CALGARY, Alberta, May 28, 2019 (GLOBE NEWSWIRE) -- CEMATRIX Corporation (TSXV: CVX) (the “Corporation” or the “Company” or “CEMATRIX”) announces the release of its consolidated financial results for the three months ended March 31, 2019.
First Quarter Highlights
-Record revenues of $3,185,726 were recognized in the first quarter of 2019 an increase of $1,709,258 or 116% compared to the first quarter of 2018.
-Gross margin was $520,208 in the first quarter or 2019 an increase of $348,073 or 202%
-Loss attributed to common shareholders was $836,701 compared to $316,778.
-Acquisition of Pacific International Grout Company is progressing.
“The first quarter is historically a slow period for the Company and the results for Q1, 2019 were in line with our expectations. Top line revenue was encouraging with MixOnSite USA, Inc. delivering half of the revenue in the first quarter, while the Canadian operations saw a 10% increase. This resulted in a substantial increase in gross margin and, although positive, did not allow the Company to offset its other costs resulting in a loss for the quarter. Improving cash flow and liquidity continues to be a priority for management, but it is important to reiterate the seasonal nature of our business and that the full year 2019 guidance that we had previously provided remains unchanged. We anticipate record revenues of $25 million, EBITDA of $4 million and the return to profitability and having positive free cash flow by the end of 2019. These 2019 projections are not including revenues that would be realized from our target acquisition of Pacific International Grout,” stated Jeff Kendrick, President and CEO of CEMATRIX.
Selected financial information for the three months ended March 31, 2019 and 2018 is as follows:
| | Three months ended March 31 |
| | 2019 | | 2018 | | Change |
| | | | | | | |
| Revenue | $ | 3,185,726 | | $ | 1,476,468 | | $ | 1,709,258 | |
| | | | | | | |
| Gross margin | $ | 520,208 | | $ | 172,135 | | $ | 348,073 | |
| | | | | | | |
| Operating expenses | | (1,047,110 | ) | | (512,819 | ) | | (534,291 | ) |
| | | | | | | |
| Operating income (loss) | | (526,902 | ) | | (340,684 | ) | | (186,218 | ) |
| | | | | | | |
| Non-cash stock based compensation | | (34,117 | ) | | (5,366 | ) | | (28,751 | ) |
| Finance costs | | (216,844 | ) | | (53,950 | ) | | (162,894 | ) |
| Other income | | 181,583 | | | (2,484 | ) | | 184,067 | |
| Income / (Loss) before other items | | (596,280 | ) | | (402,484 | ) | | (193,796 | ) |
| Amortization of intangibles | | (122,865 | ) | | - | | | (122,865 | ) |
| Business acquisition costs | | (48,868 | ) | | - | | | (48,868 | ) |
| Non-cash accretion costs | | (132,025 | ) | | 894 | | | (132,919 | ) |
| Non-cash fair value of derivatives | | (119,547 | ) | | - | | | (119,547 | ) |
| Income / (Loss) before income taxes | | (1,019,585 | ) | | (401,590 | ) | | (617,995 | ) |
| Provision of deferred taxes | | 182,884 | | | 84,812 | | | 98,072 | |
| Loss attributable to common shareholders | | (836,701 | ) | | (316,778 | ) | | (519,923 | ) |
| Unrealized foreign exchange loss on translation of foreign subsidiaries | | (162,911 | ) | | 2,403 | | | (165,314 | ) |
| Comprehensive Loss | $ | (999,612 | ) | $ | (314,375 | ) | $ | (685,237 | ) |
| | | | | | | |
| Loss per common share | $ | (0.019 | ) | $ | (0.009 | ) | $ | (0.010 | ) |
This press release should be read in conjunction with the Corporation’s Audited Consolidated Financial Statements and Management Discussion and Analysis for the year ended December 31, 2018, 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, will continue to be a rapidly growing 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 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.
For further information, please contact:
Jeff Kendrick - President and Chief Executive Officer
Phone: (403) 219-0484
Jeff Walker, the Howard Group – Investor Relations
Phone: (888) 221-0915 or (403) 221-0915
jeff@howardgroupinc.com
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 April 1, 2019 under CEMATRIX’s profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.
