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The balance sheet doesn't look great. Cash is down $5 million as compared to the beginning of the year, even though Accounts Receivable decreased by $1 million and Accounts Payable increased by $700k. Inventory is also up by $800k, although part of that is likely due to new stores opening. Hopefully VPCO can get positive cash flow started soon. If sales were expanding then the reduction in cash wouldn't be so concerning, but sales have decreased substantially as compared to the prior year. I will stay on the sidelines for now.
It looks like VPCO is joining the green rush. Not sure the timing is great due to the whole PHOT debacle but hopefully the product gets more exposure nonetheless. So far there has been no market reaction but the PR just came out 30 minutes ago.
I don't know. I bought more at $8.41 this morning thinking the presentation would bump the PPS. I'm going to stop watching the screen for today because it is annoying watching it drop. I still think VPCO will do well in the long-term.
I thought there would be much more excitement here. An OTC stock that is showing growth in sales and net income is quite a testament to their viability in the marketplace. To top it off, the financials are audited by Marcum, which is a top 20 accounting firm. Just the fact that you can walk in and see/purchase this product at a store should make it stand out against all the other OTC scams and pot stocks out there. Let's see what tomorrow brings. VPCO long.
Vapor Corp. Reports Results for the Fourth Quarter and the Year Ended December 31, 2013
4:10p ET February 26, 2014 (PR NewsWire)
Vapor Corp. (OTCQB:VPCO; "Vapor", the "Company"), a leading U.S. based electronic cigarette company whose brands include Krave(R), Fifty-One(R), VaporX(R), Alternacig(R), EZ Smoker(R), Green Puffer(R), Americig(R), Fumare(TM), Hookah Stix(R) and Smoke Star(R), today announced its financial and operating results for the fourth quarter and year ended December 31, 2013.
2013 Operational and Financial Highlights:
-- Achieved record revenues for the fourth quarter and year ended December 31, 2013:
-- Total revenues for the fourth quarter of 2013 grew 56% to $7 million
-- Total revenues for the full year 2013 grew 22% to $26 million;
-- Family Dollar stores across the U.S. started selling KRAVE(R) KING brand of disposable e-cigarette products;
-- Vapor's products are now in more than 60,000 retail outlets in the U.S. and Canada;
-- Completed a $10 million private placement of common stock that is being used to fund the Company's growth initiatives; and
-- Effected a 1-for-5 reverse stock split of the Company's common stock to satisfy the minimum bid price requirement in order to seek listing of the common stock on The NASDAQ Capital Market.
Jeffrey Holman, President of Vapor Corp., commented, "We significantly expanded our retail footprint and marketing activities over the past year, as we continued to experience increased customer demand across the U.S. and Canada for our portfolio of e-cigarettes and vaporizers. This is mostly being driven by a rapidly growing number of users of tobacco-burning cigarettes who view e-cigarettes and vaping as a bona fide alternative to combustible cigarettes.
"In December 2013, we increased our presence in the retail market by adding 6,600 Family Dollar stores nationwide that will carry our flagship brand of disposable e-cigarettes, KRAVE(R) KING. The growing presence of our products in large retailers and national chains is helping us establish our brands and build a loyal customer base.
"Looking ahead, we plan to expand our retail footprint and increase our marketing efforts. In order to help fund these activities, we raised $10 million in October 2013," concluded Mr. Holman.
Financial and Operating Results for the fourth quarter ended December 31, 2013
Net sales grew 56% to approximately $7.0 million in the fourth quarter of 2013, as compared with approximately $4.5 million during the same quarter last year.
Cost of goods sold increased 96% to approximately $5.0 million as compared with approximately $2.5 million for the same quarter in the previous year, primarily resulting from increased sales volume.
Gross margins decreased to 30% as compared with 44% for the same period in 2012 as a result of increased private label sales, which have lower gross margins.
Selling, general and administrative expenses for the quarter ended December 31, 2013 decreased by approximately 10% from the same quarter in the prior year primarily due to a decrease in professional and consulting fees.
Advertising expenses decreased approximately 84% to $111,316 for the quarter ended December 31, 2013, compared with $705,613 during the same quarter in 2012.
Operating income was $345,352, compared with an operating loss of ($510,892) for the same quarter in the prior year.
Interest expense for the quarters ended December 31, 2013 and 2012 was $132,705 and $46,275 respectively. The increase was attributable to the interest and amortization of debt discount on the senior convertible notes and the senior note issued during 2012, the senior convertible note issued in January 2013, the $425,000 senior convertible notes issued in July 2013, and the $750,000 term loan entered into in August 2013.
