DAVIE, FL, United States, via eTeligis Inc., 05/15/2014 - - Vapor Group, Inc. (OTCQB: VPOR), (the "Company", "Vapor Group"), released today a preliminary statement about its first quarter 2014 operating results.
For January to March 2014, Vapor Group had gross revenues of approximately $1 million (over $950,000) and a gross profit of over $1/2 million, (over $600,000). Consolidated, PCAOB auditor-reviewed financial statements for the calendar quarter will be released next week following completion of internal reviews.
Dror Svorai, President and CEO, added, "So far 2014 has far outpaced the same period of 2013. For the full year of 2013 we had gross revenues of $1,991,023, and a gross profit of $1,124,273, most of which occurred in the second half of the year. That means that with only a quarter of the year (3 months) completed we already have achieved about half of 2013's full year revenues and over half of its full year's gross profit.
Important, year-to-date we have been able to drive the percentage of gross profit to over 60% of revenues, a phenomenal number attributable to immense effort invested in building supplier relationships. In the year ahead we will attempt to repeatedly repeat or beat this percentage quarter-by-quarter.
It is worth noting that the first quarter 2014 had some extraordinary occurrences and expenses. We merged with AvWorks Aviation Corp., and then acquired the majority interest in American Vaporizer, LLC, picking up its revenues, assets and costs. January through March we experienced significant levels of backorders meaning that there was considerable revenue that we couldn't book. In April, we undertook aggressive inventory financing in order to relieve oversold situations growing across most of our brands. Simply put, demand (greatly) exceeded supply. Now, for the second quarter, with additional inventory either in place or in manufacture, we are fulfilling and booking those backorders and meeting the continuing strong demand for our products.
Today, sales continue to accelerate over the first quarter's pace, meaning that our results for the second quarter should well surpass those of the first. Important to remember, we anticipate a major breakthrough in revenue to be reported for our third quarter, due to the rapidly expanding sales base of the American Smoke brand and our forthcoming launch of our Vapor 123 direct sales e-liquid home delivery system -- more on that later."
About the Vapor Group
Vapor Group, Inc., www.vaporgroup.com, is in the business of designing, developing, manufacturing and marketing high quality, vaporizers and e-cigarette brands which use state-of-the-art electronic technology and specially formulated, "Made in the USA" e-liquids, which may or may not contain nicotine. It offers a range of products with unique e-liquid flavors that is unmatched in our industry. Its products are marketed under the Vapor Group, Total Vapor, Vapor 123, American Smoke and Vapor Products brands. It sells nationwide through distributors, wholesalers and directly to consumers through its own websites and direct response advertising.
All of its E-cigarettes consist of a long-life battery, a heating element, a cartridge filled with an "e-liquid" and an atomizer which when heated, vaporizes the e-liquid. Because E-cigarettes are not "lit" like regular cigarettes, they don't create flame, smoke from burning, ash, tar, noxious fumes or leftover "cigarette butts". As a result, they may be used virtually anywhere.
Vapor Group is committed to providing E-cigarettes that are convenient and economical to use, safer and healthier than traditional smoking, and which provide a flavorful, enjoyable smoking experience.
Vapor Group, Inc. is managed by a highly experienced team of executives committed to responsible business policies and practices, including the marketing of our products only to those eighteen years of age or older, not making or avoiding claims about our product health benefits, and fulfilling the requirements of all applicable laws and regulations.
Safe Harbor Statement:
This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Certain statements set forth in this press release constitute "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate", "project", "intend", "forecast", "anticipate", "plan", "planning", "expect", "believe", "will likely", "should", "could", "would", "may" or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's limited operating history, the limited financial resources, domestic or global economic conditions -- activities of competitors and the presence of new or additional competition and conditions of equity markets.
CONTACT:
Vapor Group, Inc.
954-792-8450
SOURCE: Vapor Group, Inc.
Associated Documentation:
Link to submission on http://www.eteligis.com
VPOR_05-15-2014_MEL_ETL.docx
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