Revenue Growth of 129% to $1.9 Million
Operating Income Growth of 322% to $132,705
1st Half 2019 EPS of $0.01
TAMPA, FL, July 29, 2019 (GLOBE NEWSWIRE) -- Trxade Group, Inc. (OTCQB: TRXD), an integrated pharmaceutical logistical services company that combines a web-based purchasing platform for transactions between independent pharmacists and drug manufacturers, E-Hub with a mail order pharmacy, warehouse and drug delivery services for consumers nationwide, today announced its financial results for its second quarter, ended June 30, 2019 and provided a business update and positive outlook for rest of the year 2019.
Second Quarter Highlights:
- Generated record revenues of $1,916,414 in quarter ending June 30, 2019 vs. $837,688 in quarter ending June 30, 2018
- Gross profit increased to $1,163,276 from $837,688 in quarters ending June 30, 2019 and 2018, respectively
- Operating Income increased to $132,705 from $31,446 in the quarter ending June 30, 2019 and 2018, respectively
- Trxade’s trading platform continued to achieve record quarterly operating profits, eight quarters in a row
- At the end of the second quarter 2019, Trxade has validated over 390 New Independent pharmacies to its trading platform, a 24% sequential increase from the prior quarter and a 137% increase from the end of the second quarter 2018
- During the second quarter of 2019, consumer app (B2C) www.Delivmeds.com validated 94 Independent pharmacies on the network to deliver prescription drugs to consumers
CEO Sees Continuing Strong Revenue Growth and Profitability in 2019
“During the second quarter 2019, we made excellent progress executing against our key strategic priorities in our Delivmeds.com program, our B2C commercial efforts and our proprietary B2B trading platform www.trxade.com, which enables independent pharmacies to purchase drugs at an average discount of between 15%-20%, enabling us to experience top and bottom line growth,” commented, Suren Ajjarapu, Chairman and Chief Executive Officer of Trxade Group.
“Accordingly, I am optimistic that our new product lines will generate profitability as increasing pharmaceutical prices drive independent pharmacies, payors and consumers to be more aggressive in sourcing medication. In response to customer demand, we are actively developing new product offerings with increased data analytics capability which will help independent pharmacies better manage their inventory and costs,” Mr. Ajjarapu concluded.
Financial Results for the Second Quarter Ended June 30, 2019:
Revenues for the three months ended June 30, 2019 were $1,916,414 vs. $837,688 in the year-ago quarter, an increase of 129%, and a 27% sequential increase over the first quarter ended March 31, 2019. The revenue growth was primarily attributable to the acquisition of our wholly owned subsidiary Community Specialty Pharmacy, LLC and an increase of fee income generated from the Company’s web-based supplier-to-pharmacy trading platform (www.trxade.com).
Gross profit for the three months ended June 30, 2019 was $1,163,276, resulting in a gross margin of 60.7%, compared to $837,688 and 100% for the three months ended June 30, 2018. This increase reflected a sales mix with greater revenue from our acquisition company pharmaceutical sales, which carries a higher cost of sales, reflecting the lower margin, than the Company’s other revenue sources.
General and administrative expenses increased to $1,030,571 in the second quarter of 2019 compared with $806,242 in the year-ago quarter.
Operating Income increased for the second quarter of 2019 to $132,705 versus $31,446 in the year-ago quarter.
Net income for the three months ended June 30, 2019, was $57,981, an improvement of $37,468 as compared to net income of $20,513, for the same period in 2018. The improvement in net income was primarily due increasing revenue and gross profit contribution from our acquisition of wholly owned subsidiary Community Specialty Pharmacy and an increase of fee income generated from the Company’s web-based supplier-to-pharmacy trading platform (www.trxade.com). The resulting EPS for the three months period ended June 30, 2019 was $0.00, as compared to $0.00 for the same period in 2018.
Financial Results for the Six Months Ended June 30, 2019:
Revenues for the six months ended June 30, 2019 were $3,428,935 vs. $1,690,611 for the six months ended June 30, 2018, an increase of 103%. The revenue growth was primarily attributable to the acquisition of our wholly owned subsidiary Community Specialty Pharmacy, LLC and an increase of fee income generated from the Company’s web-based supplier-to-pharmacy trading platform (www.trxade.com).
