Newmarket, ON – AirBoss of America Corp. (TSX: BOS) (OTCQX: ABSSF) (the “Company” or “AirBoss”) announced today that its subsidiary AirBoss Defense Group (“ADG”) has successfully shipped or commenced shipment of all remaining nitrile patient examination gloves for the Strategic National Stockpile (SNS) for the U.S. Department for Health and Human Services (“DHHS”) – Office of the Assistant Secretary for Preparedness and Response (ASPR) pursuant to the previously announced order expected to be worth up to US$288 million. The Company anticipates that delivery of this order will be primarily completed in the fourth quarter of 2021, due to production stoppages in Malaysia related to government lockdowns which created a 4-6 week production delay, in addition to global logistics difficulties, notably record backlogs at U.S. cargo ports.
Due to the backlog, approximately US$116M of sales originally expected to be accounted for as revenue in the third quarter of 2021 are now anticipated to be recorded in the fourth quarter of 2021. The Company does not anticipate any impact to its previously announced outlook for the full year 2021.
Based on preliminary unaudited results, the Company currently anticipates reporting Q3 2021 revenues of approximately US$112 million and Adjusted EBITDA of approximately $13 million. These preliminary results reflect year-over-year sales growth (not factoring in ADG’s sales of respirators to DHHS in Q3 2020), offset by a decline at AirBoss Engineered Products driven by the impact of continuing supply chain challenges related to raw material supply, chip shortages and elevated freight costs. In addition, the Company had recognized government subsidies that offset costs at AirBoss Rubber Solutions and ADG in Q3 2020 which the Company did not recognize in Q3 2021. This information is based on unaudited expected results and certain accounting assumptions. The views on anticipated results are based on management’s initial review of its operations and performance for the quarter ended Sep. 30, 2021, do not include all results expected to be reported and are subject to the completion of the Company’s customary closing and review procedures.
NIOSH Approval for new AirBoss 100™ Half Mask Respirator
AirBoss also announced that it has received approval from the National Institute for Occupational Safety and Health (NIOSH) for its new AirBoss 100™ Half Mask Respirator.
Designed and developed by AirBoss in consultation with first responders and health care professionals, this new reusable respirator expands the range of the Company’s certified respiratory protection products for medical, defense and law enforcement personnel operating in high-risk areas. The AirBoss 100™ Half Mask is designed to provide filtered particulate protection from chem-bio agents and contaminants at 99.97% and builds on the success within the healthcare sector of the Company’s existing NIOSH-approved FlexAir powered air purifying respirator (PAPR) systems. The AirBoss 100™ is designed to provide the same level of respiratory protection as the Flex-Air PAPR but at a lower price point as a result of a more portable design not requiring a battery operated blower. NIOSH is part of the U.S. Centers for Disease Control and Prevention, in the U.S. Department of Health and Human Services.
For an overview of ADG’s existing product line, please visit We Protect Those Who Protect Us | ADG.
Q3 2021 Conference Call
The Company will release its third quarter results after market close on Tuesday November 9, 2021. The release will be followed by a conference call to discuss its financial results on Wednesday November 10, 2021 at 9:00 am ET.
DATE: Wednesday, November 10, 2021
TIME: 9:00 am ET
DIAL-IN NUMBER: 1-800-319-4610 or 416-915-3239
CONFERENCE ID: 55506
WEBCAST LINK: https://www.gowebcasting.com/11513
Please connect approximately 10 minutes prior to the beginning of the call to ensure participation.
Investor Contact: Chris Bitsakakis, President or Gren Schoch, CEO at 905-751-1188.
Media Contact: firstname.lastname@example.org
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.
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. 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).