CEMATRIX Corp T.CEMX

RE:RE:RE:RE:2:00 pm Investor call - comments from Jeff - summary

[kingscorpion]

kingscorpion wrote:

kingscorpion wrote:

kingscorpion wrote:

Dunworkin2 wrote: 1) CVX is the largest cellular concrete supplier in the world
2) Backlog exceeds $94 million dollars (at June 10)
3) Strategic alliance with Lafarge (extended 5 years) - see todays news release
4) Lafarge also wants to be net CO2 compliant by year 2030 
5) 2.5 million yards of concrete capacity = $175 million in sales annually (organic growth potential)
6) the only "underwater" cellular concrete supplier
7) talked about St Agatha research project which will test their product for the unstable soil in that area
8) cellular concrete will never breakdown, long life
9) they can use CO2 to make their product environmentally friendly and testing continues
10) up to 90% less time to use cellular concrete than other products
11) CVX product also cheaper than other products
12) 2 days to complete a job vs 2 months with other products
13) CVX pours like water
14) two other large cellular providers/competitors out of California
15) cellular concrete still in the early stage, in Canada is 10 years behind USA
16) focused on regional expansion and acquisitions
17) future franchising 
18) both recent acquisitions were outstanding for CVX
19) recent financial statement losses were in part due to keeping experienced staff on strength
20) expecting year over year of sales growth, and next year over $ 40 million in sales
21) recent warrant exercising was causing the pressure on the stock price. All warrants now done!
22) very experienced mgmt team. Jordan Weiner stayed on from one of the USA acquisitions, he is also a major shareholder
23) recent CFO also excellent
24) looking at acquisitions, and have been speaking to some.
25) added to sales team, especially in the USA

Questions:
1) Is Lafarge Canada a Shareholder? ...No
2) Any partnerships with Holcim outside Canada? ...Working on that.
3) USA infrastructure spending? ...CVX expects to benefit, but not relying/counting on it.
4) Is cellular concrete marketed as an ESG product, how are carbon capture credits captured? ...hired a company to calculate the CVX environmental footprint. Looking at adding CO2 to their cellular concrete.
5) timeline for backlog to become revenue?...most done within 1 year. some take a bit longer if CVX doesnt come in until near the end of the project.
6) wet dry equipment proprietary?...(not sure of the response )
7) what is cellular concrete a substitute for?....replaces EPS blocks, rigid insulation.
8) opportunities to use CO2 instead of compressed air?....absolutely, except for one application. working with companies to make this happen, commercially available. significant quantities of CO2 would need to be delivered , ie. from Superior propane type trucks, not currently available.
9) Education/awareness of cellular concrete? ....CVX conducts lunch and learn sessions with engineering firms. Ongoing eductaion required on cellular concrete, still early stages.
10) Cost of goods is 65%....currently overstaffed, so as sales go up, with costs fixed, margins go up.
11) accretive M&A transactions ?....adding value to shareholders. ie. cheaper to be in Texas than to travel from Chicago to Texas, so complete an M&A.
12) what regions are targeted for expansion?....USA is growing dramatically. targets are southeast USA, southwest and gulf states.
13) whats a reasonable EBITA /EVto pay for an aquisition?...minimum of $10 million in sales, but no set amount.

I had to leave at this point...2:50pm.

Overall, imo, a very good presentation and call......very positive for CVX and better times ahead. Thanks Jeff!

Let's try to keep this on top of front page for all those new comers to see

#7 The trial between CVX and Lafarge where by to figure out what is the best thickness and depth of CVX cellular concrete against shifting soil The CVX concrete goes on the bottom Lafarge cement on top. Should the results come out as expected It would lead to CVX becoming international player CVX also could take these results and knock on the door of other international large cap cement company I think people don't realize how huge this could be. Like if successful the $94 mil current contracts will look like peanuts compare to what could unveil

This new guidance is for those new investors Target Price is $1.24