iFabric Corp.

TSX VENTURE : IFA


August 22, 2013 09:00 ET

iFabric Corp Reports Record Third Quarter 2013 Results

MARKHAM, ONTARIO--(Marketwired - Aug. 22, 2013) - iFabric Corp ("IFA.V") (TSX VENTURE:IFA), hereinafter referred to as "iFabric" or the "Company", today announced its financial results for the third quarter ended 30th June 2013. iFabric has a 30th September year end.

Q3 HIGHLIGHTS:

  • Revenues of $2,709,015
  • Revenues up 50% over Q3 2012
  • Gross profit up 61% over Q3 2012
  • Operating income up 350% over Q3 2012

In the quarter ended 30th June 2013, revenues increased to $2,709,015 compared to $1,802,833 in the corresponding quarter in 2012, an increase of 50%. Gross profit in the quarter was $1,504,110 (or 56% of sales), compared to $936,183 (or 52% of sales) in the corresponding quarter in 2012, representing an increase of $567,927 (or 61%) over 2012.

Operating income, before taxes and before non-recurring items for the third quarter ended 30th June 2013 was $600,382 or $0.020 per share, fully diluted, compared with $133,381 in the corresponding quarter of 2012 or $0.006 per share, fully diluted, an increase of 350%. Net profit after tax for the third quarter ended 30th June 2013 was $199,715 or $0.008 per share, after non-recurring expenses of $263,065 comprised of $73,065 attributable to share based compensation due to the granting of stock options to directors and officers of the company as well as approximately $190,000 in design, selling and marketing costs expensed ahead of future sales programs. Net loss after tax in the corresponding quarter in 2012, was $550,149 or a loss of $0.024 per share.

The Company's Balance Sheet remains strong. With a working capital ratio of 2.7 to 1, operating debt of $659,983 and cash of $339,126, the Company is well capitalized to fund its operations. Shareholders' Equity increased to $5,430,212 from $4,772,563.

Operating income before taxes and before non-recurring items for the nine months ended 30th June 2013 was $1,185,240 or $0.046 per share, fully diluted, compared with $427,193 in the corresponding nine months in 2012 or $0.018 per share, fully diluted. For the nine months ended 30th June 2013, revenues increased to $6,148,879 compared to $3,974,425 in the corresponding nine months of 2012, an increase of 55%. Gross profit for the nine months was $3,462,291 (or 56% of sales), compared to $2,136,156 (or 54% of sales) in the corresponding nine months, representing an increase of $1,326,135 (or 62%)..

Net profit after tax for the nine months ended 30th June 2013 was $231,439 after non-recurring expenses of $736,210 comprised of $346,210 attributable to share based compensation due to the granting of stock options to directors and officers of the Company as well as approximately $390,000 in design, selling and marketing costs expensed ahead of future sales programs. Net loss in the corresponding nine months in 2012 was $327,672.

"Sales for the nine months have now exceeded those for the full 2012 financial year and with sales of our Cliniweave technology to major customers expected to commence in the fourth quarter I am confident that we are on track to achieve the growth objectives that we set for the Company when we listed in June of 2012. This is our second consecutive record quarter which, is indicative of strong momentum that was initially fueled by the launch of new Intimates programs in the early part of the year and which I anticipate will, in the near future, be sustained by sales of intelligent textile technologies to the wider market", stated Mr. Hylton Karon, CEO & President of iFabric.

CLINIWEAVE provides long-term effective control against a wide range of common pathogens, including mold, mildew, fungi and odor causing bacteria. Its efficacy and safety has been documented in peer reviewed publications and certified laboratory tests. It is durable through repeated washing and is 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 June 30 9 months ended June 30
2013 2012 2013 2012
$ $ $ $
Revenue 2,709,015 1,802,833 6,148,879 3,974,425
Income from operations 600,382 133,381 1,185,240 427,193
EBITDA 363,483 (560,029 ) 527,990 (197,120 )
Net income after tax 199,715 (550,149 ) 231,439 (327,672 )
Net income per share 0.008 (0.024 ) 0.009 (0.014 )

ABOUT iFABRIC CORP:

iFABRIC CORP currently has 25.4 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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