Highlights:
- Fourth quarter 2015 revenues increased 152% year-over-year
- Fourth quarter gross profit more than doubled year-over-year
- Trxade’s trading platform produced its first full-year operating profit
- Over 5,500 independent pharmacies are using Trxade’s S2P (Supplier to Pharmacy) platform
TAMPA, Fla., March 29, 2016 (GLOBE NEWSWIRE) -- Trxade Group, Inc. (OTCQB:TRXD), a web-based market platform with over 5,500 registered independent pharmacy customers that enables its customers to quickly source and purchase pharmaceuticals, accessories and services from a wide range of manufacturers and drug distributors, today reported record financial results for the fourth quarter and fiscal year ended December 31, 2015 and provided a business update and positive outlook for 2016.
Company Achieves Record Fourth Quarter 2015 Revenues
Revenues for the three months ended December 31, 2015 were a record $1,491,000, an increase of over 152% from revenues of $591,264 in quarter ending December 31, 2014. The revenue growth in the fourth quarter of 2015 was due to pharmaceutical sales as well as fee income generated from the Company’s web-based supplier-to-pharmacy trading platform.
For the fourth quarter ending December 31, 2015, the Company reported a net loss of ($495,445), or ($0.02) per basic and diluted share, compared with a net loss of ($437,144), or ($0.01) per basic and diluted share in the quarter ending December 31, 2014.
Cost of sales in the fourth quarter ending December 31, 2015 and 2014 were $614,693 and $164,918, respectively. This increase primarily reflected a sales mix with greater revenue from pharmaceutical sales, which carries a higher cost of sales than the Company’s other revenue sources from the Company’s supplier-to-pharmacy trading platform.
Gross profit more than doubled in the fourth quarter ended December 31, 2015 versus 2014, $876,037 and $426,706, respectively. Gross profit increased because a greater percentage of the revenue was from Trxade’s S2P platform which carries a lower cost of sales component.
General and administrative expenses increased to $1,317,412 compared with $863,805 in the quarter ended December 31, 2015 and 2014, respectively, most of which was driven by investment in additional marketing initiatives and increased customer service staff. Operating losses were flat at ($441,385) versus ($437,099) in the quarter ending December 31, 2015 and 2014, respectively.
“Our record fourth quarter revenues reflect another strong quarter of transactional revenue for our supplier-to-pharmacy (S2P) trading platform,” said Suren Ajjarapu, Chairman and Chief Executive Officer of Trxade Group. “We added over 500 new pharmacies to our network during the fourth quarter – boosted by new services including Trxade Prime. Put simply, pharmacies save time and money when they use Trxade’s platform to identify the lowest-cost pharmaceutical suppliers and these savings are one of the key reasons behind the market’s growing acceptance of our technology and pharmacies’ increasing demand to be added to our network,” continued Mr. Ajjarapu.
Trxade Group Achieves Record 2015 Annual Financial Results
For the year ending December 31, 2015, revenues rose 234% to $4,992,203 compared with $1,496,227 in the year ending December 31, 2014. The increase was due to pharmaceutical sales as well as fee income generated from the Company’s web-based supplier-to-pharmacy trading platform.
For the years ending December 31, 2015 and 2014, the Company reported a net loss of ($1,117,183), or ($0.04) per basic and diluted share, and a net loss of ($2,012,043), or ($0.07) per basic and diluted share, respectively.
Cost of sales in year ending December 31, 2015 rose to $1,928,067 compared with $440,047 in year ending December 31, 2014. This increase was primarily attributable to an increase in revenue from the Company’s pharmaceutical sales distribution, which has a higher relative cost of sales than the Company’s trading platform.
General and administrative expenses increased to $3,696,067 compared to $2,113,033 in the year ending December 31, 2015 and 2014, respectively. The increase was primarily due to the addition of a number of new employees to support the Company’s rapid expansion plan as well as higher professional fees and one-time financing-related expenses.
Company’s Investments Lays Foundation for Accelerated Financial Growth in 2016
“We anticipate our general and administrative expenses to decrease as a percentage of revenue, as current staffing and other expenses are now capable of supporting far higher levels of transactions and revenues without a corresponding increase to those expenses,” Mr. Ajjarapu added.
“We are confident our growth will continue to trend positively and expect to achieve record financial results again in 2016. After several years of investments in building our proprietary platform, we believe we are now well-positioned to attract and deliver solid measurable value to our customers in both time and money. We have made significant accomplishments and believe we have built a market position and infrastructure capable of sustaining far higher levels of operations. Accordingly, we are now capitalizing on our strong operating momentum to simply focus on customer service, execution of our business plan and achieving another year of record financial results,” Mr. Ajjarapu concluded.
About Trxade Group, Inc.
