Business
iFabric Corp Reports Results for Its Third Quarter and Nine Months Ended June 30, 2019
Markham, Ontario--(Newsfile Corp. - August 14, 2019) - iFabric Corp. (TSX: IFA) ("iFabric" or...
About this update from Ifabric Corp.
[{"type":"text","content":"iFabric Corp Reports Results for Its Third Quarter and Nine Months Ended June 30, 2019Markham, 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:Revenues in Q3 2019 decreased by 31% or $1,007,152 to $2,284,507 from $3,291,659 in Q3 2018. With regard to Company's operating divisions, revenue decreased by 46% or $1,204,629 in its Intimate Apparel Division and revenue increased by 39% or $252,705 in its Intelligent Fabrics Division. The decrease in Intimate Apparel was primarily attributable to the discontinuance of sleepwear products as well as credits given to a major customer amounting to approximately $450,000 in respect of a strategic initiative to boost future sales by recalling products for the purposes of refreshing packaging. These products will be reshipped in the next quarter. This decrease was partially offset by increased revenues in the Intelligent Fabrics segment resultant from new finished performance apparel programs. Net loss before tax of $810,045 compared to net earnings of $11,235 in 2018. The decrease in earnings was mainly as a result of lower sales and a lower gross profit contribution for the reasons stated above. Earnings were also impacted by costs associated with the closure by the Company of its UK warehouse during the period, due to current retail uncertainty in the UK pursuant to the exit of the UK from the European market, and the continued weakening of the UK Sterling. Ongoing business with UK customers is being serviced from Canada. Adjusted negative EBITDA of $753,012 compared to adjusted EBITDA of $115,623 in Q3 2018Gross profit as a percentage of revenue was 23% in Q3 2019, compared to 47% in Q3 2018. The decrease in gross profit percentage is attributable to a numbers of factors, namely, a higher proportion of Intelligent Fabric sales at lower margins, in Q3 2019 versus Q3 2018, as well as one off packaging refresh and the UK warehouse closure costs as discussed above. Gross margins are anticipated to return to historic levels in future periods. Gross profit in dollars decreased by 66% or $1,015,002 to $521,718 in Q3 2019 compared to $1,536,720 in Q3 2018 and is attributable to the factors discussed above. The net loss attribut...