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Healthier Choices Management Corp. Reports Fourth Quarter 2018 Financial Results and Full Year Fiscal 2018 Results

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Fourth Quarter Adjusted EBITDA Profit of $409k, Resulting in nearly a $1 million Improvement; Year-Over-Year

Fourth Quarter and Full Year Fiscal 2018 Sales Increase of 48% and 13% respectively; Year-Over-Year

Fourth Quarter and Full Year Fiscal 2018 Gross Profit Increase of 80% and 14% respectively; Year-Over-Year

HOLLYWOOD, Fla., March 28, 2019 (GLOBE NEWSWIRE) -- Healthier Choices Management Corp. (OTC Pink:  HCMC) today announced financial results for the fourth quarter and the year ended December 31, 2018.

Fourth Quarter and Full Year Fiscal 2018 Results and Recent Highlights:

  • Net sales from continued operations for the year ended December 31, 2018 amounted to $14.6 million, compared to $12.9 million, a $1.7 million increase during the same period last year; for the fourth quarter net sales amounted to $4.7 million, versus $3.1 million for the same period last year.
  • Gross profit from continued operations increased by approximately $1.2 million for the fourth quarter, amounting to $2.7 million, compared to $1.5 million for the same period last year; gross profit rose to roughly $7.2 million for the year ended December 31, 2018, versus $6.3 million for the same period last year.
  • Net loss from continuing operations for the year ended December 31, 2018 amounted to approximately $13.1 million which was due primarily to the non-cash elimination of the Series A warrants which amounted to $10.7 million.
  • Adjusted EBITDA for the fourth quarter amounted to a profit of roughly $0.4 million an improvement of approximately $1 million compared to the same period in 2017; for the full year ended December 31, 2018 adjusted EBITDA improved $1.5 million in comparison to the full year ended December 31, 2017.

Jeffrey Holman, Chairman and Chief Executive Officer of Healthier Choices Management Corp., said, "We are delighted with our performance in the fourth quarter and especially proud of our remarkable improvement in our adjusted EBITDA results. The progress we have made in revenue growth and profitability is largely attributable to our team's ability to execute on the strategic vision for our company; the strategy of simplifying our structure and sharpening our focus is paying-off. Finally, we are hopeful that our efforts to increase the company's value will start to translate into an increase in shareholder value."

Results of Operations

The following table sets forth our Condensed Consolidated Statements of Continuing Operations for the Quarter and Twelve-months ended December 31, 2018 and 2017:

 
HEALTHIER CHOICES MANAGEMENT CORP.
 CONSOLIDATED STATEMENTS OF OPERATIONS
       
  Three Months Ended   Twelve Months Ended
  December 31,   December 31,
  2018   2017
  2018
  2017
Total sales, net $4,731,239   $3,187,123   $14,647,040   $12,948,144
               
Total cost of sales 2,028,792   1,686,064   7,482,153   6,682,314
               
GROSS PROFIT 2,702,447   1,501,059   7,164,887   6,265,830
               
Total operating expenses 2,812,648   4,273,031   10,146,813   16,555,638
               
LOSS FROM OPERATIONS (110,201)   (2,771,972)   (2,981,926)   (10,289,808)
               
Total other income (expense), net (29,539)   185,710   (10,181,335)   133,446
               
NET LOSS FROM CONTINUING OPERATIONS $(139,740)   $(2,586,262)   $(13,163,261)   $(10,156,362)
               
               

See non-GAAP financial measure discussion

  Three Months Ended   Twelve Months Ended
  December 31,   December 31,
  2018   2017   2018   2017
               
Adjusted EBITDA              
Loss from operations $(110,201)   $(2,771,972)   $(2,981,926)   $(10,289,808)
Depreciation and amortization 105,960   89,191   375,690   350,647
Stock compensation 413,550   2,158,341   1,712,412   7,496,849
Adjusted EBITDA $409,309   $(524,440)   $(893,824)   $(2,442,312)
               
               

Consolidated Balance Sheets

The following table sets forth our Condensed Consolidated Balance Sheets for the periods ended December 31, 2018 and December 31, 2017:

HEALTHIER CHOICES MANAGEMENT CORP.
CONSOLIDATED BALANCE SHEETS
       
  December 31 , 2018   December 31, 2017
       
ASSETS      
CURRENT ASSETS      
Cash and cash equivalents $7,061,253   $7,883,191
Other current assets 2,442,405   1,070,619
TOTAL CURRENT ASSETS 9,503,658   8,953,810
       
Other assets 5,669,005   2,747,595
       
TOTAL ASSETS $15,172,663   $11,701,405
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
CURRENT LIABILITIES      
Other current liabilities $3,894,732   $1,014,951
Derivative liabilities – warrants 1,722,928   10,231,697
TOTAL CURRENT LIABILITIES 5,617,660   11,246,648
       
Other liabilities 1,128,234   10,459
       
TOTAL LIABILITIES 6,745,894   11,257,107
       
TOTAL STOCKHOLDERS' EQUITY 8,426,769   444,298
       
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $15,172,663   $11,701,405
   
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