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Healthier Choices Management Corp. Reports Third Quarter 2019 Financial Results

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Achieved Notable Improvement in Sales of 13% ; Year-Over-Year

HOLLYWOOD, FL, Oct. 29, 2019 (GLOBE NEWSWIRE) -- Healthier Choices Management Corp. (OTC:HCMC) today announced financial results for the three-month period ended September 30, 2019.

Third Quarter 2019 Results and Year-to-Date Highlights:

  • Net sales from operations for the three-month period ended September 30, 2019 amounted to $3.4 million, compared to $3.0 million during the same period last year - a 13% increase. For the nine-month period ended September 30, 2019, net sales amounted to $11.6 million versus $9.9 million for the same period last year; an increase of $1.7 million.
     
  • Gross profit from operations increased by approximately $16,000 for the three-month period ended September 30, 2019 amounting to $1.4 million. For the nine-month period ended September 30, 2019, gross profit amounted to $5.0 million versus $4.5 million for the same period last year; an increase of approximately $506,000.
     
  • Net loss from continuing operations for the three-months ended September 30, 2019 was approximately $1.2 million compared to $11.3 million for the same period in 2018; last year's loss was primarily attributable to the non-cash elimination of the Series A warrants which amounted to $10.7. million . For the nine-month period ended September 30, 2019, net loss from continuing operations amounted to $3.2 million versus $13.0 million for the same period last year; again, due to the non-cash elimination of the Series A warrants which amounted to $10.7 million

Jeffrey Holman, Chairman and Chief Executive Officer of Healthier Choices Management Corp., said, "We remain focused on continuing to generate operational efficiencies which in turn have resulted in continued growth. This is evidenced by our revenue growth and strong gross margins. We continue to prioritize the re-creation of shareholder value and are very excited about the remainder of 2019 and as we continue to further develop our technologies."

About Healthier Choices Management Corp. 

Healthier Choices Management Corp. (the "Company") is a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives. The Company currently operates nine retail vape stores in the Southeast region of the United States, through which it offers e-liquids, vaporizers and related products. The Company also operates Ada's Natural Market, a natural and organic grocery store, through its wholly owned subsidiary Healthy Choice Markets, Inc. and Paradise Health and Nutrition, stores that 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 through its wholly owned subsidiary Healthy Choice Markets 2, LLC. The Company also sells vitamins and supplements on the Amazon.com marketplace through its wholly owned subsidiary Healthy U Wholesale, Inc. The Company markets the Q-Cup™ technology under the vape segment; this patented technology is based on a small, quartz cup called the Q-Cup™, which a customer partially fills with either cannabis or CBD concentrate (approximately 50mg) purchased from a third party. The Q-Cup™ is then inserted into the Q-Cup™ Tank or Globe, that heats the cup from the outside without coming in direct contact with the solid concentrate. This Q-Cup™ technology provides significantly more efficiency and an "on the go" solution for consumers who prefer to vape concentrates either medicinally or recreationally.
Healthier Choices Management Corp. Inc. (http://www.healthiercmc.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 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.
Other factors that may affect our future results of operations and financial condition include, but are not limited to, unanticipated developments in any one or more of the following areas, as well as other factors which may be detailed from time to time in our Securities and Exchange Commission filings: risks involved with our business, including possible loss of business and customer dissatisfaction


Results of Operations

The following table sets forth our Condensed Consolidated Statements of Continuing Operations for the Quarter and Nine -months ended September 30, 2019 and 2018:

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

    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2019     2018     2019     2018  
Total sales, net   $ 3,418,330     $ 3,030,474     $ 11,615,449     $ 9,915,801  
                                 
Total cost of sales     2,015,188       1,643,681       6,647,122       5,453,361  
                                 
GROSS PROFIT     1,403,142       1,386,793       4,968,327       4,462,440  
                                 
Total operating expenses     2,532,505       2,179,492       8,057,452       7,334,165  
                                 
LOSS FROM OPERATIONS     (1,129,363 )     (792,699 )     (3,089,125 )     (2,871,725 )
                                 
Total other income (expense), net     (20,940 )     (10,502,057 )     (78,021 )     (10,151,796 )
                                 
NET LOSS FROM CONTINUING OPERATIONS   $ (1,150,303 )   $ (11,294,756 )   $ (3,167,146 )   $ (13,023,521 )

See non-GAAP financial measure discussion

    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2019     2018     2019     2018  
                         
Adjusted EBITDA                                
Loss from operations   $ (1,129,363 )   $ (792,699 )   $ (3,089,125 )   $ (2,871,725 )
Depreciation and amortization     146,794       92,258       449,071       269,730  
Stock compensation     147,570       140,356       343,824       1,298,862  
Adjusted EBITDA   $ (834,999 )   $ (560,085 )  
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