NEWMARKET, ONTARIO--(Marketwire - May 9, 2012) - AirBoss of America Corp. (TSX:BOS) -
Q1 2012 Highlights:
• Dividends increased to CAD $0.05 per Quarter (a 33% increase)
|Three months ended|
|($ thousands, except shares and per share amounts)||2012||2011|
|Earnings before interest, tax and amortization from|
|operations (EBITDA) (Note 1)||4,605||7,995|
|Net income per share|
|Common shares outstanding (millions)|
Increased sales in Rubber Compounding were offset by lower sales of Defense Products. Traditional mining and industrial related market segments continued to perform well, while there was a decline in toll mixing in the major tire segment. Volume in tire toll mixing will start to recover in the third quarter due to the addition of a significant new customer.
The industrial rubber products division is increasing in importance with continued strong demand in supplying rubber track manufacturers and major tire companies with rubber retreading products. This is expected to continue. Defense Products will remain at near current levels in the next few quarters as we increase sales efforts in non-traditional markets. The new Defense Products R&D centre is scheduled for completion early in the third quarter of this year. In the meantime, work on new products continues in conjunction with both industry and public sector partners.
We continue to anticipate year-over-year improvements in Rubber Compounding, which will help to compensate for budgetary impacts on our Defense Products business. Unless rubber raw material prices change dramatically, we will also be in a position of generating cash excess to our operating and capital expenditure requirements. We are evaluating both geographical expansion and acquisition opportunities as they become available. We will also continue our share buy-back program.
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.
The annual meeting is scheduled for 4:30 p.m. EDT Thursday, May 10, 2012 at the Company's head office at which time the results for the 1st Quarter will also be discussed. Please follow the link on our website or at www.marketwire.com under webcasts or dial in to the following numbers: 416-340-2218 or Toll Free: 1-866-226-1793. Direct Replay Access number: 1-800-408-3053.
|Three months ended|
|Provision for income taxes||781||2,183|
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, retail and rail transportation 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 2011 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
Stephen Richards AirBoss of America Corp. CFO (905) 751-1188 www.airbossofamerica.com