NextPlat Reports $49.8 Million in Consolidated Revenue for the Nine Months Ended September 30, 2024, Representing a 136% Increase Over 2023 Results

PR Newswire

COCONUT GROVE, Fla., Nov. 14, 2024

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COCONUT GROVE, Fla., Nov. 14, 2024 /PRNewswire/ -- NextPlat Corp (NASDAQ: NXPL, NXPLW) ("NextPlat" or the "Company"), a global e-Commerce provider, today announced results for its third fiscal quarter ended September 30, 2024 which includes the consolidation of the operations of its e-Commerce Operations with the results of its Healthcare Operations from Progressive Care LLC (formerly Progressive Care Inc., or "Progressive Care").

"Top-line results for the first nine months of 2024 reflect the positive contributions of Progressive Care, providing us access into the large healthcare contracted services market, and our most recent acquisition, Outfitter Satellite, bolstering our e-Commerce business. These transactions are expected to bring both significant long-term growth in their respective markets and importantly, drive positive cashflows as our team works to fully integrate them and implement cost-cutting measures through the fourth quarter of 2024, improving efficiencies and removing redundancies across the organization into 2025," said Charles M. Fernandez, Executive Chairman and CEO of NextPlat Corp.

Third Quarter 2024 Financial Highlights:

   -- Consolidated revenue for the third quarter of 2024 was approximately 
      $15.4 million compared to approximately $15.3 million in the same period 
      last year. Total e-Commerce revenues were approximately $3.8 million and 
      $2.9 million for the three months ended September 30, 2024, and 2023, 
      respectively, an increase of approximately 31% mainly due to the 
      Outfitter acquisition on April 1, 2024. Total Healthcare Operations 
      revenues were approximately $11.5 million and $12.4 million for the three 
      months ended September 30, 2024, and 2023, respectively, a decrease 
      primarily due to a decline in retail pharmacy prescription reimbursement 
      rates in line with continuing industry trends occurring with U.S. 
      independent pharmacies. Consolidated revenue for the nine months ended 
      September 30, 2024, was approximately $49.8 million, an increase of over 
      136% versus revenue of approximately $21.1 million for the nine months 
      ended September 30, 2023, primarily attributable to an increase of 
      approximately $27.3 million from Healthcare Operations as a result of the 
      Progressive Care acquisition on July 1, 2023. Based upon current 
      expectations, available product inventory and the number of new and 
      existing pharmacy service contracts, the Company currently expects 
      full-year 2024 revenue to be in the range of approximately $60 million to 
      $65 million. 
 
   -- Gross profit margin for the quarter ended September 30, 2024, declined to 
      22.9% primarily attributable to the decrease in retail prescription drug 
      reimbursement rates in Healthcare Operations. For the nine months ended 
      September 30, 2024, overall gross profit margin remained consistent 
      at approximately 28% when compared to the prior year period. Gross profit 
      margin for e-Commerce Operations was 28.1%, remaining at near record 
      levels largely due to continued increases in higher margin recurring 
      airtime revenue. Gross profit margin for Healthcare Operations in the 
      third quarter of 2024 was 21.2%. Healthcare Operations continues to 
      experience pressures from medication price increases despite 
      reimbursement rates not keeping pace with those increases. 
 
   -- Operating expenses for the quarter ended September 30, 2024, were 
      approximately $11.5 million compared to approximately $8.1 million for 
      the same period in 2023. A significant 45.2% decrease in recurring 
      selling, general and administrative expenses in the quarter were offset 
      by a non-cash impairment loss of approximately $3.7 million related to 
      intangible assets recognized in the Progressive Care acquisition. 
      Additional expenses included professional fees of approximately $2.1 
      million mainly attributable to costs related to the merger with 
      Progressive Care as well as non-recurring litigation and other legal 
      fees. 
 
   -- As a result of acquiring a controlling interest in Progressive Care on 
      July 1, 2023, under U.S. GAAP for mergers and acquisitions, the Company 
      recorded previously unrecognized goodwill and other intangibles which 
      were recorded at fair values based on Progressive Care's stock price on 
      July 1, 2023 as well as estimates of future book of business. Declines in 
      Progressive Care's stock price and changes in its estimated book of 
      business caused a decline in the fair value of the goodwill and 
      intangibles. Thus, under U.S. GAAP, the Company was required to adjust 
      its fair value estimates for goodwill and the intangibles resulting in 
      non-cash impairment losses totaling $13.7 million recognized during the 
      nine months ended September 30, 2024. The Company now expects no further 
      impairment losses from the acquisition of Progressive Care. 
 
