iFabric Corp.
TSX VENTURE : IFA

February 12, 2016 08:30 ET

iFabric Corp. Reports Financial Results for Its First Quarter Ended December 31st 2015

MARKHAM, ONTARIO--(Marketwired - Feb. 12, 2016) - iFabric Corp. (TSX VENTURE:IFA), hereinafter referred to as "iFabric" or the "Company", today announced its financial results for its first quarter ended December 31st, 2015.

FIRST QUARTER ENDED DECEMBER 31st 2015 HIGHLIGHTS:

  • Revenues of $3,329,010 vs $3,042,404 in the corresponding quarter of 2014, an increase of 9%.
  • Operating income for the quarter of $70,076 compared to an operating loss of $131,725 in 2014, representing an increase of $201,801.
  • Gross Profit increased from $1,399,572 in 2014 to $1,784,215 in 2015, representing an increase of $384,643, or 27%.
  • Gross Profit margins increased to 54% in the current quarter compared to 46% in the corresponding quarter in 2014.
  • The increase in gross profit was attributable to the weakening Canadian dollar as well as the product mix for the quarter.
  • Selling and administrative costs increased by 13% to $1,651,592 from $1,463,952. This increase was attributable to increased staffing and other expenses incurred for the purpose of supporting future revenue growth.
  • After tax profit attributable to shareholders was $39,588 ($0.002 basic per share and $0.001 fully diluted per share) compared to a loss in the corresponding quarter of 2014 of $160,905 ($0.006 basic and fully diluted per share), representing an improvement of $200,493.
  • In addition to the expense items mentioned above, the profit after tax includes an amount of $44,405 (2014 - $108,629) in non-cash share based compensation, which has been expensed as required by IFRS (International Financial Reporting Standards).
  • Working capital amounted to $5,489,035 at December 31, 2015, compared to $5,419,934 as at the end of the previous financial quarter ended September 30, 2015.
  • Net cash of $112,104 compared to $852,016 at the end of the previous quarter September 30th, 2015 which was mainly due to a reduction in accounts payable of $668,000.
  • Shareholder Equity attributable to common shareholders was $7,941,578 compared to $7,857,585 at the end of the previous financial quarter ended September 30, 2015.

"I am most pleased with our performance for the quarter ended December 31st 2015 and in particular the improvement in our gross margins and furthermore, am pleased to report that our intelligent fabrics division is progressing well as we are now expanding our infrastructure to enable delivery and fulfilment of orders for our North American and International customers for major programs. As mentioned in our previous press release on December 29th, 2015 we project delivering chemical treatments for approximately 30 million yards of textiles in calendar 2016," stated Mr. Hylton Karon President and CEO.

Complete Financial Statements are available on www.sedar.com and the company's website: www.ifabriccorp.com

FINANCIAL HIGHLIGHTS:

See table below.

Quarter Ended December 31
2015 2014
$ $
Revenue 3,329,010 3,042,404
Income (loss) from operations 70,076 (131,725 )
Share based compensation (44,405 ) (108,629 )
EBITDA 137,001 (107,615 )
Net income (loss) after tax 41,396 (160,220 )
Net income (loss) after tax attributable to shareholders 39,588 (160,905 )
Net income (loss) per share - basic 0.002 (0.006 )
Net income (loss) per share - dliuted 0.001 (0.006 )

ABOUT iFABRIC CORP:

iFABRIC CORP. currently has 25.9 million shares issued and outstanding. iFABRIC is a manufacturer, distributor, licensor and licensee of ladies intimate apparel products, sleepwear and accessories, and also is a developer and distributor of proprietary innovative products and treatments that are suitable for application to textiles, plastics, liquids, and hard surfaces. These products are designed to provide added benefits to the user.

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 Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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