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AirBoss Announces 2011 Results

17:17 EDT Wednesday, March 21, 2012

NEWMARKET, ONTARIO--(Marketwire - March 21, 2012) - AirBoss of America Corp. (TSX:BOS)

2011 Highlights:
  • Dividends increased by 30%



  • Net debt reduced by US $13.6 million or to 4% of equity



  • Sales of rubber compound increase by 32.7%, volumes by 11%



AirBoss of America Corp. ("AirBoss") announces the following results:


Three months ended

December 31
Twelve months ended

December 31
(In thousands of US dollars, except shares and per share amounts)

2011




2010




2011




2010
Net Sales 61,654 64,675 282,520 235,451
Gross margin 5,702 9,572 34,853 35,296
Earnings before interest, tax and amortization from continuing operations (EBITDA) (Note 1) 2,998 8,017 25,580 27,247
Interest expense 305 380 1,452 1,575
Net income 595 4,639 13,004 14,511
Net income per share
-Basic 0.03 0.20 0.55 0.61
-Diluted 0.02 0.20 0.54 0.60
Net cash provided by operating activities 19,104 13,104 16,768 20,633
Common shares outstanding (millions)
-Basic 23.5 23.9 23.6 23.9
-Diluted 23.7 24.4 24.1 24.2

Fourth quarter sales decreased by $3 million compared to 2010 due to a decrease of $6.6 million in AEP sales offset by an increase in Rubber Compounding sales of $3.6 million. As foreshadowed in our Q3 2011 report, the AEP sales were primarily impacted by reduced Defense product sales.

Rubber Compounding volumes increased by 11% during the year. Markets continue to be robust and opportunities are expected to continue to increase in many sectors including OTR retreading, major tire and mining related products. The Company is in the process of completing the previously announced major equipment upgrades which we expect will pay significant dividends in improving efficiency and reducing downtime in North Carolina. The addition of inline straining and strip capability in Quebec has also contributed to increased productivity in both military and other products. Tire retread products such as cushion gum are expected to increase sales. The new Product Development office in North Carolina begins its first full year of operation and expectations are high that the initiatives generated will be substantial.

Production of injection moulded CBRN protective wear has been consolidated in our Vermont and Quebec plants. The new Defense Research and Development facility is scheduled for completion mid-year. As well, R&D projects continue to progress and we expect to have prototypes of some exciting new products by the end of the year.

The Company is in an excellent financial position with an exceptional working capital position which is only expected to improve as working capital demands are positively impacted by expected lower raw material prices. Despite onetime increases in capital expenditures the financial position will continue to improve providing us with the flexibility to continue to pursue acquisitions and geographical expansions as well as current dividend and normal course issuer bid programs.

AirBoss of America Corp. develops, manufactures, and sells high quality, proprietary rubber-based products offering enhanced performance to military and industrial markets. The Company is a world leader in the development and production of CBRN protective wear. With a capacity to supply 250 million pounds of rubber annually to a diverse group of rubber manufacturers, AirBoss is also one of North America's largest custom rubber compounding companies. The Company's shares trade on the TSX under the symbol BOS. Visit www.airbossofamerica.com.

A conference call to discuss the year end results is scheduled for 9:00 am EDT, March 22, 2012. Please follow the link on our website or at www.marketwire.com under "webcasts" or dial in to the following numbers: 416-695-6616 or Toll Free: 1-800-355-4959. Direct Replay Access number: 1-800-408-3053.

Note 1:

The Company discloses EBITDA, based on the Company's continuing operations, a financial measurement used by interested parties. EBITDA does not have a standardized meaning prescribed by GAAP and is not necessarily comparable to similar measures presented by other issuers. EBITDA is not a measure of performance under GAAP and should not be considered in isolation or as a substitute for net income under GAAP.



Three months ended

December 31
Twelve months ended

December 31
(In thousands of US dollars) 2011 2010 2011 2010
Net Income 595 4,639 13,004 14,511
Interest expense 305 380 1,452 1,575
Amortization from continuing operations 1,225 1,242 4,764 4,565
Provision for income taxes 873 1,756 6,360 6,596
EBITDA from continuing operations 2,998 8,017 25,580 27,247

AIRBOSS FORWARD LOOKING STATEMENT DISCLAIMER

Certain statements included herein, including those that express management's expectations or estimates of future developments or AirBoss' future performance, constitute "forward-looking statements" within the meaning of applicable securities laws. Words such as "may", "could" "expects", "anticipates", "forecasts", "plans", "intends" or similar expressions are intended to identify forward-looking statements.

Forward-looking statements are necessarily based upon a number of 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 uncertainties and contingencies. AirBoss cautions that such forward-looking statements involve known and unknown risks, 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 those forward-looking statements. Numerous factors could cause actual results to differ materially from those in the forward-looking statements, including without limitation: changes in accounting policies and methods including uncertainties associated with critical accounting assumptions and estimates; AirBoss' ability to maintain existing customers or develop new customers in light of increased competition; 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; potential product liability and warranty claims; its dependence on key customers; equipment malfunction; changes in the value of the Canadian dollar relative to the US dollar; ability to obtain financing on acceptable terms; environmental damage caused by it and non-compliance with environmental laws and regulations; changes in tax laws, and potential litigation.

This list is not exhaustive of the factors that may affect any of AirBoss' forward-looking statements. Investors are cautioned not to put undue reliance on forward-looking statements. All subsequent written and oral forward-looking statements attributable to AirBoss or persons acting on its behalf are expressly qualified in their entirety by this notice. Whether as a result of new information, future events or otherwise, AirBoss disclaims any intent or obligation to update publicly these forward-looking statements. Risks and uncertainties about AirBoss's business are more fully discussed in the Management's Discussion and Analysis of Financial Condition and Results of Operations in the 2010 Annual Report to Shareholders under the heading "Risk Factors".

FOR FURTHER INFORMATION PLEASE CONTACT:

R.L. Hagerman
AirBoss of America Corp.
CEO
(905) 751-1188
OR
Stephen Richards
AirBoss of America Corp.
CFO
(905) 751-1188
www.airbossofamerica.com




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