Markham, Ontario--(Newsfile Corp. - August 14, 2019) - iFabric Corp. (TSX: IFA) ("iFabric" or the "Company"), today announced its financial results for its third quarter and nine months ended June 30, 2019.
Q3 2019 HIGHLIGHTS:
NINE MONTH HIGHLIGHTS:
Complete Financial Statements are available on www.sedar.com
FINANCIAL HIGHLIGHTS
Quarter Ended June 30 | Nine Months Ended June 30 | |||
2019 | 2018 | 2019 | 2018 | |
$ | $ | $ | $ | |
Revenue | 2,284,507 | 3,291,659 | 7,260,181 | 12,629,679 |
(Loss) earnings from operations | (726,319) | 113,976 | (1,715,587) | 2,001,669 |
Share based compensation | 16,991 | 38,875 | 109,189 | 128,852 |
Adjusted EBITDA *(Note) | (753,012) | 115,623 | (1,722,323) | 2,250,479 |
Net (loss) earnings before tax | (810,045) | 11,235 | (1,951,931) | 1,900,713 |
Net (loss) earnings after tax attributable to shareholders | (642,120) | (175,707) | (1,585,729) | 1,145,849 |
Other comprehensive (loss) earnings | (11,222) | 126,748 | 105,214 | 305,309 |
Total comprehensive (loss) earnings | (658,041) | (44,953) | (1,485,412) | 1,454,624 |
Net income (loss) per share - basic | (0.024) | (0.007) | (0.061) | 0.044 |
Net income (loss) per share - diluted | (0.024) | (0.006) | (0.061) | 0.042 |
*Note: Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization and share based compensation.
CORPORATE UPDATE & OUTLOOK: -
Hylton Karon provides the following comments on the results and future outlook:
Due to the successful repackaging of key products, we felt it was prudent to expand this effort beyond the original plan, to ensure they remain top sellers. While this was the main contributor to the quarter's loss, I believe this represents an investment that will pay dividends in both direct sales and goodwill with our customers.
The current quarter saw the launch of our new patented Breastlift adhesive bra. This unique product was launched in 75 stores in the USA and Canada. Retail demand has been so positive; we have now expanded distribution to over 1,250 stores.
Four new patents have been filed in the USA and Canada with respect to performance apparel. In addition, there are other concepts we are about to file additional patents for. We believe these novel additions will be instrumental in securing new business.
Our regulatory efforts with the EPA in USA, are in the final phase. We also recently initiated the regulatory process for Canadian claims. As in the US, there is presently no entity that has been able to secure health claims on textiles in Canada.
Some key agreements with high profile brands are up for renewal. We anticipate announcing these shortly, along with several new agreements which are in negotiation at present. These will cover both chemical and finished product sales.
Our own brand for performance apparel is expected to launch shortly, which is a very exciting new avenue of revenue and will allow for much higher margins on a direct to consumer basis. We are currently implanting our distribution system in the US and will provide a further update in the near term.
On the heels of successful private label performance apparel programs, we have renewed our current lines and have received increased interest in other products with the same retailers as well as adding new retail partners to the equation for next year.
We are branching out with our technology division to not only supply chemicals but have added functional yarns as a new market segment. This allows for integration of technology in the yarn manufacturing phase, as opposed to the textile finishing stage, which provides substantial benefits to manufacturers and end users. We expect that this new strategy will reduce adoption timing for our global brand customers.
ABOUT iFABRIC CORP:
Headquartered in Markham, Ontario, iFabric Corp www.ifabriccorp.com currently has 26.0 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 performance apparel as well as 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 and accessories.
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.
FOR FURTHER INFORMATION, please contact:
Hilton Price, CFO
Tel: 647.465.6161
Email: [email protected]
Gary Perkins - Investor Relations
Tel: 416.882.0020
Email: [email protected]
Jean-François Dubé (Québec) - Investor Relations
Tel: 514.233.9551
Email: [email protected]
Website: www.ifabriccorp.com
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