iFabric Corp.

TSX Exchange | Aug 12, 2020, 5:50 AM EDT | Real-time price

IFA $ 4.98 RT
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iFabric Corp. Announces Best Quarter in Its History

MARKHAM, ONTARIO--(Marketwired - Aug. 20, 2014) - 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 2014. iFabric has a September 30th year end.

Third Quarter Highlights:

  • record revenue of $3,881,993 an increase of 42% over corresponding quarter in 2013,
  • record income from operations of $566,224 an increase of 53% over corresponding quarter of 2013.

Nine Months Highlights:

  • record revenue of $9,799,051 an increase of 57% over corresponding nine months of 2013,
  • record income from operations of $1,222,555 an increase of 76% over corresponding nine months of 2013.

A word from the President:

"The revenue and income from operations for the quarter ended June 30th 2014 are the largest in the company's history to date. We have a great base of blue chip customers from which to build future revenues and profitability," stated Mr. Hylton Karon, CEO & President.

Operating Results:

In the third quarter ended June 30th 2014, revenues increased to $3,881,993 compared to $2,741,232 in the corresponding quarter in 2013, an increase of $1,140,761 or 42%. For the nine months ended June 30th 2014, revenue amounted to $9,799,051 compared to $6,229,569 in respect of the nine months ended June 30th 2013, representing an increase of $3,569,482 or 57%. Gross profit in the quarter was $1,931,281 or 50% of sales, compared to $1,536,327 or 56% of sales in the corresponding quarter in 2013. The decrease in gross margin percentage is attributable to increases in discounts and margin guaranty rebates provided to major customers as well as the clearance of end of season fashion goods at lower margins. For the nine months ended June 30th 2014, gross profit amounted to $5,132,181 or 52% of sales, compared to $3,542,981or 57% in the corresponding nine months in 2013.The decrease in gross margin percentage was attributable to the factors as explained above.

Income from operations for the third quarter ended June 30th 2104 amounted to $566,224 compared to $369,612 representing an increase of 53 %. For the nine months ended June 30th 2014, income from operations amounted to $1,222,555 compared to $693,688 in the corresponding nine month period in 2013, representing an increase of 76%.

Net profit after tax for the third quarter ended June 30th 2014 was $245,088 or $0.009 per share compared to an after tax profit of $199,715 or $0.008 per share for the quarter ended June 30th 2013. The net profit for the current quarter was reduced by an amount of $84,208 in foreign exchange losses resulting from the strengthening of the Canadian dollar during the quarter. For the nine months ended June 30th 2014, the company reported an after tax profit of $33,645 or $0.001 per share compared to an after tax profit of $231,439 or $0.009 per share for the nine months ended June 30th 2013. The reduction in net income for the current nine months is mainly attributable to an amount of $911,275 which was expensed in respect of share based compensation regarding the issuance of warrants and options as required under IFRS (International Financial Reporting Standards).

The Company's Balance Sheet remains strong. With a working capital ratio of 4 to 1, operating debt of $388,663 and cash of $494,613 as well as unutilized bank lines of approximately $1,600,000, the Company is well capitalized to fund its ongoing operations. Shareholders' Equity increased to $7,549,379 from $5,164,171 as at September 30th, 2013.

Complete Financial Statements are available on


  Quarter Ended June 30     Nine Months Ended June 30  
  2014     2013     2014     2013  
  $     $     $     $  
Revenue 3,881,993     2,741,232     9,799,051     6,229,569  
Cost of sales (1,950,712 )   (1,204,905 )   (4,666,870 )   (2,686,588 )
Gross margin 1,931,281     1,536,327     5,132,181     3,542,981  
Operating expenses (1,365,057 )   (1,166,715 )   (3,909,626 )   (2,849,293 )
Income from operations 566,224     369,612     1,222,555     693,688  
Share based compensation (123,150 )   (73,065 )   (911,275 )   (346,210 )
Gain (loss) on exchange (84,208 )   59,223     117,891     76,363  
Other Income (expenses) 22,309     (18,454 )   (9,808 )   25,189  
Earnings before income taxes 381,175     337,316     419,363     449,030  
Income taxes (136,087 )   (137,601 )   (385,718 )   (217,591 )
Earnings after tax 245,088     199,715     33,645     231,439  
EBITDA 442,123     370,456     604,541     539,162  
Earnings per share 0.009     0.008     0.001     0.009  

