MARKHAM, ON / ACCESSWIRE / December 29, 2022 / iFabric Corp. ("iFabric" or the "Company") (TSX:IFA)(OTCQX:IFABF), today announced its results for its fourth quarter and fiscal year ended September 30, 2022 ("2022").
"I am pleased to report that iFabric matched the record revenue achieved in fiscal 2021 without the benefit of the non-recurring revenue the Company booked during fiscal 2021. If not for the ongoing disruptions impacting global supply chains that resulted in supplier shipping delays during the year that were outside of our control, fiscal 2022 would have been another record sales year for iFabric," stated Hylton Karon, President and CEO of iFabric. "With a solid fiscal 2022 now behind us, we have entered into our new fiscal year 2023 with the largest starting order book for both our intelligent fabrics and intimate apparel divisions in the Company's history. To prepare for this revenue growth and additional new business growth in calendar 2023 and beyond, we made a significant investment in marketing expenses during 2022 for the launch of our new Company owned-brand as well as to build a strong team and infrastructure to support and sustain growth in all areas of our business.
We likewise anticipate the resources and investment we've made in our pathogen-inactivation clinical trials have the potential to generate valuable real-world evidence and performance validation of our ProTX2 and RepelTX technologies, thus providing us with an important tool to further expand our reach in the medical market," continued Hylton Karon. "We are also happy to report that the first deliveries of our new swimwear programs are on track and set to commence in Q2, 2023. Additionally, we are in active negotiations on several new business opportunities and retailer partnered programs that we believe have a high probability of closing during 2023, thus preparations have commenced to insure we can fully exploit these opportunities, including securing a $3 million increase in our credit line to fund future business expansions. Accordingly, I am anticipating a substantial increase in topline revenues, bottom line profitability and an overall record year for the Company in 2023," concluded Hylton Karon.
YEAR ENDED SEPTEMBER 30, 2022, HIGHLIGHTS:
Q4 ENDED SEPTEMBER 30, 2022, HIGHLIGHTS:
Complete Financial Statements are available on www.sedar.com and the company's website at www.ifabriccorp.com.
FINANCIAL HIGHLIGHTS
Year Ended September 30 | Quarter ended September 30 | |||||||
2022 | 2021 | 2022 | 2021 | |||||
$ | $ | $ | $ | |||||
Revenue | 19,743,008 | 19,763,672 | 6,032,950 | 5,204,282 | ||||
Income (loss) from operations | (67,584) | 2,503,733 | (273,751) | 161,602 | ||||
Share based compensation | 472,952 | 21,994 | (140,371) | 2,998 | ||||
Adjusted EBITDA *(Note) | 445,861 | 3,234,404 | (82,192) | 354,290 | ||||
Net earning (loss) before tax | (207,481) | 3,042,093 | (272,001) | 307,915 | ||||
Net income (loss) after tax | ||||||||
attributable to shareholders | (454,998) | 2,369,698 | (296,083) | 203,165 | ||||
Other comprehensive earnings (loss) | 455,662 |
| (242,697) |
| 353,253 |
| 143,348 | |
Total comprehensive earnings (loss) | 3,206 |
| 2,132,309 |
| 49,348 |
| 333,078 | |
Net earnings (loss) per share | ||||||||
Basic | (0.015) | 0.084 | (0.010) | 0.006 | ||||
Diluted | (0.015) | 0.081 | (0.010) | 0.006 |
*Note: Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization and share based compensation.
*USE OF NON-GAAP MEASURES
Certain measures in this document do not have any standardized meaning as prescribed by International Financial Reporting Standards ("IFRS") and, therefore, are not considered generally accepted accounting principles ("GAAP") measures and may not be comparable to similar measures presented by other issuers. Where non-GAAP measures or terms are used, definitions are provided. The Company believes that certain non-GAAP financial measures provide important information regarding the operational performance and related trends of the Company's business. In this document and in the Company's consolidated financial statements, unless otherwise noted, all financial data is prepared in accordance with IFRS.
Adjusted EBITDA
The Company uses Adjusted EBITDA to assess its operating performance without the effects of (as applicable): current and deferred tax expense, finance costs, interest income, depreciation and amortization of plant assets, other gains and losses, impairment loss, share-based compensation and other non-recurring items. The Company adjusts for these factors as they may be non-cash, unusual in nature and may not optimally represent its operating performance. Adjusted EBITDA is not intended to be representative of net earnings from operations or an alternative measure to cash provided by operating activities determined in accordance with IFRS.
The table below reconciles Adjusted EBITDA and Net earnings attributable to owners of the Company, calculated in accordance with IFRS:
Three months | Twelve months | |||||||
For the period ended September 30, | 2022 | 2021 | 2022 | 2021 | ||||
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Net earnings (loss) after tax attributable to shareholders | (296,083) | 203,165 | (454,998) | 2,369,698 | ||||
Add (deduct): |
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Net earnings attributable to non-controlling interest | (7,822) | (13,435) | 2,542 | 5,308 | ||||
Provision for income taxes | 31,904 | 118,185 | 244,975 | 667,087 | ||||
Share-based compensation | 140,371 | 2,998 | 472,952 | 21,994 | ||||
Amortization of deferred development costs | 6,705 | 6,705 | 26,820 | 26,820 | ||||
Depreciation of plant, property and equipment and right-of-use assets | 27,281 | 26,530 | 103,847 | 90,095 | ||||
Interest expense | 15,452 | 10,142 | 49,723 | 53,402 | ||||
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Adjusted EBITDA | (82,192) | 354,290 | 445,861 | 3,234,404 | ||||
Add (deduct): |
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Share-based compensation | (140,371) | (2,998) | (472,952) | (21,994) | ||||
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EBITDA | (222,563) | 351,292 | (27,091) | 3,212,410 |
ABOUT iFABRIC CORP:
Headquartered in Markham, Ontario, iFabric, www.ifabriccorp.com, is listed on the TSX and, currently has 29.8 million shares issued and outstanding. Its two strategic divisions offer a variety of products and services through wholly-owned subsidiaries, namely, Intelligent Fabric Technologies (North America) Inc. ("IFTNA") and Coconut Grove Pads Inc. ("Coconut Grove").
IFTNA is focused on development and sale of high-performance sports apparel, medical protective apparel, consumer protective apparel, and proprietary treatments that provide "intelligent" properties to fabrics, foams, plastics, and numerous other surfaces, thereby improving the safety and well-being of the user. Such intelligent properties include antiviral and antibacterial characteristics, water-repellence and UV protection, among others.
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, including the risk factors described in the Company's annual information form dated December 29, 2022 and other filings with the Canadian securities regulators available under the Company's profile on SEDAR at www.sedar.com.
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.
Given the impacts of COVID-19 and the war in Ukraine resulting in ongoing uncertainty, there can be no assurances regarding: (a) the COVID-19 and the war in Ukraine related impacts on the Company's business, operations and performance, (b) the Company's ability to mitigate such impacts; (c) credit, market, currency, operational, and liquidity risks generally; and (d) other risks inherent to the Company's business and/or factors beyond its control which could have a material adverse effect on the Company.
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]
Website: www.ifabriccorp.com
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.
SOURCE: iFabric Corp