Airboss Of America Corp.
TSX : BOS

Airboss Of America Corp.

March 23, 2006 17:25 ET

AirBoss Announces 2005 Results

NEWMARKET, ONTARIO--(CCNMatthews - March 23, 2006) - AirBoss of America Corp. ("AirBoss") (TSX:BOS) announces the following results for the year ended December 31, 2005:



(thousand $CAD except per Twelve-months ended Three-months ended
shares amounts) December 31 December 31
2005 2004 2005 2004
-----------------------------------------

Net Sales from continuing
operations $226,242 $192,595 $51,258 $49,246
Income before interest,
tax & amortization
(EBITDA) (note 1) 9,963 17,146 1,922 4,414

Net income from continuing
operations (note 2) 1,552 4,871 182 833
Net income (loss) from
discontinued operations 49 (3,139) 46 (1,592)
Net income (loss) 1,601 1,732 228 (759)

Net income per share,
from continuing
operations (note 2)
Basic 0.07 0.22 0.01 0.04
Diluted 0.06 0.21 0.01 0.04

Net income per share
Basic 0.07 0.08 0.01 (0.03)
Diluted 0.07 0.08 0.01 (0.03)

Cash flow before changes
in non-cash working capital 6,207 11,550 1,371 2,330

Common shares outstanding
(million:)
Basic 22.7 22.5 22.9 22.6
Diluted 24.0 23.0 24.1 23.0


Sales increased by 17.5% for the year ended December 31, 2005. The sales increases came from all three of the Company's businesses including rubber compounding, military and first response safety products and railway track fastening products.

Net income for the year from continuing operations before taxes was reduced by $5.5 million due to two non-recurring items including the settlement of a US patent lawsuit and the closure of a temporary rubber mixing facility.

The outlook for 2006 is for continued high demand for the Company's products which serve the mining, energy generation, transportation and military protective wear markets. The opening of our newest manufacturing location in the US at the end of the first quarter in 2006 will improve manufacturing efficiencies in rubber mixing and provide much needed additional capacity.

Note (1)

The Company discloses EBITDA, 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.



Twelve-months ended Three-months ended
December 31 December 31
2005 2004 2005 2004
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Income from continuing
operations, before
income taxes $2,292 $7,612 $360 $1,584

Interest expense 2,855 2,885 546 780
Amortization from
continuing operations 4,816 6,649 1,016 2,050
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EBITDA - continuing
operations $9,963 $17,146 $1,922 $4,414

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Note (2)

Royalty income of $0.8 million or $0.025 in net income per share from continuing operations, was reclassified from income from continuing operations to income from discontinued operations. The Company expects to receive royalty income over a 5 year period.

AirBoss of America Corp. develops, manufactures, and sells high quality, proprietary rubber-based products offering enhanced performance and productivity to transportation, military and industrial markets. With a capacity to supply over 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 11 am EDT, Friday, March 24, 2006. Please either follow the link on our website or at www.ccnmatthews.com under webcasts and /or dial in to the following numbers: 416-695- 7848 or Toll Free: 1-877-323-2092. Playback transcripts will be available for two weeks at 1- 888-509-0082.

AIRBOSS FORWARD LOOKING STATEMENT DISCLAIMER

This report contains forward-looking statements, which reflect management's best judgment based on factors currently known but involve significant risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including but not limited to risks more fully described in the "Risk factors" section of the Company's Annual Report, and other risks detailed in filings with the Ontario Securities Commission. Forward-looking information provided pursuant to the safe harbor established by recent securities legislation should be evaluated in the context of these factors.

Contact Information

  • AirBoss of America Corp.
    R.L. Hagerman
    CEO
    (905) 751-1188
    (905) 751-1101 (FAX)
    or
    AirBoss of America Corp.
    S.W. Richards
    Vice-President Finance & CFO
    (905) 751-1188
    (905) 751-1101 (FAX)
    www.airbossofamerica.com