CEMATRIX Financial Performance Draws Positive Comments From Well Known Fund Manager

“Pleasantly surprised” was our response to the depth of knowledge displayed today (May 12) by AGF VP and Portfolio Manager Peter Imhof, in response to a video question about CEMATRIX during his appearance on BNN’s Market Call.

We sat up and took notice, as Mr. Imhoff, a long-time and well known fund manager, follows or invests in companies many times the size of CEMATRIX with its $16 million market cap, a number only slightly more than 2015 sales of $15.3 million and $2.8 million in EBITDA. He had a good understanding of operations and commented, “the company has done extremely well over the past year”.

To view BNN clip, please click here.

Mr. Imhoff wasn’t sure of the impact the energy industry malaise would have on CVX going forward. For clarification, management is forecasting revenues will rise to $18 million this year with 75% of that infrastructure related.

Currently, the cellular concrete company is directly bidding on or is included in bids that are in excess of $100 million, 94% of which is infrastructure related.

CEMATRIX May 2016 Presentation_Page_21

CEMATRIX CEO Jeff Kendrick, recently had his first appearance on BNN, which resulted in a very strong volume day and the stock hitting a new high.  

The fact is that many more people are paying attention to CVX. You don’t always know who’s watching, but the reasons for the interest are plentiful:

  • Continuing financial performance
  • Tight share structure with only 34 million shares issued
  • Growing bid pipeline
  • Client diversification
  • Proven product, services and proprietary formulations
  • Aversion to dilution – no equity raised in more than a decade   

CEMATRIX Appears on BNN – Stock Hits All-Time High

This morning, CEMATRIX shareholders were greeted with more positive news in the form of new contracts valued at $2.9 million, which brings the company’s contracted total for this year to $11.3 million.

A couple of items that should be of interest to shareholders – first, CEMATRIX is only into the fifth month of 2016 and has already secured more than $11 million dollars in contracts. Last year the company had total revenues of $15.4 million and positive EBITDA of $2.8 million. Management has provided guidance on projected revenues for 2016 to come in at $18 million – a 17% increase from last year.

Secondly, the company is currently bidding on individual projects, any one of which is greater than last year’s total volumes. To quantify this, last year’s total volume was approximately 82,000 cubic meters.  Some of the individual projects this year are calling for anywhere from 50,000 to 100,000 cubic meters.  

Company CEO Jeff Kendrick was interviewed this morning (May 4th) on Canada’s Business Network’s (BNN) Commodities segment hosted by Andrew Bell.  

As of this writing the company’s stock is trading in the $0.55 range and has also reached an all-time high of $0.58 on strong volume.

In this interview, Mr. Kendrick provided his insights on the following:

  • Cellular concrete – what is it made of? How is it made?
  • Benefits of cellular concrete; applications for this product,
  • Company’s decision to shift its focus from energy to infrastructure due to the resource/energy sector crash in 2008/09,
  • Overview of CEMATRIX customers, projects completed, its competition,
  • Cost benefits of using cellular concrete,
  • Revenue growth and factors contributing to this growth.

As a side note, the company’s bid pipeline is now in excess of $100 million.

Click here to read today’s news release.

Click here to view the BNN interview.

CEMATRIX CEO To Appear On BNN Tomorrow

Cematrix President, Founder & CEO Jeff Kendrick will be on Canada’s Business News Network (BNN) tomorrow, May 4th.  Mr. Kendrick will be providing viewers with an overview of its recent record revenues in 2015, the company, continued growth plans.

The live interview will air on BNN’s Commodities segment hosted by Andrew Bell on Wednesday, May 4 at 11:30 am ET/9:30 am MT. 

This will be Mr. Kendrick’s first appearance on BNN.

Alex Ruus On BNN – FLYHT – “We’re Actually Looking For A Big Breakout In 2016”

FLYHT Aerospace became a topic of discussion during last night’s (April 21st) appearance by Alex Ruus, Portfolio Manager at Arrow Capital Management on Business News Network’s (BNN) show Market Call Tonight. Below are his comments in response to a caller who inquired about FLYHT.

  • “I still own the stock, and I quite like the stock. This is probably one of the multibagger potential stocks in the portfolio.”
  • “What they are doing is quite revolutionary. They are penetrating the commercial aerospace market.”
  • “The reason the stock hasn’t done well, things have taken longer to develop in terms of revenue and earnings than we would have thought a couple of years ago. They just reported their fourth quarter and they made a slight profit, not a lot. Revenues are up 60 plus percent and we’re actually looking for a big breakout this year in 2016. There’s going to be a lot of growth.”
  • “They’re on the production line as an option on the Airbus A320. Also, Bombardier installs them. Those rollouts are slowly happening and increasing at a pace. As well China has some regulations where they are starting to install the FLYHT boxes, that again has taken longer than expected. But last quarter we started to see accelerated adoption in China.”
  • “We think it’s inevitable that they get on the Boeing production line and the Embraer production line.  It’s such a good product, it saves money for the airlines and we think as it becomes better understood, we think insurance companies will start demanding it.”
  • “I encourage you to hold on, as the year rolls out finally we’ll probably get some research coverage on the stock. Once people see that this is a great longer term free cash flow generator you’re going to see a lot of appreciation.”