Headquartered in Tampa, Florida, Trxade Group, Inc. (OTCQB:TRXD) is a web-based market platform that enables trade among healthcare buyers and sellers of pharmaceuticals, accessories and services. Founded in 2010, Trxade Group currently operates the trading platform with over 5,500 registered pharmacy members. Trxade Group also distributes private label pharmaceuticals through its wholly-owned subsidiary Westminster Pharmaceuticals, LLC. For additional information, please visit us at www.trxadegroup.com.
Refer to the Trxade Group, Inc. December 31, 2015 10K filing for audited financial statements and other financial information.
Disclaimer & 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.
[Financial Tables Follow]
| Trxade Group Inc. | |||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| 30-Dec-15 | 30-Dec-14 | 30-Dec-15 | 30-Dec-14 | ||||||||||||
| Revenues | $ | 1,149,100 | 591,624 | $ | 4,992,203 | 1,496,227 | |||||||||
| Cost of Sales | 614,963 | 164,918 | 1,928,067 | 440,047 | |||||||||||
| Gross Profit | 876,037 | 426,706 | 3,064,136 | 1,056,180 | |||||||||||
| Operating Expenses | |||||||||||||||
| General and Administrative | 1,317,422 | 863,805 | 4,051,183 | 2,487,652 | |||||||||||
| Operating Loss | (441,385 | ) | (437,099 | ) | (987,047 | ) | (1,431,472 | ) | |||||||
| Loss on Debt Conversion | 0 | 0 | 0 | 576,417 | |||||||||||
| Interest Expense | 54,060 | 45 | 130,136 | 4,154 | |||||||||||
| Net Loss | $ | (495,445 | ) | (437,144 | ) | $ | (1,117,183 | ) | (2,012,043 | ) | |||||
| Basic loss per Common Share | $ | (0.02 | ) | (0.01 | ) | $ | (0.04 | ) | (0.07 | ) | |||||
| Diluted loss per Common Share | $ | (0.02 | ) | (0.01 | ) | $ | (0.04 | ) | (0.07 | ) | |||||
| Basic weighted average number of Common Shares outstanding | 31,323,508 | 31,153,942 | 31,315,735 | 29,831,046 | |||||||||||
| Diluted weighted average number of Common Shares outstanding | 31,280,804 | 29,496,687 | 31,315,735 | 29,831,046 | |||||||||||
| Trxade Group, Inc. | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| December 31, 2015 and 2014 (unaudited) | ||||||||||
| 2015 | 2014 | |||||||||
| Assets | ||||||||||
| Current Assets | ||||||||||
| Cash | $ | 860,132 | $ | 705,602 | ||||||
| Accounts Receivable, net | 498,100 | 349,025 | ||||||||
| Inventory, net | 284,718 | 46,429 | ||||||||
| Prepaid Assets | 201,361 | 57,676 | ||||||||
| Other Assets | 183,359 | 59,584 | ||||||||
| Total Current Assets | 2,027,670 | 1,218,316 | ||||||||
| Property and Equipment (net) | - | 3,802 | ||||||||
| Total Assets | $ | 2,027,670 | $ | 1,222,118 | ||||||
| Liabilities and Shareholders’ Equity (Deficit) | ||||||||||
| Current Liabilities | ||||||||||
| Accounts Payable | $ | 356,159 | $ | 291,059 | ||||||
| Accrued Liabilities | 296,803 | 175,786 | ||||||||
| Other Liabilities | - | 64,264 | ||||||||
| Notes Payable net of $15,000 and $ - discount | 235,000 | - | ||||||||
| Short term Convertible Payable net of $35,697 and $ - discount | 164,303 | - | ||||||||
| Deferred Income | - | 22,568 | ||||||||
| Total Current Liabilities | 1,052,265 | 553,677 | ||||||||
| Long Term Liabilities | ||||||||||
| Convertible Note net of $241,612 and $ - discount | 708,388 | - | ||||||||
| Total Liabilities | $ | 1,760,653 | $ | 553,677 | ||||||
| Shareholders’ Equity | ||||||||||
| Series A Preferred Stock, $.00001 par value, 10,000,000 and 100,000,000 authorized; 0 and 0 issued and outstanding, as of December 31, 2015 and 2014, respectively | - | - | ||||||||
| Common Stock, $0.00001 par value, 100,000,000 and 500,000,000 authorized; 31,435,827 and 31,269,160 issued and outstanding as of December 31, 2015 and 2014 respectively | 314 | 312 | ||||||||
| Additional Paid-in Capital | 5,915,674 | 5,199,917 | ||||||||
| Retained Earnings (Deficit) | (5,648,971 | ) | (4,531,788 | ) | ||||||
| Total Shareholders’ Equity | 267,017 | 668,441 | ||||||||
| Total Liabilities and Shareholders’ Equity | $ | 2,027,670 | $ | 1,222,118 | ||||||