Airboss Of America Corp.
TSX : BOS

Airboss Of America Corp.

August 08, 2005 18:08 ET

AirBoss Announces 2nd Quarter 2005 Results

NEWMARKET, ONTARIO--(CCNMatthews - Aug. 8, 2005) - AirBoss of America Corp. (TSX:BOS) -

Year to date income from continuing operations increased 28%

AirBoss of America Corp. ("AirBoss") announces the following results for the three and six-month periods ended June 30, 2005:



(000's except shares and per
share amounts) Three months ended Six months ended
June 30 June 30
2005 2004 2005 2004
---- ---- ---- ----

Net Sales $61,589 $49,655 $121,157 $93,710
Gross margin 7,812 7,182 15,104 13,463
Earnings before interest, tax and
amortization from continuing
operations (EBITDA) (Note 1) 4,807 4,643 9,157 8,541
Interest expense 754 781 1,581 1,498
Net income from continuing
operations 1,784 1,338 3,342 2,610
Loss from discontinued operations,
net of tax (187) (365) (225) (1,046)
Net income per share from continuing
operations
-Basic 0.08 0.06 0.15 0.12
-Diluted 0.07 0.06 0.14 0.11
Net income per share
-Basic 0.07 0.03 0.14 0.06
-Diluted 0.07 0.03 0.13 0.06
Cash flow before changes in non-cash
working capital from continuing
operations 3,051 3,669 6,368 6,762

Common shares outstanding (millions)
-Basic 22.8 22.5 22.7 22.5
-Diluted 24.0 23.0 23.9 23.1

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 Six months ended
June 30 June 30
2005 2004 2005 2004
---- ---- ---- ----
Income from continuing operations
before income taxes 2,747 2,035 5,013 3,831
Interest expense 754 781 1,581 1,498
Amortization from continuing
operations 1,306 1,827 2,563 3,212
----- ----- ----- -----
EBITDA- continuing operations 4,807 4,643 9,157 8,541
----- ----- ----- -----
----- ----- ----- -----


Sales for the three-month period ended June 30, 2005 increased by $11.9 million or 24% compared to the same period in 2004. The increases came from all three of the Company's businesses. Sales of rubber compounds in the three month period
represented the largest increase of $7.1 million of the total $11.9 million increase compared to 2004. Sales of Military protective wear and railway track fastening products accounted for the remainder of the sales increase. The trends established in the first half of the year, adjusted for seasonal fluctuations in the Railway and Military divisions, are expected to continue for the remainder of the year.

Rubber compound raw material costs remain high and are expected to remain so in the immediate future. There is some speculation that the market for both natural rubber and carbon may trend higher as worldwide demand continues to keep markets tight.

AirBoss is a manufacturer of proprietary rubber and plastic products for the military and transportation industry. AirBoss is also one of North America's largest rubber mixing companies specializing in custom rubber mixing and compound development. AirBoss is listed on the Toronto Stock Exchange under the symbol BOS.

The full quarterly report will be posted on the Company's website (www.airbossofamerica.com).

A conference call to discuss the quarterly results is scheduled for 10am EDT, August 9th, 2005. Please follow the link on our website or at www.ccnmatthews.com under webcasts or dial in to the following numbers: 416-695-9716 or Toll Free: 1-888-280-8349. Direct Replay Access number: 1-888-509-0081.

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
    or
    AirBoss of America Corp.
    Stephen Richards
    CFO
    (905) 751-1188
    (905) 751-1101 (FAX)
    www.airbossofamerica.com