HealthWarehouse.com, Inc. (OTC: HEWA) announced today that net sales for
the first quarter ended March 31, 2019, increased 9% to $3,889,423
compared with $3,584,611 in the first quarter of 2018.
HealthWarehouse.com is a Verified Internet Pharmacy Practice Site
(VIPPS) accredited online and mail-order pharmacy authorized to sell and
deliver prescription medications to all 50 states. The Company
attributed its 2019 first quarter sales performance to diversified
marketing strategies and improved patient outreach.
“Our active prescription customers now exceed 100,000 for the first time
in company history. The sustained growth in our customer base is proof
that we continue to be an affordable and convenient option for people in
need of prescription medications,” said Joseph Peters, the Company’s
President and CEO. “In a recent survey of active prescription customers
(customers that have ordered within the past twelve months), we found
that over 60% of respondents currently have prescription insurance
coverage, but Healthwarehouse.com provides medications at prices below
their copay amounts or is a cost-effective option for medications not
covered by their insurance plans. Respondents also noted the added
benefits and exceptional convenience offered through
HealthWarehouse.com’s unique business model and dedication to customer
service.”
Peters noted that investments in pharmacy robotics and infrastructure
have shortened processing times, allowing HealthWarehouse.com to
maintain or reduce the prices of its prescription medications while
increasing volume.
“Those investments have improved our operating leverage which allowed us
to generate approximately $213,000 in Adjusted EBITDA during the
quarter,” he said. “Our team remains dedicated to providing customers
with excellent pharmacy experiences through compassion, convenience and
transparency. Additionally, we continue to evaluate funding options to
support an expansion of our marketing campaigns, an upgrade of our
pharmacy software, and the refinancing of our current debt obligations.”
2019 Financial Overview:
Net Sales: Total net sales were $3,889,423 for the three months
ended March 31, 2019, compared with $3,584,611 in 2018, an increase of
$304,813 or 9%. Core consumer prescription sales were $3,072,470 for the
three months ended March 31, 2019, compared with $2,812,779 in 2018, an
increase of $259,691 or 9%. Over-the-counter net sales grew 10% to
$740,644 compared with $673,799 in 2018. The growth in both categories
was due in part to increased advertising spend.
Gross Profit: Gross profit for the three months ended March 31,
2019 was $2,594,917, a $232,949 or 10% increase over the same period in
2018, due to sales growth.
Operating Expenses: SG&A expenses were $2,539,348 for the three
months ended March 31, 2019, a decrease of $105,055 or 4% as compared to
the same quarter in 2018. The reduction in 2019 resulted from improved
operational efficiencies related to the installation of automation
equipment and reductions in marketing and legal expenses.
Net Income and Adjusted EBITDA: The Company reported a net loss
of $17,685 for the first quarter of 2019 compared with a net loss of
$340,750 during the same period in 2018. For the first quarter, Adjusted
EBITDA was $213,228 in 2019 compared with $(163,190) in 2018, an
improvement of $376,418.
