iPlayCO Corp Ltd (CVE:IPC) posted fiscal third-quarter earnings Thursday that saw revenue up 100.3% to US$4.6 million compared to the same period a year ago as the children's play equipment specialist said it was working on correcting project management and supply-chain management issues.
The Langley, BC-based company said in a statement Thursday while sales increased substantially compared to both the previous quarter (US$4.1 million) and the year-ago quarter (US$2.3 million), profitability was below Iplayco's historical norms.
"Management has been diligently identifying and addressing all the problems that caused these results," said CEO Scott Forbes. "The project management and supply-chain management issues that impaired profitability are being corrected as quickly as possible. I am personally dedicated to ensuring that future sales make an appropriate contribution to operating results. We have also been concentrating on finding profitable revenue opportunities as well as better managing our liquidity."
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The firm said it is focusing on the restructuring of certain operations, a strict focus on the collection of trade and other receivables, improvements to inventory management, and a renewed commitment to cost containment in all areas of the business. For example, as of August 28, the firm collected $2.1 million of the $3.2 million in trade receivables outstanding as of June 30, 2019.
"We are confident that the changes we have initiated will enable us to take better advantage of strong product demand and bring performance back to the level of profitability where it should be," said Forbes. "The early improvements are encouraging but will take more than another quarter to be fully realized."
Net loss from operations was US$1.3 million or US$0.12 per share, compared to a net loss of US$1.7 million in the previous quarter.
The firm, headquartered in British Columbia over the last 20 years, has sold over 3,000 playgrounds to more than 60 countries worldwide.
iPlayCO, which has well over 100 employees, sells its play structures to family entertainment centres, as well as to restaurants, museums, hospitals, hotels, airports and more.
Contact Katie Lewis at katie@proactiveinvestors.com