Reports 9% Increase in Revenues; GLP-1
Medications Contribute to Growth
HealthWarehouse.com, Inc. (OTC:HEWA) announced today its results
of operations for the three and six months ended June 30, 2024. The
Company reported net sales for the second quarter of 2024 of $5.8
million, a 9% increase over the same period in 2023, resulting from
strong growth in partner services and B2C prescription revenue. The
Company reported a net loss of $344,000 for the quarter and a net
loss of $596,000 for the six months ended June 30, 2024.
HealthWarehouse.com, a technology company with a focus on
healthcare e-commerce, sells and delivers prescription and
over-the-counter medications to all 50 states as an Approved
Digital Pharmacy through the National Association of Boards of
Pharmacy (NABP). HealthWarehouse.com provides a platform focused on
increasing access to and reducing costs of healthcare products for
consumers and business partners nationwide.
Joseph Peters, President and CEO, commented, “We reported strong
revenue growth during the second quarter, benefiting from growth in
sales of GLP-1 weight loss medications in both our partner services
and direct-to-consumer (B2C) businesses. GLP-1s have proven
effective for several weight-related health concerns. Nationwide,
people are seeking out GLP-1s as an option not only for weight
loss, but also for diabetes management and potential cardiovascular
health benefits. We continue to expand our HealthWarehouse.com
catalog, and the branded weight loss medications have been in great
demand since we added them.”
HealthWarehouse.com continues to invest in proprietary
technology to remain at the forefront of new developments and
offerings in the world of healthcare, focusing on patient
experience, operational efficiency, and scalability.
“We continue to add new customers in our partner services
business, which will contribute to significant future revenue
growth. Our incredible team has ensured that we have the
infrastructure and processes in place to service whatever
challenges our customers throw at us. We have added infrastructure
and capacity to our cold chain operations, allowing us to better
serve our injectable GLP-1 customers. We wouldn’t be able to
accomplish this without the efforts of our dedicated employees, who
continue to focus on providing world-class service to our
customers,” added Peters.
Overview of Results for Three and Six Months Ended June 30,
2024
Net Sales: Total net sales for the three and six months
ended June 30, 2024, were $5.8 million and $10.9 million,
respectively, increasing by $452,000 (8.5%) and $296,000 (2.8%),
respectively, versus the same periods in 2023.
Prescription sales were $5.1 million and $9.5 million for the
three and six months ended June 30, 2024, respectively, an increase
of $575,000 (12.8%) and $689,000 (7.8%), respectively, compared
with the same periods in 2023. The increase in prescription sales
was due to growth in partner services revenue and our
direct-to-consumer (B2C) business.
Sales of over-the-counter products were $643,000 and $1.3
million for the three and six months ended June 30, 2024,
respectively, a decrease of $107,000 (14.3%) and $378,000 (22.9%),
respectively, over the same periods in 2023, primarily due to lower
marketplace sales.
Gross Profit: Gross profit for the three and six months
ended June 30, 2024, was $3.0 million and $5.9 million,
respectively, representing decreases of $192,000 and $369,000,
respectively, compared with the same periods in 2023. The decreases
were the result of lower margins on our direct-to-consumer
prescription and over-the-counter businesses, somewhat offset by
higher sales volume. Gross margin percentages were 51.3% and 54.3%
for the three and six months ended June 30, 2024, respectively,
which were 7.9 and 5.0 percentage points lower, respectively,
versus prior-year periods. The reduction was primarily due to lower
margins in the B2C and Partner Services prescription
businesses.
Operating Expenses: Selling, general and administrative
expenses were $3.2 million and $6.4 million for the three and six
months ended June 30, 2024, respectively, which were decreases of
$362,000 (10.1%) and $665,000 (9.5%), respectively, compared to the
same periods in 2023. Expense decreases included reductions in
advertising and marketing, salaries, shipping, and stock-based
compensation, offset by increases in legal, depreciation and
amortization, and software and engineering expenses.
Net Income and Adjusted EBITDA: The Company reported net
losses of $344,000 and $596,000 for the three and six months ended
June 30, 2024, respectively, compared with net losses of $477,000
and $825,000, respectively, for the same periods in 2023.
