CEMATRIX Announces 2024 Third Quarter Financial Results
CALGARY, Alberta, Nov. 07, 2024 (GLOBE NEWSWIRE) -- CEMATRIX Corporation (TSX:CEMX) (OTCQB:CTXXF) ("CEMATRIX" or the "Company") a North American leading manufacturer and supplier of technologically advanced cellular concrete products announced the release of its consolidated financial results for the third quarter ended September 30, 2024.
"As expected, third-quarter revenues were below last year's record results. The Company had anticipated that the sales from two major 2023 projects would be replaced by the sales from four major projects originally scheduled to be placed in the third quarter, but delays in those 2024 projects resulted in lower than expected third quarter sales. Even though our sales are lower than the previous year, the Company's ongoing focus on project pricing and cost efficiency has strengthened our gross margins, yielding positive cash flow from operations and positive adjusted EBITDA. Thus, despite some delays that have caused revenue shifts into future quarters, we've maintained a solid balance sheet with positive adjusted EBITDA year-to-date, underscoring the resilience of our business model. While sales may fluctuate, we are actively working to offset project delays by expanding into regions of North America less impacted by winter weather, helping to reduce seasonality risks. CEMATRIX's has a very stable financial foundation and a healthy business backlog that presently exceeds $74 million, providing us with a platform for significant growth into 2025," stated Jeff Kendrick, CEO of CEMATRIX.
"Our success is built on outstanding field execution, and I want to recognize and thank our entire team at CEMATRIX, especially our field staff, who consistently deliver projects safely, on time, on budget, and with exceptional quality. Their dedication to excellence is what drives our reputation and strengthens our customer relationships," stated Randy Boomhour, COO of CEMATRIX.
"In the third quarter, we achieved two strategic milestones that set the stage for CEMATRIX's future growth. Our uplisting to the TSX not only enhances shareholder liquidity but also provides us with broader access to capital. Additionally, the successful $6.6 million financing completed during the quarter has strengthened our balance sheet, positioning us well to scale organically and to pursue potential M&A opportunities that support our long-term growth ambitions," stated Marie-Josée Cantin, CFO of CEMATRIX.
"As significant shareholders, senior CEMATRIX management is closely aligned with our investors. A substantial portion of senior management's bonuses are issued as RSUs, further enhancing ownership and reinforcing our commitment to long-term value creation for all shareholders," stated Mr. Kendrick."As we advance our strategic plan, we remain optimistic about the rest of 2024 and are especially excited for 2025, with a large portion of our current backlog scheduled for delivery next year," concluded Mr. Kendrick.
The following are the business and financial highlights for the third quarter and year to date:
Business highlights for the quarter:
Announced $9.7 million in new contracts (July 10, 2024)
Announced uplisting to TSX and new ticker symbol CEMX (July 15, 2024)
Announced launch of $3.5 million bought deal private placement (July 17, 2024)
Announced closing of $6.6 million bought deal private placement (July 29, 2024)
Announced the retirement of esteemed Board member, Mr. Bob Benson (August 1, 2024)
Announced project delays (September 23, 2024)
Business highlights subsequent to the quarter:
Announced $6.2 million in new contracts (October 24, 2024)
Summary financial results:
Three months endedSeptember 30,
Nine months endedSeptember 30,
($millions)
2024
2023
Change
%
