HealthWarehouse.com Reports Full Year 2020 Results
HealthWarehouse.com, Inc. (OTC:HEWA) reported a net income of $641,326 and net sales of $17,178,985 for 2020, marking a net income turnaround from a loss of $99,400 in 2019. Adjusted EBITDA was $593,744, down from $712,312 the previous year. The company saw a 9% rise in total net sales from 2019, driven by a 25% increase in over-the-counter sales amid COVID-19 demand. Operating expenses rose 12%, primarily due to staffing and variable costs. HealthWarehouse.com is preparing to launch new pharmacy software in Q3 2021, aiming to enhance operational efficiency.
- Net income improved to $641,326 from a loss of $99,400 in 2019.
- Total net sales increased by 9% year-over-year.
- Over-the-counter sales surged by 25%, driven by pandemic-related demand.
- Achieved positive cash flow for the fourth consecutive year.
- Ending cash reserves exceeded $1.8 million.
- Adjusted EBITDA decreased from $712,312 in 2019 to $593,744 in 2020.
- Operating expenses rose by 12%, driven by increased variable costs.
HealthWarehouse.com, Inc. (OTC:HEWA) announced today that its net income was
HealthWarehouse.com, a technology company with a focus on healthcare e-commerce, sells and delivers prescription 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 nationwide.
“2020 was a productive and rewarding year despite all of the challenges of the COVID-19 pandemic,” said Joseph Peters, the Company’s President and CEO. “Our team responded admirably to the challenges of the pandemic and continued to provide the world class service our patients have come to know and love. We attribute our strong operating results to their resolve. In addition, we experienced record traffic to our website and we launched and completed a number of initiatives that strengthened our balance sheet.” Peters noted that the Company completed a long-term convertible note issuance, repaid its short-term notes payable, entered into a conversion and standstill agreement with the holders of its Series C preferred stock and received a federal Paycheck Protection Program (PPP) loan that was subsequently forgiven. The Company ended the year with more than
HealthWarehouse.com continues to invest in proprietary technology to remain at the forefront of new developments and offerings in the world of healthcare, noting a focus on patient experience, operational efficiency, and scalability.
“Looking to 2021, we are diligently preparing for the rollout of our new pharmacy software and e-commerce solution in the third quarter furthering our commitment to improving the pharmacy experience for our patients,” Peters said. “The integration and implementation of these new platforms will improve the efficiency of our pharmacy workflow and allow us to seamlessly add patients while maintaining current service levels. In parallel with these initiatives, we are investing in branding and marketing campaigns that will benefit the company in 2021 and beyond. The culmination of these efforts along with our prior investment in robotics will position HealthWarehouse.com as a technological leader in the industry, supporting both its direct-to-consumer (B2C) and healthcare partnership (B2B) business units. We are excited for the changes and advancements that 2021 will bring for the company as we continue to set the standard for affordable healthcare in America and provide transparency to our patients across the nation.”
2020 Annual Overview:
Net Sales: Total net sales were
Gross Profit: Gross profit for the year ended December 31, 2020 was
Operating Expenses: Operating expenses were
Net Income and Adjusted EBITDA: The Company reported net income of
2020 Fourth Quarter Overview:
Net Sales: Total net sales were
Gross Profit: Gross profit for the fourth quarter was
Operating Expenses: Operating expenses were
Net Income and Adjusted EBITDA: The Company reported net income of
HEALTHWAREHOUSE.COM, INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF OPERATIONS (Audited) |
