CEMATRIX Corporation
TSX VENTURE : CVX

CEMATRIX Corporation

August 15, 2013 09:25 ET

CEMATRIX Corporation Reports Second Quarter Financial Results

CALGARY, ALBERTA--(Marketwired - Aug. 15, 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 and six months ended June 30, 2013.

Second Quarter Highlights

  • The Company recorded second quarter sales of $2,790,218, which when added to the first quarter's sales of $1,997,842 results in record sales for the first six months of $4,788,060;

  • The Company reported second quarter earnings of $101,110, which when reduced by the first quarter's loss of $5,255 results in record profits for the first six months of $95,855. Both the record sales and profits are the result of a significant increase in off season infrastructure work, mainly in south western Ontario.

  • The Company added $1.1 million of sales orders bringing the total contracted work scheduled in 2013 to $6.4 million.

Financial Results

Selected financial information for the quarters and six months ended June 30, 2013 and 2012 is as follows:

Quarter ended June 30 Six months ended June 30
2013 2012 Change 2013 2012 Change
Revenue $ 2,790,218 $ 2,901,844 $ (111,626 ) $ 4,788,060 $ 3,238,835 $ 1,549,225
Gross margin 659,399 852,273 (192,874 ) 1,100,935 637,234 463,701
Operating expenses (496,857 ) (498,295 ) 1,438 (922,190 ) (966,691 ) 44,501
Operating income (loss) 162,542 353,978 (191,436 ) 178,745 (329,457 ) 508,202
Finance costs and other items (21,758 ) (24,142 ) 2,384 (46,535 ) (70,483 ) 23,948
Income (loss) before income taxes 140,784 329,836 (189,052 ) 132,210 (399,940 ) 532,150
Provision of deferred taxes (41,244 ) - (41,244 ) (41,421 ) - (41,421 )
Income (loss) attributable to common shareholders 99,940 329,836 (230,296 ) 90,789 (399,940 ) $ 490,729
Unrealized foreign exchange gain on translation of foreign subsidiary 1,570 5,608 (4,038 ) 5,066 7,645 (2,579 )
Comprehensive income (loss) $ 101,110 $ 335,444 $ (234,334 ) $ 95,855 $ (392,295 ) $ 488,150
Income (loss) per common share $ 0.003 $ 0.010 $ (0.007 ) $ 0.003 $ (0.012 ) $ 0.015

The outlook for the remainder of 2013 remains positive, however, this will depend on the ability of the Company to contract additional 2013 sales contracts. The Company has put in place $6.4 million of contracted work, that is currently completed or scheduled for completion in 2013. The Company has also placed numerous bids on other projects currently scheduled to be completed in 2013, but is unable to ascertain at this time how many of these projects, if any, will result in 2013 contracted work for the Company.

This press release should be read in conjunction with the Corporation's unaudited Consolidated Financial Statements and Management Discussion and Analysis for the quarter and six months ended June 30, 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.

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 August 14, 2013 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

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