The Company incurred a non-cash induced conversion expense of $299,577 for the quarter ended December 31, 2013 related to the conversion of senior convertible notes into common stock in conjunction with completing the private placement.
Income tax expense (benefit) for the quarters ended December 31, 2013 and 2012 was ($538,561) and $168,344, respectively.
Net income for the quarter ended December 31, 2013 was $451,631 compared with a net loss of ($725,511) for the quarter ended December 31, 2012, as a result of the items discussed above.
Financial and Operating Results for the Year ended December 31, 2013
Net sales grew 22% to approximately $26.0 million for the year ended December 31, 2013 as compared with approximately $21.4 million for the prior year. This increase was mainly attributable to our ability to more efficiently meet consumer demand for our products with optimized inventory and enhanced distribution efforts.
Cost of goods sold increased 23% to approximately $16.3 million as compared with approximately $13.2 million for the year ended December 31, 2012, primarily due to the increase in sales volume and product mix.
Gross margins decreased slightly to 37.2% compared with 38.1% for the prior year due to a change in the product mix.
Selling, general and administrative expenses for the year ended December 31, 2013 decreased by 6% to approximately $6.5 million from approximately $6.9 million for the prior year, primarily due to a decrease in professional and consulting fees and merchant service and bank fees; net of increases in compensation and insurance expenses, among others.
Advertising expenses decreased 36% to approximately $2.3 million for the year ended December 31, 2013, compared with approximately $3.6 million for the prior year.
Operating income was approximately $960,000 compared with an operating loss of approximately $2.3 million for the prior year.
Interest expenses for the years ended December 31, 2013 and 2012 was $383,981 and $89,347 respectively. The increase was attributable to the interest and amortization of debt discount on the senior convertible notes and the senior note issued during 2012, the senior convertible note issued in January 2013, the $425,000 senior convertible notes issued in July 2013, and the $750,000 term loan and the factoring facility entered into in August 2013.
The Company incurred a non-cash induced conversion expense of $299,577 for the year ended December 31, 2013 related to the conversion of senior convertible notes into common stock in conjunction with completing the private placement.
Income tax benefit for the years ended December 31, 2013 and 2012 was $524,791 and $465,941, respectively.
Net income for the year ended December 31, 2013 increased by approximately $2.7 million to $801,352, compared with a net loss of $1,920,972, as a result of the items discussed above.
Conference Call Information The Company's management team will host a conference call tomorrow, Thursday, February 27, 2014 at 10:30 A.M. Eastern Time to discuss the Company's historical financial and operating performance during the fourth quarter and the year ended December 31, 2013. To listen to the call, please dial (888) 438-5519 (US Toll Free) or (719) 325-2402 (International) and enter the pin number 3032957 at least five minutes before the scheduled start time. Investors and other interested parties can also access the call in a "listen only" mode via webcast at the Company's website, www.vapor-corp.com. Please allow extra time prior to the call to visit the site and download any necessary audio software.
A digital replay of the conference call will be available through March 13, 2014 at (877) 870-5176 (US Toll Free) or (858) 384-5517 (International), pin number 3032957. The replay also will be available at the Company's website for a limited time.
About Vapor Corp. Vapor Corp., a publicly traded company, is a leading U.S. based electronic cigarette company, whose brands include Fifty-One(R), Krave(R), VaporX(R), EZ Smoker(R), Alternacig(R), Green Puffer(R), Americig(R), Fumare(TM), Hookah Stix(R) and Smoke Star(R). 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, 2013 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.
Contacts: Media: Alison Crisci KCSA Strategic Communications acrisci@kcsa.com / (212)-896-1252
IR: Jeffrey Goldberger / Garth Russell KCSA Strategic Communications jgoldberger@kcsa.com / grussell@kcsa.com (212)-896-1249 / (212)896-1250
Earnings have been released.
VPCO on a nice little run here. It seems like people are optimistic about the financials this afternoon.
Trial Update - Mandatory Settlement Conference Added 3/19/14
03/19/2014 at 10:45 am in department 23 at 111 North Hill Street, Los Angeles, CA 90012
Mandatory Settlement Conference(Dept. 48)
03/25/2014 at 08:31 am in department 48 at 111 North Hill Street, Los Angeles, CA 90012
Final Status Conference((JT 4/1/14))
04/01/2014 at 09:30 am in department 48 at 111 North Hill Street, Los Angeles, CA 90012
Jury Trial(15-DAY ESTIMATE(7TH CONT.))
http://www.lasuperiorcourt.org/civilcasesummarynet/ui/casesummary.aspx?
