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Newmarket, ON – AirBoss of America Corp. (TSX: BOS)(OTCQX:ABSSF) (the “Company” or “AirBoss”) today announced its third quarter results as it moves forward into the remainder of 2022. The Company will host a conference call and webcast to discuss the results on November 9th at 9 a.m. ET, the details of which are outlined below. All dollar amounts are shown in thousands of United States dollars (“US $” or “$”), except per share amounts, unless otherwise noted.

Recent Highlights

  • Received orders of up to $40.6 million for Husky 2G Vehicles and accessories;
  • Declared a quarterly dividend of C$0.10 per common share;
  • Generated Adjusted EBITDA of $1.3 million; and
  • Net Debt to Adjusted EBITDA ratio at September 30, 2022 (“Q3 2022”) of 1.92x.

“Our third quarter financial results were negatively impacted by contract timing as well as market challenges, with the most acute of these being the dramatic shift in market pricing for nitrile gloves to date in 2022,” expressed Chris Bitsakakis, President and COO of AirBoss. “Having taken a substantial non-cash write-down against our gloves in inventory in AirBoss Defense Group (“ADG”) during Q3 2022, we believe we are now better positioned to generate profitable sales to the personal protective equipment (“PPE”), health care and survivability sectors going forward. During the quarter, we were pleased with the continued strong performance within our AirBoss Rubber Solutions (“ARS”) segment as we captured new sales opportunities with our expanded product line-up and enhanced production capabilities. This segment capitalized on strong demand in Q3 2022 which led to growth over the third quarter in 2021. Our ability to offer specialized products and a broader array of compounds has allowed us to capture sales growth within new market segments, and we’re able to meet this demand with expanded production capabilities. Our team’s efforts to broaden our customer base and profitability within ARS has produced strong results to date in 2022.”

“Within ADG, demand drivers remain strong. Innovations like our Blast Gauge System represent important new opportunities to use technology to ensure the safety of military personnel, and worldwide military budgets continue to create opportunities for our traditional defense products like the Husky, Bandolier and CBRN-E equipment, as reflected in the recently announced Husky order” noted Gren Schoch, Chairman and CEO of AirBoss. “Our ADG team is highly focused on successfully securing new sales agreements from our current pipeline of opportunities. As our AirBoss Engineered Products (“AEP”) segment dealt with further labor and supply chain challenges as well as continued raw materials price inflation in Q3, our team accelerated its efforts to pursue new pricing strategies with our key customers to ensure we can re-gain profitable operations within AEP in the near term.”

Three-months ended September 30 Nine-months ended September 30
In thousands of US dollars, except share data
(unaudited) 2022 2021 2022 2021
Financial results:
Net sales 104,682 112,027 359,702 337,805
Profit (55,957) 6,902 (43,889) 31,541
Adjusted Profit1 (11,843) 7,040 234 31,833
Earnings per share (US$)
– Basic (2.07) 0.26 (1.62) 1.17
– Diluted (2.07) 0.24 (1.62) 1.11
Adjusted earnings per share1 (US$)
       – Basic (0.44) 0.26 0.01 1.18
       – Diluted (0.44) 0.25 0.01 1.12
EBITDA1 (56,394) 13,752 (26,239) 53,056
Adjusted EBITDA1 1,271 13,922 31,438 53,380
Net cash provided by operating activities (15,847) (125,723) (38,655) (136,392)
Free cash flow1 (18,525) (130,444) (45,625) (149,391)
Dividends declared per share (CAD$) 0.10 $0.10 0.30 $0.27
Capital additions 2,687 4,724 6,983 17,560
Financial position: September  30, 2022 December 31, 2021
Total assets 422,323 443,264
Debt2 133,191 80,563
Net Debt1 111,861 56,033
Shareholders’ equity 185,946 235,148
Outstanding shares (#) * 27,092,041 26,993,181
*27,092,041 at November 8, 2022

1 See Non-IFRS and Other Financial Measures.

2  Debt as of September 30, 2022 and December 31, 2021 include lease liabilities of $15,546 and $17,399, respectively.

Financial Results

Consolidated net sales for Q3 2022 decreased by 6.6% to $104,682 compared to the three-month period ended September 30, 2021 (“Q3 2021”). This decrease was primarily attributable to ADG’s delivery of nitrile gloves to the U.S. Department for Health and Human Services (“HHS”) in the prior year, partly offset by increased sales at ARS across the majority of customer sectors. Consolidated net sales for 2022 year-to-date increased by 6.5% to $359,702 compared with 2021 year-to-date due to increased sales at ARS across the majority of customer sectors, partially offset by ADG’s delivery of filters and nitrile gloves to HHS in the prior year, and softer volumes in the AirBoss Engineered Products (“ARS”) segment.

