CEMATRIX Corporation

May 17, 2012 12:06 ET

CEMATRIX Corporation Announces the Release of its Consolidated Financial Results for the Quarter Ended March 31, 2012

CALGARY, ALBERTA--(Marketwire - May 17, 2012) - 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, 2012.

First Quarter Highlights

  • The Company added $2.1 million of sales orders, bringing this year's total contracted work to date to $5.4 million. These projects are scheduled for completion in 2012 and consist of $4.2 million in the infrastructure market and $1.2 million in the Alberta oil and gas sector.
  • The Company's product was placed on the approved product listing for certain applications under the jurisdiction of the Ministry of Transport of Ontario.
  • The Company, in January 2012, repaid the outstanding balance of the $500,000 subordinated secured debentures issued in January 2010.
  • The Company signed an agreement with the Business Development Bank of Canada ("BDC Financing') that will provide $1.35 million of working capital and capital expenditure financing.

First Quarter Results

Selected financial information for the quarters ended March 31, 2012 and 2011 is as follows:

Quarter Ended March 31
2012 2011 Change
Revenue $ 336,991 $ 831,131 $ (494,140 )
Gross margin $ (215,039 ) $ 46,040 $ (261,079 )
Operating expenses (468,396 ) (338,273 ) (130,123 )
Operating loss (683,435 ) (292,233 ) (391,202 )
Finance costs and other items (44,304 ) (62,173 ) 17,869
Comprehensive loss attributable to the shareholders $ (727,739 ) $ (354,406 ) $ (373,333 )
Loss per common share $ (0.02 ) $ (0.01 ) $ (0.01 )

The outlook for 2012 remains positive. The Company has $5.4 million of sales contracted for projects that are currently scheduled for completion in 2012. The Company expects that the second and third quarters will be profitable as most of these contracted sales are currently scheduled for completion during this period.

The new BDC Financing will help to alleviate the current tight working capital position. The financing will also provide the funds to proceed with the 2012 capital expenditure program which will add additional productive capacity to the Company's fleet of equipment.

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, 2012, 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 March 16, 2012 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

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

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