Full Press Release Details
HEALTH Reports Year End 2021 Financial Results
Nationwide Expansion of Breakthrough Digital Healthcare Services IT Platform
FL, March 28, 2022 - TRxADE HEALTH, INC. (NASDAQ:MEDS)("TRxADE",
"TRxADE HEALTH" 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 fourth quarter (Q4) and year ended (FY) December 31, 2021.
Quarter 2021 Financial Summary and Operational Highlights
continued to expand the TRxADE drug procurement marketplace nationwide, adding 175 new registered members in Q4 2021, bringing the total
registered members to approximately 13,100+ at the end of 2021.
for the fourth quarter of 2021 increased 19.7% to $2.4 million, compared to revenue of $2.0 million in the same quarter last year. The
increase in revenue was primarily due to revenue generated by the TRxADE Platform and TRxADE Prime, the Company's business to business
web-based marketplace.
profit in the fourth quarter of 2021 increased 831% to $1.24 million or 51.9% of revenues, compared to $0.1 million, or 6.5% of revenues,
in the same quarter last year. The increase in gross profit was primarily attributable to revenue generated by TRxADE Platform, which
has a lower cost of sales.
expenses in the fourth quarter of 2021 were $2.0 million compared to $2.4 million in the same quarter last year. This decrease was due
primarily to a loss on impairment of goodwill recognized in the same quarter last year, which was a one-time charge.
Loss in the fourth quarter of 2021 was ($0.8) million or ($0.10) per basic and diluted share outstanding, compared to ($2.3) million,
or ($0.29) per basic and diluted share outstanding, as a result of a $726,000 loss on impairment of goodwill and a one-time $1,081,000
inventory write down, compared to the same quarter last year.
EBITDA, a non-GAAP financial measure, decreased to negative $0.8 million in the fourth quarter of 2021, compared to negative $1.4 million
in the same quarter last year. See "Use of Non-GAAP Financial Information" below, and the reconciliation of Adjusted EBITDA
to GAAP set forth at the end of this release.
Year Ended December 31, 2021 Summary
for the 2021 year decreased 42.2% to $9.9 million, compared to $17.1 million in 2020. The decrease in revenue was due to revenue generated
in 2020 by Integra Pharma Solutions, our wholly-owned subsidiary, which revenue was from Personal Protective Equipment (PPE) sales relating
to the COVID-19 pandemic in 2020, which decreased in 2021.
profit in fiscal 2021 decreased 16.8% to $4.7 million, or 48.0% of revenues, compared to $5.7 million, or 33.0% of revenues for last
year. The increase in gross profit percentage was primarily attributable to higher margins associated with TRxADE Platform revenue, which
has a lower cost of sales.
expenses in 2021 were $10.0 million, compared to $8.2 million last year. This increase is primarily due to the Loss on Inventory Investment
and, an increase in IT initiatives in our Bonum Health and Alliance Pharma companies.
Loss in 2021 was ($5.3) million, or ($0.65) per basic and diluted share outstanding, compared to ($2.5) million, or ($0.33) per basic
and diluted share outstanding, last year.
EBITDA for the year ended 2021 was negative ($3.7) million compared to positive $0.1 million for the year ended 2020. See "Use
of Non-GAAP Financial Information" below, and the reconciliation of Adjusted EBITDA to GAAP set forth at the end of this release.
at our balance sheet, cash and cash equivalents were $3.1 million as of December 31, 2021, compared with $5.9 million as of December
31, 2020. The decrease in cash was due to our IT initiatives with Bonum Health and Alliance Pharma and loss on inventory investment.
will host a conference call on Monday, March 28, 2022, at 5:00 p.m. Eastern time to discuss TRxADE HEALTH's fourth quarter and
fiscal year 2021 financial results. The call will conclude with Q&A from participants. To participate, please use the following information:
and Fiscal Year 2020 Conference Call and Webcast
Monday, March 28, 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 April 28, 2022. To listen, call 1-844-512-2921 within the United States or 1-412-317-6671
when calling internationally and enter replay pin number 13727651. A webcast will also be available for 30 days on the IR section of
the TRxADE HEALTH, INC. 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 13,100+ 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 before interest,
taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before stock-based compensation expense, loss (gain) on inventory
investment and loss (gain) on impairment of goodwill. 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, including the safe harbor provisions under The Private Securities
Litigation Reform Act of 1995. 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 agreements with third parties, including Coborn's; the planned benefits,
expected users of, and projected revenues of our joint venture with Exchange Health; our operations not being profitable; the commercial
viability of new business lines, applications, products and technologies, and the costs of such items; the Company's stock repurchase
program; the adoption of the Company's product offerings; 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;
new competitors which may have more resources than we do; increases in direct to consumer sales of drugs; healthcare fraud; COVID-19,