| HEALTHWAREHOUSE.COM, INC. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
| (Unaudited) | |||||||||||
| For the Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2019 | 2018 | ||||||||||
| Net sales | $ | 3,889,423 | $ | 3,584,611 | |||||||
| Cost of sales | 1,294,506 | 1,222,643 | |||||||||
| Gross profit | 2,594,917 | 2,361,968 | |||||||||
| Operating Expenses: | |||||||||||
| Selling, general and administrative expenses | 2,539,348 | 2,644,403 | |||||||||
| Net income (loss) from operations | 55,569 | (282,435 | ) | ||||||||
| Interest expense | (73,254 | ) | (58,316 | ) | |||||||
| Net loss | (17,685 | ) | (340,751 | ) | |||||||
| Preferred stock: | |||||||||||
| Series B convertible contractual dividends | (85,558 | ) | (85,558 | ) | |||||||
| Net loss attributable to common stockholders | $ | (103,243 | ) | $ | (426,309 | ) | |||||
| Per share data: | |||||||||||
| Net loss – basic & diluted | ($0.00 | ) | ($0.01 | ) | |||||||
| Series B convertible contractual dividends | ($0.00 | ) | ($0.00 | ) | |||||||
| Net loss attributable to common stockholders – basic and diluted | ($0.00 | ) | ($0.01 | ) | |||||||
|
Weighted average number of common shares outstanding – basic & diluted |
49,390,251 | 48,225,985 | |||||||||
|
Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA |
|||||||||||||
| Three Months Ended | |||||||||||||
| March 31, | |||||||||||||
| (Unaudited) | 2019 | 2018 | |||||||||||
| Net loss | $ | (17,685 | ) | $ | (340,751 | ) | |||||||
| Interest expense | 73,254 | 58,316 | |||||||||||
| Depreciation and amortization | 42,737 | 16,330 | |||||||||||
| EBITDA | 98,306 | (266,105 | ) | ||||||||||
| Non-GAAP adjustments: | |||||||||||||
| Stock-based compensation | 114,922 | 96,024 | |||||||||||
| Loss on disposal of equipment | – | 7,807 | |||||||||||
| Adjusted EBITDA | $ | 213,228 | $ | (162,274 | ) | ||||||||
About HealthWarehouse.com
HealthWarehouse.com, Inc. (OTC Pink:HEWA) is a trusted VIPPS accredited
online pharmacy based in Florence, Kentucky. The Company is focused on
the out of pocket prescription market, which is expected to exceed $50
billion in 2019. With a mission to provide affordable healthcare to
every American by focusing on technology that is revolutionizing
prescription delivery, HealthWarehouse.com has become the largest VIPPS
accredited online pharmacy in the United States exclusively servicing
the cash market.
HealthWarehouse.com is licensed or authorized to ship prescription
medication to all 50 states and the District of Columbia and only sells
drugs that are FDA-approved and legal for sale in the United States.
Visit HealthWarehouse.com online at http://www.HealthWarehouse.com.
Forward-Looking Statements
This announcement and the information incorporated by reference herein
contain “forward looking statements” as defined in federal securities
laws, including but not limited to Section 27A of the Securities Act of
1933, Section 21E of the Securities Exchange Act of 1934, and the
Private Securities Litigation Reform Act of 1995, which statements are
based on our current expectations, estimates, forecasts and projections.
Statements that are not historical facts, including statements about the
beliefs, expectations and future plans and strategies of the Company,
are forward-looking statements. Actual results may differ materially
from those expressed in forward looking statements or in management’s
expectations. Important factors which could cause or contribute to
actual results being materially and adversely different from those
described or implied by forward looking statements include, among
others, risks related to competition, management of growth, access to
sufficient capital to fund our business and our growth, new products,
services and technologies, fluctuations in operating results,
international expansion, outcomes of legal proceedings and claims,
fulfillment center optimization, seasonality, commercial agreements,
acquisitions and strategic transactions, foreign exchange rates, system
interruption, cyber-attacks, access to sufficient inventory, government
regulation and taxation, payments and fraud. More information about
factors that potentially could affect HealthWarehouse.com’s financial
results is included in HealthWarehouse.com’s audited Annual Reports and
Quarterly Reports available at otcmarkets.com and its prior filings with
the Securities and Exchange Commission.
Use of Non-GAAP Financial Measures
HealthWarehouse.com, Inc. (the “Company”) prepares its consolidated
financial statements in accordance with the United States generally
accepted accounting principles (“GAAP”). In addition to disclosing
financial results prepared in accordance with GAAP, the Company
discloses information regarding Adjusted EBITDA, which is commonly used.
In addition to adjusting net loss to exclude interest, depreciation and
amortization (“EBITDA”), Adjusted EBITDA also excludes stock-based
compensation, and certain other nonrecurring charges. Adjusted EBITDA is
not a measure of performance defined in accordance with GAAP. However,
Adjusted EBITDA is used internally in planning and evaluating the
Company`s performance. Accordingly, management believes that disclosure
of this metric offers investors, bankers and other shareholders an
additional view of the Company`s operations that, when coupled with the
GAAP results, provides a more complete understanding of the Company’s
financial results.
Adjusted EBITDA should not be considered as an alternative to net loss
or to net cash used in operating activities as a measure of operating
results or of liquidity. It may not be comparable to similarly titled
measures used by other companies, and it excludes financial information
that some may consider important in evaluating the Company`s performance.
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