To watch the full segment, please click here.

 

MicroCapClub Hosting CEMATRIX Presentation

CEMATRIX CEO, Jeff Kendrick will be presenting the CEMATRIX opportunity to a mostly U.S. based audience through Ian Cassel and his MicroCapClub tomorrow, April 21st, at 11:00 am ET.

The call is open to members only and information on becoming a member can be found by clicking here.

Founded in 2011, MicroCapClub is an exclusive forum for experienced microcap investors focused on microcap companies (sub $300m market cap) trading on United States and Canadian markets. MicroCapClub was created to be a platform for experienced microcap investors to share and discuss stock ideas. MicroCapClub’s mission is to foster the highest quality microcap investor community, produce educational content for investors, and promote better leadership in the microcap arena. MicroCapClub was founded by full-time microcap investor Ian Cassel and is co-owned by full-time microcap investor Mike Schellinger (aka MikeDDKing).

CEMATRIX – Top Companies To Watch, CEO Jeff Kendrick Interviewed

CEMATRIX reached an all time high share price this past Friday, closing at $0.44 on the heels of CEO, Jeff Kendrick’s appearance at a highly attended Microcap Conference in Toronto. It is an understatement that he was well received by hundreds of potential new shareholders from both Canada and the U.S. over the two day event.

CVX_160418a

While in Toronto, SmallCapPower.com was kind enough to interview Mr. Kendrick in the short attached video where he shares why now is the time to take a close look at CEMATRIX and why he believes it is undervalued. CEMATRIX is coming off a record 2015 where revenues exceeded $15 million and EBITDA was $2.8 million with only slightly more than 34 million shares issued.

Since the start of 2016, management has announced new contracts that have already reached a total of $8.4 million.

To watch the interview, please click here.

FLYHT Q4 2015 Conference Call Now Available Online

FLY:TSX-V

FLYHT hosted its yearend earnings conference call yesterday. Tom Schmutz, CEO of FLYHT discussed the company’s strong financial performance in 2015, which was capped off with record revenues in Q4 2015 with revenues of ~ $3.8MM representing an increase of 69% increase over Q4 2014.

Here are some highlights the call:

  • Select financial results:
    • FLYHT had three quarters in 2015 with record revenues – Q4, Q1 and Q3.
    • 2015’s revenue of ~ $10.5MM represents an increase of 51.9% over 2014.
    • Recurring revenue (voice and data services) was ~ $4MM, an increase of 9% over 2014, and AFIRS sales ~ $3.4MM, an increase of 54%
    • Gross profit for 2015 was 69.3% of revenue compared to 62.9% in 2014.
    • Cash flow breakeven in Q4 2015.
  • Mr. Schmutz touched on some of the company’s accomplishments during the past year which included:
    • Signing the largest deal in company history with Avmax Group.
    • Effectively transitioned executive control of the company.
    • Appointment of industry veteran David Perez to revitalize and lead the sales team.
    • Expanded sales team and standardized sales processes and materials.
    • Won awards in the industry and in the community.
    • Enhancing its board of directors with the appointment of retired USAF Major General Mark V. Rosenker, former chairman of the National Transportation Safety Board (NTSB).
    • Participated in several International Civil Aviation Organization (ICAO) and IATA conferences and continues to monitor industry discussions on aircraft monitoring.
    • Significant amount of time invested in R&D completing safety services TSO on AFIRS product and continue expansion of STC’s for AFIRS 228
    • Signed a non-exclusive technology licensing agreement with an unnamed technology company.
    • Continued sales growth in China.
  • He acknowledged the on-going challenges and opportunities in the industry such as:
    • Industry regulation.
    • Increasing demand for air travel in China and Southeast Asia.
    • Aviation industry still slow to adopt change.
    • Opportunity to significantly grow the company’s licensed OEM revenue.
  • Mr. Schmutz shared some of the company’s goals for 2016 such as:
    • Significant investment in the development of cloud based suite of products in R&D with a targeted late 2016 roll out.
    • Launch of a 24/7 call center.
    • Establish aggressive sales goals and control expenditures.
    • Continue sales growth and relationship building in China.
    • Engage in several conversations to satisfy the obligations on the June debentures.

