iFabric Corp Announces Record Revenues and Earnings for Q1 2024
iFabric Corp. (OTCQX:IFABF) reported record revenues and earnings for Q1 2024, ending March 31, 2024. The company achieved total revenues of $6,754,624, a 2% increase from Q1 2023. The Intelligent Fabrics Division saw a 6% boost in revenues to $4,666,289, while the Intimate Apparel Division experienced a 6% decline to $2,088,335. Gross profit margins rose by 4% to 44%, leading to a gross profit increase of 11% to $2,961,122.
Adjusted EBITDA increased by 30% to $855,380, and net earnings after tax grew to $550,596 ($0.018 per share) from $469,419 ($0.015 per share) in Q1 2023. Working capital improved by $859,663 to $17,320,228, and cash reserves rose by $1,889,367 to $3,461,111. The company's bank operating line remained unutilized, offering a $6,750,000 cushion for future growth.
- Total revenues increased by 2% to $6,754,624 in Q1 2024.
- Revenues for the Intelligent Fabrics Division grew by 6% to $4,666,289.
- Gross profit margins improved by 4% to 44%.
- Gross profit in dollars rose by 11% to $2,961,122.
- Adjusted EBITDA jumped by 30% to $855,380.
- Net earnings after tax climbed to $550,596 ($0.018 per share).
- Working capital increased by $859,663 to $17,320,228.
- Cash reserves surged by $1,889,367 to $3,461,111.
- Bank operating line of $6,750,000 remains unutilized.
- Revenues for the Intimate Apparel Division fell by 6% to $2,088,335.
- Selling, general, and administrative costs rose by $93,323 to $2,121,214.
- Increased personnel, advertising, and travel costs impacted expenses.
MARKHAM, ON / ACCESSWIRE / May 14, 2024 / iFabric Corp. ("iFabric" or the "Company") (TSX:IFA.TO)(OTCQX:IFABF), today announced its financial results for its first quarter of fiscal 2024 ended March 31, 2024.
"New customers, new programs and solid margins propelled iFabric to record revenues and EBITDA for the quarter," said Hylton Karon, President and CEO of iFabric. "We remain on track to meet our recently announced revenue target of between
HIGHLIGHTS FOR FIRST QUARTER ENDED MARCH 31, 2024:
- Total revenues of
$6,754,624 in Q1 2024 compared to$6,642,563 in Q1 2023, representing an increase of$112,061 or2% . - Revenues for the Intelligent Fabrics Division were
$4,666,289 in Q1 2024 from$4,413,977 in Q1 2023, representing an increase of$252,312 or6% , attributable to increased chemical sales. - Revenues for the Intimate Apparel Division were to
$2,088,335 in Q1 2024 from$2,223,336 in Q1 2023, representing a decrease of$135,001 or6% , as a result of reduced sales in Canada. - Gross profit margins increased by
4% to44% in Q1 2024 compared40% in 2023, primarily due to product mix, with a higher proportion of higher margin products being shipped in the current quarter. - Gross profit in dollars increased by
11% or$302,614 t o$2,961,122 in Q1 2024 compared to$2,658,508 in Q1 2023, attributable to the higher gross margins. - Selling, general and administrative costs increased by
$93,323 t o$2,121,214 in Q1 2024 compared to$2,027,891 in 2023, mainly as a result of increased personnel, advertising and travel costs incurred to support future revenue growth. - Adjusted EBITDA* for Q1 2024 amounted to
$855,380 compared to adjusted EBITDA of$655,693 in 2023, representing an increase of$199,687 or30% . - Net earnings after tax attributable to iFabric's shareholders during Q1 2024 was
$550,596 ($0.01 8 per share, basic and diluted) compared to net earnings of$469,419 in 2023 ($0.01 5 per share, basic and diluted). The increase in the attributable net earnings is primarily attributable to increased gross profit dollars, which was partially offset by increased expenditures. - Working capital (excluding a demand loan classified as current, but not requiring repayment in 2024) amounted to
$17,320,228 at the end of Q1 2024 compared to$16,460,565 as at September 30, 2023, an increase of$859,663 , mainly attributable to the earnings for the quarter. - Cash increased to
$3,461,111 at the end of Q1 2024 compared$1,571,744 at the end of the previous quarter, representing an increase of$1,889,367 , attributable to the collection of accounts receivable and a reduction in inventory. - The Company's bank operating line was unutilized at March 31, 2024 and at the end of the previous quarter, leaving the full line of
$6,750,000 available to finance future business.
Q1 2024 FINANCIAL HIGHLIGHTS:
| Three months ended March 31, | 2024 | 2023 | ||
| Revenue | 6,754,624 | 6,642,563 | ||
| Earnings from operations | 679,053 | 573,899 | ||
| Share based compensation | (77,190) | - | ||
| Adjusted EBITDA *(Note) | 855,380 | 655,693 | ||
| Net earnings before tax | 694,525 | 598,975 | ||
| Net earnings after tax | ||||
attributable to shareholders | 550,596 | 469,419 | ||
| Other comprehensive earnings (loss) | 92,974 | (11,343) | ||
| Total comprehensive earnings | 643,732 | 459,284 | ||
| Net earnings per share | ||||
Basic | 0.018 | 0.015 | ||
Diluted | 0.018 | 0.015 | ||
*Note: Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization and share based compensation
Complete Financial Statements are available on SEDAR+ at www.sedarplus.ca and on the company's website at www.ifabriccorp.com .
About iFabric Corp:
Headquartered in Markham, Ontario, iFabric, www.ifabriccorp.com , is listed on the TSX and, currently has 30.3 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.
*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 ended March 31, | 2024 | 2023 | |||||
| Net earnings after tax attributable to shareholders | 550,596 | 469,419 | |||||
| Add (deduct): | |||||||
| Net earnings attributable to non-controlling interest | 162 | 1,208 | |||||
| Provision for income taxes | 143,767 | 128,348 | |||||
| Share-based compensation | 77,190 | - | |||||
| Amortization of deferred development costs | 8,901 | 6,705 | |||||
| Depreciation of plant, property and equipment and right-of-use assets | 47,876 | 29,108 | |||||
| Interest expense | 26,888 | 20,905 | |||||
| Adjusted EBITDA | 855,380 | 655,693 | |||||
| Add (deduct): | |||||||
| Share-based compensation | (77,190) | - | |||||
| EBITDA | 778,190 | 655,693 | |||||
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", "plans", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the extent and impact of health pandemic outbreaks on our business; general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; the actual results of the Company's future operations; competition; changes in legislation affecting the Company; the ability to obtain and maintain required permits and approvals, the timing and availability of external financing on acceptable terms; lack of qualified, skilled labour or loss of key individuals.
A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's annual information form dated April 1, 2024 and other filings with the Canadian securities regulators available under the Company's profile on SEDAR+ at www.sedarplus.ca . Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.
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. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
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 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.
FOR FURTHER INFORMATION please contact:
Hylton Karon, President and CEO
Tel: 905.752.0566 ext 201
Email: hyltonk@ifabriccorp.com
Hilton Price, CFO
Tel: 647.465.6161
Email: hilton.price@rogers.com
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.
View the original press release on accesswire.com
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