Healthier Choices Management Corp. Reports Second Quarter 2021 Financial Results
08/10/2021 | 04:31pm EDT
Delivered strong results with an Adjusted EBITDA improvement of 20% year-over-year
AchievedSales Growth and a 7% gain in Gross Profits for the same period last year
HOLLYWOOD, FL, Aug. 10, 2021 (GLOBE NEWSWIRE) -- Healthier Choices Management Corp.(OTC Pink:HCMC) today announced its financial results for the three-month period ended June 30, 2021, and the year-to-date six-month period ended June 30, 2021.
Second Quarter 2021 Results and Year-to-Date Highlights:
Gross profit from operations increased by approximately $90,000 for the three-month period ended June 30, 2021; amounting to $1.5 million, compared to $1.4 million for the same period last year; a 7% increase. For the six-month period ended June 30, 2021, gross profit amounted to $3.0 million versus $3.1 million for the same period last year, a decrease of $127,000.
Net loss from operations for the three-months period ended June 30, 2021, was approximately $685,000 compared to $795,000; an improvement of approximately $110,000 or 14% from the same period last year. For the six-month period ended June 30, 2021, net loss from continuing operations amounted to $1.2 million versus $1.5 million; an improvement of approximately $242,000 or 17% from the same period last year.
Adjusted EBITDA for the three-month period ended June 30, 2021 improved by approximately $136,000 or 20% compared to the same period last year. Adjusted EBITDA for the six-month period ended June 30, 2021, improved by approximately $177,000 or 16% versus the same period last year.
Jeffrey Holman, Chairman and Chief Executive Officer of Healthier Choices Management Corp., said, “We are both pleased and proud of our performance in the second quarter. Our team delivered gross profit growth as well as a noteworthy improvement in our adjusted EBITDA results for the quarter.”
Mr. Holman went on to comment, “Our strategic vision for our company remains clear, and with our strong cash position we are excited at the prospect of utilizing a portion of the proceeds from our recent capital raise to implement our growth initiatives.”
Mr. Holman concluded, “The progress to date, including our solid second quarter results, gives us continued belief in our direction. Importantly, we are committed to building a nimble and scalable business model to support long-term, sustainable growth for Healthier Choices Management Corp.”
About Healthier Choices Management Corp.
Healthier Choices Management Corp. (www.healthiercmc.com) is a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives. Through its wholly owned subsidiary HCMC Intellectual Property Holdings, LLC, the Company manages and intends to expand on its intellectual property portfolio. The Company currently operates six 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 its website TheVitaminStore.com. The Company markets its Q-Cup™ technology under the vape segment. This patented technology is based on a small, quartz cup called the Q-Cup™, which a customer can purchase already filled by a third party in some regions or can partially fill themselves with either cannabis or CBD concentrate (approximately 50mg), also purchased from a third party. The Q-Cup™ can then be inserted into the patented Q-Unit™, which heats the cup from the outside without coming in direct contact with the solid concentrate. This Q-Cup™ and Q-Unit™ technology provides significantly more efficiency and an “on the go” solution for consumers who prefer to vape concentrates either medicinally or recreationally. The Q-Cup™ can also be used in other devices as a convenient micro-dosing system. These products are available on the Company’s website at www.TheQcup.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 (SEC) 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.
Factors that may affect our future results of operations and financial condition include, but are not limited to, fluctuations in demand for our products, the introduction of new products, our ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of our liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in our filings with the SEC.
The following discussion and analysis contain 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 from depreciation and amortization and stock compensation. Management believes Adjusted EBITDA is an important measure of our operating performance because it allows management, investor, 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 definition being used and to the reconciliation between such measures and the corresponding GAAP measure provided by each company under applicable rules of the Securities and Exchange Commission (“SEC”).