Electronic Cigarettes International Group Reports Third Quarter 2016 Financial Results

GOLDEN, Colo., Nov. 14, 2016

Third Quarter Overview

• Third quarter 2016 net sales were $9.7 million, compared to $12.9 million in the third quarter of 2015 and $9.6 million in the second quarter of 2016.  Net sales for all periods exclude revenues from global e-commerce that are now in discontinued operations due to the sale of that business. 
• Gross profit was $5.6 million, compared to $7.3 million in the third quarter of 2015 and $5.0 million in the second quarter of 2016.  Gross profit percentage was 57% for the 2016 third quarter, flat compared to the 2015 third quarter despite the impact of the new royalty payment, which began in the first quarter of 2016.

Dan O'Neill, Chief Executive Officer of Electronic Cigarettes International Group, stated, "The recent successful refinancing represented the catalyst for ECIG and provided a much needed spark to revitalize the team and to restore management's commitment, especially in the critical UK market. Multiple new growth initiatives are underway, driven by the re-engaged team with over 20 new, experienced employees in key positions. The strategy to capture the true potential of the market is accentuated by the launch of five new VIP products since the end of the third quarter."

Conference Call

The Company will hold a conference call to discuss its third quarter 2016 financial results and recent developments today at 5:00 p.m. Eastern time.  Please dial 412-902-0030 and ask 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 November 21, 2016 and may be accessed by calling 201-612-7415 using passcode 13649494#.  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.    

Electronic Cigarettes International Group, a leading global marketer and distributor of electronic cigarettes and vapor products, is dedicated to providing a compelling alternative to traditional cigarettes for more than 1 billion current smokers around the world.  The Company offers consumers a full product portfolio whose brands include VIP, FIN and Vapestick, incorporating superior product quality and the latest technology.  The Company owns multiple subsidiary companies and has operations in North America and Western Europe.  ECIG offers consumers a full product portfolio that incorporates product quality and the latest technology.  To learn more, visit www.ecig.co.

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