          -- Year-to-date, the Company recorded a total of approximately $34.9 
             million in operating expenses, which included non-recurring 
             expenses of approximately $13.7 million in non-cash impairment 
             losses and approximately $3.4 million in expenses related to the 
             merger with Progressive Care. 
 
          -- The Company expects significant annual reductions in operating 
             costs through cost savings from ongoing integration efforts of 
             Progressive Care. These efforts include trimming delivery costs, 
             rightsizing staffing, and removing duplicated public company 
             expenses including professional services such as legal and 
             accounting services, as well as the reduction of other selling, 
             general and administrative costs by eliminating existing 
             redundancies. 
 
   -- Net loss attributable to NextPlat Corp common shareholders for the 
      quarter ended September 30, 2024, was approximately $4.2 million, or 
      ($0.22) per diluted share, compared to a net income attributable to 
      NextPlat Corp common shareholders of approximately $3.4 million, or $0.17 
      diluted earnings per share, reported for the quarter ended September 30, 
      2023. For the nine months ended September 30, 2024, net loss attributable 
      to NextPlat Corp common shareholders was approximately $11.0 million, or 
      ($0.58) per diluted share, compared to a net loss attributable to 
      NextPlat Corp common shareholders of approximately $2.1 million, or 
      ($0.12) per diluted share. 
 
   -- The Company ended the third quarter of 2024 with approximately $20.4 
      million in cash representing a net cash burn of approximately $5.9 
      million year-to-date. The use of cash primarily consisted of 
      approximately $3.4 million in non-recurring operating expenses plus 
      approximately $1.0 million related to the Outfitter acquisition, and 
      approximately $1.5 million used in recurring operating expenses. 

Organizational Highlights and Recent Business Developments:

   -- On October 1, 2024, the Company completed its proposed merger with 
      Progressive Care in an all-stock transaction, resulting in Progressive 
      Care becoming a wholly owned subsidiary of NextPlat. Representing the 
      Company's Healthcare Operations, Progressive Care continues to support 
      the needs of a growing number of 340B contracted healthcare entities as 
      well as long-term care and assisted living facilities. 
 
   -- In the third quarter, Healthcare Operations filled approximately 128,000 
      pharmacy prescriptions, a 5% increase from the 122,000 pharmacy 
      prescriptions filled in the year-ago quarter. The Company continues to 
      add pharmacy service contracts with 340B covered entities which are 
      expected to represent a greater proportion of Healthcare Operations 
      revenue going forward, contributing to increased services and 
      prescription revenues throughout the remainder of fiscal 2024 and into 
      fiscal 2025. These contracts have a greater profit margin than the 
      Company's traditional retail pharmacy business. 
 
   -- The Company's technology e-commerce business continued to see increased 
      global demand for satellite-enabled communications devices, producing 
      sales to customers in 95 countries during the third quarter. Recurring, 
      high-margin airtime revenue in the third quarter of 2024 increased to 
      record levels, reflecting growth of 94% vs. 2023 levels driven by both 
      organic growth and the addition of Outfitter Satellite which was acquired 
      in April 2024. 
 
   -- In July, the Company significantly expanded the scope of its e-commerce 
      program in China to include broad retail distribution and digital/social 
      media marketing capabilities through a new partner. Several online and 
      offline marketing programs in support of the OPKO Healthcare (Nasdaq: 
      OPK) ("OPKO")-branded site on Alibaba Group Holding Limited's (NYSE: 
      BABA) ("Alibaba") Tmall Global have already been conducted and product 
      interest and sales continue to grow as in-country product availability 
      increases. Recently, OPKO's "Artilane$(R)$" joint care product was featured 
      as a Tmall "Top 10 Most Popular New Products For Healthcare" list based 
      upon comprehensive data such as product clicks, collections, and 
      purchases. In October, NextPlat was awarded a four-year extension of the 
      OPKO Healthcare e-commerce program for China which was expanded to 

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