Earnings before interest, taxes, depreciation and amortization
(“EBITDA”), as adjusted for stock-based compensation and certain
non-recurring charges (“Adjusted EBITDA”), were breakeven for the
three months and $90,000 for the six months ended June 30, 2024.
That compares with Adjusted EBITDA of $(152,000) and $(190,000),
respectively, for the three and six months ended June 30, 2023.
EBITDA and Adjusted EBITDA are non-GAAP financial measures.
Definitions of these non-GAAP terms and a reconciliation to GAAP
measures are provided below.
HEALTHWAREHOUSE.COM, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For
the Three Months Ended For the Six Months Ended June
30, June 30,
2024
2023
2024
2023
In thousands Net sales
$
5,779
$
5,327
$
10,900
$
10,604
Cost of sales
2,816
2,172
4,978
4,313
Gross profit
2,963
3,155
5,922
6,291
Selling, general and administrative expenses
3,232
3,594
6,369
7,034
Net income (loss) from operations
(269
)
(439
)
(447
)
(743
)
Interest expense
(75
)
(38
)
(149
)
(82
)
-
-
-
-
Net loss
(344
)
(477
)
(596
)
(825
)
Preferred stock: Series B convertible contractual dividends
(85
)
(86
)
(171
)
(171
)
Net loss attributable to common stockholders
$
(429
)
$
(563
)
$
(767
)
$
(996
)
Per share data: Net loss - basic and diluted
$
(0.01
)
$
(0.01
)
$
(0.01
)
$
(0.01
)
Series B convertible contractual dividends
$
(0.00
)
$
(0.00
)
$
(0.00
)
$
(0.00
)
Net loss attributable to common
stockholders - basic and diluted
$
(0.01
)
$
(0.01
)
$
(0.01
)
$
(0.01
)
Weighted average common shares outstanding - Basic and
diluted
55,077
54,316
54,957
54,229
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 EBITDA and
Adjusted EBITDA, which are commonly used. In addition to adjusting
net income or net loss to exclude interest, taxes, depreciation and
amortization (“EBITDA”), Adjusted EBITDA also excludes stock-based
compensation, and certain nonrecurring charges. EBITDA and Adjusted
EBITDA are not measures 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 lenders and other
shareholders an additional view of the Company`s operations that,
when coupled with GAAP results, provides a more complete
understanding of the Company’s financial results.
Adjusted EBITDA should not be considered as an alternative to
net income, net loss or to net cash provided by or 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.
Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA
(Non-GAAP)
Three Months Ended Six Months Ended June 30,
June 30, (Unaudited)
2024
2023
2024
2023
In thousands Net loss
$
(344
)
$
(477
)
$
(596
)
$
(825
)
Interest expense
75
38
150
82
Depreciation and amortization
81
52
161
95
EBITDA (non-GAAP)
(188
)
(387
)
(285
)
(648
)
Adjustments to EBITDA: Stock-based compensation
188
235
376
458
Adjusted EBITDA
$
-
$
(152
)
$
91
$
(190
)
About HealthWarehouse.com
HealthWarehouse.com, Inc. (OTCQB: HEWA), a technology company
with a focus on healthcare e-commerce, sells and delivers
prescription and over-the-counter medications to all 50 states as
an Approved Digital Pharmacy through the National Association of
Boards of Pharmacy (“NABP”). HealthWarehouse.com provides a
platform focused on increasing access and reducing costs of
healthcare products for consumers and business partners nationwide.
Based in Florence, Kentucky, the Company operates America's Leading
Online Pharmacy and is a pioneer in affordable healthcare. As one
of the first National Association of Boards of Pharmacy Approved
Digital Pharmacies, HealthWarehouse.com services the mission of
providing affordable healthcare and incredible patient services to
help Americans. Learn more at www.HealthWarehouse.com.
Forward-Looking Statements
This announcement may 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, potential 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 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 prior filings with the Securities
and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20240812250463/en/
Dan Seliga, Chief Financial Officer, (800) 748-7001