HOLLYWOOD, Fla., Oct. 24, 2017 (GLOBE NEWSWIRE) -- Healthier Choices Management Corp. (OTC Pink:HCMC) today announced financial results for the three-month period ended September 30, 2017.
Third Quarter 2017 Results and Year-to-Date Highlights:
- Net sales from continuing operations for the three-month period ended September 30, 2017 amounted to $2.9 million, compared to $3.0 million during the same period last year.
- Adjusted EBITDA for the three-month period ended September 30, 2017 improved by $87,000, or 9%, compared to the same period last year.
- Net sales from continuing operations for the nine-month period ended September 30, 2017 amounted to $4.8 million, compared to $3.7 million during the same period last year; an increase of 32%.
- Adjusted EBITDA for the nine-month period ended September 30, 2017 improved by approximately $3.5 million, or 65%, compared to the same period last year.
Jeffrey Holman, Chairman and Chief Executive Officer of Healthier Choices Management Corp., commented, “We achieved respectable improvement in our bottom-line results during the third quarter despite the impact Hurricane Irma had on our business. I am proud of our team and the extraordinary work they did to get our operations back up and running after the hurricane. Mr. Holman continued, “The performance of our continuing operations highlights the benefits of our new structure and our operational focus. As we enter the fourth quarter of 2017, our businesses are well positioned to build on their operational gains.”
About Healthier Choices Management Corp.
Healthier Choices Management Corp. is a holding company focused on providing consumers healthier daily choices with respect to nutrition and other lifestyle alternatives. One segment of our business is our natural and organic grocery operations in Ft. Myers, Florida. The other segment is a U.S. based retailer of vaporizers and e-liquids. The company sells direct to consumer via company-owned retail locations operating under "Ada's Natural and Organic" and "The Vape Store" brands.
Healthier Choices Management Corp. Inc. (www.Healthier Choices Management Corp.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 quarters and nine months ended September 30, 2017 and 2016:
| HEALTHIER CHOICES MANAGEMENT CORP. | |||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
| (UNAUDITED) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||
| Total sales, net | $ | 2,857,043 | $ | 3,049,618 | $ | 9,748,742 | $ | 7,399,142 | |||||
| Total cost of sales | 1,603,283 | 1,595,462 | 4,996,249 | 3,693,587 | |||||||||
| GROSS PROFIT | 1,253,760 | 1,454,156 | 4,752,493 | 3,705,555 | |||||||||
| Total operating expenses | 4,272,323 | 2,501,564 | 12,282,932 | 9,442,953 | |||||||||
| LOSS FROM OPERATIONS | (3,018,563 | ) | (1,047,408 | ) | (7,530,439 | ) | (5,737,398 | ) | |||||
| Total other income (expense), net | (6,451 | ) | (1,356,606 | ) | (51,940 | ) | (13,274,459 | ) | |||||
| NET LOSS FROM CONTINUING OPERATIONS | $ | (3,025,014 | ) | $ | (2,404,014 | ) | $ | (7,582,379 | ) | $ | (19,011,857 | ) | |
| See non-GAAP financial measure discussion | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||
| Adjusted EBITDA | |||||||||||||
| Loss from operations | $ | (3,018,563 | ) | $ | (1,047,408 | ) | $ | (7,530,440 | ) | $ | (5,737,398 | ) | |
| Depreciation and amortization | 91,016 | 73,690 | 261,456 | 223,772 | |||||||||
| Stock compensation | 2,037,976 | (2,381 | ) | 5,338,508 | 61,794 | ||||||||
| Adjusted EBITDA | $ | (889,571 | ) | $ | (976,099 | ) | $ | (1,930,476 | ) | $ | (5,451,832 | ) | |
Consolidated Balance Sheets
The following table sets forth our Condensed Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016:
| HEALTHIER CHOICES MANAGEMENT CORP. | ||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| September 30, 2017 | December 31, 2016 | |||
| (UNAUDITED) | ||||
| ASSETS | ||||
| CURRENT ASSETS | ||||
| Cash and cash equivalents | $ | 8,231,314 | $ | 13,366,272 |
| Other current assets | 1,132,190 | 950,753 | ||
| TOTAL CURRENT ASSETS | 9,363,504 | 14,317,025 | ||
| Other assets | 2,811,566 | 2,917,726 | ||
| TOTAL ASSETS | $ | 12,175,070 | $ | 17,234,751 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Other current liabilities | $ | 1,123,146 | $ | 1,353,316 |
| Derivative liabilities – non-consenting warrants | 398,952 | 955,173 | ||
| Derivative liabilities – consenting warrants | 9,832,745 | 11,912,906 | ||
| Current liabilities from discontinued operations | - | 555,810 | ||
| TOTAL CURRENT LIABILITIES | 11,354,843 | 14,777,205 | ||
| Other liabilities | 10,997 | - | ||
| TOTAL LIABILITIES | 11,365,840 | 14,777,205 | ||
| COMMITMENTS AND CONTINGENCIES (SEE NOTE 10) | - | - | ||
| TOTAL STOCKHOLDERS’ EQUITY | 809,230 | 2,457,546 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 12,175,070 | $ | 17,234,751 |
Non-GAAP – Financial Measure
The following discussion and analysis contains a non-GAAP financial measure. Generally, 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 for depreciation and amortization and stock compensation. Management believes Adjusted EBITDA is an important measure of our operating performance because it allows management, investors 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 definitions being used and to the reconciliation between such measures and the corresponding GAAP measures provided by each company under applicable rules of the Securities and Exchange Commission.
Contact Information:
Rafael McGuire
M2 Compliance
Rafael@m2compliance.com
(310) 626-0800