Arizona Tribune - iFabric Corp Reports Record Revenue for Q1 2025

"I am pleased to report that another record revenue quarter was delivered in Q1 2025. We anticipate continued momentum for the balance of 2025, with the latter part of the year delivering exciting new product segments, which are currently in production. This speaks to the confidence that our retail partners have in our ability to design and deliver an ever-increasing and innovative range of offerings," stated Hylton Karon, group President and C.E.O.

"Whilst we did see a significant increase in costs during the quarter, this was mainly due to ongoing regulatory costs and, in particular, costs related to the current leaching study for Protx2 and to build additional revenue streams for the Company. I am confident that these investments will yield significant future benefits for iFabric," continued Mr. Karon.

"In regard to tariffs, as of the current date, the U.S. has adjusted tariffs on Chinese imports to 30%, a 10% increase for the Company, whose products are mainly manufactured in China. This new rate will be in effect for 90 days. The Company is working with suppliers and customers to share these additional costs in the short term, though I believe that U.S. consumers will ultimately absorb them in the longer term. In Q1 2025, U.S. sales accounted for 23% of total revenue, a ratio not expected to increase due to new Canadian programs launching later in the year. As a result, the tariff increase is not anticipated to significantly affect 2025 earnings, but the risk of further tariff hikes remains and could impact future U.S. revenues and margins," concluded Hylton Karon.

HIGHLIGHTS FOR FIRST QUARTER ENDED MARCH 31, 2025:

• Total revenues of $7,080,440 in Q1 2025 compared to $6,754,624 in Q1 2024, representing an increase of $325,816 or 5%.

• Revenues for the Intelligent Fabrics Division were $5,824,451 in Q1 2025, representing an increase of $1,158,162 or 25%, from $4,666,289 in Q1 2024. These revenue gains were as a result of increased apparel sales in Canada and the US from new and existing programs.

• Revenues for the Intimate Apparel Division decreased to $1,250,739 in Q1 2025 from $2,088,335 in Q1 2024, representing a decrease of $837,596 or 40%. A new and major program for this Division commenced shipping in Q1 2024. However, by comparison, there were no such new programs for this segment in Q1 2025.

• Gross profit margins decreased by 5% to 39% in Q1 2025 compared 44% in 2024, primarily due to product mix, with a higher proportion of lower margin products being shipped in the current quarter.

• Gross profit in dollars was $2,739,454 in Q1 2025 compared to $2,961,122 in Q1 2024, a decrease of 7% or $221,668 attributable to the lower gross margins.

• Selling, general and administrative costs increased by $279,704 (13%) to $2,400,918 in Q1 2025 compared to $2,121,214 in 2024, as a result of increased regulatory costs and, in particular the cost of the ongoing leaching study for Protx2, as well as personnel, advertising and travel costs incurred to support future business initiatives.

• Adjusted EBITDA* for Q1 2025 amounted to $318,478 compared to adjusted EBITDA of $855,380 in 2024, representing a decrease of $536,902 as a result of decreased gross margin dollars and increased expenditures as discussed above.

• Net earnings after tax attributable to iFabric's shareholders during Q1 2025 decreased to $88,458 ($0.003 per share, basic and diluted) from $550,596 ($0.018 per share, basic and diluted), for the same reasons.

• Working capital (excluding a demand loan classified as current, but not requiring repayment in 2025) amounted to $19,883,462 at the end of Q1 2025 compared to $19,608,256 as at December 31, 2024, an increase of $275,206, mainly attributable to the EBITDA for the quarter.

• Cash increased by $3,582,599 to $5,640,755 as at March 31, 2025 from $2,058,156 at the end of the previous quarter, as a result of strong collections during the current quarter balanced by a minority interest purchase and resulting term loan previously announced.

• The Company's increased its bank operating line to $12,000,000 during the quarter from the prior $6,750,000 at the end of the prior quarter, in anticipation of the need to finance significant revenue growth during the latter part of fiscal 2025 and beyond. This line was unutilized at March 31, 2025 and at the end of the previous quarter, leaving the full line of $12,000,000 available to finance future business.

Q1 2025 FINANCIAL HIGHLIGHTS:

*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:

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 March 28, 2025 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: [email protected]

Hilton Price, CFO
Tel: 647.465.6161
Email: [email protected]

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 ACCESS Newswire

A.Williams--AT