66% increase in revenues and positive cash flow for the year
CINCINNATI–(BUSINESS WIRE)–HealthWarehouse.com, Inc. (OTCQB:HEWA) announced today its results of operations for the year ended December 31, 2024. The Company reported net sales for the year of $33.6 million, a 66% increase over the year ended December 31, 2023, resulting from 78% growth in direct-to-consumer and partner services prescription revenues, offset in part by a decline in over-the-counter product sales.
The Company reported a net loss of $333,000 for the year and positive cash flow of $1.1 million, as reflected by its internal non-GAAP measure of Adjusted EBITDA as defined below. The Company reported net income of $189,000 and Adjusted EBITDA of $523,000 for the fourth 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, “I’m proud that 2024 was a historic year for the Company, with our largest-ever year-over-year sales increase to $34 million due to our expanded catalog for prescription medications, while generating positive cash flow. I also take pride in our fourth quarter net income, which I believe proves the scalability of our proprietary technology platform. Our improved operational efficiencies, evidenced by faster order processing even as salary expense decreased, are thanks to the investments we have made in our infrastructure. These dramatic rates of return on our investments exceed those of many of our competitors.”
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.
“These achievements would not be possible without our dedicated employees, whose efforts never cease to amaze me. I am grateful for their commitment to our mission of providing world-class service to our customers,” added Peters.
The Company also announced that it will hold its Annual Meeting of Shareholders virtually on May 14, 2025. Shareholders of record as of March 17, 2025, will receive notice of the meeting and instructions for attending in the proxy materials to be distributed soon.
2024 Annual Overview
Net Sales: Net sales increased $13.3 million, or 65.7%, from $20.3 million for the year ended December 31, 2023 to $33.6 million for the year ended December 31, 2024. Prescription sales were $30.9 million for the year ended December 31, 2024, an increase of $13.5 million, or 77.8%, compared with $17.4 million for the year ended December 31, 2023. These increases were primarily due to growth in our partner services (B2B) business related to fulfillment of brand and compounded GLP-1 medications. Sales for the direct-to-consumer (B2C) prescription business were flat in 2024. Over-the-counter net sales decreased by 6.3%, from $2.6 million in the year ended December 31, 2023, to $2.4 million in the year ended December 31, 2024. The reduction in B2C over-the-counter sales was primarily due to lower marketplace sales volumes, partially offset by higher partner services sales.
Gross Profit: Gross profit for the year ended December 31, 2024, was $14.1 million, a $2.0 million or 16.0%, increase when compared to the same period in 2023, due to the increase in sales volume. Gross margin percentage decreased year-over-year from 60.0% for the year ended December 31, 2023, to 42.0% for the year ended December 31, 2024, as a result of decreased year-over-year margins in the prescription business. Prescription brand and compounded drug sales have higher costs and lower gross margins due to market price competition.
Operating Expenses: Selling, general and administrative (SG&A) expenses totaled $14.2 million for the year ended December 31, 2024, compared with $13.8 million for the year ended December 31, 2023, an increase of $422,000, or 3.1%. Despite the increase, SG&A expenses were significantly lower relative to sales, decreasing from 68.0% of sales in 2023 to 42.3% of sales in 2024, as the growth in sales of high-value GLP-1 medications in our B2C and B2B prescription businesses did not result in a comparable increase in SG&A expense. For the year ended December 31, 2024, increased expenses were primarily related to the growth in order volume in the B2B segment, which included increases in shipping expense, shipping supplies expense, credit card fees and depreciation and amortization expenses. Those increases were offset by decreases in bad debt expense, advertising and marketing expenses, and stock-based compensation.
Net Income and Adjusted EBITDA: Net loss decreased from $1.8 million in the year ended December 31, 2023, to $333,000 in the year ended December 31, 2024, a decrease of $1.4 million, or 81.2% primarily as a result of increased sales and gross profit. Earnings before interest, taxes, depreciation and amortization, including amortization of right of use lease asset, (“EBITDA”), as adjusted for stock-based compensation and certain non-recurring charges (“Adjusted EBITDA”), were $1.1 million for 2024 versus $77,000 for 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.
2024 Fourth Quarter Overview
Net Sales: Total net sales were $13.7 million for the fourth quarter ended December 31, 2024, an increase of $8.8 million, or 179.0%, compared with the fourth quarter of 2023. Prescription sales were $13.1 million for the fourth quarter, an increase of $8.8 million, or 203.2%, due to growth in the B2B business. Our B2B customers are expanding their product offerings and formulations in an effort to continue to serve the needs of this important market. Over-the-counter sales increased by 5.8% to $553,000 due to an increase in sales of B2B over-the-counter products.
Gross Profit: Gross profit for the fourth quarter of 2024 was $4.4 million, a $1.5 million or 49.7% increase compared with the fourth quarter of 2023. Higher revenues in the B2B prescription and over-the-counter businesses were partly offset by lower gross margins. Gross margin was 32.2% in the fourth quarter of 2024 versus 60.1% in the same period in 2023 due primarily to decreased margins in the prescription business.
