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Cematrix Corp
Symbol CVX
Shares Issued 134,381,452
Close 2023-08-09 C$ 0.20
Market Cap C$ 26,876,290
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Cematrix has $1-million operating loss in Q2

2023-08-09 19:34 ET - News Release

Mr. Jeff Kendrick reports

CEMATRIX ANNOUNCES 2023 SECOND QUARTER FINANCIAL RESULTS

Cematrix Corp. has released its consolidated financial results for the quarter ended June 30, 2023.

"In line with our expectations and following the momentum from a great first quarter, we saw continued improvement in many of our key financial metrics in the second quarter of 2023," stated Jeff Kendrick, president and chief executive officer of Cematrix. "Revenue for the quarter was $6.2-million compared to $4.0-million the previous year, a 55-per-cent increase. Gross margins improved significantly to $1.1-million (18 per cent) compared to negative $100,000 (minus 3 per cent) in Q2 of the previous year. In addition, our backlog (of projects to be delivered) continues to grow, a reflection of the hard work and demonstrating the success of our sales teams and our sales strategies.

"We remain steadfast in our belief that 2023 will be the best year in the history of the company. We are set up for a record second half in terms of work scheduled to be completed for our customers. We are on track for record revenue and a return to profitability," continued Mr. Kendrick.

"In the second quarter, we repaid all of the outstanding convertible debentures. At the same time, all of our outstanding regular and broker warrants expired. Our capital structure is now significantly delevered and much simpler versus prior years. This makes our capital structure easier to understand for investors and dramatically reduces Cematrix's financial risk profile. As a result of our efforts to delever the balance sheet, the company estimates savings of approximately $1.2-million in annual cash interest costs," stated Randy Boomhour, chief financial officer of Cematrix.

"As always, I want to thank all of our employees at Cematrix, particularly 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, and we will look to them to keep up the good work for the rest of the year," stated Mr. Kendrick.

"We remain focused on becoming a growing, cash flow positive company through strong organic growth, coupled with a strong and delevered balance sheet and a simple capital structure. We are strongly aligned with shareholders. I remain incredibly optimistic about this year and the future," concluded Mr. Kendrick.

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

Business highlights for the quarter:

  • Announced $6.0-million in new contracts and backlog of $93.2-million (April 26, 2023);
  • Announced management perspectives -- uniquely positioned for 2023 and beyond (May 2, 2023);
  • Announced $5.9-million in new contracts and backlog of $95.7-million (June 6, 2023).

Business highlights subsequent to the quarter:

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

Financial highlights for the second quarter:

  • Revenue was $6.2-million in Q2 2023 versus $4.0-million in Q2 2022 (an increase of 55 per cent).
  • Gross margin was $1.1-million (18 per cent) in Q2 2023 versus negative $100,000 in Q2 2022 (an improvement of $1.2-million).
  • Operating loss was $1.0-million in Q2 2023 versus a $2.0-million loss in Q2 2022 (an improvement of $1.0-million or 52 per cent).
  • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was negative $400,000 in Q2 2023 versus negative $1.3-million in Q2 2022 (an improvement of $900,000 or 69 per cent).
  • Cash flow from operations was negative $1.6-million in Q2 2023 versus negative $2.0-million in Q2 2021 (an improvement of $400,000 or 20 per cent).

Financial highlights for the six months ended June 30 (year-to-date results):

  • Revenue was $13.4-million in YTD 2023 versus $9.1-million in YTD 2022 (an increase of 47 per cent).
  • Gross margin was $1.9-million (14 per cent) in YTD 2023 versus negative $100,000 in YTD 2022 (an improvement of $2.0-million).
  • Operating loss was $2.1-million in YTD 2023 versus a loss of $3.8-million YTD 2022 (an improvement of $1.7-million or 45 per cent).
  • Adjusted EBITDA was negative $1.2-million in YTD 2023 versus negative $2.8-million in YTD 2022 (an improvement of $1.6-million or 61 per cent).
  • Cash flow from operations was negative $1.9-million in YTD 2023 versus negative $2.7-million used in YTD 2022 (an improvement of $800,000 or 31 per cent).
  • Working capital as at the end of the June 30 was $6.4-million with $3.5-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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