TYSONS CORNER, VA--(Marketwired - Aug 18, 2014) - ScripsAmerica Inc. (OTCBB: SCRC), today commented on the Company's recent 10-Q filing for the second quarter ended June 30, 2014.
ScripsAmerica reported $3,700,721 in Total Net Revenue during the three months ended June 30, 2014 compared to $91,628 reported during the same period in 2013, marking an increase of $3,609,093 in quarterly revenue YoY. The Company's Total Net Revenue from operations during the six months ended June 30, 2014 as reported in the 'Statement of Operations' in the Company's latest 10-Q filing was $4,524,580 compared to $379,001 over the same six-month period in 2013, marking an increase of over 1,000%.
Second quarter Gross Profit less "Selling, General and Administrative Expenses" and before the value of stock paid for services for ScripsAmerica was a positive $13,058. ScripsAmerica's Gross Profit for the six month period ended June 30, 2014 was approximately $3,921,000 which was 87% of net sales as compared to a gross profit loss of approximately $15,000 for the same period in 2013, an increase of approximately $3,936,000.
As noted on page 39 of the Company's most recent 10-Q, the Company attributes its increase in gross profit from 2014 to 2013 to its management of the specialty pharmacy business which generated significant sales in the first six months of 2014 and also has a gross margin percentage that ranges from 75% to 90%.
Revenue generated for the 6 months ending June 30, 2014 from ScripsAmerica's Joint Government contract and its Pharmaceutical Partner listed on page 11 under #4 Revenues Net, Products Sold, Gross Revenue was $7,206,843 vs. $3,249,225 for the six months ended June 30, 2013. This increase of $3,957,618 represents a 122% gain in 2014 over 2013. However, due to financial reporting requirements, the Company can report only the Net Profits from the Joint Government contract and its Pharmaceutical Partner and not the top line revenue.
For the six month period ended June 30, 2014, General and Administrative Expenses (G&A) were approximately $1,679,000 compared to approximately $3,267,000 for the same six-month period in 2013, representing a decrease of 49% YoY.
Commenting on ScripsAmerica's first quarter results, CEO Bob Schneiderman stated, "ScripsAmerica is pleased to report significant revenue growth during the second quarter. As always, we wish to remind the investment community that the Company's necessary accounting method has a significant impact on the reportable revenues from our government joint venture. The Company experienced tremendous growth primarily fueled by our managed specialty pharmacy which has seen increasing sales. We expect to see continued revenue growth throughout 2014 which we believe will lead to increased shareholder value moving forward."
About ScripsAmerica, Inc.
ScripsAmerica, Inc. is a supplier of prescription, OTC and nutraceutical drugs, delivering pharmaceutical products to a wide range of end users across the health care industry. End users include retail pharmacies, hospitals, long-term care facilities and government and home care agencies. For more information, visit www.ScripsAmerica.com.
Safe Harbor Statement
This release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions, sector changes and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success; the level of expenditures necessary to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, including codes and standards, intellectual property rights, and tax matters; or other matters not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether a result of new information, future events or otherwise.