SOURCE: Vaporin, Inc.

Vaporin, Inc.

November 12, 2014 08:20 ET

Vaporin Announces Sequential Revenue Growth of 100% for the 2014 Third Quarter Ending September 30, 2014

Gross Profit Margins Improve to 49.3% for the 2014 Third Quarter as Compared to 43.2% for the 2014 Second Quarter

MIAMI, FL--(Marketwired - Nov 12, 2014) - Vaporin, Inc. (OTCQB: VAPO), is a distributor and marketer of vaporizers, tanks, mods (VTM's) and e-liquids products, today announced its financial results for the third quarter and nine month period ending September 30, 2014.

Greg Brauser, Chief Operating Officer of Vaporin, commented, "During the 2014 third quarter we continued to experience revenue growth and margin expansion. Continued revenue growth was largely driven by internet sales, c-store distribution, and our newly acquired brick and mortar vape stores. In only a month of operating our four vape stores during the quarter, we experienced an increase in revenue and margin expansion through this direct-to-consumer sale and brand awareness. Additionally, during the quarter we were successful in launching our line of cannabis vaporizers online." 

Financial Highlights for the 2014 Three and Nine Month Periods:

  • Revenue for the first nine months of 2014 totaled $1.4 million;
  • Revenue for the third quarter of 2014 increased 100% to $837,000 as compared to $419,000 for the second quarter of 2014;
  • Growth sequentially was driven predominantly by an increase in website sales and approximately one month of sales from "The Vape Store" acquisition;
  • Gross profit margins improved to 49.3% for the third quarter of 2014 as compared to 42.3% for the second quarter of 2014;
  • Gross profit margin improvement was driven by direct to consumer sales via online marketing and "The Vape Store."

Financial Results for the Periods Ended March 31, June 30 and September 30, 2014:

2014   First Quarter   Second Quarter   Third Quarter   Total
Revenue   $182,793   $419,370   $837,205   $1,439,368
Gross Profit   $67,329   $181,015   $412,996   $661,340
Gross Profit Margin   36.8%   42.3%   49.3%   45.9%

Scott Frohman, Chief Executive Officer of Vaporin, continued, "The industry continues to shift towards vapors, tanks and mods which has increased to $1.5 billion of the $2.5 billion total addressable market, as compared to an estimated $1.1 billion during the summer of 2014. Of the $1.5 billion market within which we operate approximately $1 billion is generated from vape stores. With our acquisition of The Vape Stores, we now have a core management team with years of experience in operating retail vape stores successfully. Today we have a solid executive team leading each of our three revenue streams of online, c-store distribution, and vape stores. We are strongly positioned to continue building market share within this multi-billion dollar industry." 

Operational Highlights during the First Nine Months of 2014:

  • Acquired "The Vape Store," which operates four vape stores with annualized revenue of approximately $2.6 million;
  • During the 2014 third quarter, the Company launched its line of cannabis products online;
  • Entered into the medical cannabis industry through an exclusive distribution agreement with Terra Tech Corp. to supply proprietary vaporizer products for resale throughout their cannabis dispensary network in California, Colorado, Washington and Oregon;
  • Secured exclusive supply agreement with ChromaDex®, an innovative natural products company that discovers, acquires, develops and commercializes proprietary-based ingredient technologies, for the development of NIAGEN™ and PURENERGY™, novel ingredients with multiple energy and health benefits;
  • James J. Martin has been appointed as Chief Financial Officer of the Company; and,
  • Completion of merger, name change and trading under new stock symbol "VAPO."

About Vaporin, Inc.
Vaporin is a distributor and marketer of vaporizers, tanks, and mods (VTM's) and e-liquids products. The company focuses on a multi-pronged revenue model comprised of convenience store sales, online retail continuity programs, traditional online sales, and the acquisition and opening of retail stores. Vaporin's innovative technology offers the look, feel and taste of traditional cigarettes without any tar, tobacco, smoke and odor. As an alternative to traditional cigarettes and e-cigarettes, Vaporin is offered in a variety of kits ranging from those for beginner vapor users up to high-level experienced users. The unique Vaping Pens product line and Made-In-USA E-Liquid is what makes Vaporin one of the emerging brands in the market. Vaporin is not just an alternative to traditional smoking, but a lifestyle. For more information please visit, www.vaporin.com.

Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements including statements regarding the continued growth of our business. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the results of our marketing efforts including our online initiative, competition from other vapor and e-cig. companies, in addition to the major tobacco companies and new regulations which affect the distribution of these products. Further information on our risk factors is contained in our filings with the SEC, including the Form 10-K filed on March 27, 2014. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.