CEMATRIX Corporation

We're going to get into it very quickly here. With us today, Randy Bumauer, who's the CEO of Sumatrix, and Marie-José Quintin, who is the chief financial officer, and potentially Jordan Wolf, president of MOS, or Mixed Onsite out of Chicago, might be joining us later in case there's any questions about about what's happening in and around Chicago. So with that, Randy and MJ, I'm going to turn it over to you. Thank you.

Great. Thank you very much, Grant. Really appreciate that introduction. Welcome everyone to our Q1 earnings call. I appreciate everybody attending. We're going to first kind of do a quick overview of Symmetrix and the company, just in case we've got some new New investors and new potential shareholders on the call. For many of you, this will be a repeat, so I'll do a pretty quick and then I'll hand it over to MJ who will go through our Q1 financials. Key investor highlights. This is really sort of an executive summary. Smatrix is an innovative cellular concrete solutions company. We're a leading provider of lightweight, cost-effective, durable cellular concrete for infrastructure projects. We have a strong competitive advantage and we work primarily as a subcontractor for major North American general contractors. Financial strength and overall growth trend is an important part of our story. Our 2024 revenue was $35 million with a positive adjusted EBITDA of $3.3 million. We had cash flow from operations of almost $5 million. At the end of the first quarter, we had $8.5 million in cash and no long-term debt. We did have some equipment financing that is in the long-term section. And we're forecasting a record year in 2025. That won't show up as every quarter is better than the quarter last year or better than the the record year in 2023. In construction, when major projects start and stop has a major impact on how our revenue looks like in these accounting periods that accountants track things in. Overall, for Smatrix, there's a really significant market opportunity. We're an industry leader. The global cellular concrete market is very large and there's tailwinds that are helping us in terms of increased infrastructure spending in Canada and the U.S. So team and corporate timeline, the three executive officers of the company are myself as CEO, Jordan Wolf, as Grant mentioned, the president of Mix Onsite, our largest business in the US, and MJ, who is our CFO. We've got a strong independent board with Manaz, Rick, Steve, and Anna, and John. When we look at the overall share ownership of the company, there's 151 million shares issued and outstanding, fully diluted, we're at about 167.7. Insiders own about 15.4 million of those shares or roughly 10%. Jordan Wolf is the largest insider and I would be the second largest insider. You can see our company was founded in 99. We survived a lot of ups and downs and we've really hit an inflection point in the last couple of years where revenue growth has been matched with positive EBITDA and positive cashflow from operations. For those of you who don't know anything about the product, cellular concrete is made by mixing cement, water, and foaming agent together. The foaming agent creates bubbles in the mixture, which results in a cellular structure when the concrete sets. As a result of the properties of cellular concrete, it's very cost-effective compared to other materials. comparable replacement products, has a low density and is lightweight, has a high bearing capacity. It's extremely pumpable, highly flowable and self-leveling, self-compacting. The bubbles give it a thermal, some thermal insulating properties. It's very durable and it's also excavatable. So if you're covering shallow utilities, you can get back at those utilities if you need to. There's a lot of applications for cellular concrete because of its properties. The main ones that we focus in on is lightweight engineered fill. MSE retaining wall fill, lightweight insulating road sub bases, especially over weaker unstable soils, flowable and self-compacting fill, pipe and culvert abandonments, tunnel and annular grout, and shallow utility and foundation insulation. Customers and competitive advantage. So Smatrix is almost always a subcontractor or general contractor. We will on occasion, especially for smaller scopes of work, work directly with an owner. And we've worked with almost all of the largest general contractors in North America. And we've shown you a snapshot of some of those down there below. From a competitive advantage point of view, really our number one competitive advantage is our reputation. We've been successfully delivering cellular concrete solutions on time and on budget for over 25 years. Our team has a lot of expertise. We have over 200 years of in the field experience. We have a large fleet of mobile, technically advanced equipment for producing cellular concrete with capacity to grow. Our size and scale is a competitive advantage. We have multiple locations from coast to coast. We successfully completed projects across Canada and the US and we're greener and more sustainable generally than the legacy products that we replace. There's a lot of words in here, but essentially the summation of it is the market is quite large. It's very hard to estimate what the size of this market is, but it's been estimated as low as $4 billion worldwide to as high as $27 billion worldwide. I think everyone would agree the market for cellular concrete is growing as more people understand the properties of the product and it's successfully implemented in more projects across the world by Simatrix and other providers. infrastructure spending is increasing. Infrastructure in Canada and the US is aging and needs to be repaired and replaced. Populations continue to grow, so new infrastructure is required, which places additional loads on existing infrastructure. So spending is just expected to increase. So I think, MJ, is this where I turn it over to you?

