Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Vapor Corp. Reports Improved First Quarter 2013 Results



           Vapor Corp. Reports Improved First Quarter 2013 Results

Net Sales up 31.1% Year-Over-Year and Generates Operating Income

PR Newswire

DANIA BEACH, Fla., May 15, 2013

DANIA BEACH, Fla., May 15, 2013 /PRNewswire/ -- Vapor Corp. (OTCQB: VPCO;
"Vapor" or the "Company"), a leading U.S. based electronic cigarette company
whose brands include Krave®, Fifty-One®, VaporX®, Alternacig®, EZ Smoker®,
Green Puffer®, Americig®, Fumare™, Hookah Stix™ and Smoke Star®, today
announced its financial results for the first quarter ended March 31, 2013.

Financial Highlights for the first quarter ended March 31, 2013

  Net sales were approximately $6.4 million, an increase of $1.5 million, or
  approximately 31.1% from the same quarter in the preceding year. The
  increase in sales is primarily attributable to sales to new and existing
  distributors, wholesale customers and increased direct to consumer sales.

  Cost of goods sold rose 40.4% to $3.7 million as compared to the same
  quarter in the previous year, primarily resulting from increased sales
  volume as well as a change in product mix to higher distributor and
  wholesaler sales, which have lower gross margins than our direct sales to
  consumers.

  Gross Margins decreased to 41.7% from 45.6% in the same quarter in the prior
  year as a result of the above factors.

  Selling, general and administrative expenses for the three months ended
  March 31, 2013 increased to $1.6 million, up 7.4% from the same quarter in
  the prior year primarily due to  increases in variable selling expenses
  attributable to the increase in sales.

  Advertising expense decreased 12.5% to $0.9 million for the three months
  ended March 31, 2013 compared to the same period in 2012.  During the three
  months ended March 31, 2013, we decreased our Internet advertising and print
  advertising campaigns, and increased our new television direct marketing
  campaign for our Alternacig® brand and continued various other advertising
  campaigns.

  Operating income was $194,644 compared to operating losses of $258,358 for
  the same quarter in the prior year.

  Interest expense for the three months ended March 31, 2013 and 2012 was
  $66,510 and $0 respectively. The increase was attributable to the senior
  convertible notes and the senior note issued by the Company during 2012 and
  the senior convertible note issued by the Company in January 2013.

  Income tax expense (benefit) for the three months ended March 31, 2013 and
  2012 was $4,590 and ($75,642), respectively.

  Net income (loss) for the three months ended March 31, 2013 and 2012 was
  $123,544 and ($182,716), respectively, as a result of the items discussed
  above.

Kevin Frija, Chief Executive Officer of Vapor Corp, commented, "The first
quarter of 2013 was marked by continued sales growth, a return to
profitability and an increase in working capital. These financial results are
very encouraging; especially as we embark on the continued expansion of our
soft tip filters and Krave King Product line."

Looking ahead, Mr. Frija stated, "Demand for our products remains strong and
interest in our Krave King is expanding.  We remain committed to investing in
the long-term growth of the company and its brands as well as gaining greater
brand awareness among the vaping community and investors. Quality, value and
thoughtful innovation and improvements in product, such as our soft-tip
filters, set us apart from the competition and allows us to get more products
into the hands of more customers, and leads to more repeat customers."

About Vapor Corp.

Vapor Corp., a publicly traded company, is a leading U.S. based electronic
cigarette company, whose brands include Fifty-One®, Krave®, VaporX®, EZ
Smoker®, Alternacig®, Green Puffer®, Americig®, Fumare™, Hookah Stix™ and
Smoke Star®. We also design and develop private label brands for some of our
distribution customers. "Electronic cigarettes" or "e-cigarettes," are
battery-powered products that enable users to inhale nicotine vapor without
smoke, tar, ash or carbon monoxide. Vapor's electronic cigarettes and
accessories are available online, through direct response to our television
advertisements and through retail locations throughout the United States. For
more information on Vapor Corp and its e-cigarette brands, please visit us at
www.vapor-corp.com.

