Mr. Scott Forbes reports
IPLAYCO ANNOUNCES FINANCIAL RESULTS FOR ITS SECOND QUARTER ENDED MARCH 31, 2018
Iplayco
Corp.
Ltd. has released financial results for its second quarter ended March 31, 2018.
This news release contains financial
information
derived
from
Iplayco's unaudited condensed consolidated
interim
financial
statements
for
the
three
and six
months
ended
March 31, 2018.
More
detailed
information can be found in the unaudited
condensed
consolidated interim financial statements and management's discussion and analysis for the three
and six months ended March 31, 2018, which are being filed with the applicable Canadian regulatory authorities.
Highlights:
-
Sales for the quarter ended March 31, 2018, of $4,009,735, down 22.2 per cent compared with the previous quarter ended Dec. 31, 2017, due primarily to smaller sales backlog at the start of second quarter 2018;
- Gross profit percentage of 39.8 per cent, down 8.7 percentage points compared with first quarter 2018, due to lower margin sales mix from smaller orders in second quarter 2018;
-
Selling and administrative expenses of $2,063,967, up 7.4 per cent compared with first quarter 2018, due primarily to continued rollout of European operations;
-
Net loss of $218,250, compared with net income of $383,806 in first quarter 2018;
-
Loss per share of one cent;
-
Earnings per share of one cent for the six months ended March 31, 2018.
The Asia Pacific region remained a strong source of revenue for Iplayco in second quarter 2018, and business in the United States nearly doubled compared with first quarter. European sales also grew significantly. The quarter-on-quarter decline in overall sales was mainly attributable to a marked reduction in business from customers in the Middle East.
Iplayco continues to dedicate personnel and other resources to positioning its new European operations as strongly as possible. In the current quarter, Europe is playing the prominent role in total sales anticipated at the time Iplayco acquired its local portfolio of brands and other assets.
Important information about Iplayco's relationship with Billy Beez
In management's discussion and analysis released today, Iplayco discusses diminished near-term expectations for business with Billy Beez, a family entertainment centre brand that has been Iplayco's largest customer for the past four years. Iplayco's controlling shareholder, FAS Entertainment B.C. Ltd., is a wholly owned subsidiary of Saudi FAS Holding Company, which also owns Billy Beez.
FAS acquired control of Iplayco in November, 2014, to secure supply of playgrounds for its planned expansion of the Billy Beez brand throughout the Middle East, Europe and North America. From 2014 to 2017, Iplayco generated aggregate sales of $21.5-million (U.S.) ($26.9-million (Canadian)) from Billy Beez.
Billy Beez is experiencing some capital constraints and has entered into a payment plan with Iplayco and the bank that purchased certain receivables from Billy Beez to finance Iplayco. Under the payment plan, Iplayco would recover a total of $7,307,114 (U.S.) ($9,421,793 (Canadian)) in combined trade and finance receivables outstanding as of March 31, 2018. The final payment would be made by Billy Beez in October, 2018.
Iplayco expects to collect the entire balance of trade and finance receivables from Billy Beez according to the timeline stipulated in the payment plan. If Billy Beez were to default on its payment obligations, Iplayco's third party insurance provider would pay up to 90 per cent of the unpaid balance.
Iplayco does not anticipate further playground sales to Billy Beez in the current financial year ending Sept. 30, 2018.
"While the changing nature of Iplayco's business relationship with Billy Beez is disappointing, we see clear opportunities to expand business in our key regional markets,"
commented
Scott Forbes, president and chief executive officer of Iplayco. "Demand for Iplayco play centres and equipment in Asia Pacific and the U.S. remained strong in the second quarter, and going forward, our expansion in Europe should enable us to achieve a more balanced sales mix than in the past. Iplayco's project pipeline leads us to anticipate better performance in the third and fourth quarters, and positive earnings per share for the full financial year through Sept. 30, 2018.
Results
for
the
three
months ended March 31, 2018, as compared with
the
three
months
ended Dec. 31, 2017
Sales decreased
by
22.2 per cent
to
$4,009,735 in second quarter 2018
from $5,154,335 in first quarter 2018. Gross profit percentage decreased to 39.8 per cent of sales in second quarter 2018 from 48.5 per cent in first quarter 2018.
Operating
expenses,
including
foreign exchange gains and losses and finance costs, decreased to $1,854,867, or 46.3 per cent of sales, in second quarter 2018 from $1,980,946, or 38.4 per cent of sales, in first quarter 2018. The net loss amounted to $218,250, or net loss per share of one cent, in second quarter 2018, as compared with net income of $383,806, or diluted net income per share of two cents, in first quarter 2018.
Results
for
the
three
months ended March 31, 2018, as compared with
the
three
months
ended March 31, 2017
Sales increased
by
9.2 per cent
to
$4,009,735 in second quarter 2018
from $3,670,669 in second quarter 2017. Gross profit percentage decreased to 39.8 per cent of sales in second quarter 2018 from 50.5 per cent in second quarter 2017.
Operating
expenses,
including
foreign exchange gains and losses and finance costs, increased to $1,854,867, or 46.3 per cent of sales, in second quarter 2018 from $1,765,090, or 48.1 per cent of sales, in second quarter 2017. The net loss amounted to $218,250, or net loss per share of one cent, in second quarter 2018, as compared with net
income
of
$58,796,
or
diluted
net
income
per share of nil, in second quarter 2017.
Results for the six months ended March 31, 2018, as compared with the six months ended March 31, 2017
Sales decreased by 15.9 per cent to $9,164,070 for year-to-date second quarter 2018 from $10,899,632 for year-to-date second quarter 2017. Gross profit percentage increased to 44.7 per cent of sales for year-to-date second quarter 2018 from 43.3 per cent for year-to-date second quarter 2017. Operating expenses, including foreign exchange gains and losses and finance costs, increased to $3,835,813 or 41.9 per cent of sales for year-to-date second quarter 2018 from $3,314,278 or 30.4 per cent of sales for year-to-date second quarter 2017. Net income amounted to $165,556, or diluted net income per share of one cent, for year-to-date second quarter 2018, as compared with net income of $1,018,005, or diluted net income per share of five cents, for year-to-date second quarter 2017.
About Iplayco Corp. Ltd.
Iplayco is a global
leader in the
design
and
supply
of
premium-quality,
fun,
safe
and
durable
indoor playgrounds for children. In its 18-year history, Iplayco has supplied playgrounds to over 60 countries worldwide.
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.