2022-08-10 | TSXV:CVX | Press release

CALGARY, Alta., Aug. 10, 2022 (GLOBE NEWSWIRE) — CEMATRIX Corporation (TSXV: CVX) (OTCQB: CTXXF) (“CEMATRIX“or the”Company“) a leading North American manufacturer and supplier of technologically advanced aerated concrete products announced the release of its consolidated financial results for the quarter ended June 30, 2022.

“Revenues in the second quarter were in line with the prior year, but below expectations as CEMATRIX continued to be impacted by global supply chain challenges, particularly the cement supply shortage on the key markets in which we operate,” said Mr. Jeff Kendrick, President and CEO of CEMATRIX. “Cement shortages have led to project delays, higher input costs and a number of lost opportunities. We expect these cement supply issues to continue for the rest of the year.”

“The third quarter is traditionally our strongest quarter and we are on track to deliver the best quarter from a revenue perspective in company history and as a result we expect a financially strong quarter ahead. ” continued Mr. Kendrick.

“Furthermore, we continue to see a strong supply pipeline which gives us confidence that we can continue to add and grow our backlog. This includes a $20.3 million freeway project in North Carolina announced after the end of the quarter, which would be the largest aerated concrete project contracted in North America for the backfilling of a few overpasses, as part of construction of a new freeway corridor in that state. The project was awarded approximately two and a half years ago by letter of intent, and finally contracted after the end of the quarter by our American subsidiary MixOnSite (“MOS”) based in Chicago.After many delays, this project is finally underway and MOS is expected to place material on this project early in the new year with the bulk of the project expected to be completed in 2023,” Kendrick said.

“Despite a slower-than-expected start to the year and expected supply chain issues due to the cement shortage, we remain very optimistic for the second half of 2022 we can exceed total revenue from prior years and throw the foundation for what we expect to be a very exciting 2023,” Mr. Kendrick concluded.

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

Quarterly business highlights:

  • Announcement of $3.9 million in new contracts (June 16, 2022)
  • Announcement of the completion of phases 2 and 3 of its strategic investment in Glavel Inc (May 2, 2022)
  • Announcement of new $4.1 million contracts (April 6, 2022)

Highlights of activity after the quarter:

  • Announcement of new $22.5 million contracts (August 3, 2022), including the largest infrastructure project ever awarded in North America, a $20.3 million overpass embankment project in North Carolina

Second Quarter Financial Highlights:

  • Revenue was $4.0 million in Q2 2022 compared to $4.0 million in Q2 2021
  • Operating loss was $2.0 million in Q2 2022 compared to a loss of $1.5 million in Q2 2021
  • Adjusted EBITDA was negative $1.2 million in Q2 2022 versus negative $0.9 million in Q2 2021
  • Operating cash flow was negative $1.3 million in Q2 2022 versus negative $1.0 million in Q2 2021
  • Investment of an additional $1.125 million in Glavel Inc (“Glavel””) bringing the total investment in Glavel by CEMATRIX to $1.68 million.

Financial Highlights for the six months ended June 30e (results since the beginning of the year):

  • Revenue was $9.1 million in fiscal 2022 compared to $8.5 million in fiscal 2021.
  • The operating loss in fiscal 2022 was $3.8 million compared to a loss of $2.6 million in fiscal 2021.
  • Adjusted EBITDA was negative $2.8 million in current fiscal year 2022 compared to negative $1.4 million in current fiscal year 2021.
  • Operating cash flow was negative, with cash used in operating activities of $2.8 million in fiscal 2022 compared to $1.5 million used in 2021.
  • Working capital at the end of June 30 was $12.0 million with $13.8 million in cash.

ABOUT CEMATRIX

CEMATRIX is a rapidly growing company that manufactures and supplies technologically advanced aerated concrete products developed from proprietary formulations across North America. This unique cementitious material with superior thermal protection offers cost effective and innovative solutions to a wide range of problems faced by the infrastructure, industrial (including oil and gas) and commercial markets. With recent acquisitions of Chicago-based MixOnSite and Bellingham-based Pacific International Grout, CEMATRIX is now the largest aerated concrete company in North America. For more information please visit our website at www.cematrix.com.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terms such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations thereof. of such words, or statements that certain actions, events, or results “could”, “could”, “would”, “could”, “will be taken”, “occur”, or “will be achieved”. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by the Company, including the satisfaction of regulatory requirements in various jurisdictions and the Company’s intended use of the net proceeds of the Offering. Forward-looking statements involve risks, uncertainties and other factors disclosed under “Risk Factors” and elsewhere in the Company’s filings with Canadian securities regulators, which could cause results, Actual performance, prospects and opportunities differ materially from those expressed or implied by such statements. forward-looking statements.

Although the Company believes that the assumptions and factors used in preparing these forward-looking statements are reasonable based on information currently available to management as of the date hereof, actual results and developments may differ materially from those contemplated by such statements. statements. Readers are therefore cautioned not to place undue reliance on such statements, which speak only as of the date of this press release, and no assurance can be given whether such events will occur within the timeframes stated or not. at all. Except as required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information, please contact:

Jeff Kendrick – President and CEO

Phone: (403) 219-0484

Glen Akselrod – Chairman, Bristol Capital

Telephone: (905) 326 1888 extension 1

[email protected]

Jeff Walker, The Howard Group – Investor Relations

Phone: (888) 221-0915 or (403) 221-0915

[email protected]

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Luisa D. Fuller