CEMATRIX Sends A Message About Future Expectations Following News of A Record Q2

CVX:TSX-V

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.

cvx_160804chart

To view full news release, please click here.

Shares Outstanding: 34,475,994
Options: 3,425,000
Fully Diluted: 37,990,994

FLYHT CEO Speaks To Momentum On Heels Of Record Shattering Quarter

FLY:TSX-V

As of this writing, FLYHT volume had reached approximately three quarters of a million shares following news of a record revenue $6.7 million second quarter and CEO Tom Schmutz speaking with investors regarding ongoing corporate progress and performance.

The quarter received a major boost with a one-time Intellectual Property sale as outlined by CFO Nola Heale. Here are some of the highlights from the conference call:

  • FLY)160728a

    (click to enlarge)

    “Second quarter was an outstanding revenue quarter for FLYHT. Total revenue was $6.7 million, which is nearly 80% larger than our best previous quarter. This revenue result was helped by a $3.3 million intellectual property deal. Even without that, we brought in $3.5 million from our traditional sources of revenue, which would be a close second to the fourth quarter last year for best revenue.”

    “The OEM licence fees which show up in our parts sales for the company remains strong and continue to grow year over year. We are significantly ahead of last year’s revenue from this source at this time. Nearly doubling the first half of 2015.”

  • “We place significant internal focus on growing our recurring revenue sources more quickly and I expect to have some exciting news in this revenue area in the near future.”
  • “When we look at our revenues year to date, we find that the $9.3 million figure that we bought in quarters one and two of this year, is approaching the $10.5 million that we did in all of 2015.”
  • “Our company has demonstrated record revenues successfully in five of the last six quarters. So there is significant optimism within the company resulting from this improved revenue performance and the strong feedback we are receiving from OEM and solution partners that we have a unique offering for the market.”
  • “We are focused on accomplishing the goals we set out to do in 2016. We are increasing our revenues and will continue to shepherd that very important indicator. We are very focused on closing a new OEM opportunity and we continue to see interest in the market for our solution.”

Please click below to listen to the full conference call or click here.

Interview With FLYHT CEO Tom Schmutz

“There Is A Real Awakening In The (Airline) Business And FLYHT’s Well Positioned”

FLY:TSX-V

In a recent interview with U.S.-based Uptick Newswire, FLYHT CEO Tom Schmutz covered a number of topics including:

  • The company’s charitable sponsorship of Laval St. Germain and his heroic efforts to raise money for cancer
  • The company’s year over year rising revenues
  • The successful recent private placement
  • How the Automated Flight Information System (AFIRS™) saves airlines money through various services
  • How it enhances aircraft safety by being able to stream black box data during an emergency event during a flight

In closing, Mr. Schmutz summarized the company’s current focus and outlined the opportunities that lay ahead.

“Right now we are focused on a couple different areas. We are focused on getting additional OEMs, in addition to the A320 and A330. We have a very strong business in China right now. There is a Chinese mandate that requires satellite communications to be on aircraft and inspected by 2017. I just got back from China and I continue to be excited about that portion of our market. And we’re looking for opportunities to support flight tracking requirements as they come out. Those requirements have been pushed out to 2018 and 2021. But we think the aircraft community is becoming more enlightened about wanting to understand where their assets are and making sure they move from old 1950’s style technologies and into the 21st century where you can understand where your equipment is at any time and talk to it in real time.”

To listen to the full interview, please click here.

Shares Outstanding: 173,477,635
Options: 8,736,300
Fully Diluted: 182,213,935

 

FLYHT Featured In Avionics Magazine – AFIRS Saves Time And Money

FLY:TSX-V

Avionics Magazine writer, Woodrow Bellamy III, recently penned an article called “FLYHT is Expanding Real Time Aircraft Monitoring to the Cloud” after interviewing CEO, Tom Schmutz and CTO Derek Graham. Key points that were detailed included how the technology saves airlines money and how it is helping customers identify potential mechanical issues before they occur.

In the piece, they discuss how the company’s Automated Flight Information Reporting System (AFIRS™) is moving its servers from the ground to the cloud.

To read the full article, please click here.

About Avionics Today
Avionics is the leading source for global aviation technology intelligence, covering the latest developments with the connected aircraft, NextGen, avionics innovation and global air traffic management modernization. More than a magazine, this is the platform for in-depth analysis on the global aircraft electronics market, used by top avionics executives, engineers, pilots and professionals throughout the value chain. All this is backed by a Qualified Circulation of 27,000.


Shares Outstanding: 173,477,635
Options: 8,736,300
Fully Diluted: 182,213,935


CEMATRIX Formally Joins Forces With Global Giant Lafarge – Market Responds Positively

In spite of globally weak markets, news on the CEMATRIX – Lafarge agreement has been well received with the stock climbing 20% from Friday’s $0.39 close. Amidst a sea of global negative news and uncertainty, there was a positive embrace of the announcement that CEMATRIX has entered into a five-year Joint Marketing Agreement with Lafarge Canada for the development of cellular concrete markets across Canada.  The plan is to increase sales to the benefit of CEMATRIX and Lafarge by heightening awareness of the construction challenges which can be solved with cellular concrete solutions.

The obvious question is, why would a company the size of Lafarge be interested in a formal agreement that ties the companies at the hip? From CEMATRIX’s perspective, CEMATRIX has been a large customer of Lafarge for many years and the companies have successfully collaborated on many past projects. More importantly, every cubic metre of cellular concrete that CEMATRIX places is a win for Lafarge as it brings new business to the cement giant that may have been previously unavailable.

