Healthier Choices Management Corp. Reports Second Quarter 2017 Financial Results
Healthier Choices Management Corp. Reports Second Quarter 2017 Financial Results
Produced a Formidable $2.6M Improvement in Adjusted EBITDA; Year-Over-Year
Achieves Significant Growth in Gross Profits from Continuing Operations
HOLLYWOOD, FL, July 25, 2017 /PRNewswire/ -- Healthier Choices Management Corp. (OTC Pink: HCMC) today announced financial results for the three-month period ended June 30, 2017.
Second Quarter 2017 Results and Recent Highlights:
• Gross profit from continuing operations increased by approximately $606,000 for the three-month period ended June 30, 2017; amounting to $1,673,107, compared to $1,066,782 for the same period last year
• Gross margin percent improved to 50.6% up from 47.9% for the same period last year; the second consecutive quarterly improvement.
• Operating expenses as a percent of sales decreased 59% versus prior year, reflecting the continued reduction of corporate administrative expenses
• Adjusted EBITDA Improvement of roughly $2.6M; Year-Over-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 remarkable improvement in our adjusted EBITDA results for the quarter.” Mr. Holman went on to comment, “Our strategic vision for our company remains clear. The progress to date, including our solid second quarter results, gives us continued confidence in our direction. We are committed to continuing to build 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. 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 in Ft. Myers, Florida. The other segment is a U.S. based retailer of vaporizers and e-liquids. Healthier Choices Management Corp. sells direct to consumer via company-owned brick-and-mortar retail locations operating under "Ada's Natural Market" and "The Vape Store" brands.
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 Six -months ended June 30, 2017 and 2016:
Consolidated Balance Sheets
The following table sets forth our Condensed Consolidated Balance Sheets for the periods ended June 30, 2017 and December 31, 2016:
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 from 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 (“SEC”).