CALGARY, Alberta, Nov. 13, 2019 (GLOBE NEWSWIRE) -- CEMATRIX Corporation (CVX.V) (the “Corporation” or “CEMATRIX”) through its wholly owned operating subsidiaries, CEMATRIX (Canada) Inc. (“CCI”), MixOnSite USA Inc. (“MOS”) and Pacific International Grout Company (“PIGCO’) has converted $6.1 million in U.S. infrastructure contracts from its verbally awarded project total. These new contracts increase this year’s contracted sales to $45.9 million, of which $21.0 million are currently scheduled to carry over to 2020.
Total contracts and verbally awarded projects, which is mostly recognized as contracts in process, and includes the contracts noted above, increased by $0.8 million to approximately $77.7 million to date, of which approximately $51.8 million is currently scheduled to carry over into 2020/21.
“The $6.1 million in new contracts represents two projects, both of which were converted to contracted from their verbally awarded status. One contract was awarded to CEMATRIX’s recently acquired U.S. subsidiary, PIGCO and the other was awarded to CEMATRIX’s other U.S. acquired subsidiary, MOS. The PIGCO project, valued at $5.4 million CDN with potential to grow in size is a load reducing fill project on the West coast of the U.S. This PIGCO project will commence this year with the greatest volume being processed and place next summer. The MOS project, valued at $0.7 million CDN, was also a load reducing fill project located on the East coast of the U.S.,” stated Jeff Kendrick, CEMATRIX President and CEO. “The MOS project is currently scheduled to be completed in 2019.”
“As we near the end of 2019, and with the PIGCO acquisition completed, we can better gauge and provide guidance on projected revenues for 2019 and 2020. It is always difficult to forecast CEMATRIX revenues due to the many one-off, weather dependent projects under the control of the general contractors. There is no certainty that projects scheduled for the late fall will actually be completed in this year or could be pushed into the following year. It is important to note, that these projects are not lost, but will be recognized as sales in a future quarter’s revenue. CEMATRIX, for example, have three PIGCO tunnel projects totalling over $6.0 million CDN that were originally scheduled to commence in the fall and will now start late January or February 2020.”
“Further complicating our forecasting model, was the timing of the PIGCO acquisition. PIGCO was originally expected to close by June 30, 2019, but the acquisition was not finalized until October 1st. PIGCO sales during that period, which amounted to more than $2.1 million CDN were not recognized under the CEMATRIX group of companies.”
“There have been significant new contract awards over the past couple of months by CEMATRIX, MOS and PIGCO, including the projects noted above and those new contracts described in the recent news release dated October 29, 2019. With these updates and after considering projects already contracted and verbally awarded, along with expected organic sales growth in North America and accounting for potential weather-related delays, we can expect to announce sales for 2019 of $25-$27.5 million CDN and between $40-$45 million CDN for 2020.”
CEMATRIX is a rapidly growing, cash flow positive 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. Through recent acquisitions of Chicago based MixOnSite and Bellingham based Pacific International Grout, CEMATRIX is now North America’s largest Cellular Concrete company.
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.
For further information, please contact:
Jeff Kendrick - President and Chief Executive Officer
Phone: (403) 219-0484
Glen Akselrod – President, Bristol Capital
Phone: (905) 326 1888 ext 1
Jeff Walker, The Howard Group – Investor Relations
Phone: (888) 221-0915 or (403) 221-0915
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 November 7, 2019 under CEMATRIX’s profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.