Corporate Update:

Hylton Karon, President and CEO of iFabric provided the following update with regard to the operations and future prospects of its two key divisions:

Intimate Apparel:

"Headquartered in company owned office and warehouse premises located in Markham, Ontario, the intimate apparel division operates under the trade name of 'Coconut Grove Intimates'. The division leverages several key license arrangements that it has, to distribute a range of ladies intimate apparel and complimentary accessories, to major retailers and independent stores, under some of the most recognized brands in the apparel industry. The division also distributes products through private label programs for major retailers as well as under the division's long established own brand, 'The Natural'.

Product is delivered to retailers from warehouse facilities located in the division's key market regions, being the United States, the United Kingdom and Canada. International customers outside these regions are also serviced via these warehouses. The division also rents premises in New York, which serve both as a design studio and a showroom for US customers.

Our apparel division has delivered record sustained growth since our listing in June of 2012 and we a looking to maintain this. Our ongoing strategy is to further leverage our relationships with major retailers in order to build established programs to their full potential. In addition, our team of highly gifted designers constantly looks to design innovative products for the purpose of fueling future expansion and growth within this division."

Intelligent Textiles:

"Our intelligent textile division operates under the name Intelligent Fabric Technologies (North America) Inc. ('IFTNA') and is also headquartered in our company owned premises located in Markham, Ontario. In addition, IFTNA has recently established marketing and distribution facilities located in China and Taiwan.

IFTNA holds exclusive rights for several class leading textile compounds which, when applied, have the ability to kill bacteria and viruses, repel insects, and heal the skin amongst others.

Our current main marketing focus is with regard to antimicrobial and antiviral formulations, which are marketed under the brand names Protx2™ and Cliniweave®. We received Environmental Protection Agency ('EPA') registrations for these formulations in the United Sates at both the federal and state levels in late 2013 and this allows us to sell these formulations, to major apparel, outerwear, sportswear, shoe and bedding manufacturers, as well as to the hospitality, and cruise line industries and military suppliers throughout USA. We are currently seeking a second level of registrations which will allow us entry into medical markets and health care sectors. We anticipate that our second level of registrations for advanced claims will be completed around the middle of 2015. The markets that we are currently able to service are all extremely large markets and our current strategy is to establish a strong foothold in as many of these markets as possible, before we tackle the medical and health care markets in the latter half of 2015. We believe that this strategy will result in the maximum momentum for this division.

I would characterize the bulk of the current programs with our customers as verification programs. These represent limited initial programs which our customers use to test the ease of integration, efficacy and durability of Protx2™ in limited product ranges. I am pleased to report that to date, we have not disappointed, with Protx2™ showing class leading abilities on all fronts. Based on forward projections that we have been receiving from our customers we see Protx2™ being specified as the antimicrobial of choice in an ever increasing number of new programs for the forthcoming year and beyond. Initially these programs will be targeted at the US and Canadian markets but we expect to see product offerings with Protx2™ showing up in international markets in due course.

Accordingly, I am expecting a spike in the level of antimicrobial sales commencing the first quarter of 2015 and I am confident that this will be the start of a period of strong sustained growth for this division which is what we projected when listed in 2012."


iFABRIC CORP currently has 25.2 million shares issued and outstanding. iFABRIC is a manufacturer, distributor, licensor and licensee of ladies intimate apparel products and accessories as well proprietary chemical compounds that render fabrics intelligent, thereby improving the safety and well-being of the wearer.


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.

iFabric Corp.
Hilton Price

iFabric Corp.
Gary Perkins
Investor Relations

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