- Cematrix Corporation (TSXV:CVX) has announced its financial results for the first quarter of 2020
- The cellular concrete manufacturer posted record revenues of almost C$4 million for the quarter
- During the first quarter, Cematrix acquired the Pacific International Grout Company, which positively impacted its revenues
- Despite the record revenue, the company generated a negative EBITDA of $523,025 in the quarter
- Cematrix Corporation (CVX) is down 5.6 per cent and is trading at $0.42 per share, with a market cap of $24 million
Cematrix Corporation (TSXV:CVX) has revealed its results for the first quarter of this year.
The cellular concrete manufacturer generated C$3,931,857 in revenue for the quarter of 2020, up 23 per cent on the first quarter of 2019.
This was a record revenue quarter for the company, but it was not a profitable one for Cematrix.
The company produced a negative EBITDA of $523,025 for the quarter, which represents a 163 per cent drop against 2019’s total of negative of $199,044.
Cematrix put the EBITDA variance down to fixed operating costs that increased when Cematrix picked up the company’s new US subsidiary PIGCO. It has stated it expects this metric to improve as the company massages its cost structure going forward.
Earlier in the quarter, the company raised $5.5 million in proceeds from a private placement.
The CEO and President of Cematrix Jeff Kendrick commented on the company’s recent acquisition of the Pacific International Grout Company.
“The Pacific International Grout Company contributed $2.9 million or approximately 74 per cent of the revenues recognised in the first quarter of 2020 for the CEMATRIX Group of companies,” he said.
Turning to the pandemic, Jeff went on to say that the company has been only marginally impacted by the onset of COVID-19.
“Factoring COVID-19 into our estimates, the company still expects to generate between $40 and $45 million in revenue in 2020,” he said.
Cematrix Corporation (CVX) ) is down 5.6 per cent and is trading at $0.42 per share at 1:58 pm EDT.