Safe Harbor Statement

This press release contains certain forward-looking statements that are made
pursuant to the "Safe Harbor" provisions of the Private Securities Litigation
Reform Act of 1995, as amended. Words such as "expects," "anticipates,"
"plans," "believes," "scheduled," "estimates" and variations of these words
and similar expressions are intended to identify forward-looking statements.
These forward-looking statements concern Vapor's operations, economic
performance and financial condition and are based largely on Vapor's beliefs
and expectations. These statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results, performance
or achievements of Vapor to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Certain of these factors and risks, as well as other risks and
uncertainties are stated in Vapor's Annual Report on Form 10-K for the fiscal
year ended December 31, 2012 and in Vapor's subsequent filings with the U.S.
Securities and Exchange Commission. These forward-looking statements are made
as of the date of this press release, and Vapor assumes no obligation to
update the forward-looking statements or to update the reasons why actual
results could differ from those projected in the forward-looking statements.

Investor Contact:
Howard Gostfrand
President
American Capital Ventures
305.918.7000
info@amcapventures.com

VAPOR CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS
                                                 March 31,      December 31,

                                                  2013          2012
                                                 (Unaudited)
ASSETS
CURRENT ASSETS:
Cash                                             $ 279,900      $ 176,409
Due from merchant credit card processor, net of                    
reserve for chargebacks of $15,000 and $15,000,
                                                   849,685        1,031,476
   respectively
Accounts receivable, net of allowance of           987,281        748,580
$70,000 and $61,000, respectively
Inventories                                        1,734,069      1,670,007
Prepaid expenses                                   523,969        465,860
Income tax receivable                              43,225         47,815
Deferred tax asset, net                            222,130        222,130
TOTAL CURRENT ASSETS                               4,640,259      4,362,277
Property and equipment, net of accumulated
depreciation of $19,557 and $16,595,               30,285         25,190
respectively
Other assets                                       12,000         12,000
TOTAL ASSETS                                     $ 4,682,544    $ 4,399,467
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
CURRENT LIABILITIES:
Accounts payable                                 $ 3,237,164    $ 3,208,595
Accrued expenses                                   359,315        350,151
Senior convertible note payable, net of debt       415,323        -
discount of $84,677 and $0, respectively
Current portion of senior convertible note         152,778        -
payable to stockholder
Customer deposits                                  78,553         477,695
TOTAL CURRENT LIABILITIES                          4,243,133      4,036,441
LONG-TERM DEBT:
Senior convertible notes payable to related
parties, net of debt discount of $3,174 and                        
$3,530,   
                                                   346,826        346,470
   respectively
Senior convertible note  payable to stockholder    347,222        -
Senior note payable to stockholder                 -              500,000
TOTAL LONG-TERM DEBT                               694,048        846,470
TOTAL LIABILITIES                                  4,937,181      4,882,911
COMMITMENTS AND CONTINGENCIES (Note 6)
STOCKHOLDERS' DEFICIENCY:
Preferred stock, $.001 par value, 1,000,000        -              -
shares authorized, none issued
Common stock, $.001 par value, 250,000,000
shares authorized, 60,235,344 and 60,185,344                       
shares
                                                   60,235         60,185
   issued and outstanding, respectively
Additional paid-in capital                         1,742,590      1,637,377
Accumulated deficit                                (2,057,462)    (2,181,006)
TOTAL STOCKHOLDERS' DEFICIENCY                     (254,637)      (483,444)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY   $ 4,682,544    $ 4,399,467

 

VAPOR CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                                                   For The Three Months Ended

                                                   March 31,
                                                   2013          2012
SALES, NET                                         $ 6,360,749   $ 4,850,524
Cost of goods sold                                   3,708,806     2,640,700
GROSS PROFIT                                         2,651,943     2,209,824
EXPENSES:
Selling, general and administrative                  1,606,098     1,494,913
Advertising                                          851,201       973,269
Total operating expenses                             2,457,299     2,468,182
Operating income (loss)                              194,644       (258,358)
Other expense:
Interest expense                                     66,510        -
Total other expense                                  66,510        -
                                                                    
INCOME (LOSS) BEFORE INCOME TAX EXPENSE (BENEFIT)    128,134
                                                                   (258,358)
Income tax expense (benefit)                         4,590         (75,642)
NET INCOME (LOSS)                                  $ 123,544     $ (182,716)
                                                                    
BASIC NET INCOME (LOSS) PER COMMON SHARE             0.00
                                                   $             $ (0.00)
DILUTED NET INCOME (LOSS) PER COMMON SHARE         $ 0.00        $ (0.00)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES                            
OUTSTANDING – BASIC
                                                     60,194,233    60,185,344
WEIGHTED AVERAGE NUMBER OF COMMON SHARES             61,353,339    60,185,344
OUTSTANDING – DILUTED

 

SOURCE Vapor Corp.

Website: http://www.vapor-corp.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement