HOLLYWOOD, FL, March 31, 2022 (GLOBE NEWSWIRE) -- Healthier Choices Management Corp. (OTC Pink: HCMC) today announced its financial results for the fourth quarter and the year ended December 31, 2021.
Fourth Quarter and Full Year Fiscal 2021 Results and Recent Highlights:
- Total Current Assets for the year ended December 31, 2021, amounted to $28.8 million, compared to $3.0 million, a $25.8million increase when compared to December 31, 2020. Total Current Liabilities for the year ended December 31, 2021, amounted to $2.5 million, compared to $5.7 million, a $3.2 million decrease when compared to December 31, 2020. As a result, the Working Capital improved by roughly $29 million.
- Net sales from operations for the year ended December 31, 2021, amounted to $13.3 million, compared to $13.9 million, a $0.6 million decrease during the same period last year; for the fourth quarter net sales amounted to $3.2 million, the same as the comparable period of 2020. The annual decrease in sales is attributable to the strategic downsizing of the vape segment, which accounted for $0.4 million of the total $0.6 million decline.
- Gross profit from operations decreased by approximately $0.3 million for the fourth quarter of 2021, amounting to $1.0 million, compared to $1.3 million for the same period last year of 2020; gross profit decreased to $5.3 million for the year ended December 31, 2021, versus $5.8 million for the same period of 2020.
- Net loss from operations for the year ended December 31, 2021, amounted to approximately $4.0 million versus $3.7 million for the same period last year.
Jeffrey Holman, Chairman and Chief Executive Officer of HCMC, said, "Our results reflect our strategic decision to close underperforming vape stores, coupled with the challenges our operations faced in the global supply chain. In spite of this we finished the year strong with a fourth quarter that matched our 2020 results. We remain steadfast in evolving the business as evidenced by our February 2022 acquisition of Mother Earth's Storehouse, which we anticipate roughly doubling our top line revenue in 2022 based on historical performance, as well as the Healthy Choice Wellness Center licensing agreement with the Casbah Spa and Salon in Fort Lauderdale. We are still seeking strategic acquisitions and are continuing our efforts in opening new Healthy Choice Wellness Centers."
Mr. Holman concluded, "Our team remains focused on the commitment to improve the fundamentals of the company and building a nimble and scalable business model to support long-term, sustainable growth for Healthier Choices Management Corp. Although the process has to be a deliberate and lengthy one, we are continuing to explore alternative ways to address the capital structure of the Company in a manner that will be meaningful to our shareholders."
Results of Operations
The following table sets forth our Condensed Consolidated Statements of Operations for the Quarter and twelve-months ended December 31, 2021 and 2020:
| HEALTHIER CHOICES MANAGEMENT CORP. | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Total sales, net | $ | 3,198,701 | $ | 3,227,869 | $ | 13,319,854 | $ | 13,920,745 | ||||||||
| Total cost of sales | 2,236,900 | 1,893,951 | 8,027,300 | 8,143,524 | ||||||||||||
| GROSS PROFIT | 961,801 | 1,333,918 | 5,292,554 | 5,777,221 | ||||||||||||
| Total operating expenses | 3,433,824 | 2,109,133 | 10,033,048 | 9,225,593 | ||||||||||||
| LOSS FROM OPERATIONS | (2,472,023 | ) | (775,215 | ) | (4,740,494 | ) | (3,448,372 | ) | ||||||||
| Total other income (expense), net | 1,039 | (136,239 | ) | 703,035 | (274,020 | ) | ||||||||||
| NET LOSS FROM CONTINUING OPERATIONS | $ | (2,470,984 | ) | $ | (911,454 | ) | $ | (4,037,459 | ) | $ | (3,722,392 | ) | ||||
| See non-GAAP financial measure discussion | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Adjusted EBITDA | ||||||||||||||||
| Loss from operations | $ | (2,472,023 | ) | $ | (775,215 | ) | $ | (4,740,494 | ) | $ | (3,448,372 | ) | ||||
| Impairment of goodwill and intangible assets | - | - | - | 380,646 | ||||||||||||
| Depreciation and amortization | 117,870 | 126,078 | 497,408 | 550,098 | ||||||||||||
| Stock compensation | - | 1,875 | 34,375 | 78,029 | ||||||||||||
| Adjusted EBITDA | $ | (2,354,153 | ) | $ | (647,262 | ) | $ | (4,208,711 | ) | $ | (2,439,599 | ) | ||||
Consolidated Balance Sheets:
The following table sets forth our Condensed Consolidated Balance Sheets for the periods ended December 31, 2021 and December 31, 2020:
| HEALTHIER CHOICES MANAGEMENT CORP. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| December 31 , 2021 | December 31 , 2020 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 26,496,404 | $ | 925,475 | ||||
| Other current assets | 2,277,135 | 2,081,717 | ||||||
| TOTAL CURRENT ASSETS | 28,773,539 | 3,007,192 | ||||||
| Other assets | 5,669,948 | 8,867,801 | ||||||
| TOTAL ASSETS | $ | 34,443,487 | $ | 11,874,993 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Other current liabilities | $ | 2,523,994 | $ | 5,654,095 | ||||
| TOTAL CURRENT LIABILITIES | 2,523,994 | 5,654,095 | ||||||
| Other liabilities | 2,685,836 | 3,963,530 | ||||||
| TOTAL LIABILITIES | 5,209,830 | 9,617,625 | ||||||
| TOTAL STOCKHOLDERS' EQUITY | 29,233,657 | 2,257,368 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 34,443,487 | $ | 11,874,993 | ||||
Non-GAAP – Financial Measure
The following discussion and analysis contain a non-GAAP financial measure. A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (GAAP). Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternative to, net income, operating income, and cash flow from operating activities, liquidity, or any other financial measures. Non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future financial results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.
