CEMATRIX Corporation
TSX VENTURE : CVX

CEMATRIX Corporation

March 26, 2015 09:25 ET

CEMATRIX Corporation Announces Its Results for the Year Ended December 31, 2014

CALGARY, ALBERTA--(Marketwired - March 26, 2015) - CEMATRIX Corporation (TSX VENTURE:CVX) (the "Corporation" or the "Company" or "CEMATRIX") announces the release of its consolidated financial results for the year ended December 31, 2014.

CEMATRIX finished the year with a solid fourth quarter with sales of $4,413,347, up from $1,436,118 in 2013 and operating income of $945,979 million, up from a loss of $229,516 in 2013. The gross margin percentage for the quarter was 32.5%, up from 15.0% in 2013.

Yearly sales grew by 7.9% to $8,712,193, up from $8,072,148 in 2013 and the operating loss was reduced to $53,212 from $96,560 in 2013. The gross margin percentage for the year was 21.7%, as compared to 20.9% for the previous year. In 2014 the margins were lower than expected because of the cost of carrying operations for a full year when 50.7% of the sales were generated in the fourth quarter. In addition, the Company experienced operating inefficiencies with the heavy workload in the fourth quarter of 2014 where a significant portion of the work occurred in November and December under extreme winter conditions.

The Company has $9.9 million of sales contracts currently in place, of which $8.9 million is for projects scheduled for 2015, and $1 million is for a project scheduled for 2016 This backlog of contracted projects is significantly higher than the $2.0 million at this time in 2014. To date, for 2015, the Company has already recorded in excess of $2.2 million of sales. The level of sales achieved in first quarter is unusually high, as the first quarter is typically a slow time of the year for sales for the Company, given the seasonal nature of our business.

Selected financial information for the quarter and year ended December 31, 2014 is as follows:

Quarter ended December 31 Year ended December 31
2014 2013 Change 2014 2013 Change
Revenue $ 4,413,347 $ 1,436,118 $ 2,977,229 $ 8,712,193 $ 8,072,148 $ 640,045
Gross margin 1,435,150 215,538 1,219,612 1,888,641 1,688,985 199,656
Operating expenses (489,171 ) (445,054 ) (44,117 ) (1,941,853 ) (1,785,545 ) (156,308 )
Operating income (loss) 945,979 (229,516 ) 1,175,495 (53,212 ) (96,560 ) 43,348
Non-cash stock based compensation
(194,826
)
(3,999
)
(190,827
)
(324,590
)
(17,438
)
(307,152
)
Finance costs and otheritems
(90,159
)
(61,500
)
(28,659
)
(219,844
)
(133,011
)
(86,833
)
Income (loss) before income taxes
660,994

(295,015
)
956,009

(597,646
)
(247,009
)
(350,637
)
Provision of deferred taxes (208,041 ) 38,500 (246,541 ) 26,858 26,581 277
Income (loss) attributable to common shareholders
452,953

(256,515
)
709,468

(570,788
)
(220,428
)
$

(350,360
)
Unrealized foreign exchange gain (loss) on translation of foreign subsidiary


7,122



8,283



(1,161
)


(15,021
)


11,837



(26,858
)
Comprehensive income(loss)
$
460,075
$

(248,232
)
$

708,307

$

(585,809
)
$

(208,591
)
$

(377,218
)
Income (loss) per commonshare (fully diluted)
$

0.012

$

(0.008
)
$

0.020

$

(0.017
)
$

(0.007
)
$

(0.010
)

Highlights for 2014 included the following:

  • The Company put in place a record $17.3 million of contracted sales in 2014 and has added $1.4 million of new contracts since the 2014 year end;

  • The Company has a record $8.9 million of contracted sales currently scheduled for 2015, of which a significant portion is scheduled for the first six months of the year. The Company has a further $1 million of projects under contract for 2016.

  • Two new production units will go into service early in 2015. The addition of this equipment will add to the production capability and provide greater flexibility in covering sales in the wide geographical regions that the Company services:

  • The Company`s wholly owned subsidiary, CEMATRIX (Canada) Inc., issued a $1 million secured debenture to provide funding for capital spending and operations;

  • The Company continued its focus on health and safety, by ensuring a safe work place and by maintaining all of its safety certifications and registrations. 2014 was another injury free year with no lost time medical incidents.

This press release should be read in conjunction with the Corporations Audited Consolidated Financial Statements and Management Discussion and Analysis for the year ended December 31, 2014, 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 manufacturer and supplier of technologically advanced cellular concrete products with applications in a variety of markets, including oil and gas construction and infrastructure construction. Cellular concrete provides a cost and labour saving solution as a replacement for rigid and other insulating materials in frost-susceptible or permafrost conditions. Cellular concrete is also used in void filling situations and as a replacement for granular fills and weak or unstable soils.

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 March 25, 2015 under CEMATRIX's profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.

Contact Information

  • CEMATRIX Corporation
    Jeff Kendrick
    President and Chief Executive Officer Phone
    (403) 219-0484

    The Howard Group
    Jeff Walker
    Investor Relations Phone: (888) 221-0915 or (403) 221-0915
    jeff@howardgroupinc.com

    The Howard Group
    Brad Dryer
    Investor Relations Phone: (888) 221-0915 or (403) 221-0915
    brad@howardgroupinc.com