Iplayco Corporation Ltd.
TSX VENTURE : IPC

Iplayco Corporation Ltd.

February 05, 2010 17:59 ET

Iplayco Announces Financial Results for the Three Months Ended December 31, 2009

LANGLEY, BRITISH COLUMBIA--(Marketwire - Feb. 5, 2010) - Iplayco Corporation Limited (TSX VENTURE:IPC) ("Iplayco" or the "Company") today announced its financial results for the three months ended December 31, 2009. All amounts are in Canadian dollars unless otherwise noted.

This press release contains financial information derived from Iplayco's unaudited interim consolidated financial statements for the three months ended December 31, 2009. More detailed information can be found in the unaudited interim consolidated financial statements and Management's Discussion and Analysis for the three months ended December 31, 2009, which are being filed with the applicable Canadian regulatory authorities.

"Although the general economic environment remains very challenging, we are seeing some encouraging signs of increased activity. Our sales for the three months ended December 31, 2009 ("Q1-10") increased by 7.1% to $1,801,951 compared to $1,682,700 for the three months ended September 30, 2009 ("Q4-09"), and we expect that for the three months ending March 31, 2010, sales from our manufacturing operations will increase as compared to Q1-10, mainly as a result of an increase in the number of sales quotes submitted and general sales activity from our U.S. customers who account for a significant portion of our sales" said Scott Forbes, President and Director of Iplayco. "Sales from our manufacturing operations accounted for 83.2% of our total sales in Q1-10 compared to 80.9% in Q4-09, and increased by 10.1% to $1,498,579 in Q1-10 compared to $1,360,869 in Q4-09. Sales from our family entertainment centre operations accounted for 16.8% of our total sales in Q1-10 compared to 19.1% in Q4-09 and decreased by 5.7% to $303,372 in Q1-10 compared to $321,831 in Q4-09. The Board of Directors of Iplayco is also very pleased with management's cost reduction measures, which include continuing efforts to rationalize production costs and to reduce administrative expenses."

Results for the three months ended December 31, 2009 as compared to the three months ended September 30, 2009

Sales for Q1-10 increased by 7.1% to $1,801,951 compared to $1,682,700 in Q4-09. Gross profit was 43.6% of sales in Q1-10, compared to 54.8% in Q4-09. Operating expenses were $712,593, or 39.5% of sales, in Q1-10, compared to $1,073,657, or 63.8% of sales, in Q4-09. Net earnings in Q1-10 were $45,482, or diluted earnings per share of $0.00, compared to net losses of $188,962, or losses per share of $0.02 in Q4-09.

Results for Q1-10 as compared to Q1-09

Sales for Q1-10 decreased by 48.0% to $1,801,951 compared to $3,463,146 for Q1-09. Gross profit was 43.6% of sales in Q1-10, compared to 40.4% in Q1-09. Operating expenses were $712,593, or 39.5% of sales, in Q1-10, compared to $1,069,553, or 30.9% of sales, in Q1-09. Net earnings in Q1-10 were $45,482, or diluted earnings per share of $0.00, compared to net earnings of $227,367, or diluted earnings per share of $0.02 in Q1-09.

ON BEHALF OF THE BOARD OF DIRECTORS

     "Scott Forbes"
President and Director

About Iplayco Corporation Limited

Iplayco designs, manufactures and installs play structures for indoor and outdoor venues. Iplayco also owns and operates a family entertainment centre ("The Great Escape") in Langley, British Columbia. For more information, visit www.iplayco.com.

Cautionary Note Regarding 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 document that are available to the public.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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