Mr. Jeff Kendrick reports

CEMATRIX ANNOUNCES A $10.7 MILLION INCREASE IN CONTRACTS

Cematrix Corp.'s 2023 contracts have increased by $10.7-million, bringing its total contracts announced since the end of the fiscal 2022 year to $37.9-million, and $74.9-million since Aug. 3, 2022.

Over $40-million of the current backlog is scheduled for 2023, a 37.9-per-cent increase compared with total sales of $29-million for the fiscal 2022 year. The $40-million in scheduled 2023 backlog is contracted and a portion of these contracts have already been placed in 2023.

The corporation's backlog, which is net of sales to the end of July, has increased to $107.7-million, a 35.3-per-cent increase compared with the sales-adjusted backlog of $79.6-million as of Dec. 31, 2022. The corporation's backlog is composed of contracts in the amount of $55.7-million and contracts in process in the amount of $52-million.

The $10.7-million increase in contracts represents $4.7-million in new contracts along with a $6-million increase in a previously announced contract. These new contracts, that were previously part of contracts in process, includes one north-central U.S. project in excess of $1-million that is already under way and one $2.7-million northwest-region tunnel backfill project that is expected to commence in early September. Both projects are expected to be completed by the end of the year. The $7.7-million increase in backlog related to contacts in process is mainly attributed to two new contracts valued at over $1-million each.

These two projects are scheduled to be commenced during the current year, but mostly completed in 2024. "The incredibly strong start to the year just keeps getting stronger, illustrating the increased acceptance of cellular concrete, and we remain excited about our leading role in this thriving market," stated Jeff Kendrick, Cematrix president and chief executive officer. "Two thousand twenty-two has seen Cematrix secure 17 projects in excess of $1-million that are scheduled to commence in part in 2023, as compared with the seven projects with similar price tags in 2022.

"The total value of these 17 projects is $67.9-million: $35.4-million is scheduled to be completed this year and the remaining $32.5-million is scheduled to be completed in 2024. The balance of the backlog scheduled to be completed in 2023 is made up of numerous projects under $1-million in total value. The company is on pace to significantly surpass 2022's consolidated sales of $29-million, with improved margins as a result of shrinking supply chain issues. The company's sales pipeline continues to remain strong and currently exceeds $450-million."

The company's sales pipeline is defined as the estimated value of projects that the company has been approached on for a design or quote or both, and/or from the quotes that have been requested as part of an infrastructure construction tender document listed on one of the construction project databases like Construct Connect. The corporation's backlog is defined as contracted plus contracts in process net of sales completed to date. Contracts in process are defined as projects where the related contract is in office for review or signature, or signed and returned to the client for their signature, or is in the postaward project submission process, or is awarded by letter of intent, or is awarded by some other form of written communication.

About Cematrix Corp.

Cematrix is a rapidly growing company that manufactures and supplies technologically advanced cellular concrete products developed from proprietary formulations across North America. This unique cement-based material with superior thermal protection delivers cost-effective, innovative solutions to a broad range of problems facing the infrastructure, industrial, energy and commercial markets. The company's wholly owned operating subsidiaries include Cematrix (Canada) Inc., Chicago-based MixOnSite USA Inc. and Bellingham-based Pacific International Grout Company. This has made Cematrix a true leader in North America's growing cellular concrete market.

Cematrix's 2022 investment in Glavel Inc., of Burlington, Vt., a foamed-glass manufacturer, has strengthened Cematrix's commitment to the environment in the infrastructure construction space.

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