Iplayco Corporation Ltd.
TSX VENTURE : IPC

Iplayco Corporation Ltd.

December 01, 2011 14:39 ET

Iplayco Announces Financial Results for the Fourth Quarter and Year Ended September 30, 2011

LANGLEY, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2011) - Iplayco Corporation Limited (TSX VENTURE:IPC) ("Iplayco" or the "Corporation") announces its financial results for the fourth quarter and year ended September 30, 2011. All amounts are in Canadian dollars unless otherwise noted.

This news release contains financial information derived from Iplayco's audited annual consolidated financial statements for the year ended September 30, 2011 ("2011"). More detailed information can be found in the audited annual consolidated financial statements and Management's Discussion and Analysis for 2011, which are being filed with the applicable Canadian regulatory authorities.

"Our consolidated sales increased by 6.6% to $8,467,618 in 2011 from $7,941,498 in 2010, with sales from our Manufacturing operations up 6.7%, and sales from our Family Entertainment Centre operations up 6.0% in 2011 as compared to 2010. Our gross profit percentage was low in 2011 due primarily to market pricing pressures, production costs, and the strength of the Canadian dollar versus the U.S. dollar. Gross profit percentage was 29.7% of sales in 2011 compared to 38.7% in 2010. We are however expecting moderate growth in sales and strong growth in margin and earnings in 2012 as compared to 2011, due primarily to our robust sales backlog. As announced on November 17, 2011, we've entered into another significant sales agreement, of U.S. $1,750,000, which along with the agreements of U.S. $1,752,000 and U.S. $1,358,000, previously announced on July 26, 2011 and September 6, 2011, respectively, are expected to favorably impact the operating results of our current fiscal year ending September 30, 2012." said Scott Forbes, President and Director of Iplayco.

Sales from our Manufacturing operations generated 83.1% of our total sales in 2011 compared to 83.0% in 2010, and increased by 6.7% to $7,033,071 in 2011 from $6,588,467 in 2010. Sales from our Family Entertainment Centre Operations generated 16.9% of our total sales in 2011 compared to 17.0% in 2010 and increased by 6.0% to $1,434,547 in 2011 from $1,353,031 in 2010.

Results for the years ended September 30, 2011 and 2010

Sales increased by 6.6% in 2011 to $8,467,618 from $7,941,498 in 2010. Gross profit was 29.7% of sales in 2011 compared to 38.7% in 2010. Operating expenses were $3,518,897 or 41.6% of sales in 2011 compared to $3,519,699 or 44.3% of sales in 2010. Net loss in 2011 was $761,550, or loss per share of $0.07, compared to net loss of $335,332, or a loss per share of $0.03, in 2010.

Results for Q4-11 as compared to Q3-11

Sales increased by 76.8% for the three-months ended September 30, 2011 ("Q4-11") to $3,422,258 from $1,935,179 for the three-months ended June 30, 2011 ("Q3-11"). Gross profit percentage was 30.9% of sales in Q4-11 compared to 26.1% in Q3-11. Operating expenses were $938,515 or 27.4% of sales in Q4-11 compared to $844,446 or 43.6% of sales in Q3-11. Net income in Q4-11 was $68,897, or diluted earnings per share of $0.01, compared to net loss of $234,915, or loss per share of $0.02 in Q3-11.

Results for Q4-11 as compared to Q4-10

Sales increased by 37.3% in Q4-11 to $3,422,258 from $2,492,158 for the three-months ended September 30, 2010 ("Q4-10"). Gross profit percentage was 30.9% of sales in Q4-11 compared to 42.9% in Q4-10. Operating expenses were $938,515 or 27.4% of sales in Q4-11 compared to $1,050,210 or 42.1% of sales in Q4-10. Net income in Q4-11 was $68,897, or diluted earnings per share of $0.01, compared to net income of $81,839, or diluted earnings per share of $0.01, in Q4-10.

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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