CEMATRIX President and CEO Jeff Kendrick summed up today’s news of a record first half 2016 and Q2 in his quote:
“Our sales pipeline for projects scheduled for 2016 and 2017 are at the highest level in our history, excluding any potential additional sales expected to be generated from the recent Joint Marketing Agreement with Lafarge. We are taking the necessary steps to prepare the Company for this significant sales growth by building the additional required equipment, adding operational staff to be hired and trained, increasing product testing to facilitate marketing efforts and implementing the internal systems that will allow our staff to manage larger projects more efficiently.”
Projects on which CEMATRIX has been asked to submit bids now total $126 million with 89% of that total related to infrastructure.
Although CEMATRIX has spent years diversifying its business to round out the seasonality, it does somewhat mirror the construction season. The first half of the year is traditionally much slower than the second half. CEMATRIX increased sales 19% to $5.9 million in comparison to the same period in 2015.
Gross margin on sales was $1.2 million with reported positive EBITDA of $294,288. Management stated that increased labour costs for hiring additional staff in preparation of expected sales growth through the balance of 2016 and in 2017 brought margins down in H1 but expect them to improve as increased sales volume levels cover fixed costs.
To view full news release, please click here.
Fully Diluted: 37,990,994