CEMATRIX Corp T.CEMX

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

[Dunworkin2]

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!

[kingscorpion]

This great done working Excellent work One question I forgot to ask How much money are they expecting from COVID relief fund I know Bushman said $50 mil but I also wanna see a guarantee Excellent work guys If you are still sitting on the side my question to you is what are you waiting for Tomorrow it will continue to go up BUY

[TimeBuilder]

Very well done  THANK YOU for that  Dunworkin2   Regards, TimeBuilder

[abingo1]

The coming Cement and Concrete boom. CVX should be #1 on his list. https://morningology.com/the-top-ways-to-trade-the-coming-cement-and-concrete-boom/212644/

[kingscorpion]

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

[kingscorpion]

If you look at #20 where it says Expecting year over year sales growth AND.......next year over $40 mil There are 2 time frames here 1st "Year over year means" Q3 of this year to Q3 next year 2022 So here it means Q3 they will have more sales than last year Q3 sales of $10.9 mil and will continue into Q4 The 2nd time frame says "next year sales of $40 mil" Here it means next

[Alwayscrazy]

Well done Mr Kingscorpion 

[kingscorpion]

#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

[vinmick]

DAHH!!!!!!   You are absolutely right!   No further comment. 

[kingscorpion]

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

[kingscorpion]

For new investors and CVX aside from all the above also has $20 mil in cash

[kingscorpion]

[Rafaholic]

I have emailed Jeff and he said they are extremely busy right now and they are working on some acquisitions! Load up dont miss the boat

[kingscorpion]

[kingscorpion]

I am still trying to wrap my head around this cellular concrete I mean I would like to know why it could be used as a base in road construction but not used to make the whole road from surface to base Can they thru the waterloo university work on enhancements so that cellular concrete can be used in all aspects of road construction for example.

[vinmick]

It is porous, thus, it is effected less by hot and cold.  So in the winter the soil moisture won't freeze and then thaw in the summer.   This results in less seasonal heaving of the road which breaks it up.  So it's like laying down an insulated layer to prevent the heaving caused from the soil water freezing and thawing.   If you lay it over a pipeline, the prema-frost

[kingscorpion]

Thanx Vin but let's blow this open further what prevents this cellular concrete from being used in making roads from surface to base Why can't this product be used in making roads (The surface) and if there are valid points can working with Waterloo university a solution be found to this modifies version to be used on roads and highways is my question

[kingscorpion]

Well let me correct myself most roads are asphalt as opposed to concrete

[kingscorpion]

#14 Who are these 2 large cellular cement competitors in California ? And #6 I wanna know what would be the applications for being the ONLY underwater cellular concrete supplier