Airboss Of America Corp.
TSX : BOS

Airboss Of America Corp.

November 08, 2005 16:44 ET

AirBoss Announces 3rd Quarter 2005 Results

NEWMARKET, ONTARIO--(CCNMatthews - Nov. 8, 2005) - AirBoss of America Corp. (TSX:BOS) ("AirBoss") announces the following results for the three and nine month periods ended September 30, 2005:



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

Net Sales $ 53,827 $ 50,002 $174,984 $143,349
Gross margin 5,537 7,044 20,641 20,507
Income before interest, tax
and amortization from
continuing operations
(EBITDA) (Note 1) (513) 4,246 8,643 12,735
Interest expense 728 664 2,309 2,110
Net income (loss) from
continuing operations (1,562) 1,428 1,779 4,038
Loss from discontinued
operations, net of tax (182) (500) (407) (1,546)
Net income (loss) per share
from continuing operations
- Basic (0.07) 0.06 0.08 0.18
- Diluted (0.06) 0.06 0.07 0.18

Net income (loss) per share
- Basic (0.08) 0.04 0.06 0.11
- Diluted (0.07) 0.04 0.06 0.11
Cash flow before changes
in non-cash working capital
from continuing operations (1,550) 2,458 4,836 9,220

Common shares outstanding
(millions)
- Basic 22.8 22.5 22.7 22.5
- Diluted 24.1 23.0 23.9 23.0

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 Nine months ended
(thousands) September 30 September 30
2005 2004 2005 2004
---- ---- ---- ----

Income (loss) from
continuing operations
before income taxes (2,478) 2,195 2,534 6,026
Interest expense 728 664 2,309 2,110
Amortization from
continuing operations 1,237 1,387 3,800 4,599
----- ----- ----- -----
EBITDA- continuing
operations (513) 4,246 8,643 12,735
----- ----- ----- ------
----- ----- ----- ------


Sales for the three-month period ended September 30, 2005 increased by $3.8 million or 7.6% compared to the same period in 2004. Sales increased by 22% for the nine month period. The increases came from all three of the Company's businesses including rubber compounding, military and first response safety products and railway track fastening products. These trends, adjusted for seasonal fluctuations 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. Current expectations are that material markets will continue to be volatile as the effect of worldwide demand, weather related production disruptions and oil price changes are absorbed.

Profitability was affected by the closure of a temporary rubber mixing facility and the previously announced adverse court ruling received by the Railway Products Division. The total cost of these items was approximately $5.3 million before tax ($3.2 million after tax) or $0.14 per share.

AirBoss is a manufacturer of proprietary rubber products for the military and transportation industry. AirBoss is also one of North America's largest custom rubber mixing companies serving a wide range of industries.

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 11 am EDT, Wednesday, November 9, 2005. Please either follow the link on our website or at www.ccnmatthews.com under webcasts and /or dial in to the following numbers: 416-695-9701 or Toll Free: 1 800 772 8997. 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
    or
    AirBoss of America Corp.
    Stephen Richards
    CFO
    (905) 751-1188
    www.airbossofamerica.com