HealthWarehouse.com Reports Results for First Quarter 2024

Rhea-AI Summary

HealthWarehouse.com, Inc. (HEWA) reported a 3% decrease in net sales totaling $5.1 million for the first quarter of 2024 compared to the same period in 2023. The company reported a net loss of $252,412 and positive EBITDA of $89,723 for the quarter. Despite the decline in revenue, HealthWarehouse.com experienced a 7% growth in direct-to-consumer prescription sales. The company remains optimistic about future sales growth in 2024, focusing on new partnerships and recovering lost sales due to supply issues. HealthWarehouse.com continues to invest in technology to enhance operational efficiency and customer experience. Gross profit decreased by 10.0% due to lower sales and margins. Operating expenses decreased by 8.8% primarily in advertising, marketing, shipping, and salaries, offset by increased expenses in software engineering and stock-based compensation. The company reported a net loss of $252,000 for the quarter, an improvement from the previous year, and an Adjusted EBITDA of $90,000.

Positive

• HealthWarehouse.com experienced a 7% growth in direct-to-consumer prescription sales during the first quarter of 2024.

• The company generated positive EBITDA of $89,723 for the quarter despite a decline in net sales.

• HealthWarehouse.com remains optimistic about future sales growth in 2024 through new partnerships and supply issue recovery.

• The company continues to invest in technology to enhance operational efficiency and customer experience.

Negative

• Net sales decreased by 3% to $5.1 million for the first quarter of 2024 compared to the same period in 2023.

• Gross profit decreased by 10.0% due to lower sales and margins, impacting the company's financial performance.

• Operating expenses decreased by 8.8%, but expenses in software engineering and stock-based compensation increased, affecting the overall financials.

• The company reported a net loss of $252,000 for the quarter, although an improvement from the previous year, indicating ongoing financial challenges.

Reports Growth in Direct-to-Consumer Prescription Sales and Positive EBITDA for the Quarter

CINCINNATI--(BUSINESS WIRE)-- 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240513699168/en/

Dan Seliga, Chief Financial Officer, (800) 748-7001

Source: HealthWarehouse.com, Inc.

FAQ

What was HealthWarehouse.com's net sales for the first quarter of 2024?

HealthWarehouse.com reported net sales of $5.1 million for the first quarter of 2024.

What was the company's EBITDA for the quarter?

HealthWarehouse.com reported a positive EBITDA of $89,723 for the first quarter of 2024.

How did HealthWarehouse.com perform in direct-to-consumer prescription sales?

The company experienced a 7% growth in direct-to-consumer prescription sales during the first quarter of 2024.

What are HealthWarehouse.com's key focuses for future sales growth in 2024?

HealthWarehouse.com is focusing on new partnerships and recovering lost sales due to supply issues for future sales growth in 2024.