Newmarket, ON – AirBoss of America Corp. (TSX: BOS) (the “Company” or “AirBoss”) today announced that AirBoss Defense Group (“ADG”) has been awarded a two-year extension to the Husky Long-Term Contract previously awarded by Army Contracting Command Warren to Critical Solutions International, Inc. (“CSI”) in March 2017. The original award was for the Husky 2G Protected Payload Delivery Vehicle (“Husky 2G”) and its associated route clearance payloads. The transaction merging AirBoss’ defense business with CSI to form ADG closed on January 1, 2020.
“The ADG transaction helped us assemble a broad survivability platform with an array of both established and emerging CBRN.E solutions,” said Chris Bitsakakis, President and Chief Operating Officer of AirBoss. “Contracts of this nature are the result of CSI’s strong relationships with their existing customers and speak to the longevity and applicability of the solutions, which we expect to contribute a more stable underlying revenue stream over a multi-year period.”
This contract extension provides Foreign Military Sales (“FMS”) customers an enduring mechanism to procure protected payloads, spare parts and training in support of the Husky 2G vehicle system. Fiscal year 2020 and 2021 Pseudo-Foreign Military Sales funds in the amount of $35.6 million were obligated at the time of the award and account for anticipated volumes of Husky 2G support equipment to be procured over the extended period of performance. Work for this contract will be performed out of the company’s Charleston, South Carolina location with a period of performance ending September 2022. Under the base contract, awarded in 2017 and valued at US$132 million, CSI successfully delivered 41 Husky vehicle systems with associated protected payloads including Interrogation Arms, Ground Penetrating Radar, 360-degree cameras, Self-Defense Remote Weapon Stations and RPG Nets. Husky 2G vehicles have been delivered to multiple FMS customers under this contract supporting route clearance capability development in Egypt, Saudi Arabia and Jordan. In addition, U.S. sponsored Building Partner Capacity programs have been leveraged on this contract to provide Husky 2G’s with protected payloads to Ukraine and Iraq as a part of the Global Train and Equip and Counter-ISIS Train and Equip Fund programs.
The Husky 2G is Vehicle Mounted Mine Detection system deploying a range of radar and sensor systems for countermine and non-conventional explosive detection on a blast-survivable, mission configurable vehicle platform. To date ADG has deployed more than 1,500 Husky systems globally.
AirBoss of America Corp.
AirBoss of America Corp. is a group of complementary businesses supplying custom compounded rubber, survivability solutions and anti-vibration components to a diverse group of customers globally. AirBoss Rubber Solutions is a top-tier North American custom rubber compounder with 450 million turn pounds of annual capacity. AirBoss Defense Group manufactures and supplies a growing array of Chemical, Biological, Radioactive, Nuclear and Explosive (“CBRN-E”) protective solutions and is a leading provider of personal protective equipment to governments, militaries and frontline healthcare workers both in the U.S. and internationally. AirBoss Engineered Products is a supplier of innovative anti-vibration solutions to the North American automotive market. The Company’s shares trade on the TSX under the symbol BOS. Visit www.airbossofamerica.com for more information.
Contact: Chris Bitsakakis, President or Gren Schoch, Chairman and CEO at 905-751-1188.
AirBoss Forward-Looking Information Disclaimer
Certain statements contained or incorporated by reference herein, including those that express management’s expectations or estimates of future developments or AirBoss’ future performance, constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable securities laws, and can generally be identified by words such as “will”, “may”, “could” “expects”, “believes”, “anticipates”, “forecasts”, “plans”, “intends” or similar expressions. These statements are not historical facts but instead represent management’s expectations, estimates and projections regarding future events and performance.
Statements containing forward-looking information are necessarily based upon a number of opinions, estimates and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. AirBoss cautions that such forward-looking information involves known and unknown contingencies, uncertainties and other risks that may cause AirBoss’ actual financial results, performance or achievements to be materially different from its estimated future results, performance or achievements expressed or implied by the forward-looking information. Numerous factors could cause actual results to differ materially from those in the forward-looking information, including without limitation: impact of general economic conditions; dependence on key customers; cyclical trends in the tire and automotive, construction, mining and retail industries; sufficient availability of raw materials at economical costs; weather conditions affecting raw materials, production and sales; AirBoss’ ability to maintain existing customers or develop new customers in light of increased competition; AirBoss’ ability to successfully integrate acquisitions of other businesses and/or companies or to realize on the anticipated benefits thereof; changes in accounting policies and methods, including uncertainties associated with critical accounting assumptions and estimates; changes in the value of the Canadian dollar relative to the US dollar; changes in tax laws and potential litigation; ability to obtain financing on acceptable terms; environmental damage and non-compliance with environmental laws and regulations; impact of global health situations; potential product liability and warranty claims and equipment malfunction. COVID-19 could also negatively impact the Company’s operations and financial results in future periods. There is increased uncertainty associated with future operating assumptions and expectations as compared to prior periods. As such, it is not possible to estimate the impacts COVID-19 will have on the Company’s financial position or results of operations in future periods. While the direct impacts of COVID-19 are not determinable at this time, the Company has an undrawn credit facility as at June 30, 2020 that can provide financing up to $60,000,000. This list is not exhaustive of the factors that may affect any of AirBoss’ forward-looking information. All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Investors are cautioned not to put undue reliance on forward-looking information.
All subsequent written and oral forward-looking information attributable to AirBoss or persons acting on its behalf are expressly qualified in their entirety by this notice. Forward-looking information contained herein is made as of the date of this press release and, whether as a result of new information, future events or otherwise, AirBoss disclaims any intent or obligation to update publicly this forward-looking information except as required by applicable laws. Risks and uncertainties about AirBoss’ business are more fully discussed under the heading “Risk Factors” in our most recent Annual Information Form and are otherwise disclosed in our filings with securities regulatory authorities which are available on SEDAR at www.sedar.com.
