HEALTHIER CHOICES MANAGEMENT CORP. -First Quarter Record Sales of $13.6 Million, Up 169%, over Q1 2022
-First Quarter Record Gross Profit of
First Quarter 2023 Results Highlights:
- Net sales from operations for the three-month period ended
March 31, 2023 , amounted to a record$13.6 million , compared to$5.0 million , an approximately$8.5 million and 169% increase versus the same period in 2022. - Gross Profit from operations increased by approximately
$2.9 million for the three-month period endedMarch 31, 2023 , amounting to a record$4.9 million , compared to$2.0 million for the same period in 2022, a 149% year-over-year increase. - Net loss from continuing operations for the three-month period ended
March 31, 2023 , amounted to approximately$2.0 million versus a$1.3 million loss for the same period last year, a 49% increased loss. - Adjusted EBITDA loss amounted to
$1.6 million versus$1.2 million when compared to the same period last year. It should be noted that over$0.3 million in non-recurring expenses were incurred during the three-month period endedMarch 31, 2023 .
Results of Operations
The following table sets forth our Condensed Consolidated Statements of Operations for the three ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended | ||||||||
| 2023 | 2022 | |||||||
| Total sales, net | $ | 13,559,744 | $ | 5,048,553 | ||||
| Total cost of sales | 8,645,353 | 3,076,039 | ||||||
| GROSS PROFIT from Operations | 4,914,391 | 1,972,514 | ||||||
| Total operating expenses | 6,897,438 | 3,327,420 | ||||||
| LOSS FROM OPERATIONS | (1,983,047 | ) | (1,354,906 | ) | ||||
| Total other income (expense), net | 75,746 | 36,991 | ||||||
| NET LOSS from Operations | $ | (1,907,301 | ) | $ | (1,317,915 | ) | ||
| INDUCED CONVERSIONS OF PREFERRED STOCK | (61,000 | ) | - | |||||
| NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (1,968,301 | ) | $ | (1,317,915 | ) | ||
| See non-GAAP financial measure discussion | ||||||||
| Three Months Ended | ||||||||
| 2023 | 2022 | |||||||
| Adjusted EBITDA | ||||||||
| Loss from operations | $ | (1,983,047 | ) | $ | (1,354,906 | ) | ||
| Depreciation and amortization | 373,463 | 193,323 | ||||||
| Stock compensation | 50,000 | - | ||||||
| Adjusted EBITDA | $ | (1,559,584 | ) | $ | (1,161,583 | ) | ||
Consolidated Balance Sheets:
The following table sets forth our Condensed Consolidated Balance Sheets as of
CONDENSED CONSOLIDATED BALANCE SHEETS
| (UNAUDITED) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 19,765,487 | $ | 22,911,892 | ||||
| Other current assets | 7,496,620 | 7,396,588 | ||||||
| TOTAL CURRENT ASSETS | 27,262,107 | 30,308,480 | ||||||
| Other assets | 25,096,666 | 24,946,550 | ||||||
| TOTAL ASSETS | $ | 52,358,773 | $ | 55,255,030 | ||||
| LIABILITIES, CONVERTIBLE STOCK, AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Current liabilities | $ | 9,008,053 | $ | 9,907,366 | ||||
| TOTAL CURRENT LIABILITIES | 9,008,053 | 9,907,366 | ||||||
| Other liabilities | 10,896,472 | 10,419,565 | ||||||
| TOTAL LIABILITIES | 19,904,525 | 20,326,931 | ||||||
| TOTAL CONVERTIBLE STOCK AND STOCKHOLDERS’ EQUITY | 32,454,248 | 34,928,099 | ||||||
| TOTAL LIABILITIES, CONVERTIBLE STOCK, AND STOCKHOLDERS’ EQUITY | $ | 52,358,773 | $ | 55,255,030 | ||||
About Healthier Choices Management Corp.
Through its wholly owned subsidiary
Through its wholly owned subsidiaries, the Company operates:
- Ada’s Natural Market, a natural and organic grocery store offering 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 (www.Adasmarket.com)
- Paradise Health & Nutrition’s three stores that likewise 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, (www.ParadiseHealthDirect.com)
- Mother Earth’s Storehouse, a two-store organic and health food and vitamin chain in New York’s
Hudson Valley , which has been in existence for over 40 years. (www.MotherEarthStorehouse.com) - Greens Natural Foods’ eight stores in
New York andNew Jersey , offering a selection of 100% organic produce and all-natural, non-GMO groceries & bulk foods; a wide selection of local products; an organic juice and smoothie bar; a fresh foods department, which offers fresh and healthy “grab & go” foods; a full selection of vitamins & supplements; as well as health and beauty products (www.greensnaturalfoods.com)
Through its wholly owned subsidiary,
These centers offer multiple vitamin drip mixes and intramuscular shots for clients to choose from that are designed to help boost immunity, fight fatigue and stress, reduce inflammation, enhance weight loss, and efficiently deliver antioxidants and anti-aging mixes. Additionally, there are IV vitamin mixes and shots for health, beauty, and re-hydration.(www.HealthyChoiceWellness.com)
Through its wholly owned subsidiary, Healthy U Wholesale, the Company sells vitamins and supplements, as well as health, beauty, and personal care products on its website www.TheVitaminStore.com.
Additionally, the Company markets its patented Q-Unit™ and Q-Cup® technology. Information on these products and the technology is 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
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
Non-GAAP – Financial Measure
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 an 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
Contact Information:
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Email: ir@hcmc1.com
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