Market Overview

HealthWarehouse.com Reports Results for Second Quarter 2018

Share:

Online mail-order pharmacy exceeds 100,000 prescription volume for first
time in history

HealthWarehouse.com, Inc. (OTC:HEWA) has announced today that its core
consumer prescription sales for the second quarter ended June 30, 2018,
increased 7% to $3,085,031 compared to $2,880,563 for the second quarter
of 2017. Overall revenues declined by 1.3% to $3,850,691 compared to
$3,901,841 for the second quarter of 2017 as a result of regulatory
requirements that negatively impacted over-the-counter sales for the
period.

HealthWarehouse.com is a Verified Internet Pharmacy Practice Sites
(VIPPS) accredited online and mail-order pharmacy licensed and/or
authorized to sell and deliver prescriptions to all 50 states. The
Company attributed its 2018 second-quarter growth in prescription sales
to strong customer retention and targeted advertising campaigns, which
benefited from a positive article published in a leading consumer
magazine in April 2018.

"We achieved another company milestone, processing over 100,000
prescriptions this quarter as we continue to provide an affordable
option for consumers to purchase their prescription medication. Along
with the growth in patients and prescription fills, we are proud to
announce another quarter of sales growth in our core consumer
prescription business. This prescription sales growth was achieved
alongside substantial prescription price reductions," said Joseph
Peters, the Company's President and CEO.

"During the quarter, we also completed the installation of our $1.1
million robotics equipment. In the short time that the equipment has
been operational, we have realized increased throughput, improved
quality control and operating efficiencies resulting in lower
fulfillment costs," Peters added. "We believe our investments in
automation and marketing initiatives during the first half of 2018
position us well for the future. Our team remains dedicated to providing
our patients with excellent pharmacy experiences through compassion,
convenience and transparency."

The Company reported a net loss of $493,280 for the six months ended
June 30, 2018, compared to net income of $487,149 for the same period in
2017.

In the three and six months ended June 30, 2018, Adjusted EBITDA was
$77,122 and $(85,152), respectively, as compared to Adjusted EBITDA of
$403,372 and $636,269, respectively, for the three and six months ended
June 30, 2017. Adjusted EBITDA is a non-GAAP financial measure.
Definitions and reconciliations to GAAP measures are provided below.

2018 Overview:

Net Sales: Core consumer prescription sales were $3,085,031 for
the three months ended June 30, 2018, as compared to $2,880,563 for the
same period of 2017, an increase of $204,468, or 7%. For the six months
ended June 30, 2018, core consumer prescription sales were $5,897,810,
an increase of $407,970, or 7%, over the $5,489,840 of sales reported
for the same period in 2017. The sales growth was achieved despite
substantial prescription price reductions.

The number of prescriptions shipped for the three and six months ended
June 30, 2018, was 100,499 and 192,733, representing increases of 11,062
(12%) and 21,106 (12%), respectively, compared to the prior-year
periods. Over-the-counter product net sales were $672,274 for the three
months ended June 30, 2018, a decrease of $196,503, or 23% from $868,777
in the comparable period in 2017. For the six months ended June 30,
2018, over-the-counter product sales were $1,346,073, a $170,149 or 11%
decrease from $1,516,221 of sales reported for the same period in 2017.
The decline in over-the-counter product sales was directly attributable
to additional regulatory requirements imposed on the sale of certain
products, which mandated the receipt of personal documentation to
process the sale.

Gross Profit: Gross profit for the three and six months ended
June 30, 2018, was $2,453,243 and $4,815,211, resulting in decreases of
$125,458 and $63,258, respectively, as compared to the same periods of
2017. The decreases are due to the decline in over-the-counter sales and
prescription pricing reductions.

SG&A Expenses: SG&A expenses were $2,539,943 and $5,184,346
for the three and six months ended June 30, 2018, resulting in increases
of $354,073 (16%) and $845,032 (19%), respectively, compared to the same
periods of 2017. Increases in 2018 resulted primarily from
volume-related expenses such as increased staffing, freight costs and
payment processing fees, and marketing and advertising expenses.

     
HEALTHWAREHOUSE.COM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
Three Months Ended Six Months Ended
June 30, June 30,
2018 2017 2018 2017
 
Net sales $ 3,850,691 $ 3,901,841 $ 7,435,302 $ 7,282,305
 
Cost of sales   1,397,448     1,323,140     2,620,091     2,403,836  
 
Gross profit 2,453,243 2,578,701 4,815,211 4,878,469
 
Selling, general and administrative expenses   2,539,943     2,185,870     5,184,346     4,339,314  
 
Net income (loss) from operations (86,700 ) 392,831 (369,135 ) 539,155
 
Interest expense   65,829     27,413     124,145     52,006  
- -
Net income (loss) (152,529 ) 365,418 (493,280 ) 487,149
 
Preferred stock:

Series B convertible contractual dividends

  (85,558 )   (91,548 )   (171,116 )   (183,093 )
 

 

View Comments and Join the Discussion!