(Filed Under Financial and General Interest News). iFabric sales and profits both jumped dramatically in its third quarter. The Ontario-based public company owns Coconut Grove intimates, which holds the Maidenform license in certain categories, as well as Intelligent Fabric Technologies (North America) Inc.
For the three months ended June 30, 2017 iFabric reported net profit after tax attributable to shareholders was $264,213 on sales of $4,888,400 compared to a loss of $121,653 on sales of $2,999,317 during the same period in 2016.
“The third quarter results represent a milestone in the company’s history, with record revenue, record operating profit and record adjusted EBITDA,” declared Hylton Karon president and CEO. “We look forward to continued growth in the future.”
In explaining the 63% increase in sales during the period, the company noted “revenues in the Apparel Division increased by 31% or $833,072 to $3,495,976 from $2,662,904 in Q3 2016, primarily due to new Maidenform sleepwear lines, which launched earlier in 2017. Revenues in the Intelligent Fabrics Division, increased by 343% or $1,067,261 to $1,378,074 from $310,813 in 2016, primarily due to increased sales of antimicrobial products to major customers.”
The report continued that there was an “operating profit of $1,000,267 compared to an operating loss of $87,247 during Q3 2016, an increase of $1,087,514. The substantial increase operating profit was mainly as a result of increased revenues, increased gross profit and a reduction in operating costs. Adjusted EBITDA was $955,335 compared to negative Adjusted EBITDA of $63,859 for the same quarter last year. This represents an increase of $1,019,194. Gross profit of $2,449,749 or 50% of sales compared to $1,418,332 or 47% in Q3 2016, an increase of $1,031,417 or 39%. The increase in gross profit percentage was mainly due to lower clearances of end of season merchandise and the product mix for the quarter.”
The company concluded that “The increase in net earnings was mainly attributable to higher revenues and higher gross profit,” adding that “the net earnings for the quarter were impacted by an increase in share based compensation costs to $369,359 from $16,280 in Q3 2016, as a result of 600,000 options awarded to directors and key management in the quarter, 50% of which vested immediately.” — NM
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