CEMATRIX Corporation

CEMATRIX Corporation

May 16, 2013 09:25 ET

CEMATRIX Corporation Announces Record First Quarter Sales for the Quarter Ended March 31, 2013

CALGARY, ALBERTA--(Marketwired - May 16, 2013) - CEMATRIX Corporation (TSX VENTURE:CVX) (the "Corporation" or the "Company" or "CEMATRIX") is pleased to announce the release of its consolidated financial results for the quarter ended March 31, 2013.

First Quarter Highlights

  • The Company reports record first quarter sales of $1.998 million, up by $1.661 million from the same period last year. These record sales were the primary reason for a $722,484 positive swing in the results.

  • The Company added $1.2 million of sales orders, bringing this year's total contracted work to date to $5.1 million. These projects are scheduled for completion in 2013 and consist of $4.1 million in the infrastructure market and $1.0 million in the Alberta oil and gas sector.

  • The revolving Credit Facility with a Canadian chartered bank was modified to provide for a seasonal increase to $1,500,000 for the calendar period April 1 to October 31.

  • The Company's wholly owned subsidiary, CEMATRIX (Canada) Inc., entered into an agreement with the BDC which provides $530,000 of additional capital expenditure financing. The outstanding amount under the BDC Financing - Loan 2 of $269,000 at March 31, 2013 will be superseded into a new loan, BDC Financing - Loan 3, for a total loan of $1,406,000. This loan, of which $1,137,000 is undrawn, will be used to support planned equipment additions and will be drawn down as these expenditures are incurred.

First Quarter Results

Selected financial information for the quarters ended March 31, 2013 and 2012 is as follows:

Quarter Ended March 31
2013 2012 Change
Revenue $ 1,997,842 $ 336,991 $ 1,660,851
Gross margin $ 441,536 $ (215,039 ) $ 656,575
Operating expenses (425,333 ) (468,396 ) 43,063
Operating income (loss) 16,203 (683,435 ) 699,638
Finance costs and other items (24,777 ) (46,341 ) 21,564
Loss attributable to common shareholders $ (8,751 ) $ (729,776 ) $ 721,225
Comprehensive loss attributable to the shareholders $ (5,255 ) $ (727,739 ) $ 722,484
Loss per common share $ - $ (0.02 ) $ 0.02

The Company's revenue is seasonal in nature and generally follows the construction period in Canada from May through to October. In 2013 the Company benefitted from winter infrastructure projects in the Ontario and winter projects in the oil and gas market in Alberta.

The outlook for 2013 remains positive. The Company has $5.1 million of sales contracted for projects that are currently scheduled for completion in 2013.

This press release should be read in conjunction with the Corporation's unaudited Consolidated Financial Statements and Management Discussion and Analysis for the quarter ended March 31, 2013, 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.

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 May 15, 2013 under CEMATRIX's profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.

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.

Contact Information

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

    The Howard Group
    Jeff Walker
    Investor Relations
    (888) 221-0915 or (403) 221-0915