CEMATRIX Corporation (TSXV: CVX) (OTCQB: CTXXF) (“CEMATRIX” or the
“Company”) a North American leading manufacturer and supplier of
technologically advanced cellular concrete products, is today
providing a detailed overview of anticipated activity throughout
2023 due to the strength of the Company’s positioning early in the
year.
In the words of President and CEO Jeff Kendrick,
“This is the first time in the Company’s history that we sit early
in a year with a portfolio that is composed of a number of larger
projects, which is a significant change compared to year’s
past.
One of those larger projects is the $21.2
million North Carolina freeway construction project, which was
originally scheduled to commence in 2020. While just under 20% of
this project will go into the ground in 2023, it will still
generate $3.6 million in revenues this year. The balance of the
project is scheduled to be completed next year which speaks to a
strong start to 2024.
Importantly, improved economics will be realized
on these larger projects as being on site for longer periods of
time generates additional savings and enhanced margins due to
reduced mobilization and demobilization, labor efficiencies and
reliability of cement supply.”
Unlike past year’s where the Company derived
revenues from a large number of smaller projects, the majority
being less than $1 million in scope, 2023 sees CEMATRIX with signed
contracts in the amount of $51.4 million of which, $28.6 million is
already scheduled to be placed in 2023.
“Although 2022 was a record year for sales for
CEMATRIX,” continued Mr. Kendrick, “The Company completed only 7
projects over $1 million for a total of $15.5 million. The
remainder of that year’s activity came from numerous projects that
were a few thousand dollars to $1 million in size.”
“I’m very pleased to say that 2023 is quite
different than any year since the Company’s inception in 1999, in
that it has contracts/contracts in process for eleven projects
alone, from which approximately $24.3 million in revenues is
scheduled to be realized before the end of the fiscal year. In
addition, projects totalling $11.7 million in contracts/contracts
in process which are individually less than $1.0 million each are
also scheduled to be processed and placed in 2023. Furthermore, we
expect to continue to build on this number during the year. Our
current scheduled level of contracted/contracts in process sales
totalling approximately $36 million to date has not happened in the
past and this forecast is already 24% ahead of last years total
sales of $29 million. This is why we wish to share this information
with our shareholders.”
“Furthermore, the Company’s backlog, which sits
at a record $93.2 million is now being realized as is reflected in
the record sales being achieved by the Company since mid-year in
2022, despite the cement shortage issues,” continued Mr. Kendrick.
“This new sales trend is expected to continue for the foreseeable
future as is the expected ongoing improvement in the Company’s
gross margins with the forecasted improvement in cement and
ready-mix supply for 2023 that is being promoted by our key
suppliers.”
“Clearly, the benefits attributable to the
Company’s advanced cellular concrete products compared to many
traditional construction materials are being recognized and are
gaining traction with State and Provincial governments,
transportation departments, engineering firms, large contractors
and project managers,” stated Mr. Kendrick. “We have proven over
and over that the Company’s technologically advanced and
proprietary cellular concrete product drives significant labor
savings, dramatically shortens the time to complete projects,
increases the lifespan, reduces future maintenance costs and
generally delivers positive environmental benefits as compared to
the legacy products that cellular concrete replaces.”
The following is a list of those eleven key
projects:
West Coast Commercial development |
– Load Reducing Fill and Thermal Pipe Protection |
East Coast Freeway (5 interchanges) |
– Load Reducing Fill, backfill
of overpasses |
East Coast Airport Expansion |
– Load Reducing Fill, taxiway
underlay |
West Coast Tunnel carrying pipelines |
– Specialized Tunnel grouting,
pipe protection |
West Coast Tunnel carrying utilities |
– Specialized Tunnel grouting,
pipe protection |
West Coast Port Agra Terminal |
– Load Reducing Fill, grain
silo fill |
Gulf States Wharf Reconstruction |
– Load Reducing Fill, Port
wall backfill |
Gulf States Tunnel carrying utilities |
– Specialized Tunnel Grouting,
pipe protection |
Midwest Tunnel carrying utilities |
– Specialized Tunnel grouting,
pipe protection |
Midwest Riverwalk Reconstruction |
– Load Reducing Fill,
riverwalk pathway underlay |
Westcoast Bridge Reconstruction |
- Load Reducing Fill, bridge
abutment backfill |
“It is also clear that the Company’s scope truly is on a North
American scale. Work for this year will see CEMATRIX across the
continent from the West Coast to the Southern and Northern parts of
the United States and in Canada from Vancouver to the Maritimes.
