iFabric Corp.

TSX Exchange | Aug 12, 2020, 5:47 AM EDT | Real-time price

IFA $ 4.98 RT
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iFabric Corp Reports Record 3rd Quarter Revenue & Operating Profit

MARKHAM, ONTARIO--(Marketwired - Aug. 10, 2017) - iFabric Corp. (TSX:IFA), hereinafter referred to as "iFabric" or the "Company", today announced its financial results for its third quarter and nine months ended June 30, 2017.

"The third quarter results represent a milestone in the Company's history, with record revenue, record operating profit and record adjusted EBITDA", stated Mr. Hylton Karon President and CEO. "We look forward to continued growth in the future", he added.


  • Revenues of $4,888,400 compared to $2,999,317 in Q3 2016, an increase of $1,899,083 or 63%. Revenues in the Apparel Division increased by 31% or $833,072 to $3,495,976 from $2,662,904 in Q3 2016, primarily due to new Maidenform® sleepwear lines, which launched earlier in 2017. Revenues in the Intelligent Fabrics Division, increased by 343% or $1,067,261 to $1,378,074 from $310,813 in 2016, primarily due to increased sales of antimicrobial products to major customers.
  • Operating profit of $1,000,267 compared to an operating loss of $87,247 during Q3 2016, an increase of $1,087,514. The substantial increase operating profit was mainly as a result of increased revenues, increased gross profit and a reduction in operating costs.
  • Adjusted EBITDA was $955,335 compared to negative Adjusted EBITDA of $63,859 for the same quarter last year. This represents an increase of $1,019,194.
  • Gross profit of $2,449,749 or 50% of sales compared to $1,418,332 or 47% in Q3 2016, an increase of $1,031,417 or 39%. The increase in gross profit percentage was mainly due to lower clearances of end of season merchandise and the product mix for the quarter.
  • Net profit after tax attributable to shareholders was $264,213 (or $0.010 per share basic and diluted) compared to a net loss attributable to shareholders of $121,653 in Q3 2016 (or $0.005 per share basic and diluted). The increase in net earnings was mainly attributable to higher revenues and higher gross profit as discussed above.
  • The net earnings for the quarter were impacted by an increase in share based compensation costs to $369,359 from $16,280 in Q3 2016, as a result of 600,000 options awarded to Directors and key management in the quarter, 50% of which vested immediately.
  • Working capital amounted to $6,786,980 compared to $6,170,802 at March 31, 2017, an increase of $616,178.
  • Shareholder equity attributable to shareholders was $8,735,588 up $699,572 from $8,036,016 as at March 31, 2017. 
  • Cash on hand amounted to $1,876,983 while the Company had utilized $436,155 from its total credit line of $3,500,000 as at June 30, 2017, leaving an unused balance of $3,063,845. This compares to cash on hand of $1,202,172 and credit line usage of $600,441 as at the end of the previous quarter ended March 31, 2017, representing a net cash increase of $839,097.
  • Long-term debt decreased by $38,991 from $2,229,804 as at March 31, 2017 to $2,190,813 as at June 30, 2017.


  • Revenues increased by $2,845,357 to $12,245,711 compared to $9,400,354 for the corresponding nine months in 2016, representing an increase of 30%. With respect to its two operating divisions, apparel revenues decreased by 1% or $80,709 to $8,304,410, while intelligent fabric revenues increased by 319% or $2,951,390 to $3,875,751.
  • Gross profit for the nine months ended June 30, 2017 increased by 21% or $974,757 to $5,679,750 (46% of sales) compared to $4,704,993 (50% of sales) for the same period in 2016. The lower gross profit % was mainly attributable to a higher proportion of intelligent fabric sales which carry lower margins compared to apparel sales.
  • The net profit after tax attributable to shareholders for the nine months ended June 30, 2016 was $627,159 (or $0.024 per share basic and $0.023 per share diluted) compared to a loss of $406,723 in the corresponding nine months of 2016 (or $0.016 per share basic and diluted) representing an increase of $1,033,882. The increased earnings were attributable to increased revenue, increased gross profit and lower administrative costs for the current nine months of 2017 compared to 2016.
  • Adjusted EBITDA was $1,652,049 compared to negative Adjusted EBITDA of $216,279 for the nine months ended June 30, 2016. This represents an increase of $1,868,328.

 Complete financial statements are available on


    Quarter Ended June 30     Nine Months Ended June 30  
    2017   2016     2017   2016  
    $   $     $   $  
Revenue   4,888,400   2,999,317     12,245,711   9,400,354  
Income (loss) from operations   1,000,267   (87,247 )   1,515,337   (243,584 )
Share based compensation   369,359   16,280     401,919   101,943  
Adjusted EBITDA *(Note)   955,335   (63,859 )   1,652,049   (216,279 )
Net income (loss) after tax   269,154   (121,962 )   629,826   (404,433 )
Net income (loss) after tax attributable to shareholders   264,213   (121,653 )   627,159   (406,723 )
Net income (loss) per share - basic   0.010   (0.005 )   0.024   (0.016 )
Net income (loss) per share - dliuted   0.010   (0.005 )   0.023   (0.016 )

*Note: Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization and share based compensation.


Headquartered in Markham, Ontario, iFabric Corp currently has 26.2 million shares issued and outstanding.

Through its wholly-owned subsidiaries, Intelligent Fabric Technologies (North America) Inc. ("IFTNA") and Coconut Grove Pads Inc. ("Coconut Grove"), the Company offers a variety of products and services in both of its strategic divisions:

IFTNA is focused on proprietary chemical formulations that render fabrics, foams, plastics and numerous other surfaces intelligent, thereby improving the safety and well-being of the consumer.

Coconut Grove, operating as Coconut Grove Intimates, is a designer, manufacturer, distributor, licensor and licensee of ladies intimate apparel products, accessories and sleepwear.


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

Hilton Price

Gary Perkins
Investor Relations

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