CALGARY, Alberta, March 08, 2018 (GLOBE NEWSWIRE) -- CEMATRIX Corporation (TSXV:CVX) (the “Corporation” or the “Company” or “CEMATRIX”) announces the release of its consolidated financial results for the year ended December 31, 2017.
“For the year ended December 31, 2017, the Company’s infrastructure sales continued to grow, but this sales growth was not sufficient to offset the 98% decline in sales from its oil and gas construction market,” stated Jeff Kendrick, President and CEO of CEMATRIX. “This decrease in overall sales for the year resulted in an increased loss for the year. However this trend is reversing and it is expected that the continued growth in infrastructure sales will return the Company to profitability. This is supported by the contracted and verbally awarded sales in place to date for 2018, which now exceeds $11.5 million, $6.2 million of which is contracted.”
Even though infrastructure sales were slower than anticipated, the Company’s sales pipeline continued to grow, and includes several projects which individually exceed $10 million. This sales pipeline growth is due to the continued acceptance of the Company’s products across Canada and into the United States, which is largely due to the continued education of the engineering world, the success of projects completed since the Company’s inception and the Company’s continued focus on research and development. This research and development includes the introduction of an even lighter, stronger product to support its major applications including bridge abutments, MSE panel backfill and roads.
CEMATRIX’s main goal for 2018 is to scale up its infrastructure sales, which includes the hiring of additional sales staff and now includes the planned acquisition of a profitable cellular concrete supplier in the United States. On February 26, 2018 the Company announced that it had signed a binding letter of intent (“LOI”) to acquire the shares of MixOnSite USA, Inc. (“MOS”) with the intent that a definitive agreement of purchase and sale will be put in place on or before April 30, 2018. The LOI is subject to a number of conditions on closing as outlined in the news release dated February 26, 2018.
The proposed MOS acquisition will position CEMATRIX for further growth in the United States and will provide both trained operation staff and additional equipment to meet the growing North American demand for cellular concrete. Each company has technologies that can make both companies stronger players in their respective markets and their combined sales will provide the growing working capital to support this expected growth. CEMATRIX has over $11.5 million of contracted and verbally awarded projects scheduled for 2018. When combined with MOS contracted and verbally awarded projects, the number exceeds $26 million. Both companies expect that these 2018 forecast numbers will continue to grow.
Selected financial information for the three months and years ended December 31, 2017 and 2016 is as follows:
| Three Months ended December 31 | Year ended December 31 | |||||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||
| Revenue | $ | 548,784 | $ | 1,167,827 | $ | (619,043 | ) | $ | 7,713,906 | $ | 9,598,861 | $ | (1,884,955 | ) | ||||
| Gross margin | (327,350 | ) | (55,409 | ) | (271,941 | ) | 847,803 | 1,316,376 | (468,573 | ) | ||||||||
| Operating expenses | (614,667 | ) | (511,633 | ) | (103,034 | ) | (2,231,376 | ) | (2,283,876 | ) | 52,500 | |||||||
| Operating loss | (942,017 | ) | (567,042 | ) | (374,975 | ) | (1,383,573 | ) | (967,500 | ) | (416,073 | ) | ||||||
| Non-cash stock based compensation | (5,534 | ) | (32,667 | ) | 27,133 | 6,737 | (142,256 | ) | 148,993 | |||||||||
| Finance costs | (51,727 | ) | (41,036 | ) | (10,691 | ) | (207,490 | ) | (199,936 | ) | (7,554 | ) | ||||||
| Other income (expenses) | 2,524 | (70,100 | ) | 72,624 | 45,572 | (18,617 | ) | 64,189 | ||||||||||
| (Loss) before income taxes | (996,754 | ) | (710,845 | ) | (285,909 | ) | (1,538,754 | ) | (1,328,309 | ) | (210,445 | ) | ||||||
| Income taxes | 221,350 | 159,274 | 62,076 | 353,553 | 246,860 | 106,693 | ||||||||||||
| Loss attributable to common shareholders | (775,404 | ) | (551,571 | ) | (223,823 | ) | (1,185,201 | ) | (1,081,449 | ) | $ | (103,752 | ) | |||||
| Unrealized foreign exchange gain (loss) on translation of foreign subsidiary | 7,465 | 17,166 | (9,701 | ) | 4,658 | (16,143 | ) | 20,801 | ||||||||||
| Comprehensive loss | $ | (767,939 | ) | $ | (534,405 | ) | $ | (233,534 | ) | $ | (1,180,543 | ) | $ | (1,097,592 | ) | $ | (82,951 | ) |
| Loss per common share (diluted) | $ | (0.022 | ) | $ | (0.016 | ) | $ | (0.007 | ) | $ | (0.034 | ) | $ | (0.031 | ) | $ | (0.003 | ) |
This press release should be read in conjunction with the Corporation’s Audited Consolidated Financial Statements and Management Discussion and Analysis for the year ended December 31, 2017, 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, will continue to be a rapidly growing company that manufactures and supplies technologically advanced cellular concrete products developed from proprietary formulations. This unique cement-based material with superior thermal protection, delivers a cost-effective, innovative solution to a broad range of problems facing the infrastructure, industrial (including oil and gas) and commercial markets.
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.
For further information, please contact:
Jeff Kendrick - President and Chief Executive Officer
Phone: (403) 219-0484
Jeff Walker, the Howard Group – Investor Relations
Phone: (888) 221-0915 or (403) 221-0915
jeff@howardgroupinc.com
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 7, 2018 under CEMATRIX’s profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.