To listen to the conference call in its entirety, please click here.

CEMATRIX – A Standout Venture Exchange Performer

Let’s start this with some key highlights from 2015:

  • 76.5% increase in sales to $15.38 million
  • EBITDA of $2.85 million
  • EBITDA per share of $0.08
  • Income up nearly $2.5 million
  • Gross margin increased to 32%

CEMATRIX is coming off a breakout year which is attributed to tireless management who have taken salary cuts, driven trucks and operated equipment to ensure the company’s survival through some incredibly difficult times.  All the painstaking growth was executed without issuing any equity, keeping the sharecount to a tight 34.2 million.

There are few companies on the Venture Exchange that can boast this kind of performance and management is predicting strong growth through 2016 with a targeted $18 million in revenue and increased EBITDA.  

Although CEMATRIX cut its teeth in the oil sands, originally pouring tank bases, over 90% of projected revenue for 2016 and beyond comes from the lucrative infrastructure market where its specialty concrete provides innovative solutions. Currently there are several large projects that management are bidding on that eclipse all past pours and add significant blue sky to this story.  

Shareholders will appreciate the recent run up to a new all time high as the share price briefly reached $0.39 this week. But even as CEMATRIX revenues continue to grow, as of this morning it is trading at $0.36, reflecting a valuation of just over $12 million.

To view today’s news on 2015 Year End results, please click here.

CEMATRIX Solidifies Important Chartered Banking Relationship

Shareholders should appreciate the importance of today’s announcement that CEMATRIX has signed an operating line credit facility with Canadian Western Bank. At the outset of 2015, which turned into a record year for CEMATRIX, RBC determined that it was unable to provide the level of working capital financing required by CEMATRIX to support the forecasted sales growth that management had predicted.

CEMATRIX was then faced with a situation that if its business activity did in fact rapidly escalate as forecasted, it’s working capital flexibility was severely restrained. In order to remedy this situation, CEMATRIX management, with the assistance of RBC, was diligent in securing a credit facility with Tallinn Capital in May of 2015. for up to $2 million. This would  fund operations through its busy season by way of factoring an interim Mezzanine loan to replace its former credit facility.  Although the money was expensive, carrying a 16.5% to 22% interest rate, it was necessary for CEMATRIX at the time to achieve a successful year.

As a side note, management believes close to 90% of its 2016 revenues will be driven by infrastructure projects.

Today, CEMATRIX announced it has signed a credit facility with Canadian Western Bank for up to $2 million bearing an interest rate of 4.70% or 2% above prime, whichever is greater. It should be noted that management has been extremely complimentary to Tallinn Capital for the support it provided to CEMATRIX and the lending group also played an important role in solidifying the new relationship with Canadian Western Bank.

The timing of this news is most welcome as CEMATRIX announced this past January that it exceeded its forecasts for 2015. Management is on the record that it expects  2016 to be even more robust. Audited 2015 year end results will be released in early March.  

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

CEMATRIX – $15 Million in 2015 – What’s Next?

CVX:TSX-V

CEMATRIX management today offered some guidance on their record 2015, and it was announced that the company both exceeded its goal of $15 million in sales and forecasted EBITDA of $2.5 million.

Audited financials and full details of the record year won’t be available until March when the company files its year end, but shareholders can now bask in management’s performance as we look ahead to another record year.

2016 is off to a stellar start and CEMATRIX also announced today that it has secured another $1.3 million in contracts for this year, where total contracted work now sits at $4.2 million.  

Jeff Kendrick, CEO of CEMATRIX, said,  “This is a significant achievement for 2015 and we expect continued growth for the foreseeable future. The additional $1.3 million in contracts for 2016 puts the Company in a great position to start off the New Year the same way we started 2015 – strong sales in the off season.”

To read full news release, please click here.

FLYHT Licences Intellectual Property For $2.5 Million USD

FLY:TSX-V

We know that investors have a number of questions around today’s announcement that FLYHT has sold a non-exclusive license to an unnamed technology company containing IP rights to develop an alternative or different AFIRS technology for Iridium’s NEXT satellite constellation. FLYHT has been restricted by the purchaser in the amount of information that can be disclosed.

The plus on this deal is that FLYHT will receive $2.5 million in the first quarter of the new year, which alleviates financing pressure and the dilution that comes with new equity. Secondly, FLYHT will have an option to sell the product developed with this IP.

Also, according to management, the unnamed technology company has already received approval to develop a product to operate on the “Iridium NEXT” satellite constellation, whereas FLYHT did not bid to receive one of the licenses (although the current FLYHT products will continue to operate on Iridium NEXT).

