CEMATRIX Corporation
TSX VENTURE : CVX

CEMATRIX Corporation

November 14, 2013 10:32 ET

CEMATRIX Corporation Reports Thirds Quarter Financial Results

CALGARY, ALBERTA--(Marketwired - Nov. 14, 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 nine months ended September 30, 2013.

Third Quarter Highlights

  • The Company recorded third quarter sales of $1,847,970, which when added to the first six month`s sales of $4,788,060 results in record sales for the first nine months of $6,636,030;
  • On a year to date basis, the Company reported earnings of $39,641; up by $209,809 from the same period in 2012. The improvement is principally due to the increase in sales and the gross margin on these sales combined with reduced operating and finance costs. The sales increase has been in the Infrastructure market where the Company has benefitted from a large project in Ontario.
  • The Company reported a third quarter loss of $56,214 as compared to profit of $222,127 in the same quarter in 2012. The decline is principally due to a decline in sales in the Western Canada Oil & Gas sector as compared to the same quarter of 2012. Infrastructure sales year to date have increased $1,176,108 or 27% and Western Canada Oil & Gas sales decreased by $145,960 due to the timing of projects between the two periods.
  • The Company added $3.2 million of sales orders bringing the total contracted work to $9.6 million, of which $8.0 million is scheduled for 2013 and $1.6 is scheduled for 2014.
Financial Results
Selected financial information for the quarters and nine months ended September 30, 2013 and 2012 is as follows:
Quarter ended September 30 Nine months ended September 30
2013 2012 Change 2013 2012 Change
Revenue $ 1,847,970 $ 2,367,047 $ (519,077 ) $ 6,636,030 $ 5,605,882 $ 1,030,148
Gross margin 372,512 688,893 (316,381 ) 1,473,447 1,326,127 147,320
Operating expenses (431,740 ) (426,639 ) (5,101 ) (1,353,930 ) (1,393,330 ) 39,400
Operating income (loss) (59,228 ) 262,254 (321,482 ) 119,517 (67,203 ) 186,720
Finance costs and other items (24,976 ) (28,913 ) 3,937 (71,511 ) (99,396 ) 27,885
Income (loss) before income
taxes (84,204 ) 233,341 (317,545 ) 48,006 (166,599 ) 214,605
Provision of deferred taxes 29,502 - 29,502 (11,919 ) - (11,919 )
Income (loss) attributable to
common shareholders (54,702 ) 233,341 (288,043 ) 36,087 (166,599 ) $ 202,686
Unrealized foreign exchange
gain (loss) on translation of
foreign subsidiary (1,512 ) (11,214 ) 9,702 3,554 (3,569 ) 7,123
Comprehensive income (loss) $ (56,214 ) $ 222,127 $ (278,341 ) $ 39,641 $ (170,168 ) $ 209,809
Income (loss) per common
share $ (0.002 ) $ 0.006 $ (0.008 ) $ 0.001 $ (0.005 ) $ 0.006

The Company has placed numerous bids on other projects currently scheduled to be completed in late 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 nine months ended September 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 November 13, 2013 under CEMATRIX's profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.

Contact Information

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

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