AirBoss Of America Corp.
TSX : BOS

AirBoss Of America Corp.

August 08, 2012 17:22 ET

AirBoss Announces 2nd Quarter 2012 Results

NEWMARKET, ONTARIO--(Marketwire - Aug. 8, 2012) - AirBoss Of America Corp. (TSX:BOS) -

Q2 2012 Highlights:

  • Declared dividend $0.05 payable October 18, 2012
  • Opened R&D centre in Bromont, Quebec July 30, 2012
Three months ended
June 30
Six months ended
June 30
(US $ thousands, except shares and per share amounts)
2012

2011

2012

2011
Net Sales 66,784 77,440 136,683 147,756
Gross margin 6,423 9,983 14,025 20,946
Earnings before interest, tax and amortization from
operations (EBITDA) (Note 1) 3,820 7,995 8,440 15,990
Interest expense 302 377 545 730
Net income 1,621 4,527 3,908 8,824
Net income per share
-Basic 0.07 0.19 0.17 0.37
-Diluted 0.07 0.19 0.17 0.37
Common shares outstanding (millions)
-Basic 23.0 23.6 23.1 23.6
-Diluted 23.2 24.1 23.2 24.1

Sales decreased by $10.6 million or 14% for the quarter and by $11.1 million or 8% year-to-date. Of the decrease in the quarter, $6.4 is due to declines in sales of rubber compounds to both the major tire and heavy belting sectors. The decline to the belting industry began in mid-quarter and is attributed to reduced demand in the coal industry. The majority of the remainder of the sales decline is due to the reduced sales in the current year of military protective wear due to reduced demand from the US military.

The rubber compounding business is expected to be impacted by the reduced demand by the belting industry for the remainder of the year but the company anticipates improvement in volumes from the tire industry by mid-third quarter with potential further significant increases in the fourth quarter. Raw material prices are expected to trend downwards and this should have a positive impact on margins for certain products as well as for reduced working capital requirements.

The Defense and Industrial Products businesses are performing slightly ahead of expectations beginning the year and this is expected to continue.

The company moved its Defense products business into its new research & development and administrative offices in July. Work is progressing well on new products and we hope to have multiple working prototypes before the end of the calendar year.

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 quarterly results is scheduled for 9:00 a.m. EDT Thursday August 9, 2012. Please follow the link on our website or at www.marketwire.com under webcasts or dial in to the following numbers: 416-340-8010 or Toll Free: 1-866-226-1799. Direct Replay Access number: 1-800-408-3053.

Note 1:
Three months ended Six months ended
June 30 June 30
($ thousands) 2012 2011 2012 2011
Net income 1,621 4,527 3,908 8,824
Interest expense 302 377 545 730
Amortization 1,336 1,210 2,645 2,371
Provision for income taxes 561 1,882 1,342 4,065
EBITDA 3,820 7,996 8,440 15,990

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".

Contact Information

  • AirBoss Of America Corp.
    R.L. Hagerman
    CEO
    (905) 751-1188

    AirBoss Of America Corp.
    Stephen Richards
    CFO
    (905) 751-1188
    www.airbossofamerica.com