Iplayco Corporation Ltd.
TSX VENTURE : IPC

Iplayco Corporation Ltd.

February 16, 2012 15:45 ET

Iplayco Announces Financial Results for the First Quarter Ended December 31, 2011

LANGLEY, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2012) - Iplayco Corporation Limited (TSX VENTURE:IPC) ("Iplayco" or the "Corporation") announces its financial results for the first quarter ended December 31, 2011. All amounts are in Canadian dollars unless otherwise noted.

This news release contains financial information derived from Iplayco's unaudited condensed consolidated interim financial statements for the three months ended December 31, 2011 ("Q1-12"). More detailed information can be found in the unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis for Q1-12, which are being filed with the applicable Canadian regulatory authorities.

"Our consolidated sales decreased by 0.3% to $1,784,328 in Q1-12 from $1,790,531 during the three months ended December 31, 2010 ("Q1-11"), with sales from our Manufacturing operations down 0.2% and sales from our Family Entertainment Centre operations down 0.7% in Q1-12 as compared to Q1-11. Our gross profit percentage improved significantly in Q1-12 to 38.4%, compared to 26.7% in Q1-11, due primarily to sales mix resulting from higher margin sales in Q1-12 as compared to Q1-11. We are expecting moderate growth in sales and earnings in Q2-12 as compared to Q1-12, due to our robust sales backlog," said Scott Forbes, President and Director of Iplayco.

Sales from our Manufacturing operations generated 78.8% of our total sales in Q1-12 compared to 78.7% in Q1-11, and decreased by 0.2% to $1,406,403 in Q1-12 from $1,409,897 in Q1-11. Sales from our Family Entertainment Centre Operations generated 21.2% of our total sales in Q1-12 compared to 21.3% in Q1-11 and decreased by 0.7% to $377,925 in Q1-12 from $380,634 in Q1-11.

Results for Q1-12 as compared to Q4-11

Sales decreased by 47.9% in Q1-12 to $1,784,328 from $3,422,258 for the three months ended September 30, 2011 ("Q4-11"). Gross profit percentage was 38.4% of sales in Q1-12, compared to 30.9% in Q4-11. Operating expenses were $877,258 or 49.2% of sales in Q1-12, compared to $938,515 or 27.4% of sales in Q4-11. Net loss in Q1-12 was $144,856, or loss per share of $0.01, compared to net income of $68,897, or diluted earnings per share of $0.01, in Q4-11.

Results for Q1-12 as compared to Q1-11

Sales decreased by 0.3% in Q1-12 to $1,784,328 from $1,790,531 in Q1-11. Gross profit percentage was 38.4% of sales in Q1-12 compared to 26.7% in Q1-11. Operating expenses were $877,258 or 49.2% of sales in Q1-12 compared to $998,973 or 55.8% of sales in Q1-11. Net loss in Q1-12 was $144,856, or loss per share of $0.01, compared to net loss of $397,129, or loss per share of $0.04, in Q1-11.

ON BEHALF OF THE BOARD OF DIRECTORS

Scott C. Forbes, President and Director

About Iplayco Corporation Limited

Iplayco designs, manufactures and installs customized indoor and outdoor play structures for children. Iplayco also owns and operates a family entertainment centre ("The Great Escape") in Langley, British Columbia. For more information, please visit www.iplaycoltd.com.

Cautionary Note Regarding Forward-looking Statements

This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation statements regarding the Corporation's business, results or future plans, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations are disclosed elsewhere in documents that are available to the public.

Neither TSX Venture Exchange, nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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