Business
iFabric Corp Reports Results for Its Second Quarter Ended March 31, 2019
Markham, Ontario--(Newsfile Corp. - May 14, 2019) - iFabric Corp. (TSX: IFA) ("iFabric" o...
About this update from Ifabric Corp.
[{"type":"text","content":"iFabric Corp Reports Results for Its Second Quarter Ended March 31, 2019Markham, Ontario--(Newsfile Corp. - May 14, 2019) - iFabric Corp. (TSX: IFA) (\"iFabric\" or the \"Company\"), today announced its financial results for its second quarter and six months ended March 31, 2019.\"Necessary steps have been taken to finalize the impact on areas of business we are no longer active in. In addition, there were significant one off expenditures that impacted the earnings and cash flow of the corporation this quarter. This included a successful defense of a patent infringement allegation against our best-selling bra. With these impediments behind us, and with growing commitments in all areas of the business, I believe we have positioned the company for an exciting future,\" concluded Hylton Karon.Q2 2019 HIGHLIGHTS:Revenues of $2,503,793 compared to $4,201,249 in Q2 2018, representing a decrease of $1,697,456 or 40%. Revenues in the Intimate Apparel division decreased by 60% or $2,025,725 to $1,339,797 from $3,365,522 in Q2 2018, whilst revenues in the Intelligent Fabrics division, increased by 36% or $290,654 to $1,100,783 from $810,129 in 2018. The decrease in Intimate Apparel revenue in Q2 2019 versus 2018 was primarily the result of the discontinuance of sleepwear products. This decrease was partially offset by increased revenues in the Intelligent Fabrics division during the second quarter of 2019 compared to 2019, mainly from initial performance apparel programs. Net loss before tax of $514,732 in Q2 2019 compared to net earnings of $590,585 in 2018. The decrease in net earnings is largely attributable to decrease in revenue of $1,697,456 and a decrease in gross profit dollars of $1,162,103. The impact of these decreases was partially offset by lower share-based compensation costs as well as increased exchange gains in Q2 2019 versus Q2 2018. Adjusted negative EBITDA of $456,076 compared to adjusted EBITDA of $707,527 in Q2 2018. This decrease was for the reasons discussed above.Gross profit as a percentage of revenue was 37% in Q2 2019, compared to 50% in Q2 2018. The decrease in gross profit percentage is attributable to a numbers of factors, namely, a higher proportion of Intelligent Fabric segment sales at lower margins, in Q2 2019 versus Q2 2018, a packaging refresh in respect of the key products of the Intimate Apparel divi...