iFabric Corp.
TSX VENTURE : IFA

May 29, 2013 09:15 ET

iFabric Corp. Announces Record Second Quarter 2013 Results

MARKHAM, ONTARIO--(Marketwired - May 29, 2013) - iFabric Corp. (TSX VENTURE:IFA), hereinafter referred to as "iFabric" or the "Company", today announced its financial results for the second quarter ended 31st March 2013. iFabric has a 30th September year end.

In the quarter ended 31st March 2013, revenues increased to $2,254,113 compared to $1,067,362 in the corresponding quarter of 2012, an increase of 111%. Gross profit in the quarter was $1,305,933 (or 58% of sales), compared to $586,750 (or 55% of sales) in the corresponding quarter of 2012, representing an increase of $719,183, or an increase of 123% over the corresponding quarter of 2012.

Net profit after tax for the second quarter ended 31st March 2013 was $24,478 after non-recurring expenses of $473,145 comprised of $273,145 attributable to share based compensation due to the granting of stock options to directors and officers of the company in January 2013 as well as approximately $200,000 in design, selling and marketing costs expensed ahead of future sales programs. Net profit after tax in the corresponding quarter of 2012, when the company was still private, amounted to $93,781.

The Company's Balance Sheet remains strong. With a working capital ratio of 3.7 to 1, operating debt of $452,000, cash of $144,000 and an unutilized bank line of credit of $1,692,000, the Company is well capitalized to fund its operations. Shareholders' Equity increased to $5,087,597 at the end of the quarter.

For the six months ended 31st March 2013, revenues increased to $3,439,864 compared to $2,171,592 in the corresponding six months of 2012, an increase of 58%. Gross profit for the six months was $1,958,181 (or 57% of sales), compared to $1,199,973 (or 55% of sales) in the corresponding six months, representing an increase of $758,208 (or 63%), over the corresponding six months of 2012.

Net profit after tax for the six months ended 31st March 2013 was $36,889 after non-recurring expenses of $473,145 comprised of $273,145 attributable to share based compensation due to the granting of stock options to directors and officers of the company in January 2013 as well as approximately $200,000 in design, selling and marketing costs expensed ahead of future sales programs. Net profit after tax in the corresponding six months in 2012, when the company was still private, was $222,477.

"I am very pleased so say that we have exceeded our expectations with regard to the Splendid Intimates program launch. With the Ella Moss program launching in the next quarter and sleepwear later in the year, our lingerie business is growing at a healthy rate," stated Mr. Hylton Karon, CEO and President of iFabric.

"We have also developed a substantial amount of momentum with regard to the company's Cliniweave technology which, continues to attract tremendous interest in a variety of applications with volume shipping anticipated to commence in the fourth quarter of 2013," added Mr. Karon.

CLINIWEAVE is effective against a wide range of micro-organisms including mold, mildew, fungi and odor causing bacteria. It provides long-term, effective control of microorganisms. This efficacy and safety has been documented in numerous peer reviewed publications, trade articles and certified tests. It is durable to deterioration through repeated washing and is clinically proven to kill bacteria associated with hospital acquired infections. Medical facility uses for Cliniweave include bedding, curtaining, air filters, scrubs, masks and surfaces amongst others.

Complete Financial Statements are available on www.sedar.com

FINANCIAL HIGHLIGHTS
3 months ended March 31 6 months ended March 31
2013 2012 2013 2012
$ $ $ $
Revenue 2,254,113 1,067,362 3,439,864 2,171,592
Net Income 24,478 93,781 36,889 222,477
Net Income Per Share 0.001 0.004 0.001 0.01
Cash Flow (740,617) (435,204) (450,294) (766,368)

ABOUT iFABRIC CORP.:

iFABRIC CORP. currently has 25.2 million shares issued and outstanding. iFABRIC is a manufacturer, distributor, licensor and licensee of ladies intimate apparel products and accessories as well proprietary chemical compounds that render fabrics intelligent, thereby improving the safety and well-being of the wearer.

FORWARD-LOOKING STATEMENTS

Forward-looking statements provide an opinion as to the effect of certain events and trends on the business. Certain statements contained in this news release constitute forward looking statements. The use of any words such as "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. Forward-looking information includes, but is not limited to, statements with respect to the development potential of the Company's products.

Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance, or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or any other reason except as required by applicable securities laws.

Any financial outlook or future oriented financial information in this news release, as defined by applicable securities legislation, has been approved by management of iFabric. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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

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