Newmarket, ON, July 27, 2023 – AirBoss of America Corp. (TSX: BOS) (OTCQX: ABSSF) (the “Company” or “AirBoss”) today announced a change to its leadership team and updates at AirBoss Defense Group (“ADG”) which are intended to improve the division’s long-term strength. The Company has also provided a preview of its Q2 2023 financial results along with details for the upcoming Q2 2023 results conference call.
Chris Bitsakakis to Assume New Role as President and Co-CEO
AirBoss is pleased to announce that as of today’s date, Chris Bitsakakis, the current President and Chief Operating Officer of the Company, will assume the role of President and Co-Chief Executive Officer. Gren Schoch will continue in the role of Chairman and will serve alongside Chris as Co-Chief Executive Officer.
“Chris joined AirBoss in November 2017, and has overseen significant growth and enhanced performance in the organization, guiding us through a number of transformative changes,” said Gren Schoch, Chairman and Co-CEO of AirBoss. “His ability to enhance operational discipline, streamline key areas of the business, and attract experienced management to the organization, as well as his focus on growth, innovation, and product development make him ideally suited to play a greater role in our next phase of growth and execution of strategic opportunities. I look forward to continuing my close collaboration with Chris in his new role as we work on growing our core Rubber Solutions segment, driving improved performance from Engineered Products, and pursuing an array of growth and value-creation opportunities within ADG.”
AirBoss Defense Group
AirBoss also announced today that a series of cost-saving measures were implemented across ADG’s operations, including a reduction in its workforce. These changes are intended to streamline the business segment’s operations following a series of acquisitions and reduced business activity from continued delays in expected contract awards. These cost-saving measures are expected to result in approximately $5.0 million in annual cost reductions once fully implemented, while ADG remains fully capable to execute against future awards.
In relation to this announcement, Bitsakakis noted that, “over the past two and a half years, ADG has undergone substantial change. These changes came from acquisitions we had made within the business and from significant swings in our underlying business activity. We’ve taken an important step to closely review our operating practices, and structure ADG to return to profitability, as we await new contract awards. We expect substantial cost efficiencies going forward, while our ability to pursue and capture growth opportunities remains fully intact.”
Q2 2023 Results Preview
To provide additional visibility to investors, the Company is providing anticipated results for Q2 2023. AirBoss expects to record the following for Q2 2023:
- Revenues in the range of US$112.5 to US$115.0 million
- EBITDA1 in the range of $5.0 – $5.3 million (Q2 2022: $10.5 million)
- Earnings per diluted share of US($0.08) to US($0.12)
1 See Non-IFRS and Other Financial Measures
Important information on risk factors related to this guidance are noted in the “AirBoss Forward Looking Information Disclaimer” later in this news release.
Q2 2023 Conference Call
The Company will release its second quarter results after market close on Wednesday August 9, 2023. The release will be followed by a conference call to discuss its financial results on Thursday August 10, 2023 at 9:00 am ET.
Date: Thursday, August 10, 2023
Time: 9:00 am ET
Dail-in Number: 1-800-898-3989 or 416-406-0743
Conference ID: 6965982#
Webcast Link: https://www.gowebcasting.com/12647
Please connect approximately 10 minutes prior to the beginning of the call to ensure participation.
Investor Contact: firstname.lastname@example.org
Media Contact: email@example.com
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 for more information.
Note (1): Non – IFRS Financial Measures: This earnings release is based on financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”) and Non-IFRS Financial Measures. Management believes that these measures provide useful information to investors in measuring the financial performance of the Company. These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS. 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.
EBITDA is a non-IFRS measures used to measure the Company’s ability to generate cash from operations for debt service, to finance working capital and capital expenditures, potential acquisitions and to pay dividends. EBITDA is defined as earnings before income taxes, finance costs, depreciation, amortization, and impairment costs.
Three-months ended June 30, 2022 (unaudited)
In thousands of US dollars
|Depreciation, amortization and impairment||5,492|
|Income tax expense||943|
The expected decrease in EBITDA from the quarter ended June 30, 2022 arises primarily from higher operating expenses.
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; current and future 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. The continued COVID-19 pandemic 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 the continued COVID-19 pandemic 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.