Replies to post #27177 on Vapor Group Inc (VPOR)

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Vapor Group, Inc., VPOR, Releases Preliminary Results for First Quarter 2014

May 15, 2014 (eTeligis.com via COMTEX) -- DAVIE, FL, United States, via eTeligis Inc., 05/15/2014 - - Vapor Group, Inc. (OTCQB:VPOR), (the "Company", "Vapor Group"), released today a preliminary statement about its first quarter 2014 operating results.
For January to March 2014, Vapor Group had gross revenues of approximately $1 million (over $950,000) and a gross profit of over $1/2 million, (over $600,000).Consolidated, PCAOB auditor-reviewed financial statements for the calendar quarter will be released next week following completion of internal reviews.

Dror Svorai, President and CEO, added, "So far 2014 has far outpaced the same period of 2013. For the full year of 2013 we had gross revenues of $1,991,023, and a gross profit of $1,124,273, most of which occurred in the second half of the year.That means that with only a quarter of the year (3 months) completed we already have achieved about half of 2013's full year revenues and over half of its full year's gross profit.

Important, year-to-date we have been able to drive the percentage of gross profit to over 60% of revenues, a phenomenal number attributable to immense effort invested in building supplier relationships.In the year ahead we will attempt to repeatedly repeat or beat this percentage quarter-by-quarter.

It is worth noting that the first quarter 2014 had some extraordinary occurrences and expenses. We merged with AvWorks Aviation Corp., and then acquired the majority interest in American Vaporizer, LLC, picking up its revenues, assets and costs.January through March we experienced significant levels of backorders meaning that there was considerable revenue that we couldn't book. In April, we undertook aggressive inventory financing in order to relieve oversold situations growing across most of our brands. Simply put, demand (greatly) exceeded supply.Now, for the second quarter, with additional inventory either in place or in manufacture, we are fulfilling and booking those backorders and meeting the continuing strong demand for our products.

Today, sales continue to accelerate over the first quarter's pace, meaning that our results for the second quarter should well surpass those of the first. Important to remember, we anticipate a major breakthrough in revenue to be reported for our third quarter, due to the rapidly expanding sales base of the American Smoke brand and our forthcoming launch of our Vapor 123 direct sales e-liquid home delivery system -- more on that later."