iFabric Corp Reports Financial Results for First Financial Quarter 2017 and Outlook for 2017

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| Source: iFabric Corp.

MARKHAM, ONTARIO--(Marketwired - Feb. 14, 2017) - iFabric Corp. (TSX:IFA), hereinafter referred to as "iFabric" or the "Company", today announced its financial results for its first quarter ended December 31st 2016 and its outlook for 2017.

HIGHLIGHTS FOR FIRST QUARTER:

  • Intelligent Fabric Revenues increased to $1,290,581 compared to $106,029 in the corresponding quarter of the prior year representing an increase of $1,184,552 and 42% of total revenues compared to 3% of total revenues in the corresponding quarter of 2016.

  • Apparel Revenues were $1,785,939 compared to $3,183,307 representing a decrease of $1,397,368. The decrease in apparel sales was attributable to transitioning out of the Splendid and Ella Moss programs as well as the receipt of sub-quality product supplied by 2 long standing suppliers which the Company did not ship to its customers. The Company has taken measures to prevent these issues from reoccurring.

  • Total Revenues were $3,102,120 compared to $3,329,010 in the corresponding quarter of 2016, a decrease of 7%.

  • Operating loss for the quarter was $139,885 compared to an operating profit of $70,076 in 2016, representing a decrease of $209,961.

  • Gross Profit decreased to $1,147,086 from $1,784,215 in 2016, representing a decrease of $637,129 or 36%.

  • Gross Profit margins decreased to 37% compared to 54% in the corresponding quarter in 2016.

  • The decrease in gross profit was mainly attributable to the higher ratio of intelligent fabric revenues which carry lower margins compared to apparel revenues.

  • Selling and administrative costs decreased by 27% to $1,210,046 from $1,651,592 representing a decrease of $441,546. This decrease was mainly attributable to the elimination of expenses related to the Splendid and Ella Moss programs and substantially offset the reduction in gross profit during the quarter.

  • After tax loss attributable to common shareholders was $125,375 ($0.005 basic and fully diluted per share) compared to a profit in the corresponding quarter of 2016 of $39,588 ($0.002 basic and $0.001 fully diluted per share).

  • Working capital amounted to $5,176,837 at December 31, 2016, compared to $5,300,067 as at the end of the previous financial quarter ended September 30, 2016.

  • Net cash improved by $362,465 to $732,775 compared to $370,310 at the end of the previous quarter ended September 30th, 2016.

  • Shareholder Equity attributable to common shareholders was $7,529,094 compared to $7,638,010 at the end of the previous financial quarter ended September 30, 2016 representing a decrease of $108,916.

OUTLOOK:

Hylton Karon, President and CEO provided the following outlook:

Intelligent Fabrics Division:

  • The intelligent fabrics division continues to build momentum and is now expected to exceed the previously announced 100 million yards of treatments in calendar 2017.

  • The Company is now able to combine a variety of its technologies in unique combinations to enhance the value proposition of its customers' products. This will result in increased sales revenue per yard of treated fabrics. Furthermore, margins in this division will improve as the Company's increased volumes have allowed it to negotiate improved pricing from its suppliers.

Apparel Division:

  • The transition out of the Splendid and Ella Moss programs will now allow the Company to fully focus on Maidenform branded sleepwear programs and further reduce overheads.

  • The official launch of Maidenform sleepwear commenced in January 2017. The initial sell through results have exceeded expectations. This has resulted in record initial bookings for the key 2017 holiday season and further bookings are anticipated.

  • In order to prevent the product quality issues experienced in the quarter from reoccurring, the Company has taken measures to further diversify is supply chain and improve quality controls at source.

Complete Financial Statements are available on www.sedar.com and the company's website www.ifabriccorp.com

FINANCIAL HIGHLIGHTS:
Quarter Ended December 31
2016 2015
$ $
Revenue 3,102,120 3,329,010
Income (loss) from operations (139,885 ) 70,076
Share based compensation (16,459 ) (45,405 )
EBITDA (75,014 ) 137,001
Net income (loss) after tax (123,287 ) 41,396
Net income (loss) after tax attributable to shareholders (125,375 ) 39,588
Net income (loss) per share - basic (0.005 ) 0.002
Net income (loss) per share - dliuted (0.005 ) 0.001

ABOUT iFABRIC CORP:

iFABRIC CORP currently has 26 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.

ABOUT PROTX2®

PROTX2® provides long-term, effective control of microorganisms. Its efficacy and safety has been documented in numerous peer reviewed publications, trade articles and certified tests. It is durable to deterioration through repeated washing and is clinically proven to kill bacteria associated with hospital acquired infections. Medical facility uses for PROTX2™ include bedding, curtaining, air filters, scrubs, masks, plastic components and most other surfaces.

FORWARD LOOKING STATEMENTS

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.

Contact Information:

Hilton Price, CFO
647 465-6161
hilton.price@rogers.com

Gary Perkins
416 882-0020
garyperkins@rogers.com