iFabric Corp.

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iFabric Corp. Reports Results For Its Year End and Fourth Quarter Ended September 30th 2015 and Provides Future Outlook

MARKHAM, ONTARIO--(Marketwired - Dec. 29, 2015) - iFabric Corp. (TSX:IFA) ("IFA"), hereinafter referred to as "iFabric" or the "Company", today announced its results for the fiscal year and 4th quarter ended September 30th 2015.


  • Revenues of $13,074,848 vs $13,021,482 in 2014. Revenues in 2015 include sales of intelligent textile technologies of $679,298 mainly in respect of bulk and mini trials for existing and prospective customers.
  • Operating profit for the year ended September 30, 2015 of $168,351 compared to $1,031,617 in 2014. The lower operating profit was mainly as a result of increased selling and administrative costs for the ladies' apparel division for the purpose of developing and supporting a new line of Maidenform sleepwear products to be launched in the fall of 2016.
    In the intelligent fabrics division, the Company increased travel, regulatory and testing costs to facilitate future growth of existing products as well as the launch of new products in 2016 and beyond.
  • Gross profit of $6,470,830 for the year ended September 30, 2015 (or 49%) compared to $6,707,580 (or 52%) in 2014. The lower gross profit for the year was attributable to clearance of end of season merchandise at lower margins and the product mix for the year in the apparel division, as well as discounted product incentives provided by the intelligent fabrics division in order to secure new customers.
  • Net loss attributable to shareholders was $109,837 (or $0.004 per share basic and diluted) compared to net earnings attributable to shareholders of $542,214 (or $0.021 per share basic and $0.020 diluted) for the year ended September 30, 2014. The loss for 2015 included the cost of share based compensation amounting to $493,351 compared to $328,674 in 2014, in connection with the issuance of stock options to directors, officers and employees of the Company. The net loss for 2015 also includes listing fees and legal expenses totaling approximately $125,000 incurred in connection with the company's graduation to the TSX from the TSX Venture Exchange as well as increased expenses referred to above, which were partially offset by foreign exchange gains of $397,243 compared to $87,413 in 2014.
  • Working capital amounted to $5,419,934 compared to $5,173,981 at September 30, 2014, an increase of $245,953.
  • Shareholder equity attributable to shareholders increased by $395,514 from $7,462,071 in 2014 to $7,857,585 at September 30, 2015.
  • Long term debt relating to the building owned by the Company reduced by $543,394 from $1,952,287 at September 30, 2014 to $1,408,893 as at September 30, 2015.
  • Cash of $852,016 and no utilization of the bank operating line of $2,000,000.


  • Revenues of $3,080,464 compared to $3,222,430 in Q4 2014, representing a decrease of $141,966 or 4%. The modest reduction in revenues in this quarter is attributable to timing of shipments to customers.
  • Gross profit for the quarter ended September 30, 2015 decreased by 16% or $225,308 to $1,227,941 (or 40% of sales) from $1,453,249 (or 44% of sales) in Q4 2014. This decrease in gross profit percentage is mainly attributable to an increased level of clear-out sales of older seasonal inventory in its Intimate Apparel business at lower margins.
  • The net loss attributable to shareholders in Q4, 2015 was $282,071(or $0.011 per share basic and diluted) compared to $193,579 in the same quarter of 2014 (or $0.008 per share basic and diluted). The loss was mainly attributable to listing fees and legal expenses totaling approximately $125,000 incurred in connection with the company's graduation to the TSX from the TSX Venture Exchange, as well as increased selling and administrative costs as discussed above.

Complete Financial Statements are available on and the company's website

"Whilst revenues were virtually unchanged for fiscal 2015, we covered an enormous amount of ground in 2015, in terms of product development, product trials, regulatory, marketing and other initiatives," said Hylton Karon, President and CEO of iFabric. "In addition, we were also able to successfully transition our listing to the TSX from the TSX-V, during the latter part of the year," added Mr. Karon. "Despite incurring additional expenses of approximately $1 million in connection with these initiatives, in order to support future growth in both our divisions, we were still able to strengthen our balance sheet by both increasing our working capital and reducing long-term debt. Accordingly, I believe we are well placed to fund and achieve our growth expectations as discussed in "Business Outlook" below," concluded Hylton Karon.


Hylton Karon, President and CEO of iFabric Corp provided the following business outlook with regard to both divisions of the Company:

Intimate Apparel and Sleepwear

"During 2015, the apparel division's main focus was on fine-tuning and consolidating existing programs in reaction to market demands. Certain ranges that were yielding lower than anticipated sell through at retail have been eliminated and there have been additions to product ranges that have been selling well at retail. At the same time, our design team has commenced designing the initial ranges for the new sleepwear category that was added to our Maidenform license agreement. Our design concepts were shown to a select number of customers in November 2015 and we are extremely encouraged by the initial responses. Our initial marketing effort for Maidenform sleepwear will take place during "Market Week" in February 2016, at which time we would expect to receive the first bookings for these products. This will be followed by the official market launch of Maidenform sleepwear during the fall of 2016.

For fiscal 2016 we are expecting a modest increase in revenues of around 10% for our apparel division, as it is customary for new ranges to be carried in a limited amount of stores initially. However, for fiscal 2017 we are projecting an increase in revenues in the 20% to 30% range as result of major customers expanding Maidenform sleepwear offerings and other new products to additional stores.

Intelligent Fabrics

Based on projections received to date from customers, we anticipate supplying formulations to treat approximately 30 million yards of textiles in calendar 2016. In addition, we are currently running bulk and mini trials for new potential customers and it is probable that additional yardages to be treated will be added during the course of the year.

For calendar 2017 we are projecting treating between 80 million and 100 million yards of textiles, as our treatments become integrated in the full annual production cycles of our existing customers and as new customers and programs are added. Our projections for 2017 also integrate the initial sales to customers for use in healthcare environments."


iFABRIC CORP currently has 25.9 million shares issued and outstanding. iFABRIC is a manufacturer, distributor, licensor and licensee of ladies intimate apparel products, sleepwear and accessories, and also is a developer and distributor of proprietary innovative products and treatments that are suitable for application to textiles, plastics, liquids, and hard surfaces. These products are designed to provide added benefits to the user.


  Year Ended September 30 Quarter ended September 30
  2015 2014 2015 2014
  $ $ $ $
Revenue 13,074,848 13,021,482 3,080,464 3,222,430
Income from operations 168,351 1,031,617 (483,693) (190,938)
EBITDA 341,915 1,051,403 (312,079) (257,997)
Net earning (loss) before tax 81,789 803,508 (372,522) (320,715)
Net earnings(loss) after tax (107,207) 541,148 (283,461) (197,358)
Net earnings (loss) attributable to shareholders (109,837) 542,214 (282,071) (193,579)
Net earnings (loss) per share        
  Basic (0.004) 0.021 (0.011) (0.008)
  Diluted (0.004) 0.020 (0.011) (0.008)

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 Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Hilton Price, CFO
647 465-6161

Gary Perkins
416 882-0020

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