Mr. Jeff Kendrick reports

CEMATRIX ANNOUNCES RECORD FOURTH QUARTER & FULL YEAR 2023 FINANCIAL RESULTS

Cematrix Corp. has released its consolidated financial results for the quarter and year ending Dec. 31, 2023.

"We are delighted to announce another remarkable quarter culminating in a record year that produced the best financial results in the history of the company," stated Jeff Kendrick, president and chief executive officer of Cematrix. "I am pleased to report record revenue, strong margins and a record 12-month adjusted EBITDA of $4.9-million. The record fourth quarter was the result of a push by general contractors to get work completed before the colder (subzero) temperatures arrived.

"Along with our solid financial performance, I would like to highlight Cematrix's sales and sales support teams that have played a monumental part increasing market acceptance for the various applications of cellular concrete, while simultaneously landing new projects that have helped drive such positive results. The increase in our backlog to $94.9-million as at Dec. 31, 2023, in the context of record revenues on the year is a testament to the successful efforts and performance of our sales staff," stated Mr. Kendrick.

"Revenue for the fourth quarter was $19.6-million, compared to $8.3-million in the fourth quarter of 2022, a 136-per-cent increase. Gross margins improved to $5.4-million (27 per cent), compared to $400,000 (5 per cent) in the fourth quarter of 2022. Adjusted EBITDA was $2.9-million this past quarter and $4.9-million for the full year, a $7.6-million improvement compared to 2022," stated Marie-Josee Cantin, chief financial officer of Cematrix.

"In Q4, we delivered on our belief that 2023 will be the best year in the history of the company. We grew revenue organically by an incredible 85 per cent from $29.0-million in 2022 to $53.3-million in 2023. With supply chains challenges in the rearview mirror and increased revenues in 2023, we also improved our gross margins. Strong gross margins resulted in positive adjusted EBITDA and positive cash flow from operations, and we will build on this strong momentum into an exciting 2024," stated Randy Boomhour, chief operating officer of Cematrix.

"I want to thank all our employees at Cematrix for their contributions to our success. Quarterly and annual results like these are only made possible through the hard work of every single employee. These results were generated by operations teams that spent many nights away from home, hard at work and working safely to deliver a quality product to our customers. Our company and our success are built upon the hard work and dedication of our employees. We appreciate all their contributions to our shared success," stated Mr. Kendrick.

The following are the business and financial highlights for the fourth quarter and year to date.

Business highlights for the quarter:

• Announced $6.5-million in new contracts (Oct. 16, 2023);
• Announced $7.1-million in new contracts (Oct. 25, 2023);
• Announced $5.2-million in new contracts (Nov. 15, 2023);
• Announced the promotion of Mr. Boomhour to chief operating officer (Nov. 27, 2023).

Business highlights subsequent to the quarter:

• Announced $6.2-million in new contracts (Jan. 3, 2024);
• Announced Ms. Cantin as the new CFO (Feb. 5, 2024);
• Announced that Cematrix is recognized as a TSX Venture Top 50 company for a third time in four years (Feb. 21, 2024);
• Announced $6.7-million in new contracts (March 6, 2024).

Grant of stock options and restricted stock units

On April 10, 2024, the company granted 1.2 million incentive stock options to certain directors, executive officers and employees of the corporation, pursuant to the corporation's omnibus equity incentive compensation (OEIC) plan for the purchase of shares at an exercise price set to the closing price on the grant date, subject to the vesting provisions of the options, at any time up to and including April 10, 2029.

In addition, on April 10, 2024, the company has granted 1,071,851 restricted stock units (RSUs) to certain executive officers and employees of the corporation, pursuant to the corporation's OEIC plan.

After the grants on April 10, 2024, the corporation will have a total of 7,139,405 options and RSUs outstanding, representing 5.3 per cent of the approximately 135 million issued and outstanding shares of the company, and 53 per cent of the maximum amount of 10.0 per cent that is authorized under the OEIC plan.

Fourth quarter and 2023 year-end results earnings webinar

Management will host a webinar at 1 p.m. ET on Thursday, April 11, 2024, to discuss Cematrix's fourth quarter and year-end financial results, provide a corporate update, and conclude with a question-and-answer session from on-line participants. Register on-line in advance for this webinar.

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 now North America's largest cellular concrete company.

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