CEMATRIX Corporation Announces Its Results for the Year Ended December 31, 2014

Calgary, Alberta – March 26, 2015: CEMATRIX Corporation (TSXV: CVX) (the “Corporation” or the “Company” or “CEMATRIX”) announces the release of its consolidated financial results for the year ended December 31, 2014.

CEMATRIX finished the year with a solid fourth quarter with sales of $4,413,347, up from $1,436,118 in 2013 and operating income of $945,979 million, up from a loss of $229,516 in 2013. The gross margin percentage for the quarter was 32.5%, up from 15.0% in 2013.

Yearly sales grew by 7.9% to $8,712,193, up from $8,072,148 in 2013 and the operating loss was reduced to $53,212 from $96,560 in 2013. The gross margin percentage for the year was 21.7%, as compared to 20.9% for the previous year. In 2014 the margins were lower than expected because of the cost of carrying operations for a full year when 50.7% of the sales were generated in the fourth quarter. In addition, the Company experienced operating inefficiencies with the heavy workload in the fourth quarter of 2014 where a significant portion of the work occurred in November and December under extreme winter conditions.

The Company has $9.9 million of sales contracts currently in place, of which $8.9 million is for projects scheduled for 2015, and $1 million is for a project scheduled for 2016 This backlog of contracted projects is significantly higher than the $2.0 million at this time in 2014. To date, for 2015, the Company has already recorded in excess of $2.2 million of sales. The level of sales achieved in first quarter is unusually high, as the first quarter is typically a slow time of the year for sales for the Company, given the seasonal nature of our business.

Selected financial information for the quarter and year ended December 31, 2014 is as follows:

CVX_Financial_150326

Highlights for 2014 included the following:

  • The Company put in place a record $17.3 million of contracted sales in 2014 and has added $1.4 million of new contracts since the 2014 year end;
  • The Company has a record $8.9 million of contracted sales currently scheduled for 2015, of which a significant portion is scheduled for the first six months of the year. The Company has a further $1 million of projects under contract for 2016.
  • Two new production units will go into service early in 2015. The addition of this equipment will add to the production capability and provide greater flexibility in covering sales in the wide geographical regions that the Company services:
  • The Company`s wholly owned subsidiary, CEMATRIX (Canada) Inc., issued a $1 million secured debenture to provide funding for capital spending and operations;
  • The Company continued its focus on health and safety, by ensuring a safe work place and by maintaining all of its safety certifications and registrations. 2014 was another injury free year with no lost time medical incidents.
  • This press release should be read in conjunction with the Corporations Audited Consolidated Financial Statements and Management Discussion and Analysis for the year ended December 31, 2014, both of which can be found on SEDAR.

This press release should be read in conjunction with the Corporations Audited Consolidated Financial Statements and Management Discussion and Analysis for the year ended December 31, 2014, 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, is a manufacturer and supplier of technologically advanced cellular concrete products with applications in a variety of markets, including oil and gas construction and infrastructure construction. Cellular concrete provides a cost and labour saving solution as a replacement for rigid and other insulating materials in frost-susceptible or permafrost conditions. Cellular concrete is also used in void filling situations and as a replacement for granular fills and weak or unstable soils.

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/Brad Dryer – The Howard Group – Investor Relations
Phone: (888) 221-0915 or (403) 221-0915
jeff@howardgroupinc.com/brad@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 August 6, 2014 under CEMATRIX’s profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities

CEMATRIX Sprints to the Finish in 2014 – Momentum Carries Into 2015

This morning CEMATRIX released its 2014 year-end financial statements and, as expected, the company ended the year with a strong fourth quarter. The $4.4 million recorded in Q4 represented over half of total annual revenues of  $8.7 million, which was up from $8.1 million in 2013.  Overall, the Company had a small operating loss in 2014 of just over $53 thousand versus a $96 thousand loss for 2013.

Of note is the fact that the strong showing in the last quarter of 2014 was a significant jump from the $1.4 million in revenues recorded in the fourth quarter of 2013 and especially so as CEMATRIX had an operating income of $945,979 compared to a loss of $53,212 in the same period of 2013 .

The strong fourth quarter resulted in improved quarterly gross margins of 32.5%, up from 15% in the same quarter last year. Despite some operational challenges due to the majority of work being completed in fourth quarter winter conditions, gross margins improved 21.7% up from 20.9% last year.

With a projected $15 million in revenues for 2015, CEMATRIX has hit the ground running.  It has already poured $2.2 million of the $8.9 million in contracted work that has been secured for the year and the value of secured contracts ($8.9 million) is up significantly from the $2.0 million dollars of work that was secured this time last year.

Despite the downturn in oil prices,  scheduled oil sands related projects are moving forward.   The sales team is bidding on more jobs than ever, which is evidenced in the fact that over the last  year,  more than $17 million in business was signed, of which the majority will take place in 2015.

This year to date, management has already secured an additional $1.4 million in contracts and are working on more than $120 million of potential new projects between now and 2018.  Historically, CEMATRIX has a track record of closing roughly 25% of the projects it bids on.

In addition to the financial results, CEMATRIX also announced that it is adding two new production units to its fleet. This, of course, will increase the company’s capacity and allow it to work on more sites simultaneously during the busy construction season.

In short, 2014 results were strong, and 2015 looks even better.

To view today’s news release, please click here.

 

FLYHT Featured On CNN Twice This Week!