It’s also important to point out that the unnamed company is already a high volume distributer of AFIRS technology and this licence agreement doesn’t impact its current sales agreement.

Iridium NEXT: “Scheduled for 8 launches through 2017, Iridium’s groundbreaking second-generation satellite constellation is set to deliver exciting new innovations and opportunities, while providing continued high performance and reliability for all existing Iridium® solutions — far into the future”. For more information on Iridium NEXT, click here.

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

 

BNN: Alex Ruus Says FLYHT Has The Potential To Be A “Ten Bagger”

Trading Symbol –  FLY:TSX-V

In the midst of a difficult market, many FLYHT investors may be wondering why the company’s stock has traded close to 900 thousand shares in the first couple of hours of trading today. There’s no doubt the market is responding to very positive comments about the company’s future by Arrow Capital Portfolio Manager Alex Ruus.

His remarks were prompted by a caller’s question during yesterday’s (December 7th) appearance on BNN’s Market Call Tonight segment.

Mr. Ruus’ future expectations for FLYHT are summarized in  some powerful statements.  

  • “One of our bigger small cap positions in the portfolio. We absolutely love the opportunity here.”
  • “They have some world beating technology.”
  • “Aerospace has super high regulatory barriers to get into. They have broken them.”
  • “They are on the production line at Airbus and Bombardier. My bet is that by this time next year they’ll be on the production line at Boeing.”
  • “Big, big pipeline of business coming.”
  • “My modelling says five years out, the free cash flow coming out of this company could be two to three times the current market cap.
  • “To me it is a table pounder.”
  • “My five year target is a two dollar stock, so a ten bagger from here.”

Click here to view the segment, he talks about FLYHT at the 1:24 mark.

 

 

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Video Presentations From Opportunity Knocks VII Investor Conference Now Available

This past October 29th, The Howard Group hosted its 7th Annual “Opportunity Knocks” Investor Conference in Toronto. Five client companies from a wide variety of industries presented to an audience of approximately 100 fund managers, investment advisors and private investors.

Presenting client companies:

  • Robix Alternative Fuels Inc. | RZX:CSE
  • ICEsoft Technologies | (pending RTO)
  • Symbility Solutions Inc. | SY:TSX-V
  • VidWrx Inc. | VID:TSX-V
  • CEMATRIX Corporation | CVX:TSX-V
  • Grande West Transportation | BUS:TSX-V

The High Definition presentations are now available for viewing on The Howard Group website. To access the presentations, please visit our Events page or click here.

The event was sponsored by CNW Group, SmallCapPower, Modern Concierge, Stockhouse and Visual Capitalist.


About the Howard Group Inc.

Since 1988, The Howard Group has provided comprehensive investor outreach and capital markets programs, business development solutions, strategic planning and financing services to public companies. The Howard Group is associated with the Insight Limited Partnership II, which invests in micro and small cap companies.

The Howard Group also provides ongoing commentary on its client’s activities through the “Insight Live!” blog. Interested parties are encouraged to subscribe on our website at: https://howardgroupinc.com/follow-our-clients/

CEMATRIX Reports Record Q3/2015 Results – 2015 Will Be A Banner Year

Following up on its successful first half of 2015, Cematrix continues to gain momentum in the second half by finishing the third quarter (September 30th) with contracted sales at an all time record level – $16.2 million ($15.0 million for 2015 and $1.2 million for 2016).  

Given the current challenging conditions in the energy sector and the overall economy, the Company continues to deliver solid financial results and metrics.  

Some of the financial highlights for Q3 2015:

  • Year-to-date sales for the first nine months were $9.076 million and income before taxes  at $908,863 – both a record high for the company.
  • Sales for  Q3/2015 were up significantly at $4.09 million compared to just over $967 thousand  in Q3/2014 – an impressive 323% increase.  The bulk of this increase came from a large project in the Alberta oil and gas sector which the Company predicts will continue into 2016.  Infrastructure sales also increased.
  • Income before taxes for the third quarter were  $985 thousand.
  • Gross margins were a healthy 42%, rising to $1.72 million as a result of  higher sales and tight control of expenses.
  • Operating income for Q3/2015  was  $1.17 million compared to a loss of $459 thousand in Q3/2014  – a gain of $1.63 million.
  • EBITDA for the quarter was $1.219 million versus a negative $365 thousand in Q3/2014.

Of note is that management has stated that it expects EBITDA in 2015 to reach as high as $2.5 million. There are just over 34 million shares issued, with a market cap as of this writing of just over $7 million.   

It is forecasting 2016 revenues of $18 to $20 million with 90% of that coming from infrastructure versus energy projects.The bid pipeline now exceeds $100 million.

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