Mr. Jeff Kendrick reports

CEMATRIX ANNOUNCES 2023 FIRST QUARTER FINANCIAL RESULTS

Cematrix Corp. has released its consolidated financial results for the first quarter ended March 31, 2023.

"In line with our expectations, we saw improvements in many of our key financial metrics in the first quarter of 2023. Revenue was up 41 per cent compared to Q1 of last year, gross margins improved as cement and supply chain issues have eased, and SG&A expenses declined compared to the prior year," stated Jeff Kendrick, president and chief executive officer of Cematrix.

"I want to thank all of our employees at Cematrix, particularly our field staff, for staying safe and delivering a quality product to our customers as well as our sales teams who have been instrumental in driving such strong growth. Our employees continue to make our success possible through hard work and dedication and we will look to them again this year as we continue to grow the Cematrix brand.

"We remain focused on becoming a growing, cash flow positive company through strong organic growth, coupled with a strong and delevered balance sheet, and a simple capital structure. We are aligned with shareholders and determined to grow shareholder value. We continue to believe the company is on track to have a great year in 2023. I remain incredibly optimistic about this year and the future," said Mr. Kendrick.

The following are the business and financial highlights for the first quarter:

Business highlights (news releases) for the quarter:

• Announced $5.3-million in new contracts (Feb. 13, 2023);
• Announced $4.5-million in new contracts (March 22, 2023).

Financial highlights for the first quarter:

• Revenue increased to $7.2-million in Q1 2023 versus $5.1-million in Q1 2022;
• Gross margins improved in Q1 2023 to $700,000 (10 per cent) versus $(100,000) (negative 1 per cent) in Q1 2022;
• Operating loss decreased in Q1 2023 to $1.2-million versus $1.8-million loss in Q1 2022;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) improved to $(700,000) in Q1 2023 versus $(1.5-million) in Q1 2022;
• Cash flow used in operations improved to $(300,000) in Q1 2023 versus $(800,000) in Q1 2022.

Subsequent events

In the month of April, the company repaid all of the outstanding April, 2020, convertible debentures, on the maturity date, in the amount $3.6-million. On the same date, all remaining regular warrants and broker warrants expired. This was the final step in the company's strategic goal to delever the balance sheet and to simplify its capital structure.

In addition, in the month of May, CIBC and the company have amended its credit facility to waive the quarterly debt to EBTIDA covenant for Q1 2023 to Q3 2023 and to reduce the maximum borrowing amount available under the credit facility from $5-million to $3-million. The current balance outstanding on the credit facility is zero.

Reminder -- Q1 financial results webinar

Management will host a webinar at 4 p.m. ET on Thursday, May 11, 2023, to discuss Cematrix's first quarter financial results, provide a corporate update, and conclude with a question and answer session from on-line participants. To participate, please use the following information:

When:  May 11, 2023, 3 p.m. Eastern Time (United States and Canada)

Topic:  Cematrix Q1 financial results webinar

After registering, you will receive a confirmation e-mail containing information about joining the webinar.

About Cematrix Corp.

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. Through recent acquisitions of Chicago-based MixOnSite and Bellingham-based Pacific International Grout, Cematrix is now North America's largest cellular concrete company.

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