iFabric Corp.
TSX VENTURE : IFA

August 17, 2015 08:30 ET

iFabric Corp. Reports Third Quarter 2015 Results

MARKHAM, ONTARIO--(Marketwired - Aug. 17, 2015) - iFabric Corp. (TSX VENTURE:IFA), hereinafter referred to as "iFabric" or the "Company", today announced its financial results for the third quarter ended June 30th, 2015. iFabric' s year end is September 30th.

Q3 2015 HIGHLIGHTS:

  • Revenues of $3,700,502, sequentially up 14% compared to Q2 2015
  • Gross profit of $2,141,973 up 29% compared to Q2 2015
  • Gross profit margin of 58% compared to 51% in Q2 2015
  • Operating income of $624,683 up $465,596 compared to Q2 2015.
  • Increased gross profit margins and increased operating income was attributable to:
    1. reduced clearances of end of season merchandise at lower margins
    2. reduced margin guarantee credits
    3. a progressively weakening Canadian dollar relative to the US dollar and British pound
    4. resolution of the strike at the Port of Los Angeles.
  • Net after tax income of $208,761 up $81,048 compared to Q2 2015, after charging share based compensation costs of $232,754 compared to $100,747 in Q2 2015
  • EBITDA of $449,460 up $137,311 compared to in Q2 2015
  • Improved Balance Sheet:
    1. Working Capital at June 30th 2015 was $5,993,605 compared to $5,616,853 at March 31st 2015
    2. Working Capital Ratio at June 30th 2015 was 4.7 to 1 compared to 3.5 to 1 at March 31st 2015
    3. Decrease of $688,942 in liabilities as at June 30th 2015 compared to March 31st 2015
    4. Shareholder Equity at June 30th 2015 was $8,104,665 compared to $7,663,150 at March 31st 2015, an increase of $441,515.

Complete Financial Statements are available on www.sedar.com.

"I am extremely pleased by the strengthening of our balance sheet in the current quarter and am confident that the Company is well positioned to finance imminent sales growth for both the ladies apparel division and the intelligent fabrics division," stated Hylton Karon, President and CEO of iFabric Corp.

Mr Karon provided the following brief updates with regard to the operations of both of its divisions:

Apparel

"Our current focus in the apparel division is the fine tuning of our current programs to ensure that we maintain margins at the highest possible levels. We are doing this ahead of our scheduled marketing efforts for major new Maidenform programs which are being launched later this year. I am particularly excited about the new Maidenform sleepwear category which further exploits a market niche that is currently doing very well for us. Early reaction to Maidenform sleepwear has been excellent and I am anticipating strong demand for these products in 2016 and beyond."

Intelligent Fabrics

"Bulk trials for certain of our major customers have been completed and for others they are nearing completion. Whilst these trials have taken longer than we were anticipating, a major benefit for the division is that, in reaction to customer demands, we have developed many more recipes for integration of antimicrobials into a far broader range of fabric blends than was our initial focus. This leads us to the conclusion that major brand distributors have greatly increased their interest in antimicrobials and other textile technologies and that these will be integrated into substantially more of their future offerings of apparel, sportswear, outerwear and footwear than is currently the case. We have also started development work to integrate antimicrobials into a number of products offered by our own apparel division, which I believe will add a further segment of potential growth for both divisions.

We are currently receiving projections from major customers for integration of PROTX2 into their full production cycles covering the next twelve months and beyond and once all of these are in hand we will provide investors with a further update in this regard."

ABOUT PROTX2:

PROTX2 is effective against a wide range of micro-organisms including mold, mildew, fungi and odor causing bacteria. It provides long-term, effective control of micro-organisms. Its 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 PROTX2 include bedding, curtaining, air filters, scrubs, masks, plastic components and most other surfaces.

Headquartered in Markham, Ontario, iFabric Corp www.ifabriccorp.com currently has 25.9 million shares issued and outstanding.

Through its wholly-owned subsidiaries, Intelligent Fabric Technologies (North America) Inc. ("IFTNA") and Coconut Grove Pads Inc. ("Coconut Grove"), the Company offers a variety of products and services in both of its strategic divisions:

IFTNA is focused on proprietary chemical formulations that render fabrics, foams, plastics and numerous other surfaces intelligent, thereby improving the safety and well-being of the consumer.

Coconut Grove, operating as Coconut Grove Intimates, is a designer, manufacturer, distributor, licensor and licensee of ladies intimate apparel products, accessories and sleepwear.

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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