Cematrix Corporation V.CVX

What sort of margins ?

[Venator]

Quick question,  now that it seems the delays in projects is over and projects are moving ahead, what sort of margins are we looking at with CVX ? Have they improved over the years ?

[Dunworkin2]

See margins attached for last two years. Not good. Hopefully the larger jobs bring better profit.    https://www.cematrix.com/_resources/financials/2021q4stmts.pdf  

[kingscorpion]

The past results are not an indication of future business. So when you are talking about margins. Yes they have been negative in the past but do explain why!! For example CVX kept their employees thru the pandemic and did not release them. That alone had a wage cost effect on overall margins However look at this year's and next year's revenue guidance You will see a different margins based

[kingscorpion]

Also CVX has a fixed cost on wage and that is about $20 mil per year $5 mil per quarter. However CVX using full capacity can achieve $175 mil in revenues and still the wage cost per annum would be $20 mil As we leave the pandemic behind SLOWLY we are betting that the business will start to pick up and go on overdrive. looking at last year's results you can see that it was not easy on the

[Dunworkin2]

Fixed cost on wages? Inflation running at 9%, hope employees will stay if their wages are fixed. Q2 will be released sometime in the next few weeks. Will be a glimpse into Cvx's current margins and Jeff's execution skills. Glta. Lets keep the winning streak going for another day. Happy Friday!

[Tan4646]

king, where do you see the 20m fixed cost on wages?  Under "cost of sales" they have 4.4m for direct labour and "cost of sales" are a variale cost ,,In addition total G&A costs are 6.6 m and I believe consist of more than wages.  

[kingscorpion]

This is not the 1st time I wrote about their fix cost on wages You would be surprised how many government related services have not received wage increase in more than 5 years as they have been frozen by either federal government or provincial and that also applies to public companies to some extend. This was mentioned I believe in one of the CEO videos and as I said it's not the 1st time I

[kingscorpion]

The fixed cost here probably needs to be addressed a little further. Perhaps their fixed cost might be $20 mil as the CEO mentioned it in one of his videos or it might be now $21 mil It means that if CVX revenues for a whole year is say $10 mil their wage cost is $20 mil. If their revenues increase to $20 mil or $30 mil or $40mil $80 mil $100 mill or $150 mil or up to $175 mil their wage cast per