CEMATRIX Announces 2020 Fourth Quarter and Annual Results - Seite 2

• Revenue decreased to $4.4 million in Q4 2020 versus $5.3 million in Q4 2019 due to project delays resulting from the pandemic
• Operating Loss in Q4 2020 increased to $1.5 million versus $0.5 million in Q4 2019
• Adjusted EBITDA decreased to $1.3 million in Q4 2020 versus $2.9 million in Q4 2019
• Cash generated from operating activities increased to $1.1 million in Q4 2020 versus $0.6 million in Q4 2019

Unusual one-time / non-cash item in the fourth quarter and the year:

• In the fourth quarter, the Corporation recorded a $6.0 million non-cash fair value adjustment expense and a corresponding increase in current liabilities under the current portion of convertible debt – non-cash derivative liability due to the IFRS accounting treatment for imbedded derivatives related to the MOS convertible note. The adjustment is due to the increase in the price of the Company’s shares compared to the conversion price of the note. The closing share price on December 31, 2020 was $0.72 per share, as compared to the stated convertible share price at acquisition of $0.2375 per share. The convertible note matures on May 31, 2021 and will be repaid or converted to equity on that date. In the event that the MOS convertible note is repaid, the fair value adjustment will be reversed, thus resulting in a corresponding $6.0 million gain to be recorded in Q2 2021. In the event that the MOS convertible note is converted, the non-cash derivative liability will be reclassified to equity and not flow through the income statement.
  

Financial highlights for the year:

• Revenue grew to $26.6 million versus $22.6 million in 2019 marking the third consecutive year of revenue growth
• Operating loss increased to $0.9 million versus operating income of $0.4 million in 2019
• Adjusted EBITDA decreased to $1.3 million versus $2.9 million in 2019
• Cash generated from operating activities increased to $1.7 million versus $0.9 million in 2019

Financial position highlights for the year:

• Cash of $2.5 million versus $0.8 million in 2019
• Adjusted Working Capital of $3.1 million versus $3.2 million in 2019
• The company repaid all of its US operating loans in 2020. These US operating loans totalled $2.2 million on December 31, 2019
• The company balance on its CWB Canadian credit facility was $0.1M (as at December 31) versus $0.9 million in 2019 (as at December 31)

Subsequent to quarter end important events: