Reports Growth in Direct-to-Consumer
Prescription Sales and Positive EBITDA for the Quarter
HealthWarehouse.com, Inc. (OTCQB:HEWA) announced today that its
net sales for the first quarter ended March 31, 2023, totaled $5.1
million, a 3% decrease from the quarter ended March 31, 2023,
resulting from a decline in over-the-counter sales. The Company
reported a net loss of $252,412 and EBITDA of $89,723 for the
quarter.
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, “Our
direct-to-consumer prescription sales grew by 7% during the
quarter, although sales for the quarter overall were lower. We
remain optimistic about sales growth for the rest of 2024, based on
recently launched programs for new partners, and the expected
recovery of sales lost during the first quarter due to product
supply issues. Despite the decline in revenue, we were able to
generate positive cash flow from operations.”
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.
“As we progress through 2024, we will continue to focus on
expanding our customer base and leveraging our investment in
technology to improve operational efficiency as we scale. This,
combined with our dedicated employees who continue to focus on
providing world class service to our customers, will position our
Company well in a highly competitive marketplace,” added
Peters.
2024 First Quarter Overview:
Net Sales:
Net sales for the three months ended March 31, 2024, decreased
to $5.1 million from $5.3 million for the three months ended March
31, 2023, a decrease of $154,000, or 2.9%. Prescription sales were
$4.4 million for the three months ended March 31, 2024, as compared
with $4.3 million for the three months ended March 31, 2023, an
increase of $107,000, or 2.5%. These increases were primarily due
to growth in our direct-to-consumer (B2C) business.
Over-the-counter net sales decreased by $264,000, or 29.5%, from
$894,000 in the three months ended March 31, 2023, to $630,000 in
the three months ended March 31, 2024, primarily due to lower
marketplace sales.
Gross Profit:
Gross profit for the three months ended March 31, 2024, was $3.0
million, a $176,000 or 10.0% decrease when compared with the same
period in 2023, as a result of lower sales and gross margins. Gross
margin percentage decreased from 59.4% for the three months ended
March 31, 2023, to 57.8% for the three months ended March 31, 2024,
as a result of decreased year-over-year margins in Partner Services
and in the direct-to-consumer prescription business. Brand-name
prescription drugs have higher costs and lower gross margins.
Operating Expenses:
Selling, general and administrative expenses totaled $3.1
million for the three months ended March 31, 2024, compared with
$3.4 million for the three months ended March 31, 2023, a decrease
of $303,000, or 8.8%. For the three months ended March 31, 2024,
expenses decreased for advertising and marketing, shipping and
shipping supplies, and salaries and related costs, primarily in
pharmacy and customer support direct labor. These were offset by
higher expenses for software engineering labor, stock based
compensation, corporate and property taxes, and repairs and
maintenance. Those increases were offset by an increase in employee
benefits expenses.
Net Loss and Adjusted EBITDA: The Company reported a net
loss of $252,000 for the quarter, compared with a net loss of
$348,000 during the same period in 2022. Adjusted EBITDA was
$90,000 in the first quarter of 2023, compared with negative
$38,000 in the year-earlier quarter.
HEALTHWAREHOUSE.COM, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
For the Three Months
Ended
March 31,
2024
2023
In thousands
Net sales
$
5,122
$
5,276
Cost of sales
2,162
2,140
Gross profit
2,960
3,136
Selling, general and administrative expenses
3,137
3,440
Net income (loss) from operations
(177
)
(304
)
Interest expense
(75
)
(44
)
Net loss
(252
)
(348
)
Preferred stock: Series B convertible
contractual dividends
(86
)
(86
)
Net loss attributable to common stockholders
$
(338
)
$
(434
)
Per share data: Net loss - basic and diluted
$
(0.01
)
$
(0.01
)
Series B convertible contractual dividends
$
(0.00
)
$
(0.00
)
Net loss attributable to common stockholders - basic
and diluted
$
(0.01
)
$
(0.01
)
Weighted average common shares outstanding - Basic
and diluted
54,838
54,140
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 Loss (GAAP) to Adjusted EBITDA
(Non-GAAP)
Three Months Ended
March 31,
2024
2023
In thousands
Net loss
$
(252
)
$
(348
)
Interest expense
75
44
Depreciation and amortization
80
43
EBITDA (non-GAAP)
(97
)
(261
)
Adjustments to EBITDA: Stock-based compensation
187
223
Adjusted EBITDA
$
90
$
(38
)
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 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, 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/20240513699168/en/
Dan Seliga, Chief Financial Officer, (800) 748-7001