Gross profit for the six months ended June 30, 2019 was $2,309,958, resulting in a gross margin of 67.4%, compared to $1,690,611 and 100% for the six months ended June 30, 2018. This increase reflected a sales mix with greater revenue from our acquisition company pharmaceutical sales, which carries a higher cost of sales, reflecting the lower margin, than the Company’s other revenue sources.
General and administrative expenses increased to $2,005,494 for the six months ended June 30, 2019 compared with $1,560,437 for the six months ended June 30, 2018.
Operating Income increased for the six months ended June 30, 2019 to $304,464 versus $130,174 in the six months ended June 30, 2018.
Net income for the six months ended June 30, 2019, was $183,210, an improvement of $80,428 as compared to net income of $102,782, for the same period in 2018. The improvement in net income was primarily due increasing revenue and gross profit contribution from our acquisition of wholly owned subsidiary Community Specialty Pharmacy and an increase of fee income generated from the Company’s web-based supplier-to-pharmacy trading platform (www.trxade.com). The resulting EPS for the six months period ended June 30, 2019 was $0.01, as compared to $0.00 for the same period in 2018.
About Trxade Group, Inc.
Headquartered in Tampa, Florida, Trxade Group, Inc. (OTCQB: TRXD) Trxade is an integrated pharmaceutical logistical services company that combines a web-based purchasing platform for transactions between independent pharmacists and drug manufacturers, E-Hub with a mail order pharmacy, warehouse and drug delivery services for consumers nationwide, with over 10,650 registered independent pharmacies, is a web-based market platform that enables the pharmacies to quickly source and purchase pharmaceuticals, accessories and services from a wide range of manufacturers and drug distributors. For additional information, please visit us at www.trxadegroup.com. www.delivmeds.com
Forward-Looking Statements
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements.
Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. Except as may be required by applicable law, we assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The company undertakes no duty to update forward-looking statements.
Investor Relations Contact:
IR@trxade.com
800-261-0281
Trxade Group, Inc.
Selected Consolidated Financial Data
Three and Six Months Ended June 30, 2019 and 2018
| Three months ended | Six months ended | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenues | $ | 1,916,414 | $ | 837,688 | $ | 3,428,935 | $ | 1,690,611 | ||||||||
| Cost of Sales | 753,138 | - | 1,118,977 | - | ||||||||||||
| Gross Profit | 1,163,276 | 837,688 | 2,309,958 | 1,690,611 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| General and Administrative | 1,030,571 | 806,242 | 2,005,494 | 1,560,437 | ||||||||||||
| Operating Income | 132,705 | 31,446 | 304,464 | 130,174 | ||||||||||||
| Share in Equity Losses in Investment | (58,850 | ) | - | (87,822 | ) | - | ||||||||||
| Interest Expense | (15,874 | ) | (10,933 | ) | (33,432 | ) | (27,392 | ) | ||||||||
| Net Income | $ | 57,981 | $ | 20,513 | $ | 183,210 | $ | 102,782 | ||||||||
| Net Income per Common Share – Basic: | $ | 0.00 | $ | 0.00 | $ | 0.01 | $ | 0.00 | ||||||||
| Net Income per Common Share – Diluted: | $ | 0.00 | $ | 0.00 | $ | 0.01 | $ | 0.00 | ||||||||
| Weighted average Common Shares Outstanding Basic | 33,726,489 | 31,985,827 | 33,546,329 | 31,985,827 | ||||||||||||
| Weighted average Common Shares Outstanding Diluted | 36,353,751 | 34,479,406 | 36,353,751 | 34,472,811 | ||||||||||||
| Balance Sheet Data | June 30, 2019 | December 31, 2018 | ||||||
| Working Capital | $ | 867,107 | $ | 605,710 | ||||
| Total Assets | $ | 3,678,065 | $ | 2,227,587 | ||||
| Long-Term Notes Payable | $ | 522,552 | $ | 522,552 | ||||
| Shareholders’ Equity | $ | 1,340,017 | $ | 844,668 | ||||