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 third 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 |
Dial-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.
About AirBoss
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 |
|
EBITDA: |
|
Profit |
2,492 |
Finance costs |
1,533 |
Depreciation, amortization and
impairment |
5,492 |
Income
tax expense |
943 |
EBITDA |
10,460 |
The expected decrease in EBITDA from the quarter
ended June 30, 2022 arises primarily from higher operating
expenses.
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;
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.
Investor Contact: investor.relations@airboss.com
Media Contact: media@airboss.com
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