CEMATRIX Corporation Reports Second Quarter Financial Results

CALGARY, ALBERTA--(Marketwired - Aug. 6, 2015) - CEMATRIX Corporation (TSX VENTURE:CVX) (the "Corporation" or the "Company" or "CEMATRIX") announces the release of its consolidated financial results for the quarter and six months ended June 30, 2015.

Mid-Year Review

The Company had a solid start to 2015 in comparison with the same period in 2014. Contracted sales are at an all-time record level of $12.9 million ($11.9 million for 2015 and $1 million for 2016) as compared to only $4.5 million at the same time in 2014.

Sales for the six months ended June 30, 2015, of $4.983 million, were at a record high for the Company and were up 50% in comparison to the same period in 2014. The gross margin of $1.213 million or 24.3% was up by $754,691. Margins in the first six months were affected by lower margin winter work and are expected to increase throughout the balance of the year as expected volumes increase to cover fixed costs.

To assist with the management of working capital the Company, through its wholly owned subsidiary, CEMATRIX (CANADA) Inc., put in place a new working capital financing arrangement, which provides for up to $2,000,000 of working capital financing, to replace its credit facility with a Canadian chartered bank.

The challenges for management over the remainder of 2015 include completing the work that is contracted and to be fully contracted for the balance of the year; to work with customers to manage project schedules for 2015 work; to ensure that there are trained operating staff to complete the 2015 projects; to commission the two new production units; and to carefully manage working capital to fund operations through this significant growth period for the Company.

Financial Results

Selected financial information for the quarter and six months ended June 30, 2015 and 2014 is as follows:

The outlook for 2015 remains positive. The Company has put in place $11.9 million of contracted work for completion in 2015. In addition it has also placed numerous bids on other projects currently scheduled to be completed in 2015 and 2016, but is unable to ascertain at this time how many of these projects, if any, will result in additional contracted work for 2015.

"Overall, the first six months of 2015 were a great success." stated Jeff Kendrick, President and CEO of CEMATRIX. "Sales were up, prospects are up and the future continues to look promising."

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, 2015, 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 5, 2015 under CEMATRIX's profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.