Electronic Cigarettes International Group Ltd fka ECIGQ

[HighPeaks]

Electronic Cigarettes International Group Reports Second Quarter 2016 Financial Results

PR Newswire

GOLDEN, Colo., Aug. 11, 2016 /PRNewswire/ -- Electronic Cigarettes International Group, Ltd. (The "Company") (OTCBB: ECIG), a leading global marketer and distributor of electronic cigarettes and vapor products, today announced financial results for the second quarter ended June 30, 2016.

Second Quarter Overview

-- Second quarter 2016 net sales were $11.8 million, compared to $12.4
million the second quarter of 2015 and flat sequentially from the first
quarter of 2016.

-- Gross profit was $6.6 million, flat compared to both the second quarter
of 2015 and the first quarter of 2016. Gross profit percentage increased
to 56% from 53% for the 2016 second quarter as compared to the 2015
second quarter despite the impact of the new royalty payment, which began
in the first quarter of 2016.

-- Adjusted EBITDA was negative $411,000 in the second quarter of 2016
versus a negative $1.9 million in the second quarter of 2015 and negative
$1.5 million in the first quarter of 2016.

-- Reduced Days Sales Outstanding (DSO) from 20 days on December 31, 2015 to
16 days on March 31, 2016 to 14 days on June 30, 2016.
Dan O'Neill, Chief Executive Officer of Electronic Cigarettes International Group, stated, "The second quarter revenue results were disappointing, reflecting the Company's lack of working capital to fund certain growth initiatives and delays in executing our expansion plans in the UK and internationally. However, with the completion of our financial recapitalization in early July, we are now in a position to capitalize on targeted opportunities to drive profitable growth in the future."

Conference Call

The Company will hold a conference call to discuss its second quarter 2016 financial results and recent developments today at 5:00 p.m. Eastern time. Please dial 412-902-0030 and asking for the Electronic Cigarettes International Group call at least 10 minutes prior to the start time, or live over the Internet by logging on to the web at the address http://ecig.co/investors/presentations/. A telephonic replay of the conference call will be available through August 18, 2016 and may be accessed by calling 201-612-7415 using passcode 13643002#. A web cast archive will also be available at http://ecig.co/investors/presentations/ shortly after the call and will be accessible for approximately 90 days.