CALGARY, ALBERTA–(Marketwired – May 4, 2017) – CEMATRIX Corporation (TSX VENTURE:CVX) (the “Corporation” or the “Company” or “CEMATRIX“) announces the release of its consolidated financial results for the three months ended March 31, 2017.
First Quarter Highlights
- First quarter sales of $2,527,471 were down 20.3% compared to the same period in 2016 but infrastructure sales increased to $2.5 million as compared to $1 million in the same period of the previous year.
- Total contracted work to date in 2017 is $7.9 million, all of which is currently scheduled for completion in the first half of the year.
- The Company expanded its relationship with Lafarge/Holcim (“Lafarge”) with the execution of additional five year agreements to promote the regional development of CEMATRIX cellular concrete and Ready Mix sales of Lafarge in regions where Lafarge has a physical presence and CEMATRIX does not.
First Quarter Results
Selected financial information for the three months ended March 31, 2017 and 2016 is as follows:
| Three Months Ended March 31 | ||||||||||||
| 2017 | 2016 | Change | ||||||||||
| Revenue | $ | 2,527,471 | $ | 3,170,689 | $ | (643,218 | ) | |||||
| Gross margin | $ | 534,685 | $ | 730,146 | $ | (195,461 | ) | |||||
| Operating expenses | (523,676 | ) | (597,533 | ) | 73,857 | |||||||
| Operating income | 11,009 | 132,613 | (121,604 | ) | ||||||||
| Non-cash stock based compensation | (28,409 | ) | (24,079 | ) | (4,330 | ) | ||||||
| Finance costs | (50,521 | ) | (72,396 | ) | 21,875 | |||||||
| Other income | 1,887 | 9,136 | (7,249 | ) | ||||||||
| Income (loss) before income taxes | (66,034 | ) | 45,274 | (111,308 | ) | |||||||
| Recovery (provision) of deferred taxes | 13,639 | (48,223 | ) | 61,862 | ||||||||
| Loss attributable to the common shareholders | (52,395 | ) | (2,949 | ) | (49,446 | ) | ||||||
| Unrealized foreign exchange gain (loss) on translation of foreign subsidiary | 536 | (19,538 | ) | 20,074 | ||||||||
| Total comprehensive loss for period | $ | (51,859 | ) | $ | (22,487 | ) | $ | (29,372 | ) | |||
| Loss per common share | $ | – | $ | – | $ | – | ||||||
“The growth in the infrastructure market is key to the Company’s future,” stated Mr. Kendrick, President and CEO of CEMATRIX. “As the infrastructure market matures and grows it will be significantly more stable and consistent than the oil and gas market.”
Based on quotes that have been submitted, or are in the process of being submitted, management is forecasting strong growth in Canadian and U.S. infrastructure sales with some rebounding of the oil and gas construction market.
This press release should be read in conjunction with the Corporation’s unaudited Consolidated Financial Statements and Management Discussion and Analysis for the three months ended March 31, 2017, both of which can be found on SEDAR.
CEMATRIX is an Alberta corporation with its head offices in Calgary, Alberta. The Corporation, through its wholly owned subsidiary, is a rapidly growing, cash flow positive company that manufactures and supplies technologically advanced cellular concrete products developed from proprietary formulations. This unique cement based material with superior thermal protection delivers a cost-effective, innovative solution to a broad range of problems facing the infrastructure, industrial (including oil and gas) and commercial construction markets.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking information: This news release contains certain information that is forward looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as “anticipate”, expect”, “would’ or other similar words). Forward looking statements in this document are intended to provide CEMATRIX security holders and potential investors with information regarding CEMATRIX and its subsidiaries’ future financial and operations plans and outlook. All forward looking statements reflect CEMATRIX’s beliefs and assumptions based on information available at the time the statements were made. Readers are cautioned not to place undue reliance on this forward looking information. CEMATRIX undertakes no obligation to update or revise forward looking information except as required by law. For additional information on the assumptions made and the risks and uncertainties which may cause actual results to differ from the anticipated results, refer the CEMATRIX’s Management Discussion and Analysis dated May 3, 2017 under CEMATRIX’s profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.
Jeff Kendrick
President and Chief Executive Officer
(403) 219-0484
The Howard Group – Investor Relations
Jeff Walker
(888) 221-0915 or (403) 221-0915
jeff@howardgroupinc.com