Market Overview

CEMATRIX Corporation Announces Second Quarter Financial Results

Share:

CALGARY, Alberta, Aug. 16, 2018 (GLOBE NEWSWIRE) -- CEMATRIX Corporation (TSXV:CVX) (the "Corporation" or the "Company" or "CEMATRIX") announces the release of its consolidated financial results for the three and six months ended June 30, 2018.

Mid-Year Review

The results for the six months ended June 30, 2018 before considering acquisition related costs are what management expected and typical of the seasonal nature of its construction-related business. Sales are off a little from the same period last year, but both the margin dollars and margin percentages are up for the first six month period. Non-cash and one time costs relating to the acquisition amounted to $918,118, in the second quarter of 2018.

The highlight of the period was the acquisition of MixOnSite USA, Inc ("MOS"), which was completed on May 31, 2018, so the consolidated results only include one month of MOS's operations. With the acquisition MOS and the growth in the Company's Canadian infrastructure business, the Company now has signed contracts on hand for $23.5 million and verbally awarded projects of $7.6 million for a total of $31.1 million, $7 to $8 million of which will be backlog for 2018.

"The completion of these 2018 contracted and scheduled projects will mean a return to profits and positive cash flow in the third quarter of 2018, together with a return to a positive working capital position by the year ended December 31, 2018," stated Jeff Kendrick, President and CEO of CEMATRIX Corporation.

Financial Results

Selected financial information for the three and six months ended June 30, 2018 and 2017 is as follows:

  Three months ended June 30 Six months ended June 30
  2018 2017 Change 2018 2017 Change
                         
Revenue $ 2,907,933   $ 2,208,230   $ 699,703   $ 4,384,401   $ 4,735,701   $ (351,300 )
                         
Gross margin $ 638,804   $ 147,169   $ 491,635   $ 810,939   $ 681,854   $ 129,085  
                         
Operating expenses   (761,148 )   (508,474 )   (252,674 )   (1,273,967 )   (1,032,150 )   (241,817 )
                         
Operating income (loss)   (122,344 )   (361,305 )   238,961     (463,028 )   (350,296 )   (112,732 )
                         
Non-cash stock based compensation   (11,163 )   49,502     (60,665 )   (16,529 )   21,093     (37,622 )
Business acquisition costs   (619,723 )   -     (619,723 )   (619,723 )   -     (619,723 )
Finance costs, interest   (102,875 )   (55,196 )   (47,679 )   (156,825 )   (107,007 )   (49,818 )
Finance costs, accretion and fair market value   (198,867 )   1,290     (200,157 )   (198,073 )   2,580     (200,653 )
Other income (expense)   (88,986 )   16,929     (105,915 )   (91,470 )   18,816     (110,286 )
Loss before income taxes   (1,144,058 )   (348,780 )   (795,278 )   (1,545,648 )   (414,814 )   (1,130,834 )
Provision of deferred taxes   176,791     99,118     77,673     261,603     112,757     148,846  
Loss attributable to common shareholders   (967,267 )   (249,662 )   (717,605 )   (1,284,045 )   (302,057 )   (981,988 )
Unrealized foreign exchange loss on translation of foreign subsidiary   36,916     (5,773 )   42,689     39,319     (5,237 )   44,556  
Comprehensive Loss $ (930,351 ) $
View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com