Newmarket, ON – AirBoss of America Corp. (TSX: BOS) (OTCQX: ABSSF) (the “Company” or “AirBoss”) announced today an update with respect to deliveries by AirBoss Defense Group (“ADG”) of nitrile patient examination gloves previously slated for the fourth quarter of 2021. This year has presented unprecedented challenges to ADG, with ongoing customs, logistics and border delays at the ports of Los Angeles and Long Beach, as well as the previously disclosed COVID-19-related factory shutdowns in Malaysia. As a result of the customs, logistics and border delays, glove deliveries originally scheduled for the fourth quarter of 2021are now expected to be delivered by the end of the first quarter of 2022, which revised delivery window remains within the original timeframe set forth under the contract in respect of such product. Accordingly, as management expects the current customs and border delays to alleviate following the holiday season, the remaining revenue from the contract, representing approximately US$95M of sales, should be recognized in the first quarter of 2022. Management believes this will position the Company for very strong performance in 2022, including a record pipeline of over US$1.5 billion, a significant portion of which it expects to convert in the upcoming year.
Given the corresponding shift in this revenue from the fourth quarter of 2021 to the first quarter of 2022, the Company is revising its 2021 outlook as follows:
- Revenues in the range of US$570 to US$590 million, reflecting growth of approximately 14% – 18% over 2020
- Adjusted EBITDA margin in the range of 13.0% – 13.5%
- Adjusted Earnings per diluted share1 of US$1.50 to US$1.60, reflecting growth of approximately 3% – 10% over 2020
For important information on risk factors related to this guidance, refer to “AirBoss Forward Looking Information Disclaimer” later in this news release.
ADG continues to work on the significant opportunities in its sales pipeline, which are at record levels and are expected to help augment ADG’s traction and momentum going into 2022. Management believes that the future sourcing of PPE for first responders and healthcare professionals will continue to be a necessity in response to the ongoing COVID-19 pandemic; this is evidenced by the strong pipeline of PPE-related opportunities that ADG is currently pursuing. As a part of overall future emergency preparedness planning, management expects a more unified and streamlined approach to PPE acquisition aimed at reducing complexity, shortening acquisition times and building strategic stockpiles, compared to the fragmented and complex distributor relationship arrangements seen previously. This is expected to continue to be a future driver for the business and ADG is refining its business development approach accordingly. In October of this year, AirBoss also announced that it has received approval from NIOSH for its new AirBoss 100™ Half Mask Respirator which was designed specifically for first responders and health care workers as a more effective solution to the N95 mask. Beyond this, ADG continues to target traditional defense contracts, potentially valued at hundreds of millions of dollars globally over the next several years, for its broader portfolio of survivability solutions. This includes opportunities for its low-burden mask as well as next-generation products like the Blast Gauge™ blast overpressure solution, Bandolier and Rollover Detection Warning System (RDWS). ADG has laid the foundation for transformative growth through its strategy of developing products designed for the protection of soldiers, health care professionals and first responders. The expanding pipeline of opportunities is a validation of this strategy and is expected to drive record growth for AirBoss over the subsequent years.
AirBoss of America Corp.
AirBoss of America is a leading and diversified developer, manufacturer and provider of innovative survivability solutions, advanced custom rubber compounds and finished rubber products that are designed to outperform in the most challenging environments. Founded in 1989, the company operates through three divisions. AirBoss Defense Group is a global leader in personal and respiratory protective equipment and technology for the defense, healthcare, medical and first responder communities. AirBoss Rubber Solutions is a top-tier North American custom rubber compounder with 500 million turn pounds of annual capacity. AirBoss Engineered Products is a supplier of innovative anti-vibration solutions to the North American automotive market and other sectors. The Company’s shares trade on the TSX under the symbol BOS and on the OTCQX under the symbol ABSSF. Visit www.airboss.com or www.adg.com for more information.
Investor Contact: Chris Bitsakakis, President or Gren Schoch, CEO at 905-751-1188.
Media Contact: firstname.lastname@example.org
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, notably including its impact on demand for rubber solutions and products; dependence on key customers; global defense budgets, notably in the Company’s target markets, and success of the Company in obtaining new or extended defense contracts; 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 a credit facility that can provide financing up to $250,000. 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 Interim Report and, whether as a result of new information, future events or otherwise, AirBoss disclaims any intent or obligation to update publicly the 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.
1This release contains non-IFRS Measures, including Adjusted EBITDA and Adjusted Earnings per diluted share. Adjusted EBITDA means net earnings before interest and financing costs (net of interest income), income taxes, depreciation and amortization, impairment expenses and transaction-related costs and certain other items. AirBoss’ non-IFRS measures are directly derived from the Company’s consolidated financial statements but do not have a standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other issuers. The Company discloses these terms for use in financial measurements made by interested parties and investors to monitor the ability of the Company to generate cash from operations for debt service, to finance working capital and capital expenditures and to pay dividends. These terms are not a measure of performance under IFRS and should not be considered in isolation or as a substitute for net income under IFRS. Reconciliations of these measures for prior periods are presented in the Company’s Management’s Discussion & Analysis (MD&As).