|||||||||||||||
For the Three Months Ended |
For the Twelve Months Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
| Net sales | $ |
4,089,741 |
|
$ |
3,870,413 |
|
$ |
17,178,985 |
|
$ |
15,755,577 |
|
|||
| Cost of sales |
|
1,375,685 |
|
|
1,346,997 |
|
|
5,831,003 |
|
|
5,394,390 |
|
|||
| Gross profit |
|
2,714,056 |
|
|
2,523,416 |
|
|
11,347,982 |
|
|
10,361,187 |
|
|||
| Selling, general and administrative expenses |
|
2,745,761 |
|
|
2,480,706 |
|
|
11,397,106 |
|
|
10,205,484 |
|
|||
| Net income (loss) from operations |
|
(31,705 |
) |
|
42,710 |
|
|
(49,124 |
) |
|
155,703 |
|
|||
| Other income (expense) | |||||||||||||||
| Gain on debt forgiveness |
|
890,000 |
|
|
890,000 |
|
|||||||||
| Interest expense |
|
(39,549 |
) |
|
(58,909 |
) |
|
(199,550 |
) |
|
(255,103 |
) |
|||
| Total other income (expense) |
|
850,451 |
|
|
(58,909 |
) |
|
690,450 |
|
|
(255,103 |
) |
|||
| Net income (loss) |
|
818,746 |
|
|
(16,199 |
) |
|
641,326 |
|
|
(99,400 |
) |
|||
| . | |||||||||||||||
| Preferred stock: | |||||||||||||||
| Series B convertible contractual dividends |
|
(85,558 |
) |
|
(85,558 |
) |
|
(342,233 |
) |
|
(342,233 |
) |
|||
| Net income (loss) attributable to common stockholders | $ |
733,188 |
|
$ |
(101,757 |
) |
$ |
299,093 |
|
$ |
(441,633 |
) |
|||
| Per share data: | |||||||||||||||
| Net income (loss) - basic | $ |
0.01 |
|
$ |
(0.00 |
) |
$ |
0.01 |
|
$ |
(0.00 |
) |
|||
| Net income (loss) - diluted | $ |
0.01 |
|
$ |
(0.00 |
) |
$ |
0.01 |
|
$ |
(0.00 |
) |
|||
| Series B convertible contractual dividends | $ |
(0.01 |
) |
$ |
(0.00 |
) |
$ |
(0.01 |
) |
$ |
(0.01 |
) |
|||
| Net income (loss) attributable to common stockholders - basic | $ |
0.01 |
|
$ |
(0.00 |
) |
$ |
0.01 |
|
$ |
(0.01 |
) |
|||
| Net income (loss) attributable to common stockholders - diluted | $ |
0.00 |
|
$ |
(0.00 |
) |
$ |
0.00 |
|
$ |
(0.01 |
) |
|||
| Weighted average common shares outstanding - basic |
|
51,313,063 |
|
|
50,300,107 |
|
|
50,900,267 |
|
|
49,923,926 |
|
|||
| Weighted average common shares outstanding - diluted |
|
72,845,648 |
|
|
50,300,107 |
|
|
69,449,318 |
|
|
49,923,926 |
|
|||
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) |
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Three Months Ended |
Twelve Months Ended |
|||||||||||||||
December 31, |
December 31, |
|||||||||||||||
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|||||
| Net income (loss) | $ |
818,746 |
|
$ |
(16,199 |
) |
$ |
641,326 |
|
$ |
(99,400 |
) |
||||
| Interest expense |
|
39,549 |
|
|
58,909 |
|
|
199,550 |
|
|
255,103 |
|
||||
| Depreciation and amortization |
|
33,294 |
|
|
35,316 |
|
|
133,576 |
|
|
163,653 |
|
||||
| EBITDA (non-GAAP) |
|
891,589 |
|
|
78,026 |
|
|
974,452 |
|
|
319,356 |
|
||||
| Adjustments to EBITDA: | ||||||||||||||||
| Stock-based compensation |
|
141,475 |
|
|
100,233 |
|
|
509,292 |
|
|
421,935 |
|
||||
| Gain on disposal of equipment |
|
- |
|
|
- |
|
|
- |
|
|
(28,979 |
) |
||||
| Gain on debt forgiveness |
|
(890,000 |
) |
|
- |
|
|
(890,000 |
) |
|
- |
|
||||
| Adjusted EBITDA | $ |
143,064 |
|
$ |
178,259 |
|
$ |
593,744 |
|
$ |
712,312 |
|
||||
About HealthWarehouse.com
HealthWarehouse.com, Inc. (OTC Pink: HEWA) is America's Leading Online Pharmacy and a pioneer in affordable healthcare. Based in Florence, Kentucky, the Company's services are available nationwide, shipping FDA approved prescription medication and over-the-counter products direct to patients' doors. As one of the first National Association of Boards of Pharmacy (“NABP”) Approved Digital Pharmacies, HealthWarehouse.com services the mission of providing affordable healthcare and incredible patient services to help Americans in all 50 states. 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, 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 prior filings with the Securities and Exchange Commission.
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