Full Press Release Details
HEALTH Reports First Quarter Gross Margin of 69% and Q1 2023 Financial Results
Nationwide Expansion of Breakthrough Digital Healthcare Services IT Platform
FL, May 15, 2023 - TRxADE HEALTH, INC. (NASDAQ:
MEDS) ("TRxADE" or the "Company"), a health services IT company focused on digitalizing the retail pharmacy experience
by optimizing drug procurement, the prescription journey and patient engagement in the U.S., today announced its financial results for
the quarter ended March 31, 2023.
and Subsequent Operational Highlights
continued to expand the TRxADE drug procurement marketplace nationwide, increasing new members approximately 1,100 for the first quarter
of 2023 compared to the first quarter of 2022, bringing the total registered members to approximately 14,500+ at March 31, 2023
Ajjarapu commented, "The first three months of 2023 have been an exciting and challenging time for TRxADE. We continue to focus
the Company's strategic plans and partnerships, working towards creating sustainable value for our stockholders. I am pleased with
the growth we have experienced in our TRxADE platform. We continue to achieve key milestones in our internal roadmap with a focus on
innovation and development through our various complementary growth opportunities."
Quarter 2023 Financial Summary
revenues for the first quarter of 2023 compared to the first quarter of 2022 decreased 31% to $2.2 million, compared to $3.2 million,
respectively. The decrease in consolidated revenue was driven by decreased revenue attributed to our Trxade Prime subsidiary. The revenues
generated by the TRxADE Platform in the first quarter of 2023 compared to 2022 increased 4% and Trxade Prime year over year revenue declined
70% in 2023 compared to 2022. The subsidiary company Community Specialty Pharmacy experienced a 16% increase in revenue for the first
quarter 2023 compared to 2022.
profit analysis of comparable fiscal periods of 2023 and 2022 reflect an increase in gross profits of $221,000 for the first quarter
of 2023 compared to 2022. As a percent of revenue, consolidated gross profit increased to 69% for the comparable quarter periods of 2023
expenses for the first quarter of 2023 were $1.9 million, compared to $2.3 million for the first quarter of 2022.
loss for the quarter ended March 31, 2023, was ($0.7) million, or ($0.07) per basic and diluted share outstanding, compared to a net
loss of ($1.0) million, or ($0.12) per basic and diluted share outstanding for same period in 2022.
EBITDA, a non-GAAP financial measure, was ($0.06) million for the first quarter 2023, compared to ($0.7) million for the first quarter
2022. See "Use of Non-GAAP Financial Information" below, and the reconciliation of Adjusted EBITDA to GAAP set forth at the
end of this release.
metrics related to our key performance are as follows:
the three months ended March 31, 2023, the TRxADE Platform increased its registered users by 8%. Total registered users increased to
approximately 14,500+ from 13,400+, as of March 31, 2023, and 2022, respectively. For the same comparable periods the TRxADE Platform
revenues increased 4% from $1.38 million for the quarter ended March 31, 2022 to $1.44 million for the period ended 2023. Sales volume
on the TRxADE Platform also increased year over year by 7% for the comparable fiscal period.
the three-month period ended March 31, 2023, compared to the same period in 2022, Integra Pharma Solutions, LLC ("TRxADE Prime")
revenue declined 69% from $1.6 million to $0.5 million.
Prime also saw improvements in gross margin. For the first quarter 2023 gross margin was 12% compared to 1% for the first quarter 2022.
Company is committed to continued efforts designed to build a strong foundation for Trxade Prime and further growth.
will host a conference call on Monday, May 15, 2023, at 6:00 p.m. Eastern time to discuss TRxADE's 2023 first quarter financial
results. The call will conclude with Q&A from participants. To participate, please use the following information:
First Quarter Conference Call and Webcast
Monday, May 15, 2023
Time: 6:00 p.m. Eastern time
U.S. Dial-in: 1-877-425-9470
International Dial-in: 1-201-389-0878
dial in at least 10 minutes before the start of the call to ensure timely participation.
playback of the call will be available through June 15, 2023. To listen, call 1-844-512-2921 within the United States or 1-412-317-6671
when calling internationally and enter replay pin number 13737052. A webcast will also be available for 30 days on the IR section of
the Trxade Group website or by clicking the webcast link above.
