Mr. Hilton Price reports

IFABRIC CORP REPORTS RECORD FIRST QUARTER RESULTS FOR ITS QUARTER ENDED DECEMBER 31, 2017

iFabric Corp. has provided its results for its first quarter ended Dec. 31, 2017.

"I would like to thank our hard-working and dedicated team for delivering record first quarter results for iFabric," said Hylton Karon, president and chief executive officer of iFabric. "Both our divisions continue to build on the record 2017 financial year effort. I am extremely pleased by the quality of our sales and the effectiveness of improved inventory management systems, which have positively impacted both our cash position and bottom line. This leaves the company in a strong and well-capitalized position to fund continued growth and expansion in 2018 and beyond," concluded Mr. Karon.

Highlights for first quarter ended Dec. 31, 2017 (Q1 2018)

• Total revenues of $5,136,771 in Q1 2018 compared with $3,102,120 in Q1 2017, representing an increase of $2,034,651 or 66 per cent. This represents a record first quarter for iFabric;
• Revenues for the intelligent fabrics division were $1,631,376 in Q1 2018 compared with $1,290,581 in Q1 2017, representing an increase of $340,795 or 26 per cent;
• Revenues for the apparel division were $3,479,795 in Q1 2018 compared with $1,785,939 in Q1 2017, representing an increase of $1,693,856 or 95 per cent;
• Gross profit increased by 126 per cent or $1,440,108 to $2,587,194 from $1,147,086 in Q1 2017;
• Gross profit margins increased from 37 per cent in Q1 2017 to 50 per cent in Q1 2018. This increase was mainly attributable to milestone licence payments received from a major customer in the intelligent fabrics division as well as reduced end of season clearances and reduced margin rebates in the apparel division;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) amounted to $1,427,328 compared with negative adjusted EBITDA of $58,555 for the same quarter last year. This represents an increase of $1,485,883;
• Net earnings attributable to shareholders was $950,480 (or 3.6 cents per share basic and 3.5 cents diluted) compared with a net loss $125,375 in the same quarter of 2017 (or 0.5 cent per share basic and diluted), representing an increase in net earnings of $1,075,855;
• Working capital (excluding a 15-year demand term loan classified as current under IFRS (international financial reporting standards)) amounted to $9,109,433 compared with $7,946,654 at Sept. 30, 2017, representing an increase of $1,162,779;
• Cash increased by $2,095,825 to $2,764,250 compared with $668,425 at the end of the previous quarter ended Sept. 30, 2017, due to the favourable collection of accounts receivable and improved inventory management;
• The company's bank operating line was fully repaid and carried a zero balance as at Dec. 31, 2017, compared with an amount owing on the operating line of $774,908 at the end of the previous quarter ended Sept. 30, 2017, leaving the full operating line of $3.5-million available to finance future growth and expansion;
• Shareholders' equity attributable to common shareholders was $10,760,252 compared with $9,750,982 at the end of the previous financial quarter ended Sept. 30, 2017, representing an increase of $1,009,270.

Complete financial statements are available on SEDAR and the company's website.

           
               FINANCIAL HIGHLIGHTS
             Quarter ended Dec. 31

                                      2017         2016       

Revenue                         $5,136,771   $3,102,120 
Earnings (loss) from operations  1,227,331     (139,885)
Share based compensation           (45,483)     (16,459)
Adjusted EBITDA *                1,427,328      (58,555)
Net earnings (loss) after tax      950,955     (123,287)
Net earnings (loss) after tax                           
attributable to shareholders       950,480     (125,375)
Net earnings (loss) per share                           
Basic                                0.036       (0.005)
Diluted                              0.035       (0.005)

* Note: Adjusted EBITDA represents earnings before 
  interest, taxes, depreciation, amortization and 
  share based compensation.

About iFabric Corp.

Headquartered in Markham, Ont., iFabric currently has 26.2 million shares issued and outstanding. Through its wholly owned subsidiaries, Intelligent Fabric Technologies (North America) Inc. (IFTNA) and Coconut Grove Pads Inc., the company offers a variety of products and services in both of its strategic divisions:

• IFTNA is focused on proprietary chemical formulations that render fabrics, foams, plastics and numerous other surfaces intelligent, thereby improving the safety and well-being of the consumer.
• Coconut Grove, operating as Coconut Grove Intimates, is a designer, manufacturer, distributor, licensor and licensee of ladies intimate apparel products, accessories and sleepwear.

We seek Safe Harbor.