This growth is being realized because of the achievements of the
teams at the wholly owned operating subsidiaries, CEMATRIX (Canada)
Inc., MixOnSite USA Inc. (“MOS” - Chicago, Illinois) and Pacific
International Grout Company (“PIGCO” - Bellingham,
Washington).”
Management is also looking to its sales
pipeline, which now exceeds $430 million, to build on this year and
future years sales. The size and continued growth of this pipeline
reflects the fact shared regularly by the President and CEO, that
the future project opportunities are not only becoming more
numerous but also increasing in size. As of this date the sales
pipeline includes an additional twenty plus projects ranging in
size from $1 million to $28 million, which bodes well for
CEMATRIX’s future.
“This does not mean we are going to be
successful in securing all of the multi-million projects on, which
we have been asked to bid,” stated Jeff Kendrick, “but it goes to
the point that the Company sees a different landscape for the road
ahead, as compared to its past.”
In closing, Mr. Kendrick has a video message
reflecting on management’s belief that 2023 is just the beginning
of a new positioning in the market for CEMATRIX.
https://youtu.be/SRQsQZyFAuQ
ABOUT CEMATRIX
CEMATRIX is a rapidly growing company that
manufactures and supplies technologically advanced cellular
concrete products developed from proprietary formulations across
North America. This unique cement-based material with superior
thermal protection delivers cost-effective, innovative solutions to
a broad range of problems facing the infrastructure, industrial
(including oil and gas) and commercial markets. Wholly owned
subsidiaries, Chicago based MixOnSite and Bellingham based Pacific
International Grout, have made CEMATRIX a true leader in North
America’s growing Cellular Concrete market.
CEMATRIX’s 2022 investment in Burlington Vermont
based, Glavel Inc., a foamed glass manufacturer, has strengthened
the COMPANY’s commitment to the environment in the infrastructure
construction space. For more information, please
visit: www.cematrix.com.
CAUTIONARY STATEMENT REGARDING FORWARD
LOOKING STATEMENTS
This news release contains forward-looking
statements and forward-looking information (together,
"forward-looking statements") within the meaning of applicable
securities laws. All statements, other than statements of
historical facts, are forward-looking statements. Generally,
forward-looking statements can be identified by the use of
terminology such as "plans", "expects", "estimates", "intends",
"anticipates", "believes" or variations of such words, or
statements that certain actions, events or results "may", "could",
"would", "might", "will be taken", "occur" or "be achieved". The
forward-looking statements contained in this news release are based
on certain key expectations and assumptions made by the Company,
including satisfaction of regulatory requirements in various
jurisdictions and the Company’s anticipated use of the net proceeds
of the Offering. Forward looking statements involve risks,
uncertainties and other factors disclosed under the heading "Risk
Factors" and elsewhere in the Company's filings with Canadian
securities regulators, which could cause actual results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Although the Company believes that the
assumptions and factors used in preparing these forward-looking
statements are reasonable based upon the information currently
available to management as of the date hereof, actual results and
developments may differ materially from those contemplated by these
statements. Readers are therefore cautioned not to place undue
reliance on these statements, which only apply as of the date of
this news release, and no assurance can be given that such events
will occur in the disclosed times frames or at all. Except where
required by applicable law, the Company disclaims any intention or
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or
otherwise.
Neither the 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
OfficerPhone: (403) 219-0484
Glen Akselrod – President, Bristol CapitalPhone:
(905) 326 1888 ext 1glen@bristolir.com
Jeff Walker, The Howard Group – Investor
RelationsPhone: (888) 221-0915 or (403)
221-0915jeff@howardgroupinc.com
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