In the week leading up the anniversary of the MH370 tragedy, FLYHT has now been twice featured on CNN. The company first appeared in a video segment on Tuesday that acknowledges Canada’s First Air as the first and only airline in the world that tracks its planes anytime; anywhere. The same segment raises the question: “If First Air can do it, why not others? What’s taking the airline industry so long to catch up?”

Again today (March 5th), in an updated article FLYHT’s AFIRS was specifically cited as a technology that might have helped us know more about what happened to the missing flight.

The three minute CNN video segment, released earlier this week, describes the AFIRS system as a “Blue Box” that monitors location flight path, fuel and engine performance. If anything abnormal happens, an event is triggered and operations control is notified so it can provide support to the flight crew. Today’s article describes the same features and concludes “If all airliners were equipped this way, we could know a flight was in trouble even if the crew could not communicate by other means. It could make searching for the black boxes a thing of the past.”

According to the CNN video segment, with no air traffic control in the high north and limited communications capabilities, the AFIRS system provides peace of mind to First Air management that it can track its fleet over the vast arctic.  In the words of  First Air management, the peace of mind provided by AFIRS is not prohibitively expensive, with today’s report pegging the cost per plane at $100,000. With more than 1.8 million flight hours, AFIRS is a well established technology.

First Air announced that it would  equip its entire fleet with the AFIRS technology in an April 2014 news release.

Now, the race to adopt flight following continues! Many major airlines have made public statements about their intentions to adopt flight tracking services. The CNN report acknowledged that industry regulators are expecting most major airlines will adopt new aircraft tracking standards by the end of next year.

In closing, I would like to reiterate the question posed by CNN’s Paula Newton in the video segment earlier this week: “If First Air can do it, why not others? What’s taking the airline industry so long to catch up”

To view the CNN video, please click here.

To view the CNN article, please click here.

Low Oil Prices Not Getting In CEMATRIX’s Way!

This morning, in a news release announcing $1.2 million of new business, CEMATRIX President Jeff Kendrick assured investors that low oil prices are not impacting the company’s business. Despite the dip in oil prices, the company has secured more than 4.5× the business it had this time last year.  The new business includes work on oil sands, refinery and infrastructure projects, and brings CEMATRIX total contracted work to $9.8 million.

 

Addressing CEMATRIX’s success and the concern over oil sands projects, Mr. Kendrick commented, “CEMATRIX continues to land a record number of contracted sales and our backlog is significantly ahead of the prior year, which stood at $2 million at this same time in 2014. Of significance to CEMATRIX, is that the oil sands projects, for which we have contracts, will continue as scheduled based on re-confirmations from our customers.”

 

The news release also made note that due to customers changing project schedules, a total of $2.8 million of work scheduled for Q4 2014 had been pushed into 2015 and is scheduled to be complete in the first half of this year.


To view the news release, please click here

CEMATRIX Corporation Secures $1.2 million in Additional Contracts Oil Sands Projects Continue As Planned

Calgary, Alberta – February 27, 2015: CEMATRIX Corporation (TSXV: CVX) (the “Corporation” or the “Company” or “CEMATRIX”) is pleased to announce that its wholly owned subsidiary, CEMATRIX (Canada) Inc. has secured another $1.2 million in contracts, in aggregate, for oil sands and refinery and infrastructure projects. This year’s total contracted work is now $9.8 million, of which $1.0 million is slated for 2016.

“CEMATRIX continues to land a record number of contracted sales and our backlog is significantly ahead of the prior year, which stood at $2 million at this same time in 2014. Of significance to CEMATRIX, is that the oil sands projects, for which we have contracts, will continue as scheduled based on re-confirmations from our customers”, stated Jeff Kendrick, President of CEMATRIX.

“Furthermore, a significant portion of the Company’s growth is forecasted to be in the infrastructure market in North America and that this market will continue to grow, as forecasted” Mr. Kendrick added.

In November of last year the Company announced that it had secured a record $17.3 million in contracts with $9.4 million scheduled for completion in 2014, $6.9 million in 2015 and $1 million in 2016. Changes to project schedules by CEMATRIX customers resulted in $0.7 million of this work being pushed into 2015, which was in addition to $2.1 million of contracted projects that were already re-scheduled to the first half of 2015, prior to the issue of the last news release.

This shift in the timing of projects included the Company’s largest contract to date of $6.8 million, $1.5 million of which was originally scheduled to be completed in the fall of 2014. This project is now underway, but the majority of the contracted volume is now scheduled to be placed from late spring to the fall of 2014.

CEMATRIX is an Alberta corporation with its head offices in Calgary, Alberta.  The Corporation, through its wholly owned subsidiary, is a manufacturer and supplier of technologically advanced cellular concrete products with applications in a variety of markets including oil and gas construction and infrastructure construction. Cellular concrete provides a cost and labour saving solution for various construction applications. Applications for cellular concrete include tunnel grouting; bridge abutment and retaining wall backfill; insulation of shallow utilities, roads and runways; insulation and/or structural foundations for tank bases and facilities; and as a floating base over weak and unstable or seismic prone soils, for roads and other types of infrastructure.

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/Brad Dryer – The Howard Group – Investor Relations
Phone: (888) 221-0915 or (403) 221-0915
jeff@howardgroupinc.com/brad@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 August 6, 2014 under CEMATRIX’s profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.