Full Press Release Details
HEALTH Reports Third Quarter 2021 Financial Results
Quarter 2021 Revenue Increased 34.3% over Second Quarter 2021
FL, October 25, 2021 - TRxADE HEALTH, INC. (NASDAQ: MEDS), 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 third quarter ended September 30, 2021.
Operational Highlights:
| TRxADE HEALTH continued to expand its drug procurement marketplace nationwide, adding approximately 250 new registered members in the third quarter, bringing the total registered members to over 12,950. | |
| Bonum Health, a TRxADE Company, launched pre-paid digital telemedicine passes, providing an innovative new way for uninsured consumers to gain access to vital healthcare services while concurrently streamlining the path for organizations to efficiently gift healthcare to those in need. | |
| Attended leading investor conferences nationwide, including the Colliers 5 th Annual Investor Conference, the H.C. Wainwright 23 rd Annual Global Investment Conference, the Benzinga Virtual Healthcare Conference and the LD Micro Main Event. |
saw strong margin improvement as our revenue base returned to the core TRxADE pharmaceutical exchange platform in the third quarter,
seeing a drop-off in the one-time personal protective equipment sales recognized in 2020, which were driven by the initial onset of the
COVID-19 pandemic," said Suren Ajjarapu, Chairman and Chief Executive Officer of TRxADE HEALTH. "Our nationwide footprint
continues to grow and we have relentlessly focused on exciting new ways to expand proportional wallet-share within our large, growing
network of registered users, while better enabling them to service their respect customers - the end-users, further growing their
loyalty to their local retail pharmacy.
telehealth subsidiary Bonum Health has continued to grow, building a foundation that we believe we can build upon for years to come -
not only offering an advanced telehealth offering, but concurrently allowing consumers to retain their own healthcare data in a secure,
compliant manner. This provides an exciting opportunity, leveraging our large, established national footprint of retail partners to drive
summary, we are focusing new strategic partnerships to drive forward our core business while diversifying our revenue base and leveraging
our existing strengths through Bonum Health. Taken as a whole, we believe we are building an incredibly compelling healthcare ecosystem
- allowing consumers access to affordable healthcare while building an exciting value proposition for our shareholders,"
Quarter 2021 Financial Summary
| Revenues for the third quarter of 2021 were $2.6 million, as compared to $1.9 million for the second quarter of 2021, and $6.3 million in the same quarter last year. The decrease in revenue compared to last year was primarily a result of one-time, non-recurring sales of personal protective equipment (PPE) in 2020 related to the COVID-19 pandemic that did not continue in 2021. | |
| Gross profit in the third quarter of 2021 totaled $1.3 million, or 50.2% of revenues, compared to gross profit of $1.9 million, or 30.5% of revenues, in the same quarter last year. The increase in gross profit margin percentage was a result of fewer lower-margin PPE sales in 2021. | |
| Operating expenses in the third quarter of 2021 were $2.6 million, compared to $1.8 million in the same quarter last year, primarily as a result of IT development and marketing investments made in Bonum Health and a bad debt write-off of $630,000 (due to accounts receivable for certain PPE items which were deemed uncollectable). | |
| Net loss in the third quarter of 2021 was $(1.3) million, or $(0.16) per basic and diluted share outstanding, compared to a net profit of $0.1 million, or $0.02 per basic share outstanding, in the same quarter last year. The decrease was due in part to non-cash equity compensation expenses and the non-recurring write-down of the value of PPE inventory on-hand in accordance with GAAP accounting rules. | |
| Adjusted EBITDA, a non-GAAP financial measure, was $(1.2) million in the third quarter of 2021, compared to $0.7 million in the same quarter last year. 1 | |
| Cash and cash equivalents were $3.6 million as of September 30, 2021, compared with $4.5 million as of June 30, 2021. |
EBITDA is a non-GAAP financial measure and is described below under "Use of Non-GAAP Financial Information" and is reconciled
to its most directly comparable GAAP measure at the end of this release under "Reconciliation of Net Income (Loss) attributable
to TRxADE HEALTH, INC., to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA".
will host a conference call today, Monday, October 25, 2021, at 5:00 p.m. Eastern time to discuss TRxADE HEALTH's third quarter
2021 financial results. The call will conclude with Q&A from participants.
participate, please use the following information:
2021 Conference Call and Webcast
Monday, October 25, 2021
5:00 p.m. Eastern time
Dial-in: 1-877-425-9470
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 November 25, 2021. To listen, call 1-844-512-2921 within the United States or 1-412-317-6671
when calling internationally and enter replay pin number 13723384. A webcast will also be available for 30 days on the IR section of
the TRxADE HEALTH 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 a total
of 12,950+ members nationwide, fostering price transparency and under the Bonum Health brand, offering patient centric telehealth services.
For info 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 before interest,
taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before stock-based compensation expense, loss on inventory
investment and gain (loss) in equity investment. 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
in our industry may calculate EBITDA and Adjusted EBITDA differently than TRxADE HEALTH, Inc. 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 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 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 may contain forward-looking statements, including information about management's view of Trxade's future expectations,
plans and prospects, within the meaning of the federal securities laws. In particular, when used in the preceding discussion, the words
"may," "could," "expect," "intend," "plan," "seek," "anticipate,"
"believe," "estimate," "predict," "potential," "continue," "likely,"
"will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar
expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical
fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties
and other factors, which may cause the results of Trxade, its divisions and concepts to be materially different than those expressed
or implied in such statements. These risks include risks relating to the adoption of our MedCheks app by partners and end-users, the
apps of other competitors, including governments which may make certain apps mandatory or free, our ability to gain traction for our
app in the marketplace, and the continued demand for our app; risks related to our operations not being profitable; claims relating to
alleged violations of intellectual property rights of others; our ability to monetize our technological solutions; technical problems
with our websites, apps and products; risks relating to implementing our acquisition strategies; challenges to the pharmaceutical supply
chain posted by the COVID-19 pandemic and related matters; our ability to manage our growth; negative effects on our operations associated
with the opioid pain medication health crisis; regulatory and licensing requirement risks; risks related to changes in the U.S. healthcare
environment; the status of our information systems, facilities and distribution networks; risks associated with the operations of our
more established competitors; regulatory changes; healthcare fraud; COVID-19, governmental responses thereto, economic downturns and
possible recessions caused thereby; risks associated with the market for health passports, adoption thereof, consumer acceptance thereof,
and changes in the market for such products; changes in laws or regulations relating to our operations; privacy laws; system errors;
dependence on current management; our growth strategy; and others that are included from time to time in filings made by Trxade with
the Securities and Exchange Commission, including, but not limited to, in the "Risk Factors" sections in its Form 10-Ks and
Form 10-Qs and in its Form 8-Ks, which it has filed, and files from time to time, with the U.S. Securities and Exchange Commission. These
reports are available at www.sec.gov. Other unknown or unpredictable factors also could have material adverse effects on Trxade's
future results and/or could cause our actual results and financial condition to differ materially from those indicated in the forward-looking
statements. The forward-looking statements included in this press release are made only as of the date hereof. Trxade cannot guarantee
future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking
statements. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information
or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required
by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates
with respect to those or other forward-looking statements.
Group - MZ North America
30, 2021, and December 31, 2020