HEALTH (NASDAQ: MEDS) is a health services IT company focused on digitalizing the retail pharmacy experience by optimizing drug procurement,
the prescription journey and patient engagement in the U.S. The Company operates the TRxADE drug procurement marketplace serving
approximately 14,500+ members nationwide, fostering price transparency and under the Bonum Health brand, offering patient centric telehealth
services. For more information on TRxADE HEALTH, please visit the Company's IR website at investors.trxadegroup.com.
of Non-GAAP Financial Information
addition to our results calculated under generally accepted accounting principles in the United States ("GAAP"), in this
earnings release we also present EBITDA and Adjusted EBITDA which are "non-GAAP financial measures" presented as supplemental
measures of the Company's performance. They are not presented in accordance with GAAP. EBITDA represents net income (loss) attributable
to TRxADE before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before stock-based compensation
expense, bad debt recovery, bad debt write-off, gain (loss) on disposal of asset, litigation expenses, loss (gain) on inventory investment,
loss (gain) on impairment of intangible asset and change in fair value of warrant liability. EBITDA and Adjusted EBITDA are presented
because we believe they provide additional useful information to investors due to the various noncash items during the period. EBITDA
and Adjusted EBITDA are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry.
We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect
to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors
and the analyst community to help them analyze the health of our business. EBITDA and Adjusted EBITDA have limitations as analytical
tools, and you should not consider them in isolation or as a substitute for analysis of our operating results as reported under GAAP.
Some of these limitations are EBITDA and Adjusted EBITDA do not reflect cash expenditures, future requirements for capital expenditures,
or contractual commitments; EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; and
EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or
principal payments, on debt or cash income tax payments. Although depreciation and amortization are noncash charges, the assets being
depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements
for such replacements. Additionally, other companies may calculate EBITDA and Adjusted EBITDA differently than TRxADE does, limiting
its usefulness as a comparative measure. EBITDA and Adjusted EBITDA are not recognized in accordance with GAAP, are unaudited, and have
limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of the Company's
results as reported under GAAP. The Company's presentation of these measures should not be construed as an inference that future
results will be unaffected by unusual or nonrecurring items. We compensate for these limitations by providing a reconciliation of each
of these non-GAAP measures to the most directly comparable GAAP measure. We encourage investors and others to review our business, results
of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures
in conjunction with the most directly comparable GAAP financial measure. For more information on these non-GAAP financial measures, please
see the section titled "Reconciliation of Net Income (Loss) attributable to TRxADE HEALTH, INC., to Earnings before Interest, Taxes,
Depreciation and Amortization (EBITDA) and Adjusted EBITDA", included at the end of this release.
press release contains certain statements that may be deemed to be "forward-looking statements" within the federal securities
laws, including the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Statements that are not historical
are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act.
Forward-looking statements relate to future events or our future performance or future financial condition. These forward-looking statements
are not historical facts, but rather are based on current expectations, estimates and projections about our company, our industry, our
beliefs and our assumptions. Such forward-looking statements include, but are not limited to, statements regarding our or our management
team's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections,
forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.
In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe,"
"continue," "could," "estimate," "expect," "intend,"
"may," "ongoing," "plan," "potential," "predict,"
"project," "should," or the negative of these terms or other similar expressions, but the absence
of these words does not mean that a statement is not forward-looking. Forward-looking statements are subject to a number of risks and
uncertainties (some of which are beyond our control) that may cause actual results or performance to be materially different from those
expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking
statements. These risks include risks relating to agreements with third parties; our ability to raise funding in the future, as needed,
and the terms of such funding, including potential dilution caused thereby; our ability to continue as a going concern; security interests
under certain of our credit arrangements ; the fact that we are exploring strategic alternatives for our Bonum Health, Inc.
subsidiary ; our ability to maintain the listing of our common stock on the Nasdaq Capital Market, including our current non-compliance
with the continued listing standards of the Nasdaq Capital Market; risks associated with our operations not being profitable; the commercial