Management believes stockholders benefit from referring to the Adjusted EBITDA in planning, forecasting, and analyzing future periods. Management uses this non-GAAP financial measure in evaluating its financial and operational decision making and as a means of evaluating period to period comparison.
We define Adjusted EBITDA as net loss from operations adjusted for non-cash charges from depreciation and amortization and stock compensation. Management believes Adjusted EBITDA is an important measure of our operating performance because it allows management, investor, and analysts to evaluate and assess our core operating results from period to period after removing the impact of significant non-cash charges that effect comparability between reporting periods. Our management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items.
We have included a reconciliation of our non-GAAP financial measure to loss from operations as calculated in accordance with GAAP. We believe that providing the non-GAAP financial measure, together with the reconciliation to GAAP, helps investors make comparisons between the Company and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to specific definition being used and to the reconciliation between such measures and the corresponding GAAP measure provided by each company under applicable rules of the Securities and Exchange Commission.
About Healthier Choices Management Corp.
Healthier Choices Management Corp. (www.healthiercmc.com) is a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives.
Through its wholly owned subsidiary HCMC Intellectual Property Holdings, LLC, the Company manages and intends to expand on its intellectual property portfolio.
Through its wholly owned subsidiaries, Healthy Choice Markets, Inc., Healthy Choice Markets 2, LLC, and Healthy Choice Markets 3, LLC, respectively, the Company operates:
- Ada's Natural Market, a natural and organic grocery store offering fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products and natural household items (www.Adasmarket.com)
- Paradise Health & Nutrition's three stores that likewise offer fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products and natural household items, (www.ParadiseHealthDirect.com)
- Mother Earth's Storehouse, a two store organic and health food and vitamin chain in New York's Hudson Valley, which has been in existence for over 40 years. (www.MotherEarthStorehouse.com)
Through its wholly owned subsidiary, Healthy Choice Wellness, LLC, the Company operates:
- Healthy Choice Wellness Center (Roslyn Heights, NY) a corporately owned IV therapy center offering multiple IV drip "cocktails" for clients to choose from. These cocktails are designed to help boost immunity, fight fatigue and stress, reduce inflammation, enhance weight loss, and efficiently deliver anti-oxidants and anti-aging mixes. Additionally, there are cocktails for health, beauty and re-hydration. (www.Eirhydration.com, though rebranded website www.HealthyChoiceWellness.com)
- The Company also has a licensing agreement for a Healthy Choice Wellness Center at the Casbah Spa and Salon in Fort Lauderdale, FL, offering essentially the same services as the Roslyn Heights, NY location. (Grand Opening and Website www.HealthyChoiceWellness.com)
Through its wholly owned subsidiary, Healthy U Wholesale, the Company sells vitamins and supplements, as well as health, beauty and personal care products on its website www.TheVitaminStore.com.
Additionally, the Company markets its patented Q-Unit™ and Q-Cup® technology. Information on these products and the technology is available on the Company's website at www.theQcup.com.
Forward Looking Statements.
This press release contains forward looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission (SEC) or otherwise. Statements contained in this press release that are not historical facts are forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are based on management's estimates, assumptions and projections and are not guarantees of future performance. The Company assumes no obligation to update these statements. Forward looking statements may include, but are not limited to, projections or estimates of revenue, income, or loss, exit costs, cash flow needs and capital expenditures, statements regarding future operations, expansion or restructuring plans, including our recent exit from, and winding down of our wholesale distribution operations. In addition, when used in this release, the words "anticipates," "believes," "estimates," "expects," "intends," and "plans" and variations thereof and similar expressions are intended to identify forward looking statements.
Factors that may affect our future results of operations and financial condition include, but are not limited to, fluctuations in demand for our products, the introduction of new products, our ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of our liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in our filings with the SEC.
Contact Information:
Healthier Choices Management Corp.
3800 North 28TH Way, #1 Hollywood, FL 33020
305-600-5004
Email: ir@hcmc1.com
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