CEMATRIX Corporation Announces Its Results for the Year Ended December 31, 2013
March 13 2014 - 5:27PM
Marketwired Canada
CEMATRIX Corporation (TSX VENTURE:CVX) (the "Corporation" or the "Company" or
"CEMATRIX") announces the release of its consolidated financial results for the
year ended December 31, 2013.
CEMATRIX had a strong start to 2013 with record revenues in the first quarter,
the majority of which were from one infrastructure project in Windsor, Ontario,
which started in December of 2012 and continued throughout 2013. Even though
Canadian infrastructure sales continued to increase beyond 2012 levels, sales in
the oil and gas sector and in infrastructure in the United States ("U.S.) were
lower than that achieved in 2012.
The sales decline in the oil and gas sector was the result of the timing of
projects in this area while the decline in U.S. infrastructure sales was due to
the lack of available projects in that country. Management expects that both of
these sectors will rebound in 2014.
As a result of the above changes in sales patterns, total revenues for 2013
declined by 6% to $8.1 million. Margins also declined as a percentage of total
sales due to the greater influence of infrastructure sales, together with lower
introductory margins on certain infrastructure projects. This decline in sales
margins resulted in an operating loss before income taxes of $247,009 as
compared to operating income before income taxes of $156,294 in 2012.
The net loss after income taxes was $220,428 in 2013, as compared to income
after tax of $856,294 in 2012. In 2012 the Company recorded a deferred tax asset
of $700,000 in recognition of the future benefit of applying the Company's loss
carry forwards to reduce future taxable income.
Selected financial information for the year ended December 31, 2013 is as follows:
Year ended December 31
---------------------------------------
2013 2012 Change
---------------------------------------
Revenue $ 8,072,148 $ 8,549,150 $ (477,002)
----------- ----------- -----------
Gross margin 1,688,985 2,257,733 (568,748)
Operating expenses (1,802,983) (1,967,804) 164,821
----------- ----------- -----------
Operating income (loss) (113,998) 289,929 (403,927)
Finance costs and other items (133,011) (133,635) 624
----------- ----------- -----------
Income (loss) before income taxes (247,009) 156,294 (403,303)
Recovery of deferred taxes 26,581 700,000 (673,419)
----------- ----------- -----------
Net income (loss) attributable to the
common shareholders (220,428) 856,294 (1,076,722)
Unrealized foreign exchange gain on
translation of foreign subsidiary 11,837 994 10,843
----------- ----------- -----------
Total comprehensive income (loss) $ (208,591) $ 857,288 $(1,065,879)
----------- ----------- -----------
Income (loss) per common share $ (0.007) $ 0.025 $ (0.032)
----------- ----------- -----------
Highlights for 2013 included the following:
-- Canadian infrastructure sales grew by 34% to $6.5 million from $4.9
million in 2012.
-- Company put in place a $500,000 increase in its operating loan, to take
it to $1.5 million for the seasonal construction period between April
and October.
-- The Company`s wholly owned subsidiary, CEMATRIX (Canada) Inc., entered
into an agreement with the Business Development Bank of Canada to
provide an additional $530,000 of capital expenditure financing,
bringing the total facility to $1.406 million.
-- The Company commenced construction of a new dry mix production unit at
an estimated cost of $1.1 million. The unit will be available for use
for the 2014 construction period.
-- The Company continued its focus on health and safety and maintained all
of its safety certifications which enabled the Company to work on
construction sites throughout North America, and in particular the
Western Canada Oil and Gas sector.
-- Company has $2.0 million of contracted work that is currently completed
or scheduled for completion in 2014.
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, 2013, 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.
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 March 12, 2014 under
CEMATRIX's profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX
with Canadian securities regulators.
FOR FURTHER INFORMATION PLEASE CONTACT:
CEMATRIX Corporation
Jeff Kendrick
President and Chief Executive Officer
(403) 219-0484
The Howard Group
Jeff Walker
Investor Relations
(888) 221-0915 or (403) 221-0915
jeff@howardgroupinc.com
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