Consolidated gross profit for Q3 2022 decreased by $72,813 to $(47,037), compared with Q3 2021, driven by a $57.0 million non-cash write-down at ADG related to nitrile glove inventory, the delivery of nitrile gloves to HHS in 2021 and lower volume at AEP, partially offset by strong improvement at ARS driven by higher volumes. Consolidated gross profit for 2022 year-to-date decreased by $85,490 to $(636) compared with 2021 year-to-date, driven by the $57.0 million non-cash write-down at ADG related to nitrile gloves, the delivery of filters and nitrile gloves to HHS in 2021, the elimination of government-directed wage subsidies, and margin compression at AEP due to labor, freight and raw material increases, partially offset by significant improvements at ARS.

Adjusted EBITDA for Q3 2022 decreased by 90.9% compared to Q3 2021 and decreased by 41.1% for the nine-month period ended September 30, 2022 compared with the nine-month period ended September 30, 2021.

Financial Position

The Company retains a $250 million credit facility and a net debt to Adjusted EBITDA ratio of 1.92x (from 0.70x at December 31, 2021).


The Board of Directors of the Company has approved a quarterly dividend of C$0.10 per common share, to be paid on January 16, 2023 to shareholders of record at December 30, 2022.

Segment Results

Net sales at ADG for Q3 2022 decreased by 54.9% to $23,553, from $52,179 in Q3 2021 and by 26.4% to $113,354 for 2022 year-to-date, from $154,026 for 2021 year-to-date. The decrease in Q3 2022 was primarily the result of the large HHS nitrile patient examination contract in 2021 and the decrease year-to-date was primarily the result of large HHS contracts delivered in 2021. Gross profit at ADG for Q3 2022 decreased by 324.7% to $(51,299), from $22,827 in Q3 2021 and by 120.2% to $(13,874), from $68,834 for 2021 year-to-date. In both cases, the decreases were primarily the result of the one-time $57.0 million inventory write-down, deliveries to HHS in 2021, partially offset by favorable volume in ADG’s industrial products line.

Net sales at ARS for Q3 2022 increased by 46.7% to $58,484, from $39,861 in Q3 2021 and increased by 50.0% to $178,371, from $118,937 for 2021 year-to-date. For Q3 2022, volume was up 1.3%, with increases across many sectors despite continuing supply chain challenges related to raw material supply and elevated freight costs. Year-to-date, volume was up 7.8%, with increases across the majority of sectors and continued ramp up of most customer’s operations despite residual softness due to certain economic headwinds. Tolling volume was down 50.3% for the quarter and 3.5% year-to-date, while non-tolling volume was up 13.3% for the quarter and 10.6% year-to-date. Gross profit at ARS for Q3 2022 increased by 96.1% to $8,370 (14.3% of net sales) from $4,268 (10.7% of net sales) in Q3 2021 and by 74.8% to $26,169 (14.7% of net sales), from $14,967 (12.6% of net sales) for 2021 year-to-date. For the quarter, this increase was primarily the result of improvement in non-tolling volume, raw material pass through mechanisms and managing controllable overhead costs, partially offset by labor challenges and logistics costs. Year-to-date, this increase was primarily as a result of increased non-tolling volumes compared to the same period in 2021, managing controllable overhead costs, partially offset by labor and logistics costs and a decrease in government-directed subsidies.

