iFabrick (IFA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined 11% year-over-year to $4.28M, but gross margin improved to 41% from 37% due to elimination of low-margin programs.

• Intimate Apparel Division revenue rose 42% year-over-year, offsetting a 29% decline in Intelligent Fabric Division revenue.

• Net loss attributable to shareholders narrowed to $105,616 ($0.003/share) from $139,545 ($0.005/share) in Q3 2023.

• Cash increased by $1.14M sequentially to $4.09M, with the full $6.75M credit line unutilized.

• Management expects a record Q4, with revenue anticipated to exceed $11M, barring port strike disruptions.

Financial highlights

• Q3 2024 adjusted negative EBITDA improved to $(1,943) from $(123,821) in Q3 2023.

• Nine-month revenue up 1% year-over-year to $16.83M; gross margin improved to 42% from 39%.

• Nine-month adjusted EBITDA rose to $1.21M from $0.79M in 2023.

• Net income for nine months increased to $501,083 ($0.017/share) from $462,420 ($0.015/share) year-over-year.

• SG&A costs for nine months rose 7% to $6.23M due to higher personnel, advertising, and travel expenses.

Outlook and guidance

• Fiscal 2024 revenue guidance of $28M–$32M remains on track, with Q4 revenue expected to exceed $11M.

• Port strike in Vancouver poses a risk to Q4 Canadian deliveries; delays could shift revenue to Q1 2025.