Iplayco Corporation Ltd.
TSX VENTURE : IPC

Iplayco Corporation Ltd.

May 17, 2012 16:31 ET

Iplayco Announces Financial Results for the Second Quarter Ended March 31, 2012

LANGLEY, BRITISH COLUMBIA--(Marketwire - May 17, 2012) - Iplayco Corporation Limited (TSX VENTURE:IPC) ("Iplayco" or the "Corporation") announces its financial results for the second quarter ended March 31, 2012. 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 and six months ended March 31, 2012. More detailed information can be found in the unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis for the three and six months ended March 31, 2012, which are being filed with the applicable Canadian regulatory authorities.

"Our consolidated sales increased by 109.3% for the three months ended March 31, 2012 ("Q2-12") to $2,762,665 from $1,319,650 for the three months ended March 31, 2011 ("Q2-11"), with sales from our Manufacturing operations up 163.8% and sales from our Family Entertainment Centre operations down 4.7% in Q2-12 as compared to Q2-11. Our gross profit percentage improved in Q2-12 to 37.4%, compared to 35.9% in Q2-11, due primarily to sales mix resulting from higher margin sales in Q2-12 as compared to Q2-11. We are expecting moderate growth in sales and earnings for the three months ended June 30, 2012 as compared to Q2-12 due to our robust sales backlog," said Scott Forbes, President and Director of Iplayco.

Sales from our Manufacturing operations generated 85.3% of our total sales in Q2-12 compared to 67.7% in Q2-11, and increased by 163.8% to $2,355,745 in Q2-12 from $892,856 in Q2-11. Sales from our Family Entertainment Centre Operations generated 14.7% of our total sales in Q2-12 compared to 32.3% in Q2-11 and decreased by 4.7% to $406,920 in Q2-12 from $426,794 in Q2-11.

Results for the three months ended March 31, 2012 as compared to the three months ended December 31, 2011

Sales increased by 54.8% in Q2-12 to $2,762,665 from $1,784,328 for the three months ended December 31, 2011 ("Q1-12"). Gross profit percentage was 37.4% of sales in Q2-12, compared to 38.4% in Q1-12. Operating expenses, including foreign exchange gains and losses and finance costs, were $916,398 or 33.2% of sales in Q2-12, compared to $877,258 or 49.2% of sales in Q1-12. Net income in Q2-12 was $86,107, or diluted income per share of $0.01, compared to a net loss of $144,856, or loss per share of $0.01, in Q1-12.

Results for the three months ended March 31, 2012 as compared to the three months ended March 31, 2011

Sales increased by 109.3% in Q2-12 to $2,762,665 from $1,319,650 Q2-11. Gross profit percentage was 37.4% of sales in Q2-12 compared to 35.9% in Q2-11. Operating expenses, including foreign exchange gains and losses and finance costs, were $916,398 or 33.2% of sales in Q2-12 compared to $736,963 or 55.8% of sales in Q2-11. Net income in Q2-12 was $86,107, or diluted income per share of $0.01, compared to a net loss of $198,403, or loss per share of $0.02, in Q2-11.

Results for the six months ended March 31, 2012 as compared to the six months ended March 31, 2011

Sales for the six months ended March 31, 2012 ("YTD - Q2-12") increased by 46.2% to $4,546,993 from $3,110,181 for the six months ended March 31, 2011 ("YTD - Q2-11"). Gross profit percentage was 37.8% of sales for YTD - Q2-12 compared to 30.6% for YTD - Q2-11. Operating expenses, including foreign exchange gains and losses and finance costs, were $1,793,656 or 39.4% of sales for YTD - Q2-12 compared to $1,735,936 or 55.8% of sales for YTD - Q2-11. Net loss for YTD - Q2-12 was $58,749, or loss per share of $0.01, compared to a net loss of $595,532, or loss per share of $0.06, for YTD - Q2-11.

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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