Net sales at AEP for Q3 2022 increased by 3.0% to $29,176, from $28,328 in Q3 2021 and decreased by 2.8% to $85,857, from $88,312 for 2021 year-to-date. For the quarter, the increase was due to a favourable mix in SUV, light truck and mini-van platforms, partially offset by lower production of other automotive platforms and certain molded defense products. Year-to-date, the decrease was due to lower automotive volumes across many platforms and specifically in SUV, light truck and mini-van platforms compared to the same period in 2021 as the automotive sector continued to manage volume volatility given the challenges with global electronic chip shortages in addition to freight and logistics constraints. Gross profit at AEP for Q3 2022 decreased to $(4,108) from $(1,319) in Q3 2021 and to $(12,931) from $1,053 for 2021 year-to-date. For the quarter, this decrease was primarily the result of lower volumes in part due to the continued global electronic chip shortages in the automotive sector combined with a slowing economy, continued raw material escalations not passed on to customers and freight and logistics constraints partially offset by a continued focus on controllable operational cost containment. Year-to-date, this decrease was primarily the result of a government-directed wage subsidy in 2021 and challenges associated with global electronic chip shortages in the automotive sector combined with raw material cost escalations, customer indexing constraints, freight and logistics challenges and higher related costs partially offset by a continued focus on controllable operational cost containment and managing overhead costs.


The Company worked diligently to address the impact of current economic conditions during the quarter, including actions to mitigate on-going global freight, labor and logistics challenges, as well as raw material price escalations. We remained focused on operational execution, growth initiatives and key investments, with strong traction for the quarter at ARS, ADG’s continued focus on its opportunities pipeline, and continued progress to address the related commercial impacts to AEP. The Company remains committed to solidifying its position in the PPE, health care and survivability sectors and supporting its customers, employees and stakeholders.

Despite the challenges faced during this quarter, the Company continued to exercise risk mitigation initiatives within its supply chain, securing alternative raw material sources and remaining focused on optimization of supply chain strategies. Continued recovery of volumes remains subject to the ongoing management of stable and sustained operations of businesses globally, which remains complex and volatile, specifically considering evolving and ongoing challenges such as inflation pressure. Notwithstanding these challenges, including further constraints on our supply chain for the foreseeable future in the remainder of 2022 and into 2023, the Company believes it is positioned to capture continued opportunities during the coming quarters.

ADG remains focused on its survivability solutions platform while targeting traditional defense contracts, which could result in the execution of meaningful opportunities over the next several years. In addition, ADG continues to work with its key customers to leverage the opportunities in its pipeline, which remains robust and is expected to support growth initiatives, subject to timing as delays in the conversion of these opportunities are expected to continue through the fourth quarter of 2022. Management continues to believe that the future sourcing of PPE for first responders and healthcare professionals will remain a necessity and priority for front line workers, evidenced by the strong pipeline of PPE-related opportunities that ADG is currently pursuing.

ARS continued to see strong demand despite labor constraints that adversely affected volume in the quarter. The segment remains focused on optimizing its equipment capacity across all its locations and executing on its strategy to deliver strong results with specialized products, expanded production of a broader array of compounds (white and color) and enhanced flexibility in attracting and fulfilling new business through identified synergies and margin expansion. ARS continues to leverage its scale and global supply chain management expertise to manage ongoing logistics and raw material risks while supporting new customers to drive volume and growth. The segment also continue to focus on research and development investments with its broad expertise to support enhanced collaboration with customers to develop innovative and proprietary technical solutions.

The AirBoss Engineered Products segment continued to be impacted by labor and supply chain challenges and significant raw material price increases including electronic chip shortages impacting OEM production schedules. Management continues to accelerate pricing strategies with its key customers to ensure a fair and equitable path forward and is optimistic of results materializing in the near term. The Company remains committed to addressing key challenges in this segment including margin improvement with targeted cost management, enhanced pricing strategies with raw material indexing and by fully leveraging its investments in advanced manufacturing. AEP also continued to focus on its operational improvement plan with a heightened focus on sustaining a stable hourly workforce while dealing with volume reductions in the automotive sector, as well as focus on diversification of its product lines into sectors adjacent to the automotive space.

Despite the continued headwinds associated with economic and geopolitical issues, the Company’s longer-term priorities remain intact and include:

  1. Growing the core Rubber Solutions segment by positioning it as a specialty supplier of choice in the consolidating North American market, with a growing focus on building defensible leadership positions in selected compounds;
  2. Capitalizing on ADG’s enhanced scale and capabilities to pursue an array of growth and value-creation opportunities in the broader survivability solutions segment serving both defense and first responder markets;
  3. Driving improved performance from Engineered Products through a combination of disciplined cost containment, client relationship expansion, new product development and sector diversification; and
  4. Targeting additional acquisition opportunities across the business with a focus on adding new compounds and products, technical capabilities, and geographic reach into selected North American and international markets.