Yes, please. Thank you, Randy. So let's go over some key financial highlights to understand our business at Simatrix. Despite a step back in 2024, our overall revenue trend line is growing. I'll show that to you on the next slide on the graph. For instance, revenue in 2021 was $22.6 million and 2024, $35.6. And as Randy mentioned, we were forecasting 2025 to be a record year. We have a positive bottom line and we are generating cash. In 2024, as an instance, we had adjusted EBITDA of $3.3 million and positive cash flow of about $5 million as well. We do have a healthy balance sheet with low leverage. At the end of Q1 2025, we had $8.5 million in cash. We had no long-term debt, as Randy mentioned. So some keys to understanding our business. Revenue growth will be lumpy. It will not be a staircase. Financial results will be variable based on the timing of when large projects start and stop. Construction is a seasonal business, as a reminder, with higher revenues and warmer months. On average, revenue over the last five years were 18% for Q1 and Q2, 36% for Q3, and 28% for Q4. We are a specialty construction contractor. Margins tend to be higher than general contractors, but we do have more idle time and more fixed costs. Project size impacts margins. Larger projects have more competition and as a result, lower margin. We do have excess capacity, which enables us to do significantly more revenue with existing equipment and staffing levels. So let's start to talk about Q1 financial results and highlights. So as we just mentioned, Q1 is traditionally our slowest quarter. Having said that our revenue was solid in Q1 at 6.6 million, that compares to 8.4 million in 2024. Gross margins solid again at 22%. You're going to see the trend on the graph on the next slide. In Q1, and we compare that to 30% in 2024, which was a large month for us. Operating income, we had a loss of 0.7 in Q1 compared to income of 0.3 in 2024. Adjusted EBITDA, a small loss of 0.1 million in Q1 compared to a million in 2024. And cash flow from operations before non-cash working capital changes was negative 0.1 in Q1 compared to 0.9 in 2024. And cash on hand, as we talked about, was 8.5 million. And if you're curious, the same period of last year, it was 7.9 million. So let's look at the graphs here. So if you look at the Upper left-hand side, you can see our trend line is growing. When you look at the progress we've made since from eight years ago, our compounded annual growth rate is about 24%. And just be aware that in orange, the 6.6 is just representing one quarter, but it kind of shows you that in 2017, we almost did the same volume, which is good. So our trend line is growing, as I mentioned. And if you look on the right-hand side, our gross margins, And the dip that you see is when we had some COVID and supply chain issues and cement shortages. And for Q1, it was at 22%, pretty solid overall. And looking down on the left-hand side, you see our debt and interest. We've come a long way and we have significantly reduced our debt and interest costs in the last eight years. And as Randy mentioned, and I mentioned, we've bid our long-term debt. And right now we do have a an equipment financing loan for two dry mix units that we just signed up for. And on the right-hand side, we have our share structure. So at the end of the quarter, we had 150.5 million of shares outstanding. We do have 6.1 million of options, 2.9 million restricted share units, and 8.2 million warrants for a total of 167.7 million. So let's talk about our backlog now. At the end of the quarter, we had 79.7 million. So it grew from the end of December, which was at 69.6, which we're pretty happy about it. We've had lots of success securing work since the beginning of the year. So we secured $20.9 million and we're pretty happy about it. And these projects are for various applications. So our sales team is doing a tremendous job at securing work. And I think I'm going to pass it to you, Randy, talk about some closing remarks. You are on mute, Randy.