Airboss Of America Corp.

Airboss Of America Corp.

November 10, 2010 13:10 ET

AirBoss Announces 3rd Quarter 2010 Results

AirBoss Continues Positive Trend

- EPS for Nine Months $0.40; a 167% Increase

- EBITDA YTD Increases by 82%

NEWMARKET, ONTARIO--(Marketwire - Nov. 10, 2010) - AirBoss of America Corp. ("AirBoss") (TSX:BOS) announces the following results for the three and nine month periods ended September 30, 2010:

  Three months ended September 30 Nine months ended September 30
(thousand $CAD, except shares and per share amounts) 2010 2009 2010 2009
Net Sales $ 59,868 $ 50,562 $ 175,767 $ 152,192
Gross margin   9,107   8,130   25,741   13.997
Earnings before interest, tax and amortization (EBITDA) (Note 1)   7,369   7,645   19,731   10,859
Interest expense   374   406   1,124   1,354
Net income   3,521   3,820   9,600   3,639
Net income per share                
  -Basic and Diluted   0.15   0.16   0.40   0.15
Cash flow before changes in non-cash working capital   4,659   4,971   14,004   6,610
Common shares outstanding (millions)                
  -Basic   23.9   23.6   23.9   23.7
  -Diluted   24.1   23.6   24.1   23.7

Net Sales from continuing operations increased 18% for the quarter and 15% year-to-date primarily due to higher rubber compounding volumes due to improved market conditions in North America. This increase was achieved despite the stronger Canadian dollar which had the effect of reducing US denominated revenue in the quarter by $2.7 million and $17.4 million year-to-date. Continued strong sales and earnings performance is expected in the fourth quarter as a result of increased mixing for OEM tire companies, increased sales of gas masks and tank track repair materials, and the continued demand for CBRN protective wear as evidenced by recently announced orders of $22 million from the US military.

Gross margins improved due to greater capacity utilization and a favourable product mix including the toll mixing of tire compounds and the shipment of gas masks. Accordingly cash flow (before changes in working capital) for the nine-month period has improved by 112%.

The Company has a strong working capital position, significant unused lines of credit and the ability to leverage additional debt to maintain the growth pace experienced in the year.

AirBoss of America Corp. develops, manufactures, and sells high quality, proprietary rubber-based products offering enhanced performance and productivity to the military protection, transportation, and industrial markets. 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

A conference call to discuss the quarterly results is scheduled for 9:00 am EDT, November 11, 2010. Please follow the link on our website or at under webcasts or dial in to the following numbers: 416-340-8061 or Toll Free: 1-866-225-0198. Direct Replay Access number: 1-800-408-3053.

Note 1 - EBITDA refers to net earnings from continuing operations determined in accordance with GAAP, before amortization, interest expense and income tax. The Company discloses EBITDA, a financial measurement used by interested parties and investors to monitor the ability of an issuer to generate cash from operations for debt service, financing working capital and capital expenditures, and pay dividends. 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 September 30 Nine months ended September 30
($thousands) 2010 2009 2010 2009
Net Income 3,521 3,820 9,600 3,639
Interest expense 374 406 1,124 1,354
Amortization 1,337 1,341 3,903 4,184
Provision for income taxes 2,137 2,078 5,104 1,682
EBITDA 7,369 7,645 19,731 10,859


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 and mining 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; potential litigation; and the impact of general economic conditions.

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 2009 Annual Report to Shareholders under the heading "Risk Factors".

Contact Information

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