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Healthier Choices Management Corp. Reports First Quarter 2019 Financial Results

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Delivered Strong Sales Results With First Quarter Improvement of 21% Year-Over-Year

First Quarter Gross Profit Increase of 16% Year-Over-Year

HOLLYWOOD, Fla., May 15, 2019 (GLOBE NEWSWIRE) -- Healthier Choices Management Corp. (OTC Pink:  HCMC) today announced financial results for the three-month period ended March 31, 2019.

First Quarter 2019 Results:

  • Net sales from continuing operations for the three-month period ended March 31, 2019 amounted to $4.4 million, compared to $3.6 million during the same period last year -- a 21% increase.
     
  • Gross profit from continuing operations increased by approximately $258,000 for the three-month period ended March 31, 2019 amounting to $1.90 million, compared to $1.64 million for the same period last year -- a 16% increase.
  • Net loss from continuing operations for the three-months ended March 31, 2019 was approximately $1.1 million a reduction of roughly $157,000 for the same period in 2018 -- a 12% improvement.

Jeffrey Holman, Chairman and Chief Executive Officer of Healthier Choices Management Corp., said, "We achieved strong improvement as evidenced by our first quarter results and are seeing continued momentum from our commitment to improving the fundamentals of the business.  Our businesses are now well positioned to continue to build long-term, sustainable growth."

Results of Operations

The following table sets forth our Condensed Consolidated Statements of Continuing Operations for the three months ended March 31, 2019 and 2018:


HEALTHIER CHOICES MANAGEMENT CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

    Three Months Ended
March 31,
 
    2019     2018  
Total sales, net   $ 4,380,106     $ 3,607,406  
                 
Total cost of sales     2,477,212       1,962,940  
                 
GROSS PROFIT     1,902,894       1,644,466  
                 
Total operating expenses     2,990,455       3,135,490  
                 
LOSS FROM OPERATIONS     (1,087,561 )     (1,491,024 )
                 
Total other income (expense), net     (24,968 )     221,388  
                 
NET LOSS FROM CONTINUING OPERATIONS   $ (1,112,529 )   $ (1,269,636 )
                 

See non-GAAP financial measure discussion

    Three Months Ended
March 31,
 
    2019     2018  
Adjusted EBITDA                
Loss from operations   $ (1,087,561 )   $ (1,491,024 )
Depreciation and amortization     152,314       87,546  
Stock compensation     113,079       1,071,890  
Adjusted EBITDA   $ (822,169 )   $ (331,588 )
                 

 
Consolidated Balance Sheets

The following table sets forth our Condensed Consolidated Balance Sheets for the periods ended March 31, 2019 and December 31, 2018:


HEALTHIER CHOICES MANAGEMENT CORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

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    March 31, 2019     December 31, 2018  
             
ASSETS            
CURRENT ASSETS                
Cash and cash equivalents   $ 5,994,672     $ 7,061,253  
Other current assets     2,492,792       2,442,405  
TOTAL CURRENT ASSETS     8,487,464       9,503,658  
                 
Other assets     9,534,977       5,669,005  
                 
TOTAL ASSETS   $ 18,022,442     $ 15,172,663  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES                
Other current liabilities   $ 4,212,942     $ 3,894,732  
                 
Derivative liabilities - warrants     1,722,478       1,722,928  
TOTAL CURRENT LIABILITIES     5,935,421       5,617,660  
                 
Other liabilities     4,762,267       1,128,234  
                 
TOTAL LIABILITIES     10,697,688       6,745,894  
                 
TOTAL STOCKHOLDERS' EQUITY     7,324,754       8,426,769  
       
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