Mr. Jeff Kendrick reports
CEMATRIX CORPORATION ANNOUNCES SECOND QUARTER FINANCIAL RESULTS
Cematrix Corp. has released its consolidated financial results for the three and six months ended June 30, 2018.
Midyear review
The results for the six months ended June 30, 2018, before considering acquisition related costs are what management expected and typical of the seasonal nature of its construction-related business. Sales are off a little from the same period last year, but both the margin dollars and margin percentages are up for the first six-month period. Non-cash and one-time costs relating to the acquisition amounted to $918,118 in the second quarter of 2018.
The highlight of the period was the acquisition of MixOnSite USA Inc. (MOS), which was completed on May 31, 2018, so the consolidated results only include one month of MOS's operations. With the acquisition MOS and the growth in the company's Canadian infrastructure business, the company now has signed contracts on hand for $23.5-million and verbally awarded projects of $7.6-million for a total of $31.1-million, $7-million to $8-million of which will be backlog for 2018.
"The completion of these 2018 contracted and scheduled projects will mean a return to profits and positive cash flow in the third quarter of 2018, together with a return to a positive working capital position by the year ended Dec. 31, 2018," stated Jeff Kendrick, president and chief executive officer of Cematrix.
Financial results
Selected financial information for the three and six months ended June 30, 2018, and 2017 is as shown in the table.
FINANCIAL HIGHLIGHTS
Three months ended June 30 Six months ended June 30
2018 2017 2018 2017
Revenue $2,907,933 $2,208,230 $4,384,401 $4,735,701
Gross margin 638,804 147,169 810,939 681,854
Operating expenses (761,148) (508,474) (1,273,967) (1,032,150)
Operating income (loss) (122,344) (361,305) (463,028) (350,296)
Non-cash stock based compensation (11,163) 49,502 (16,529) 21,093
Business acquisition costs (619,723) - (619,723) -
Finance costs, interest (102,875) (55,196) (156,825) (107,007)
Finance costs, accretion and fair market value (198,867) 1,290 (198,073) 2,580
Other income (expense) (88,986) 16,929 (91,470) 18,816
(Loss) before income taxes (1,144,058) (348,780) (1,545,648) (414,814)
Provision of deferred taxes 176,791 99,118 261,603 112,757
(Loss) attributable to common shareholders (967,267) (249,662) (1,284,045) (302,057)
Unrealized foreign exchange loss on
translation of foreign subsidiary 36,916 (5,773) 39,319 (5,237)
Comprehensive (loss) (930,351) (255,435) (1,244,726) (307,294)
(Loss) per common share (0.025) (0.007) (0.034) (0.009)
This press release should be read in conjunction with the corporation's unaudited condensed consolidated financial statements and management discussion and analysis for the three and six months ended June 30, 2018, both of which can be found on SEDAR.
About Cematrix Corp.
Cematrix is an Alberta corporation with its head offices in Calgary, Alta. The corporation, through its wholly owned subsidiaries, 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.
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