Cymat Reports First Quarter Results for Fiscal 2022

MISSISSAUGA, ON, Oct. 4, 2021 /CNW/ - Cymat Technologies Ltd. (TSXV: CYM) (the "Company" or "Cymat") is pleased to report its results of operations for the three months ended July 31, 2021.

Revenue for the quarter was $946,000, a 24% increase over last fiscal year's Q1 revenue. Sales of Alusion^TM, Cymat's architectural line of products, accounted for $754,000 of the quarterly revenue, representing the majority of Q1 revenue with the Company's automotive and military division, SmartMetal^TM, accounting for revenue of $192,000.

The pipeline of significant construction projects remains strong, although the Covid-19 pandemic continues to cause some delayed construction dates for Alusion^TM installations. Q1 revenue unfortunately fell short of the Company's expectations primarily as the result of mechanical issues experienced in the plant, resulting in the loss of about one third of its production capacity for the quarter. Opearations are now fully functional with the plant working expeditiously to process the backlog of orders.

Alusion^TM continues to gain international recognition and is seeing continued growth. The Company intends to further capitalize on this success by increasing global marketing and sales efforts. Cymat has signed an established European sales agency to further enhance its strong continental presence. The Company has also commenced a search for an additional senior sales person to focus on new business development in North America.

Michael Liik, CEO commented, "Alusion is becoming a recognized global brand and we believe that we will see continued strong growth which can be accelerated by the buildout of additional global marketing and sales resources."

SmartMetal^TM revenue came primarily from the sale of Stabilized Aluminum Foam ("SAF") panels used in a protection system for the transport of explosive material. As recently announced, Cymat has received an order for two SmartMetal^TM blast protection kits to be delivered to an Asian military vehicle OEM this fall. Successful completion of blast testing, schedulted for December, has the potential to result in an order from the OEM's domestic armed forces for up to 700 kits, at an estimated value of $5M to $7M.

In the latter part of Q1, Cymat experienced mechanical issues with one of its primary melting furnaces, necessitating suspension of casting operations for a period that lasted into mid-September. Repair efforts were hampered by the shortage of parts and skilled technicians, again due to the pandemic. Proceeds from the recent financing are currently being used for manufacturing equipment upgrades to increase resiliency, productivity and output capacity.

Expenses for the three months ended July 31, 2021 include the recording of $878,000  in non-cash expenses resulting from the valuation of stock options issued in June, a quarter-over-quarter increase in consultant and advisory fees of $135,000 and an increase in sales commissions of $29,000. Additionally, as the result of increased revenues, Cymat did not qualify for the Canada Emergency Wage Subsidy ("CEWS") this quarter. The comparative quarter benefited from CEWS proceeds of $138,000.

Key financial data for the year ended April 30, 2021 and the two previous fiscal years include the following (All items in $ 000's, except net loss per share):

	July 31, 2021	July 31, 2020
Revenue	946	765
Plant operating expenses	556	372
Research and material testing expenses	31	34
Selling, general and administrative expenses	1,409	296
(Loss) income from operations	(1,049)	63
Net (loss) income	(1,134)	7
Operating cash flow	(1,308)	178
Cash and cash equivalents	5,232	485
Working Capital	4,819	(608)
Total Assets	7,056	1,862

Michael Liik, CEO of Cymat commented, "While sales for our first quarter improved year over year, financial performance was adversely affected by both extended downtime on one of our furnaces and by the non-cash effects of employee and consultant option grants." He added, "We are focussed on taking Cymat to the next level with significant investments in both sales resources and plant operations to accelerate sales growth and provide state-of-the-art manufacturing facilities," further added Mr. Liik.

About Cymat Technologies Ltd.

Cymat Technologies Ltd. has the global rights, through patents and established know-how, to manufacture and sell Stabilized Aluminum Foam ("SAF"), a unique, ultra-light, cellular metallic material. The proprietary production process entails the injection of gases through a molten bath of alloyed aluminum infused with ceramic particles. The result is an advanced, lightweight, recyclable material that exhibits unique characteristics including: customizable density and dimensions; mechanical energy absorption; thermal and acoustic insulation; and time, temperature and strain-rate insensitivity. A key benefit of this continuous foam production process is its scalability and resultant low cost of production. SAF is used in such industries as architectural design, military and automotive. Cymat markets its architectural SAF under the Alusion^TM brand and its automotive and military SAF under the SmartMetal^TM brand. For further information , please visit our website at www.cymat.com. 

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint-ventures and strategic alliances and co-operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Certain material assumptions regarding such forward-looking statements may be discussed in this news release and the Company's annual and quarterly management's discussion and analysis filed at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States, or to or for the account or benefit of any person in the United States, absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any common shares in the United States, or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. We seek safe harbour.

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SOURCE Cymat Technologies Ltd.

Company Contact: Michael Liik, CEO, Email: [email protected], Telephone: [phone], Website: www.cymat.com; For further information please contact: Investor Cubed Inc.: Neil Simon, CEO, Email: [email protected], Telephone: [phone]

Related Links

http://www.cymat.com