SOURCE: Assured Pharmacy, Inc.

September 23, 2014 08:00 ET

Assured Pharmacy Reports Second Quarter 2014 Results

Revenue per Business Day Increases 173% From June 2013 to June 2014

PLANO, TX--(Marketwired - Sep 23, 2014) - Assured Pharmacy, Inc. ("Assured Pharmacy" or the "Company") (OTCQB: APHY), a pharmacy service company that specializes in safe and compliant dispensing of controlled substances primarily in the treatment of chronic pain, announced today results for the second quarter ended June 30, 2014.

Highlights:

  • Denver, Colorado location opened on April 2, 2014
  • $34,134 revenue per business day, in the month of June, an increase of 19% from $28,681 revenue per business day, in the month of March
  • 15,193 total number of prescriptions dispensed and delivered, an increase of 23% from 12,389 in the first quarter 2014 and an increase of 10% from 13,754 in the second quarter 2013
  • 7,963 total number of patients serviced, an increase of 21% from 6,554 in the first quarter 2014 and an increase of 10% from 7,248 in the second quarter 2013
  • $143 sales per prescription dispensed, an increase of 9% from $131 in the first quarter 2014 and an increase of 43% from $100 in the second quarter 2013
  • Increased accounts receivable revolving line of credit facility to $1,200,000

Quarterly Prescriptions Since Restructuring in Mid-2013:

Robert DelVecchio, Chief Executive Officer, stated, "These last three months reflect the continued success of our restructuring and streamlining of the business that we accomplished last summer. Our newest location in Denver demonstrates the power of our business model, as we reached cash flow positive in Denver within 150 days from launching the pharmacy. We look forward to continuing to build upon our recent success and demonstrate further growth and profitability over the remainder of 2014 and into 2015."

Financial Results:
Second Quarter 2014 Compared to Second Quarter 2013
For the second quarter of 2014, revenues increased 58% to $2,177,197, from $1,380,955 in the second quarter of 2013. This increase in revenue is primarily due to our streamlining our business in the summer of 2014 and focusing on our Seattle and Kansas City locations, which resulted in increased prescriptions and prices. Sales per prescription dispensed by our pharmacies was approximately $143 per prescription for the three months ended June 30, 2014, a 43% increase from approximately $100 per prescription for the three months ended June 30, 2013. The increase in our sales per prescription dispensed is primarily attributable to a shift in prescription mix from lower priced generic medications to higher priced brand medications. The number of prescriptions dispensed by our pharmacies was 15,193 for the three months ended June 30, 2014, compared to 13,754 for the three months ended June 30, 2013. We attribute the increase in prescription volumes to the opening of our pharmacy in the Denver, Colorado metropolitan area and improved inventory purchasing. The number of patients serviced by our pharmacies was 7,963 for the three months ended June 30, 2014 compared to 7,248 patients for the three months ended June 30, 2013.

Total gross profit increased to $411,336, or approximately 18.9% of sales, for the three months ended June 30, 2014. This is an increase from a gross profit of $320,530, or approximately 23.2% of sales for the three months ended June 30, 2013. The decrease in the gross profit percentage for the three months ended June 30, 2014, when compared to the prior fiscal three months, is primarily attributable to a shift in prescription mix.

Operating loss for the second quarter of 2014 was $554,737, an improvement of $433,689 from $988,426 in the second quarter of 2013. Net loss for the three months ended June 30, 2014 was $548,254, compared to a net loss of $1,847,522 for the three months ended June 30, 2013. The decrease in net loss was primarily attributable to a decrease in operating expenses of $342,883 and a decrease in the loss on discontinued operations, net of tax of $489,904 and to a lesser extent, a decrease in other expenses of $111,882 and an increase in gross profit of $90,806. The resulting EPS was ($0.05), versus ($0.32) in the comparable quarter a year earlier. The decrease to the net loss per common share was primarily attributable to a $1,299,269 decrease in the net loss applicable to common stock and an increase in the weighted average number of common shares outstanding to 11,503,294 for the three months ended June 30, 2014, from 5,817,053 for the three months ended June 30, 2013.

Year-to-Date 2014 Compared to Year-to-Date 2013
Total revenues reported for the six months ended June 30, 2014 was $3,797,389, a 24% increase from $3,073,500 for the six months ended June 30, 2013. Sales per prescription dispensed by our pharmacies was approximately $138 per prescription for the six months ended June 30, 2014, a 24% increase from approximately $111 per prescription for the six months ended June 30, 2013. The increase in our sales per prescription dispensed is primarily attributable to a shift in prescription mix from lower priced generic medications to higher priced brand medications. The number of prescriptions dispensed by our pharmacies was 27,582 for the six months ended June 30, 2014 compared to 27,582 for the six months ended June 30, 2013. The number of patients serviced by our pharmacies was 14,517 for the six months ended June 30, 2014 compared to 14,256 patients for the six months ended June 30, 2013.

Total gross profit increased to $747,714, or approximately 19.7% of sales, for the six months ended June 30, 2014. This is an increase from a gross profit of $695,152 or approximately 22.6% of sales for the six months ended June 30, 2013. The decrease in the gross profit percentage for the six months ended June 30, 2014, when compared to the prior fiscal six months, is primarily attributable to a shift in prescription mix.

Operating loss for the six months ended June 30, 2014 was $1,105,258, an improvement of $553,625 from $1,658,883 for the six months ended June 30, 2013. Net loss for the six months ended June 30, 2014 was $673,512, compared to a net loss of $2,980,535 for the six months ended June 30, 2013. The decrease in net loss was primarily attributable to a decrease in other expenses of $1,003,009 and to a lesser extent, a decrease in operating expenses of $501,063, a decrease in the loss on discontinued operations, net of tax of $487,753 and an increase in gross profit of $52,562. The resulting EPS was ($0.12), versus ($0.56) in the comparable quarter a year earlier. The decrease to net loss per common share was primarily attributable to a $1,644,966 increase in net loss applicable to common stock and an increase in the weighted average number of common shares outstanding to 11,414,481 for the six months ended June 30, 2014, from 5,361,577 for the six months ended June 30, 2013.

About Assured Pharmacy, Inc.
Assured Pharmacy, Inc. is a pharmacy service company that specializes in safe and compliant dispensing of controlled substances for physicians to optimize outcomes for suffers of chronic pain, controlled medications, and other complex health conditions. Through its network of pharmacies, the Company predominantly dispenses prescription medications to sufferers of chronic pain, while stringently adhering to federal and state reporting requirements for both patients and physicians. The majority of the Company's business is derived from repeat visits from its customer base of physician-referred chronic patients. The Company currently has three operating pharmacies, which are wholly owned. Learn more about Assured Pharmacy, Inc. at www.AssuredRxServices.com

Forward-Looking Statements
Forward-Looking Statements. This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words "believe," "anticipate," "estimate," "expect," "intend," "plan," "project," "prospects," "outlook," and similar words or expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could" are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company's forward-looking statements, please see the Company's Annual Report on Form 10-K for the year ended December 31, 2013, including but not limited to the discussion under "Risk Factors" therein, which the Company has filed with the SEC and which may be viewed at http://www.sec.gov.

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