AirBoss of America Corp.
TSX : BOS

AirBoss of America Corp.

August 07, 2013 14:52 ET

AirBoss Announces 2nd Quarter 2013 Results

Q2 2013 Highlights:

- Net income for Quarter increased by 89% over Q2 2012 and by 50% compared to Q1

- Continued strong Balance Sheet

NEWMARKET, ONTARIO--(Marketwired - Aug. 7, 2013) - AirBoss of America Corp. (TSX:BOS) -

Three months ended
June 30
Six months ended
June 30
(US $thousands, except shares and per share amounts) 2013 2012 2013 2012
Net Sales 59,659 66,784 114,018 136,683
Gross margin 8,096 6,423 14,588 14,025
Earnings before interest, tax and amortization from operations (EBITDA) (Note 1) 6,018 3,820 10,332 8,440
Finance costs 202 302 394 545
Net income 3,060 1,621 5,106 3,908
Net income per share
- Basic 0.14 0.07 0.23 0.17
- Diluted 0.13 0.07 0.22 0.17
Common shares outstanding (millions)
- Basic 22.6 23.0 22.6 23.1
- Diluted 22.7 23.2 22.7 23.2

Sales increased by 10% in the second quarter of 2013 compared to the first but were $7.1 million or 11% lower than in the same period in 2012. Quarterly net income, however, increased by 50% compared to the 1st quarter and by 89% compared to the previous year. This is due to stable raw material pricing and a shift in product mix in both Rubber Compounding and AEP. Raw material costs were relatively stable in the quarter but are expected to decline significantly for the fourth quarter of the current year. This will flow impact pricing and result in reduced working capital requirements. For the remainder of the year rubber mixing tolling volume is expected to be stable and the mining sector will continue to fluctuate quarterly; however, new business currently being quoted should provide opportunities to again increase volume in the fourth quarter.

The new product development in the defense products group continues to progress well and the first production of new CBRN products is anticipated prior to year end, in time for required independent testing and anticipated 2014 contract tender qualifications.

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 8:00 a.m. EDT Thursday August 8, 2013. Please follow the link on our website or at www.marketwire.com under webcasts or dial in to the following numbers: 416-340-2220 or Toll Free: 1-866-226-1798. Direct Replay Access number: 1-800-408-3053.

Note 1:

Three months ended
June 30
Six months ended
June 30
($ thousands) 2013 2012 2013 2012
Net income 3,060 1,621 5,106 3,908
Finance costs 202 302 394 545
Depreciation and amortization of intangible assets 1,540 1,336 2,971 2,645
Income tax expense 1,216 561 1,861 1,342
EBITDA 6,018 3,820 10,332 8,440

AIRBOSS FORWARD-LOOKING STATEMENT DISCLAIMER

Certain statements contained or incorporated by reference 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, and can generally be identified by words such as "will", "may", "could" "expects", "believes", "antici pates", "forecasts", "plans", "intends" or similar expressions. These statements are not historical facts but instead represent management's expectations, estimates and projections regarding future events and performance.

Forward-looking statements are necessarily based upon a number of opinions, 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 risks, uncertainties and contingencies. AirBoss cautions that such forward-looking statements involve known and unknown contingencies, 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: impact of general economic conditions; its dependence on key customers; 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; AirBoss' ability to maintain existing customers or develop new customers in light of increased competition; changes in accounting policies and methods, including uncertainties associated with critical accounting assumptions and estimates; changes in the value of the Canadian dollar relative to the US dollar; changes in tax laws and potential litigation; ability to obtain financing on acceptable terms; environmental damage caused by it and non-compliance with environmental laws and regulations; potential product liability and warranty claims and equipment malfunction. This list is not exhaustive of the factors that may affect any of AirBoss' forward-looking statements.

All of the forward-looking information in this press release is expressly qualified by these cautionary 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. Forward-looking information contained herein is made as of the date of this press release and, whether as a result of new information, future events or otherwise, AirBoss disclaims any intent or obligation to update publicly these forward-looking statements except as required by applicable laws. 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 2012 Annual Report to Shareholders under the heading "Risk Factors".

Contact Information

  • AirBoss of America Corp.
    R.L. Hagerman
    CEO
    (905) 751-1188
    (905) 751-1101 (FAX)

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