Healthier Choices Management Corp

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

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

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, FL, March 28, 2019 / — 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:

Consolidated Balance Sheets

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

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 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 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”). The table above presents a reconciliation of Adjusted EBITDA to loss from operations, a GAAP financial measure:

About Healthier Choices Management Corp.

Healthier Choices Management Corp. is a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives.  One segment of our business is our natural and organic grocery operations.  Another segment is a U.S. based retailer of vaporizers and e-liquids.  HCMC sells direct to consumer via company-owned brick-and-mortar retail locations operating under "Ada's Natural Market," “Paradise Health and Nutrition-Health Markets” and "The Vape Store" brands.  The newest emerging source of revenue for HCMC is our technology and IP to the cannabis and CBD market.

Healthier Choices Management Corp. Inc. (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, thewords "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 United States Securities and Exchange Commission.

Contact Information: 
Healthier Choices Management Corp. 
3800 North 28TH Way, #1 Hollywood, FL 33020
Office: 305-600-5004 / Fax: 954-272-7773

Larry Markx