PD-Rx Pharmaceuticals posted their 2013 annual report online yesterday. PD-Rx has been receiving some attention this year, and I don’t think this has gone unnoticed at the company since the CEO explicitly welcomes the new shareholders in the annual report. What I found very positive is that this is accompanied by an increased amount of information about the business. The 2013 annual report is the longest one since 2009 (I don’t have access to older versions) and it doesn’t even include the financial statements. Instead they have provided a link to the full audited statements that include all the footnotes.
Compared to SEC-reporting companies the amount of information that PD-Rx provides to it’s investors is of course still limited, but I do think that PD-Rx’s reaction the increased investor interest is very encouraging with respect to the shareholder friendliness of the company.
But what really matters is the financial performance and PD-Rx doesn’t disappoint here. Revenues increased by only 2 percent, but net profit jumped 74 percent from $0.40/share to $0.70/share. The increase in profitability is for a large part attributable to a decrease in SG&A costs of $348,000, and a large part of this amount can be explained by lower shipping costs ($145,000) and lower advertising costs ($33,000). I don’t know if this is sustainable – especially the shipping costs are substantially lower – but it does create a ‘pretty’ picture:
What’s also worth mentioning is that the company bought back 44,609 shares (approximately 2.5% of the outstanding share capital) after the end of the period at an average cost of $2.74/share. I think this is probably a repurchase from an employee that left the company or something similar and I don’t think it really signals anything w.r.t. future capital allocation plans, but it is nevertheless good to see.
Long PD-Rx Pharmaceuticals