Iplayco Corporation Ltd.
TSX VENTURE : IPC

Iplayco Corporation Ltd.

August 02, 2012 14:48 ET

Iplayco Announces Financial Results for the Third Quarter Ended June 30, 2012

LANGLEY, BRITISH COLUMBIA--(Marketwire - Aug. 2, 2012) - Iplayco Corporation Limited (TSX VENTURE:IPC) ("Iplayco" or the "Corporation") announces its financial results for the third quarter ended June 30, 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 nine months ended June 30, 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 nine months ended June 30, 2012, which are being filed with the applicable Canadian regulatory authorities.

"Our consolidated sales increased by 26.4% for the three months ended June 30, 2012 ("Q3-12") to $2,446,089 from $1,935,179 for the three months ended June 30, 2011 ("Q3-11"), with sales by our Manufacturing operations up 33.6% and sales by our Family Entertainment Centre operations down 5.8% in Q3-12 as compared to Q3-11. Our gross profit percentage improved in Q3-12 to 36.5%, compared to 26.1% in Q3-11, due primarily to sales mix resulting from higher margin sales in Q3-12 as compared to Q3-11. We are expecting moderate growth in sales and earnings for the three months ended September 30, 2012 as compared to Q3-12 due to our robust sales backlog," said Scott Forbes, President and Director of Iplayco.

Sales by our Manufacturing operations generated 86.4% of our total sales in Q3-12 compared to 81.8% in Q3-11, and increased by 33.6% to $2,113,724 in Q3-12 from $1,582,484 in Q3-11. Sales by our Family Entertainment Centre Operations generated 13.6% of our total sales in Q3-12 compared to 18.2% in Q3-11 and decreased by 5.8% to $332,365 in Q3-12 from $352,695 in Q3-11.

Results for the three months ended June 30, 2012 as compared to the three months ended March 31, 2012

Sales decreased by 11.5% in Q3-12 to $2,446,089 from $2,762,665 for the three months ended March 31, 2012 ("Q2-12"). Gross profit percentage was 36.5% of sales in Q3-12, compared to 37.4% in Q2-12. Operating expenses, including foreign exchange gains and losses and finance costs, were $919,384 or 37.6% of sales in Q3-12, compared to $916,398 or 33.2% of sales in Q2-12. Net loss in Q3-12 was $20,825, or loss per share of $0.00, compared to net income of $86,107, or diluted income per share of $0.01, in Q2-12.

Results for the three months ended June 30, 2012 as compared to the three months ended June 30, 2011

Sales increased by 26.4% in Q3-12 to $2,446,089 from $1,935,179 in Q3-11. Gross profit percentage was 36.5% of sales in Q3-12 compared to 26.1% in Q3-11. Operating expenses, including foreign exchange gains and losses and finance costs, were $919,384 or 37.6% of sales in Q3-12 compared to $844,446 or 43.6% of sales in Q3-11. Net loss in Q3-12 was $20,825, or loss per share of $0.00, compared to a net loss of $234,915, or loss per share of $0.02, in Q3-11.

Results for the nine months ended June 30, 2012 as compared to the nine months ended June 30, 2011

Sales for the nine-month period ended June 30, 2012 ("YTD - Q3-12") increased by 38.6% to $6,993,082 from $5,045,360 for the nine-month period ended June 30, 2011 ("YTD - Q3-11"). Gross profit percentage was 37.3% of sales for YTD - Q3-12 compared to 28.9% for YTD - Q3-11. Operating expenses, including foreign exchange gains and losses and finance costs, were $2,713,040 or 38.8% of sales for YTD - Q3-12 compared to $2,580,382 or 51.1% of sales for YTD - Q3-11. Net loss for YTD - Q3-12 was $79,574, or loss per share of $0.01, compared to a net loss of $830,447, or loss per share of $0.08, for YTD - Q3-11.

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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