CALGARY, ALBERTA--(Marketwired - May 9, 2014) - CEMATRIX Corporation (TSX VENTURE:CVX) (the "Corporation" or the "Company" or "CEMATRIX") announces the release of its consolidated financial results for the quarter ended March 31, 2014.
First Quarter Highlights
- The Company recorded first quarter sales of $260,960 compared with $1,997,842 for the same period last year. The Company's revenue is seasonal in nature and generally follows the construction period in Canada from May through to October. As a result, the sales in the first quarter of the year are normally much lower than at any other time of the year. Sales in the first quarter of 2013 were abnormally high as the Company benefitted from a winter infrastructure project in Windsor, Ontario. There was no similar project in 2014.
- The lower sales combined with a non-cash charge for share-based payment expense of $126,000, related to options issued in March 2014 to replace options that had expired in 2013, contributed to the loss before income taxes of $894,367 compared with a loss of $8,574 in the same period in 2013.
- The Company added $1.2 million of sales orders, bringing this year's total contracted work to date to $3.2 million, most of which is scheduled for the first six months of the year.
- In February 2014 the Company's wholly owned subsidiary, CEMATRIX (Canada) Inc. issued a $1,000,000 secured debenture to provide funds for capital spending and working capital.
First Quarter Results
Selected financial information for the quarters ended March 31, 2014 and 2013 is as follows:
| Three Months Ended March 31 | |||||||||
| 2014 | 2013 | Change | |||||||
| Revenue | $ | 260,960 | $ | 1,997,842 | $ | (1,736,882 | ) | ||
| Gross margin | $ | (234,928 | ) | $ | 441,536 | $ | (676,464 | ) | |
| Operating expenses * | (621,074 | ) | (425,333 | ) | (195,741 | ) | |||
| Operating income (loss) | (856,002 | ) | 16,203 | (872,205 | ) | ||||
| Finance and other expenses | (38,365 | ) | (24,777 | ) | (13,588 | ) | |||
| Loss before income taxes | (894,367 | ) | (8,574 | ) | (885,793 | ) | |||
| Provision of deferred taxes | 173,754 | (177 | ) | 173,931 | |||||
| Net loss attributable to the common shareholders | (720,613 | ) | (8,751 | ) | (711,862 | ) | |||
| Unrealized foreign exchange gain (loss) on translation of foreign subsidiary | (1,945 | ) | 3,496 | (5,441 | ) | ||||
| Total comprehensive loss for period | $ | (722,558 | ) | $ | (5,255 | ) | $ | (717,303 | ) |
| Loss per common share | $ | (0.02 | ) | $ | - | $ | (0.02 | ) | |
| *Includes $129,764 ($2,442 in 2013) non-cash charge for share-based payment expense | |||||||||
The outlook for 2014 remains positive. Management is forecasting continued growth in Canadian infrastructure sales, growth in infrastructure sales in the United States and a return of more significant sales in the Western Canada oil and gas sector. The Company continues with its plans to complete the construction of three new production units and the opening of a regional operation site in Ontario.
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, 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 May 8, 2014 under CEMATRIX's profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.
Contact Information:
Jeff Kendrick
President and Chief Executive Officer
(403) 219-0484
The Howard Group
Jeff Walker
Investor Relations
(888) 221-0915 or (403) 221-0915
jeff@howardgroupinc.com