Iplayco Corporation Ltd.
TSX VENTURE : IPC

Iplayco Corporation Ltd.

January 30, 2007 14:50 ET

IPlayco Reports Positive Results for the Period Ending September 30, 2006

LANGLEY, BRITISH COLUMBIA--(CCNMatthews - Jan. 30, 2007) - IPLAYCO CORPORATION LTD. ("IPC") (TSX VENTURE:IPC) is pleased to announce the release of its audited consolidated financial statement for the year ended September 30, 2006. The audited consolidated financial statements of the Company can be accessed at www.SEDAR.com.

IPlayco's revenue is derived from the sales of its wholly owned operating subsidiaries International Play Company Inc. ("IPC") and Outdoor Play Company Inc. ("OPC").

IPC and OPC design, manufacture, and market children's modular playground equipment from the Company's factory and head office in Langley, British Columbia. The size and complexity of the play structures dictates the time required to manufacture, ship, and install individual playgrounds; diverse factors such as customer locations, capital budgets, exotic theme requirements, can cause project completion timelines to vary from a few weeks to several months. The Company's products are sold and installed on a world wide basis; typical markets include family entertainment centers, theme parks, malls, day care centers, fitness clubs, and playground facilities sponsored by municipalities and various non profit organizations.

Over the past two years, there has been an increasing customer demand for significantly larger, more complex and more costly structures.

Sales for the year ended September 30, 2006 were $10,400,546, up 16% from $8,945,781 in the prior year.

The increase was attributable primarily to higher European sales, up $2,938,551 over $483,674 last year. The higher revenue in Europe, which more than offset declines in other geographic regions, resulted from several large sales in the UK and Sweden; these projects represented an encouraging break through for the Company, in what has been a difficult market in which to establish a presence.

Middle East sales of $441,680 during 2006 declined by $878,332 from 2005. Sales into the Middle East are negotiated largely through agent relationships situated in the region. The decline during 2006 is reflective of a continuation of the weakening demand in the region over the past two years.

Asia Pacific sales of $109,489 during fiscal 2006 declined by $437,971 from last year, due partially to competitive price pressure from low cost manufacturers from China.

Gross profit during the year increased to $3,034,010 from $2,815,761 last year. Gross profits during 2006 were 29% of sales, as compared with 31% in 2005. The lower gross profit as a percentage of sales was due to an increase in the cost of sales, because of higher commissions paid to brokers and agents; the higher commissions resulted from an increase in revenue realized through strengthened relationships with outside brokers and agents. The other principal costs of sales, such as materials, people costs, installation travel costs, remained relatively unchanged during 2006, as a percentage of sales.

A significant portion of the Company's sales were settled in US dollars over the fiscal years ended September 30, 2006 and 2005; despite a strengthening CDN dollar during 2006 and an increase in aggressive pricing practices from lower cost competitors, the Company management is pleased with its success in preserving gross profit margins through sale price adjustment strategies, and production and installation cost efficiencies.

Net income for the year was $199,272 ($0.02 earnings per share).

ON BEHALF OF THE BOARD OF DIRECTORS

Scott Forbes, President and Director

FORWARD-LOOKING STATEMENTS: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation statements regarding the Company's business, results or future plans, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed elsewhere in documents that are available to the public.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • IPlayco Corporation Ltd.
    Mae Robertson
    (604) 882-1188
    (604) 882-1977 (FAX)