Lafarge is a major player in the aggregates, cement and concrete industries, and is a world leader that operates in 64 countries and employs 65,000 people. The most recent numbers on the Lafarge website states sales were 15.8 billion Euros in 2012. Lafarge’s recent merger with Holcim in 2015 makes the combined companies the largest cement company in the world.

CEMATRIX has developed and acquired technologies, proprietary formulations and specialized processes that ensure product consistency with endless capabilities. Lafarge has a massive marketing team that could have a material impact on CEMATRIX’s revenues by driving sales and awareness of the innovative product to the next level.

CEMATRIX must be expecting a large increase in sales. It was noted in the news release that in order to meet the expected demand with the new working relationship, CEMATRIX plans to invest approximately $2.5 million to build two new dry mix units and have them up and running by the start of the busy season in spring of 2017.  Other equipment requirements may follow.

CVX’s current North American pipeline of potential projects now exceeds $120 million in total, of which 88% is infrastructure related.

To view news release, please click here.

 

U.S. Judge Draws “Line In The Sand To Would-Be Patent Infringers”

In an article published in the Financial Post on Tuesday, June 14, 2016, Kristine Owram reported on Florida U.S. District Judge Beth Bloom, who ordered BRP (Bombardier Recreational Products), the maker of Ski-Doos and Sea-Doos, to pay Arctic Cat $46 million for patent infringement.

We felt this judgement was well worth commenting on as Intellectual Property (IP) is of particular importance for two of The Howard Group’s clients and is a key reason why we are invested in both companies, being Clean Seed (CSX.V) and FLYHT Aerospace (FLY.V).

Clean SeedWhen we first introduced Clean Seed in July 2014, the theme of the commentary was a belief that what would determine the company’s ultimate value was the IP portfolio, which has also grown over the past two years.  If we are correct, the IP will be THE reason for a major farm equipment manufacturer to take a serious look at Clean Seed. The company has incorporated multiple technologies into its CX-6 Smart Seeder that allow a field to be “painted” on a square foot basis with the simultaneous and optimum mixture of seed, nutrients and fertilizer. Very recently, the first CX-6 SMART Seeders were delivered to Rocky Mountain Dealerships (TSX – RME).

To read The Howard Group’s introduction to Clean Seed, click here.

FLYHT Aerospace SolutionsFLYHT Aerospace lives and breathes technology and has a number of patents and patents pending. It’s the attributes of the technology that has attracted more than 50 customers being airlines, leasing companies and original equipment manufacturers. Total flight hours using the Automated Flight Information Reporting System (AFIRS™) system now exceed 2.2 million. As promoted by FLYHT, the proprietary technology increases safety, improves operational efficiencies and enhances profitability, operates on multiple aircraft types and provides functions such as safety services voice and text messaging, data collection and transmission, and on-demand streaming of flight data recorder (black box), engine and airframe data.”  

CEO Tom Schmutz was recently interviewed on CNBC:
https://howardgroupinc.com/2016/06/flyht-ceo-tom-schmutz-interviewed-cnbc/

In the Arctic Cat case, the jury found that BRP willfully infringed on two patents related to a safer steering system for personal watercraft and therefore awarded Arctic Cat initial damages of US$15 million. However, because the infringement was found to be willful, the judge tripled the damages owing.

The article quoted Arctic Cat lawyer, Nicholas Boabel of law firm Hagens Berman, “Judge Bloom’s final judgement in this case is not only a major victory for our client, Arctic Cat, but a testament to the importance of upholding IP law and punishing wilful patent infringement.”

It’s expected that BRP will appeal.

To view the full Financial Post article, please click here

FLYHT CEO Tom Schmutz Interviewed on CNBC

FLY:TSX-V

Investors in FLYHT were happy to see the volume in the stock jump to over 2 million shares and the share price rose to over $0.20 on Friday afternoon. Tom Schmutz, FLYHT CEO appeared on CNBC’s Power Lunch. He used the opportunity to discuss the fact that FLYHT offers an affordable solution to the airline industry that is capable of streaming airplane data via the Iridium satellite network. He expressed that this solution would have helped investigators immediately understand exactly what happened with the recent Egypt Air incident.

To view the interview, please click here.

FLY:TSX:V
Shares Outstanding: 173,477,635

Fully Diluted: 182,213,935

 

U.S. Investor Explains Why FLYHT “Is At A Significant Inflection Point In Its Business Model”

FLY:TSX-V

Walter Winnitzki, an investment professional with over 25 years experience as a research analyst, recently published a sixteen page report introducing FLYHT Aerospace to investors at a leading and influential investment club.

Mr. Winnitzki was first introduced to FLYHT a number of years ago, while he worked for a large institution based in New York City. That institution continues to be supportive and still owns a sizable position in FLYHT Aerospace today.

The title of his piece summarizes his belief that the company is  “Ready For Takeoff.” It lays out Mr. Winnitzki’s thesis on why he believes FLYHT’s share price “could be positioned to appreciate 2X – 3X over the next 12 – 18 months.”

Click here to view the full report.

FLYHT’s 2016 AGM and Q1 Results Video Now Available Online

On Wednesday, May 11th FLYHT hosted its AGM in Calgary. FLYHT CEO Tom Schmutz led the presentation with an overview of the company’s accomplishments over the last year. Nola Heale, CFO then discussed the financial performance from the first quarter. Following Ms. Heale, David Perez, VP Sales and Marketing outlined the various strategies and sales initiatives the company is focused on, and finally Mat Plamondon, VP Operations & Customer Fulfillment provided attendees with an overview of the specialized products and services available to FLYHT customers.

To view the AGM presentation and video recording, please click here. 

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.