iFabric Corp.

TSX VENTURE : IFA


May 15, 2014 08:30 ET

iFabric Corp Reports Continued Revenue and Profit Growth for Second Quarter and Six Months Ended March 31, 2014

MARKHAM, ONTARIO--(Marketwired - May 15, 2014) - iFabric Corp (TSX VENTURE:IFA), hereinafter referred to as "iFabric" or the "Company", today announced its financial results for its second quarter and six months ended March 31, 2014.

HIGHLIGHTS:

  • Revenues of $2,911,274 as opposed to $2,286,330 in the quarter ended March 31, 2013, an increase of $624,944, or 27%. This increase was mainly attributable to the sale of anti- microbial products. Revenues for the six months were $5,917,058 compared to $3,493,503, representing an increase of $2,423,555 or 69%. This increase was attributable to both new apparel programs and sales of anti-microbial products.
  • Operating profit for the second quarter was $342,308 compared to an operating profit of $376,188, representing a decrease of 9%. This decrease was attributable to increases in marketing and administrative costs incurred to facilitate future growth.
    For the six months, income from operations amounted to $656,331 compared to $329,241, an increase of $327,090 or 99%.
  • After tax profit for the second quarter was $280,088 or $0.011 per share compared to an after tax profit of $24,478 or $0.001 per share for the quarter ended March 31, 2013. For the six months, after tax loss was $211,443 or $0.008 per share compared to an after tax profit of $36,889 or $0.001 per share. This loss was due to share based compensation costs expensed as required under International Financial Reporting Standards ("IFRS") in connection with the issuance of warrants and share options.
  • Working capital increased to $5,498,672 as at March 31, 2014, an increase of $378,702 since December 31, 2013.
  • Shareholder Equity as at March 31, 2014 increased to $7,181,141 from $6,855,460 as at December 31, 2013, representing an increase of $325,681.
  • Operating debt of zero and cash of $633,000 as at March 31, 2014.

"I am pleased to report that both our apparel and intelligent textile divisions are now operating profitably, a significant milestone for our intelligent textiles division. The company now has a base from which it can substantially increase sales and profitability in all areas of the business," stated Mr. Hylton Karon, President and CEO of iFabric.

Complete Financial Statements are available on www.sedar.com

FINANCIAL HIGHLIGHTS
Quarter Ended
March 31
Six Months
Ended March 31
2014 2013 2014 2013
$ $ $ $
Revenue 2,911,274 2,286,330 5,917,058 3,493,503
Income from operations 342,308 376,188 656,331 329,241
Share based compensation (35,593 ) (273,145 ) (788,125 ) (273,145 )
EBITDA 481,472 110,394 162,416 173,862
Net income (loss) after tax 280,088 24,478 (211,443 ) 36,889
Net income (loss) per share 0.011 0.001 (0.008 ) 0.001

ABOUT iFABRIC CORP:

iFABRIC CORP currently has 25.87 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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