
Comprehensive loss |
|
$ |
(10,770) |
|
|
$ |
(4,353) |
|
|
$ |
(12,452) |
|
|
$ |
(5,563) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS |
|
$ |
(5,311) |
|
|
$ |
(4,341) |
|
|
$ |
(6,791) |
|
|
$ |
(5,528) |
|
Weighted number of common shares outstanding – basic and diluted |
|
|
18,824 |
|
|
|
18,072 |
|
|
|
18,774 |
|
|
|
16,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share - basic and diluted |
|
$ |
(0.28) |
|
|
$ |
(0.24) |
|
|
$ |
(0.36) |
|
|
$ |
(0.34) |
|
NEXTPLAT CORP AND SUBSIDIARIES |
||||||||
|
||||||||
|
|
|
|
|
|
|
||
|
|
(Unaudited) |
|
|
(Audited) |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
24,877 |
|
|
$ |
26,307 |
|
Accounts receivable, net |
|
|
10,369 |
|
|
|
8,923 |
|
Receivables - other, net |
|
|
1,013 |
|
|
|
1,846 |
|
Inventories, net |
|
|
4,701 |
|
|
|
5,135 |
|
Unbilled revenue |
|
|
206 |
|
|
|
189 |
|
VAT receivable |
|
|
333 |
|
|
|
342 |
|
Prepaid expenses |
|
|
273 |
|
|
|
640 |
|
Notes receivable due from related party |
|
|
265 |
|
|
|
256 |
|
Total Current Assets |
|
|
42,037 |
|
|
|
43,638 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
3,694 |
|
|
|
3,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
156 |
|
|
|
731 |
|
Intangible assets, net |
|
|
4,564 |
|
|
|
14,423 |
|
Operating right of use assets, net |
|
|
887 |
|
|
|
1,566 |
|
Finance right-of-use assets, net |
|
|
18 |
|
|
|
22 |
|
Deposits |
|
|
39 |
|
|
|
39 |
|
Prepaid expenses, net of current portion |
|
|
66 |
|
|
|
61 |
|
Total Other Assets |
|
|
5,730 |
|
|
|
16,842 |
|
Total Assets |
|
$ |
51,461 |
|
|
$ |
64,469 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
11,894 |
|
|
$ |
13,176 |
|
Contract liabilities |
|
|
142 |
|
|
|
42 |
|
Notes payable |
|
|
205 |
|
|
|
312 |
|
Due to related party |
|
|
23 |
|
|
|
18 |
|
Operating lease liabilities |
|
|
380 |
|
|
|
532 |
|
Finance lease liabilities |
|
|
13 |
|
|
|
18 |
|
Income taxes payable |
|
|
93 |
|
|
|
139 |
|
Total Current Liabilities |
|
|
12,750 |
|
|
|
14,237 |
|
|
|
|
|
|
|
|
|
|
Long Term Liabilities: |
|
|
|
|
|
|
|
|
Notes payable, net of current portion |
|
|
1,120 |
|
|
|
1,211 |
|
Operating lease liabilities, net of current portion |
|
|
619 |
|
|
|
929 |
|
Finance lease liabilities, net of current portion |
|
|
- |
|
|
|
5 |
|
Total Liabilities |
|
|
14,489 |
|
|
|
16,382 |
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Preferred stock ( |
|
|
- |
|
|
|
- |
|
Common stock ( |
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
68,348 |
|
|
|
67,170 |
|
Accumulated deficit |
|
|
(41,717) |
|
|
|
(34,925) |
|
Accumulated other comprehensive loss |
|
|
(99) |
|
|
|
(63) |
|
Equity attributable to |
|
|
26,534 |
|
|
|
32,184 |
|
Equity attributable to non-controlling interests |
|
|
10,438 |
|
|
|
15,903 |
|
Total Equity |
|
|
36,972 |
|
|
|
48,087 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity |
|
$ |
51,461 |
|
|
$ |
64,469 |
|
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