HENDERSON, NV--(Marketwired - Feb 6, 2017) - mCig, Inc. (OTCQB: MCIG)
- Net Sales increase to $1.3M, a 546% increase year to year comparison and a 204% increase from previous quarter
- Net Income of $845K with an Adjusted Net Income of $118K is highest in company history for single quarter performance
- Cash position increases for third consecutive quarter with $341K generated by operating activities
- 4.3:1 Current Acid Test Ratio signifies healthy company with strong ability to pay current liabilities
mCig, Inc., (OTCQB: MCIG), a diversified company servicing the legal cannabis, hemp, and CBD markets announced today its preliminary earnings and financial results for its third quarter for FY 2017, ending January 31, 2017.
MCIG generated $1.3M in revenue through its construction, CBD, and e-Cig divisions during the third quarter bringing its total revenue for the FY to $2.2M. The revenue generated represents a 546% increase from the same period last year, and a 204% increase from last quarter. MCIG's net income for the quarter was $898K (with a $118K adjusted net income) bringing its total net income YTD to $716K ($227K adjusted net income), a 32% net margin. The company generated $341K in cash from operations and has increased its cash, and cash equivalents, position by 311% this fiscal year to $420K. MCIG reports $1.26M in current assets with only $287K in current liabilities giving it an acid test ratio of 4.3:1, its highest rating in company history.
Michael Hawkins, Chief Financial Officer, stated, "For the third straight quarter MCIG has recorded record numbers. With its current contracts and booked revenue the Company will continue to see quarter over quarter growth in revenue." He went on to say, "During this quarter we will revamp our segment reporting; changing from construction, wholesale, and retail; to construction, CBD, and e-Cig operations. We feel reporting on the segments under these new categories will provide a greater in depth review of our operations to our shareholders and investors."
Mr. Hawkins went on to explain the net income and adjusted net income by stating, "MCIG uses non-GAAP net income (Adjusted Net Income) to evaluate it business operations. Our adjusted net income excludes stock-based compensation, amortization of acquired intangible assets, impairment of intangible assets, costs from acquisitions, non-cash deferred tax provision, litigation, and settlement costs." He went on to explain, "During this quarter the company recognized a reversal in stock based compensation and a settlement action that generated $727K in reportable net income. We adjusted our income by removing these required adjustments in order to demonstrate our operating profits of $118K, our adjusted net income."
Paul Rosenberg, MCIG's Chief Executive Officer included, "The cannabis industry is growing rapidly and MCIG has been there since the beginning. Management continues to focus on its business grow opportunities in Nevada, while continuing to service other states as well." MCIG has recently contracted its first business in the state of Maine, bringing its total states activities to six states. "We are well positioned to fulfill the requirements of this new, expanded market," he further clarified, adding, "our ability to fulfill our obligations has always been our priority. The acid test ratio clearly demonstrates we did it right. Our ability to meet short term requirements through our tight capital control measures, gives us the ability to continue our expansion progress through organic growth and strategic partnerships."
About mCig, Inc.
Headquartered in Henderson, Nevada, mCig Inc. (OTCQB: MCIG) is a diversified company servicing the legal cannabis, hemp and CBD markets via its lifestyle brands. MCIG has expanded from originally a vaporizer manufacturer, to an industry leading, large scale, full service cannabis cultivation construction company currently operating in the rapidly expanding Nevada market, and a Hemp based CBD market supplier. The company looks to further broaden its expansion in multiple different fields within the cannabis industry through organic growth and strategic partnerships. For more information visit www.mcig.org.
Safe Harbor Statement
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the Company's ability to develop, market and sell products based on its technology; the expected benefits and efficacy of the Company's products and technology; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, and future product commercialization; and the Company's business, research, product development, regulatory approval, marketing and distribution plans and strategies.
This release contains references to Adjusted Net Income, a non-GAAP disclosure. This term, as the Company defines it, may not be comparable to a similarly titled measure used by other companies and is not a measure of performance presented in accordance with GAAP. The Company uses Adjusted Net Income as a measure of operating performance. Adjusted Net Income should not be considered as a substitute for net income.