Operating Expenses: Operating expenses were $4.2 million for the fourth quarter of 2024, an increase of $1.1 million or 17.8%, compared with the same quarter in 2023. The increase in 2024 was related to increases in shipping and shipping supplies expenses, salaries and related expenses and credit card fees. The increases were offset by reductions in bad debt, stock-based compensation, and marketing and advertising expenses.
Net Income and (non-GAAP) Adjusted EBITDA: The Company reported a net income of $189,000 for the fourth quarter of 2024, compared with a net loss of $649,000 during the same period in 2023. Adjusted EBITDA for the fourth quarter of 2024 was $523,000, compared with $145,000 in the fourth quarter of 2023.
| HEALTHWAREHOUSE.COM, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (Audited) | ||||||||||||||||
|
For the Three Months Ended |
|
For the Twelve Months Ended |
||||||||||||||
|
December 31, |
|
December 31, |
||||||||||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||||||||||
|
Dollars in thousands |
||||||||||||||||
| Net sales |
$ |
13,703 |
|
$ |
4,912 |
|
$ |
33,614 |
|
$ |
20,283 |
|
||||
| Cost of sales |
|
9,285 |
|
|
1,961 |
|
|
19,489 |
|
|
8,109 |
|
||||
| Gross profit |
|
4,418 |
|
|
2,951 |
|
|
14,125 |
|
|
12,174 |
|
||||
| Selling, general and administrative expenses |
|
4,202 |
|
|
3,567 |
|
|
14,218 |
|
|
13,796 |
|
||||
| Net loss from operations |
|
216 |
|
|
(616 |
) |
|
(93 |
) |
|
(1,622 |
) |
||||
| Loss on extinguishment of debt |
|
– |
|
|
– |
|
|
(3 |
) |
|
– |
|
||||
| Interest expense |
|
(27 |
) |
|
(33 |
) |
|
(237 |
) |
|
(152 |
) |
||||
| Loss before taxes |
|
189 |
|
|
(649 |
) |
|
(333 |
) |
|
(1,774 |
) |
||||
| Income tax expense |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
||||
| Net income (loss) |
|
189 |
|
|
(649 |
) |
|
(333 |
) |
|
(1,774 |
) |
||||
| Preferred stock: | ||||||||||||||||
| Series B convertible contractual dividends |
|
(86 |
) |
|
(86 |
) |
|
(342 |
) |
|
(342 |
) |
||||
| Net income (loss) attributable to common stockholders |
$ |
103 |
|
$ |
(735 |
) |
$ |
(675 |
) |
$ |
(2,116 |
) |
||||
| Per share data: | ||||||||||||||||
| Net income (loss) – basic and diluted |
$ |
0.00 |
|
$ |
(0.01 |
) |
$ |
(0.01 |
) |
$ |
(0.03 |
) |
||||
| Net income (loss) – diluted |
$ |
0.00 |
|
$ |
(0.00 |
) |
$ |
(0.01 |
) |
$ |
(0.00 |
) |
||||
| Series B convertible contractual dividends |
$ |
(0.00 |
) |
$ |
(0.00 |
) |
$ |
(0.01 |
) |
$ |
(0.01 |
) |
||||
| Net income (loss) attributable to common stockholders – basic and diluted |
$ |
0.00 |
|
$ |
(0.01 |
) |
$ |
(0.01 |
) |
$ |
(0.04 |
) |
||||
| Weighted average common shares outstanding – basic (In thousands) |
|
55,573 |
|
|
54,664 |
|
|
55,186 |
|
|
54,397 |
|
||||
| Weighted average common shares outstanding – diluted (in thousands) |
|
91,832 |
|
|
54,664 |
|
|
55,186 |
|
|
54,397 |
|
||||
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, including amortization of right of use lease asset, (“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 |
|
Twelve Months Ended |
||||||||||||||
|
December 31, |
|
December 31, |
||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||
|
Dollars in thousands |
||||||||||||||||
| Net income (loss) |
$ |
189 |
$ |
(649 |
) |
$ |
(333 |
) |
$ |
(1,774 |
) |
|||||
| Interest expense |
|
27 |
|
33 |
|
|
237 |
|
|
152 |
|
|||||
| Depreciation and amortization |
|
119 |
|
103 |
|
|
434 |
|
|
347 |
|
|||||
| EBITDA (non-GAAP) |
|
335 |
|
(513 |
) |
|
338 |
|
|
(1,275 |
) |
|||||
| Adjustments to EBITDA: | ||||||||||||||||
| Stock-based compensation |
|
188 |
|
230 |
|
|
750 |
|
|
924 |
|
|||||
| Loss on extinguishment of debt |
|
– |
|
– |
|
|
3 |
|
|
– |
|
|||||
| Bad debt expense |
|
– |
|
428 |
|
|
– |
|
|
428 |
|
|||||
| Adjusted EBITDA |
$ |
523 |
$ |
145 |
|
$ |
1,091 |
|
$ |
77 |
|
|||||
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.
Contacts
Dan Seliga, Chief Financial Officer, (800) 748-7001
