TORONTO, July 30, 2019 /CNW/ - Alternate Health Corp., ("Alternate Health" or the "Company") (CSE:AHG) (OTCQB:AHGIF), an international leader in CBD extraction, product development and distribution, announced today that the Company generated $1.9 million in Q2 revenue.
"Alternate Health's Q2 results represent just the beginning of our new strategic direction as we focus exclusively on the hemp-derived CBD industry and, especially, product development and distribution," says Howard Mann, CEO of Alternate Health. "We have built a strong base to rapidly expand our hemp and CBD product lines and capture a larger share of this exciting market."
The Company's large year-over-year increase in revenue is tied to Alternate Health's recent acquisition of Blaine Labs Inc. ("Blaine Labs"), a California-based pharmaceutical company. Alternate Health announced the closing of the Blaine Labs acquisition agreement in a press release on June 20, 2019. Since the transaction was closed midway through Q2, the Company's financial results do not include the full three-month Q2 revenues of Blaine Labs.
Alternate Health expects an increase in revenue in Q3, since the quarter will include the full three-month period of Blaine Labs revenue. The Company also anticipates stronger results now that the agreement has closed, and the Company is not distracted with negotiation. Management can focus resources directly on generating revenues and launching new products.
"We are hard-at-work finalizing product formulations, negotiating with distributors and securing inventory as we combine the strengths of Blaine Labs and Alternate Health," says Howard Mann. "We expect to see some movement in revenue for Q3 2019, with the full impact of our efforts taking effect in Q4 2019."
Financial Highlights
(Canadian dollars except where indicated)
| Second Quarter
|
| First Half
|
| 2019
| 2018
| $ Change
|
| 2019
| 2018
| $ Change
|
Financial Performance Metrics
|
|
|
|
|
|
|
|
Operating revenues
| 1,931,112
| 507,664
| 1,423,448
|
| 1,944,847
| 680,159
| 1,264,688
|
Cost of Goods Sold
| 613,170
| -
| 613,170
|
| 613,170
| -
| 613,170
|
Gross Margin
| 1,317,942
| 507,664
| 810,278
|
| 1,331,677
| 680,159
| 651,518
|
Operating expenses
| 2,692,664
| 6,891,148
| (4,198,484)
|
| 5,302,101
| 10,654,255
| (5,352,154)
|
Operating income (loss)
| (1,374,722)
| (6,383,484)
| 5,008,762
|
| (3,970,424)
| (9,974,096)
| 6,003,672
|
Other income (expense) and Income Taxes
| (672,989)
| 2,305,301
| (2,978,290)
|
| (344,724)
| 2,764,776
| (3,109,500)
|
Net income (loss)
| (2,074,711)
| (4,078,183)
| 2,003,472
|
| (4,315,148)
| (7,209, 320)
| 2,894,172
|
EBITDA*
| (1,507,336)
| (3,730,278)
| 2,222,942
|
| (3,326,261)
| (6,496,351)
| 3,170,090
|
Basic earnings (loss) per share
| ($0.03)
| ($0.08)
| $0.05
|
| ($0.06)
| ($0.14)
| ($0.08)
|
|
*EBITDA: (earnings before interest, taxes, depreciation and amortization) is a non-IFRS financial measure.
|
A significant portion of Alternate Health's operating expenses include non-cash or non-recurring expenses. Also, as noted above, the Q2 2019 only include approximately 2 months of Blaine Labs revenue. If we account for the extra month, Alternate Health would have been close to break even on cashflow.
Alternate Health benefitted from general reductions in professional fees, salaries and management fees as well, while the company streamlined and focused its efforts on securing and expanding revenue-producing assets. Alternate Health intends to continue focusing reaching greater profitability while generating strong revenue growth.
About Alternate Health
Alternate Health (CSE: AHG, OTCQB: AHGIF) is an international leader in the hemp-derived CBD industry, including extraction, product development and distribution. Through Alternate Health's subsidiary, Blaine Labs, the Company has 23 years of experience in FDA-registered and cGMP medical product manufacturing and distribution, with over 50 product SKUs available from major retailers, including Walmart, Amazon, CVS and Walgreens. Alternate Health's innovative software systems provide the platform for the company's diverse operations, including CBD product distribution, hemp-derived extract manufacturing, blockchain tax collection systems and electronic medical records (EMR) platforms.
Alternate Health's corporate office is located in Toronto, Canada, with additional offices in Venice, California, and San Antonio, Texas. The Company is well positioned to reinvest internal operating cash flow in its platform and product development over the long term, creating an attractive investment profile for its shareholders. For more information about Alternate Health Corp., visit www.alternatehealth.com.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations, business prospects, anticipated growth and potential revenues are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
SOURCE Alternate Health Corp.
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Investor Contact: Jim Griffiths | Investor Relations, Jim Tykoliz | Company Director, 1.416.607.5757Copyright CNW Group 2019