MARKHAM, ONTARIO -- (Marketwire) -- 02/01/13 -- iFabric Corp ("IFA.V") (TSX VENTURE: IFA), hereinafter referred to as "iFabric" or the "Company", today announced its financial results for the year ended 30th September 2012.
In 2012 revenues increased to $5,981,070 compared to $5,557,574 in 2011, an increase of $423,496 or 7.6%. Gross profit in 2012 was $3,202,612 compared to $2,795,375 in 2011. Gross profit margins increased to 54% in 2012 compared to 50% in 2011, attributable to favorable product mix and savings in warehouse costs from establishing higher minimum customer order levels.
Net loss for the year ended 30th September 2012 was $214,349 or $0.01 per share, compared to a profit of $485,519 or $0.04c per share for the year ended 30th September 2011, on a fully diluted basis. The loss in 2012 is largely attributable to listing expenses of $572,170 incurred in connection with the company's public listing via reverse takeover of a capital pool corporation, as well as selling and design costs of approximately $400,000 relating to new sales programs which have been expensed ahead of initial sales of product from these programs, which are anticipated to commence shipping in the Company's January to March 2013 quarter.
The Company's balance sheet continues to improve. With working capital of $4,011,541and no operating debt, the Company is well capitalized to fund its operations. Shareholders' Equity increased to $4,772,563 an increase of $823,651 or 21% resulting from net proceeds of funds raised via private placement as part of the going public process in June 2012.
"The Company achieved sales growth in a very difficult year for retailers, especially in our key UK market" said Hylton Karon, president and CEO of iFabric. "With a strong order book on hand for our core products in the ladies intimate apparel division, the 2013 outlook for this division is encouraging. Sales are expected to show significant growth commencing in the quarter January to March. In addition, Cliniweave, a key technology in our intelligent fabrics division, received EPA (Environmental Protection Agency) registrations for its anti-bacterial and anti-viral versions in October and December 2012 respectively, now allowing the Company to sell Cliniweave technologies into the USA market. We are working with some key customers to integrate Cliniweave into their production schedules," added Mr. Karon.
Complete Financial Statements are available on www.sedar.com
FINANCIAL HIGHLIGHTS 3 months ended Sept 30 year ended Sept 30 2012 2011 2012 2011 $ $ $ $Revenue 2,006,645 1,583,149 5,981,070 5,557,574Net income (loss) 113,323 115,259 (214,349) 485,519Net income (loss) per share 0.01 0.01 (0.01) 0.04Cash flow (487,937) 497,118 (1,248,384) 627,820
ABOUT iFABRIC CORP:
iFABRIC CORP currently has 25.2 million shares issued and outstanding. iFABRIC is a manufacturer, distributor, licensor and licensee of ladies intimate apparel products and accessories as well proprietary chemical compounds that render fabrics intelligent, thereby improving the safety and well-being of the wearer.
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 Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.