As before, management remains dedicated to the creation of long-term value for all stakeholders through a combination of strategic initiatives that both drive organic growth and support possible transactions.

Conference Call Details and Investor Presentation

A conference call to discuss the quarterly results is scheduled for 9:00 a.m. ET on Wednesday, November 9, 2022. Please go to or dial in to the following numbers: 1-800-319-4610 or 416-915-3239, pass code: 55506. Please connect approximately 10 minutes prior to the call to ensure participation. A replay of the conference call as well as the Company’s updated investor presentation will also be made available at:

Investor Contact: Chris Bitsakakis, President or Gren Schoch, CEO at 905-751-1188.

Media Contact:

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 for more information.

Non-IFRS and Other Financial Measures

This earnings release is based on financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”) and Non-IFRS and Other 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 and Adjusted EBITDA are 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. Adjusted EBITDA is defined as EBITDA excluding acquisition costs, and non-recurring costs. A reconciliation of Profit to EBITDA and Adjusted EBITDA is below.

Three-months ended September 30 Nine-months ended September 30
(unaudited) (unaudited)
In thousands of US dollars 2022 2021 2022 2021
Profit (loss) (55,957) 6,902 (43,889) 31,541
Finance costs 1,282 1,740 3,767 3,421
Depreciation, amortization and impairment 5,412 4,885 16,401 14,378
Income tax expense (recovery) (7,131) 225 (2,518) 3,716
EBITDA (56,394) 13,725 (26,239) 53,056
Write-down of inventory 57,001 57,001
AFP professional fees 664 676
Prospectus and acquisition fees 170 324
Adjusted EBITDA 1,271 13,922 31,438 53,380

Adjusted profit is a non-IFRS measure defined as profit before acquisition costs and non-recurring costs. This measure and Adjusted earnings per share are used to evaluate operating results of the Company. A reconciliation of Profit to Adjusted profit and Adjusted earnings per share is below.

Three-months ended September 30 Six-months ended September 30
(unaudited) (unaudited)
In thousands of US dollars 2022 2021 2022 2021
Adjusted profit:
Profit (loss) (55,957) 6,902 (43,889) 31,541
Write-down of inventory 43,606 43,606
AFP professional fees 508 517
Prospectus and acquisition fees 138 292
Adjusted profit (11,843) 7,040 234 31,833
Basic weighted average number of shares outstanding 27,092 26,985 27,063 26,964
Diluted weighted average number of shares outstanding 27,092 28,370 27,063 28,305
Adjusted earnings per share (in US dollars):


(0.44) 0.26 0.01 1.18
Diluted (0.44) 0.25 0.01 1.12

Net Debt measures the financial indebtedness of the Company assuming that all cash on hand is used to repay a portion of the outstanding debt. A reconciliation of loans and borrowings to Net Debt is below.

September 30, 2022 December 31, 2021
In thousands of US dollars (unaudited)
Net debt:
Loans and borrowings – current 2,259 2,356
Loans and borrowings – non-current 130,932 78,207
Leases included in loans and borrowings (15,546) (17,399)
Cash and cash equivalents (5,784) (7,131)
Net debt 111,861 56,033

Free cash flow is a non-IFRS measure used to evaluate cash flow after investing in the maintenance or expansion of the Company’s business. It is defined as cash provided by operating activities, less cash expenditures on long-term assets. A reconciliation of cash from operating activities to free cash flow is below.


Three-months ended September 30 Nine-months ended September 30
(unaudited) (unaudited)
In thousands of US dollars 2022 2021 2022 2021
Free cash flow:
Net cash provided by (used in) operating activities (15,847) (125,723) (38,655) (136,392)
Acquisition of property, plant and equipment (2,374) (4,559) (6,131) (12,302)
Acquisition of intangible assets (304) (165) (839) (706)
Proceeds from disposition 3 9
Free cash flow (18,525) (130,444) (45,625) (149,391)
Basic weighted average number of shares outstanding 27,092 26,985 27,063 26,964
Diluted weighted average number of shares outstanding 27,092 26,985 27,063 26,964
Free cash flow per share (in US dollars):


(0.68) (4.83) (1.69) (5.54)
   Diluted (0.68) (4.83) (1.69) (5.54)

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 million. 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