Case Number: bc427192
bc427192
I'm excited for tomorrow. I've been trading this stock for a few months now. I hope they get their products up to par with such products as Joyetech and Kanger, which are the ecigs that I use personally. After the recent large dip, I decided to stop trading this stock and hold. I'll check out the website update later today.
Now it is official:
02/24/2014 at 08:33 am in department 48 at 111 North Hill Street, Los Angeles, CA 90012
Ex Parte Motion(2) TRIAL SETTING CONFERENCE)
02/26/2014 at 08:30 am in department 48 at 111 North Hill Street, Los Angeles, CA 90012
Motion to Compel( (CONT. FROM 1/23/14)(FSC 3/25/14, JT 4/1/14))
03/25/2014 at 08:31 am in department 48 at 111 North Hill Street, Los Angeles, CA 90012
Final Status Conference((JT 4/1/14))
04/01/2014 at 09:30 am in department 48 at 111 North Hill Street, Los Angeles, CA 90012
Jury Trial(15-DAY ESTIMATE(7TH CONT.))
Settlement Conference 3/25/14, Jury Trial 4/1/14
From the LASC website:
02/26/2014 at 08:30 am in department 48 at 111 North Hill Street, Los Angeles, CA 90012
Motion to Compel( (CONT. FROM 1/23/14)(FSC 3/25/14, JT 4/1/14))
02/24/2014 at 08:30 am in Department 48, Elizabeth Allen White, Presiding
Ex Parte Motion - Granted
If I'm reading this right, it looks like the settlement conference has been moved back to 3/25/14 and the jury trial has been moved back to 4/1/14. That is much longer than most of us were hoping for.
http://www.therobingroom.com/california/Judge.aspx?id=2908
I'm not sure if this has been posted here before. The link shows some reviews (and comments) of Judge White by lawyers. I'm not well versed in law or legal proceedings so I won't pretend to know if this information helps or hurts PPJE's case. I'm hoping for the best because I don't even break even until this thing gets back to .005.
I'm not sure why you are taking shots at me. The point of my post is that I didn't read the financials and took a position in a stock based on manufactured hype. A mistake I won't make again and hope other new investors don't make in the future. Have fun calling people names on the internet. I'll go back to tax season and trying to figure out what a "CPA class" is. Did you make that up on your own?
WestJet signed with Panasonic to provide inflight entertainment. This must be what is causing the drop in PPS.
http://online.wsj.com/article/PR-CO-20140214-906455.html
I'm with you StockdungU. I'm new to stock investing so I fell for the pump on 1/23/14 based on a crazy amount of positive posts on the board. I lost 35% of my investment in the blink of an eye. When I went on to the board to see what the hell was going on, it was a ghost town. It was like in a horror movie where the character thinks they see something, later realize it is not there, and then goes crazy wondering if it was there in the first place. I have found out in a very short time that being a CPA with a finance background does not make one exempt from doing their own due diligence.
I do agree with your logic and figures IF this was an accounting error. However, the language in the amended purchase agreement uses the term "post-split" twice and I find it hard to believe this would slip through the cracks unintentionally. You would think while somebody was typing all those zeros in the document (30M, 14.25M, 1.5M) that they would have realized it didn't make sense.
That being said, I hope you are right. 750k post-split is much easier to stomach than 30M post-split. In either case, we need to be suspect of management's ethics or competence. Not sure which one is worse...
Non-assessable does not mean that it can't be sold. It means that the issuer cannot require additional levies or investments from the shareholder. "Fully paid and non-assessable" basically means no strings attached for the recipient. Both the 1/3/14 and 1/14/14 8K's had this language.
I wish the 8K gave additional information on the restricted stock. My understanding of a restricted stock is that it is restricted until it vests. The notion of a restricted stock that vests immediately doesn't make much sense to me. I believe the vesting requirement is what makes it restricted. If there are other restrictions on what can be traded after vesting has occurred, disclosure in the 8K would have been nice.
Again, I'm not bailing yet. I will wait for news and hope this bounces back.
Edgar has the newest 8K. It specifically says 30M post-split. This is definitely making me regret my investment that is already quite red. I'll still hold out for news to see if this can recover.