Mr. Jeff Kendrick reports

CEMATRIX ANNOUNCES RECORD THIRD QUARTER 2023 FINANCIAL RESULTS

Cematrix Corp. has released its consolidated financial results for the quarter and year to date ended Sept. 30, 2023.

"This quarter's financial results were the best in the history of the company: record revenue, strong margins, and a return to positive adjusted [earnings before interest, taxes, depreciation and amortization] not only in the third quarter but for the first nine months of 2023. The third quarter is traditionally the strongest quarter as a result of the seasonality of construction work due to the impact of winter in many of our key markets. Our investment in sales and sales support resources continues to drive positive results, and the market acceptance continues to grow for the applications of cellular concrete," stated Jeff Kendrick, president and chief executive officer of Cematrix.

"Revenue for the third quarter was $20.4-million compared to $11.6-million in the third quarter of 2022, a 76-per-cent increase. Gross margins improved to $4.6-million (23 per cent) compared to $2.2-million (19 per cent) in the third quarter of 2022. Adjusted EBITDA was $3.2-million this past quarter and $2.1-million for the first nine months of 2023, a $4.0-million improvement for the year to date," stated Randy Boomhour, chief financial officer of Cematrix.

"In Q3, we delivered on our belief that 2023 will be the best year in the history of the company. As of Q3, we have already significantly surpassed our 2022 full-year revenue of $29.0-million. The fourth quarter is historically slower for the company compared to the third quarter as winter reduces overall construction activity, but we expect to have a strong fourth quarter resulting in record revenue for the year and a return to profitability," continued Mr. Kendrick.

"I want to thank all of our employees at Cematrix for their contributions to our success. Quarterly results like these are only made possible through the hard work of every single employee. As always, I particularly want to thank our field staff for staying safe and delivering a quality product to our customers. Our employees continue to make our success possible through hard work and dedication," stated Mr. Kendrick.

"Management is strongly aligned with shareholders. We remain laser focused on becoming a growing, cash-flow-positive company, coupled with a strong balance sheet and a simplified capital structure. This quarter is another step forward in the execution of that strategy, and I remain incredibly optimistic about this year, next year and the future," concluded Mr. Kendrick.

The following are the business and financial highlights for the third quarter and year to date:

Business highlights for the quarter:

• Announced $5.9-million in new contracts and backlog of $99.4-million (July 19, 2023);
• Announced $10.7-million in new contracts and backlog of $107.7-million (Aug. 30, 2023).

Business highlights subsequent to the quarter:

• Announced $6.5-million in new contracts (Oct. 16, 2023);
• Announced a $7.1-million contract (Oct. 25, 2023).

Financial highlights for the third quarter:

• Revenue was $20.4-million in Q3 2023 versus $11.6-million in Q3 2022 (an increase of 76 per cent).
• Gross margin was $4.6-million (23 per cent) in Q3 2023 versus $2.2-million (19 per cent) in Q3 2022 (an improvement of $2.4-million).
• Operating income was $2.5-million in Q3 2023 versus $300,000 in Q3 2022 (an improvement of $2.2-million).
• Adjusted EBITDA was $3.2-million in Q3 2023 versus $900,000 in Q3 2022 (an improvement of $2.3-million).
• Cash flow from operations (before changes in working capital) was $3.1-million in Q3 2023 versus $900,000 in Q3 2022 (an improvement of $2.2-million).

Financial highlights for the nine months ended Sept. 30 (year-to-date results):

• Revenue was $33.7-million in YTD 2023 versus $20.7-million in YTD 2022 (an increase of $13.0-million or 63 per cent).
• Gross margin was $6.5-million (19 per cent) in YTD 2023 versus $2.1-million (10 per cent) in YTD 2022 (an improvement of $4.4-million).
• Operating income was $400,000 in YTD 2023 versus an operating loss of $3.5-million YTD 2022 (an improvement of $3.9-million).
• Adjusted EBITDA was positive $2.1-million in YTD 2023 versus negative $1.9-million in YTD 2022 (an improvement of $4.0-million).
• Cash flow from operations was positive $2.0-million in YTD 2023 versus negative $1.9-million in YTD 2022 (an improvement of $3.9-million).
• Working capital at the end of Q3 was $8.4-million with $1.9-million in cash.

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 (including oil and gas) and commercial markets. Through recent acquisitions of Chicago-based MixOnSite and Bellingham-based Pacific International Grout, Cematrix is North America's largest cellular concrete company.

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