CALGARY, Alberta, Nov. 16, 2017 (GLOBE NEWSWIRE) -- CEMATRIX Corporation CVX (the "Corporation" or the "Company" or "CEMATRIX") announces the release of its consolidated financial results for the three and nine months ended September 30, 2017.
"2017 has been a tough year to date," stated Jeff Kendrick, President and CEO of CERMATRIX, "as growth in infrastructure sales has still not been sufficient to offset the 98% decline in sales related to oil and gas construction sales. This decline in the oil and gas construction market was anticipated, but, not to the extent that has occurred. The good news is that infrastructure sales have grown by 66%, as compared to the same period in 2016, and these infrastructure sales are expected to replace all of the lost oil and gas construction sales in 2018, thus returning the Company to profitability, with continued upside potential."
Financial Results
Selected financial information for the three and nine months ended September 30, 2017 and 2016 is as follows:
| Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||
| Revenue | $ | 2,429,421 | $ | 2,505,273 | $ | (75,852 | ) | $ | 7,165,122 | $ | 8,431,034 | $ | (1,265,912 | ) | ||||
| Gross margin | $ | 493,299 | $ | 148,962 | $ | 344,337 | $ | 1,175,153 | $ | 1,371,785 | $ | (196,632 | ) | |||||
| Operating expenses | (584,559 | ) | (567,194 | ) | (17,365 | ) | (1,616,709 | ) | (1,772,243 | ) | 155,534 | |||||||
| Operating loss | (91,260 | ) | (418,232 | ) | 326,972 | (441,556 | ) | (400,458 | ) | (41,098 | ) | |||||||
| Non-cash stock based compensation | (8,822 | ) | (46,269 | ) | 37,447 | 12,271 | (109,589 | ) | 121,860 | |||||||||
| Finance costs | (51,336 | ) | (39,611 | ) | (11,725 | ) | (155,763 | ) | (158,900 | ) | 3,137 | |||||||
| Other income | 24,232 | 12,406 | 11,826 | 43,048 | 51,483 | (8,435 | ) | |||||||||||
| Loss before income taxes | (127,186 | ) | (491,706 | ) | 364,520 | (542,000 | ) | (617,464 | ) | 75,464 | ||||||||
| Recovery of deferred taxes | 19,446 | 102,586 | (83,140 | ) | 132,203 | 87,586 | 44,617 | |||||||||||
| Loss attributable to common shareholders | (107,740 | ) | (389,120 | ) | 281,380 | (409,797 | ) | (529,878 | ) | 120,081 | ||||||||
| Unrealized foreign exchange gain (loss) on translation of foreign subsidiary | 2,430 | (3,461 | ) | 5,891 | (2,807 | ) | (33,309 | ) | 30,502 | |||||||||
| Comprehensive Loss | $ | (105,310 | ) | $ | (392,581 | ) | $ | 287,271 | $ | (412,604 | ) | $ | (563,187 | ) | $ | 150,583 | ||
| Loss per common share | $ | (0.003 | ) | $ | (0.011 | ) | $ | 0.008 | $ | (0.012 | ) | $ | (0.015 | ) | $ | 0.003 | ||
Third Quarter Highlights
- In the third quarter of 2017 infrastructure sales were up 100%, but this was offset by decline in oil and gas sales resulting in a slight decrease in sales;
- The gross margin percentage on sales was up to 20.3% from 6% the previous year;
- A new web site was released October 25, 2017, highlighting why CEMATRIX is the premier supplier in North America; and
- Management, with the assistance of BDC Consulting, completed a strategic review of CEMATRIX. This work confirmed that there is a large growing cellular concrete market in Canada and the United States and that CEMATRIX is the leader in the Canadian market; this work also highlighted the need for more salesman on the ground to realize on this growing opportunity and this will be part of the CEMATRIX plan for 2018 and beyond.
Year to Date Highlights
- Year to date infrastructure sales were up by 66% but this was not sufficient yet to offset the 98.2% decline in higher margin oil and gas sales;
- The sales pipeline for North America remains above $100 million and continues to grow; and
- The new Lafarge agreements have not resulted in any significant new sales for CEMATRIX; both companies continue to evaluate the results to date and are working to enhance the program covered in both the joint marketing and regional expansion agreements.
This press release should be read in conjunction with the Corporation's unaudited Consolidated Financial Statements and Management Discussion and Analysis for the three and nine months ended September 30, 2017, both of which can be found on SEDAR.
CEMATRIX is an Alberta corporation with its head offices in Calgary, Alberta. The Corporation, through its wholly owned subsidiary, will continue to be a rapidly growing, cash flow positive company that manufactures and supplies technologically advanced cellular concrete products developed from proprietary formulations. This unique cement based material with superior thermal protection, delivers a cost-effective, innovative solution to a broad range of problems facing the infrastructure, industrial (including oil and gas) and commercial markets.
Neither 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 further information, please contact:
Jeff Kendrick - President and Chief Executive Officer
Phone: (403) 219-0484
Jeff Walker – The Howard Group – Investor Relations
Phone: (888) 221-0915 or (403) 221-0915
jeff@howardgroupinc.com
Forward-looking information: This news release contains certain information that is forward looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as "anticipate", expect", "would' or other similar words). Forward looking statements in this document are intended to provide CEMATRIX security holders and potential investors with information regarding CEMATRIX and its subsidiaries' future financial and operations plans and outlook. All forward looking statements reflect CEMATRIX's beliefs and assumptions based on information available at the time the statements were made. Readers are cautioned not to place undue reliance on this forward looking information. CEMATRIX undertakes no obligation to update or revise forward looking information except as required by law. For additional information on the assumptions made and the risks and uncertainties which may cause actual results to differ from the anticipated results, refer the CEMATRIX's Management Discussion and Analysis dated November 15, 2017 under CEMATRIX's profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.
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