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Press release from Marketwire

AirBoss Announces 1st Quarter 2010 Results

Wednesday, May 12, 2010

AirBoss Announces 1st Quarter 2010 Results11:51 EDT Wednesday, May 12, 2010 NEWMARKET, ONTARIO--(Marketwire - May 12, 2010) - AirBoss of America Corp. (TSX:BOS) Three months ended March 31 ($ thousands, except shares and per share amounts) 2010 2009 ---------------------------------------------------------------------------- Net Sales 53,885 53,085 Gross margin 7,918 4,981 Earnings before interest, tax and amortization from operations (EBITDA) (Note 1) 6,345 2,338 Interest expense 369 524 ---------------------------------------------------------------------------- Net income before non-controlling interest 3,032 469 Net income attributable to non-controlling interest - (47) ---------------------------------------------------------------------------- Net income 3,032 422 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net income per share ---------------------------------------------------- -Basic 0.13 0.02 -Diluted 0.13 0.02 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Cash flow before changes in non-cash working capital 3,961 2,318 Capital expenditures 401 1,050 Common shares outstanding (millions) ---------------------------------------------------- -Basic 23.9 23.8 -Diluted 24.1 23.8 ---------------------------------------------------------------------------- First quarter sales increased by 1.5% in 2010 over the previous year as volumes in both divisions more than offset decreases on translation of US dollar denominated sales. AirBoss-Defense continued its strong performance in the Chemical, Biological, Radiological, and Nuclear ("CBRN") protective wear market with increased sales of both over- boots and gloves. The opening of our new manufacturing facility in Milton, Vermont and its rapid start-up to a three shift efficient operation helped contribute to the continued positive results from this business.Compounding Division sales also increased during the quarter as customers in certain sectors show continued signs of rebounding from the effects of 2009. Further volume increases are anticipated in the second quarter although it will take another year of recovery to return to historical volumes.The 171% increase in EBITDA is a continuation of the results experienced in the last 6 months of the previous year and means that AirBoss remains on pace to double earnings in 2010.The Company's first $0.02 quarterly dividend was payable to shareholders of record at the end of the quarter; subsequent to the quarter end, the issuer bid program was re-activated.AirBoss of America Corp. develops, manufactures, and sells high quality, proprietary rubber-based products offering enhanced performance to military and industrial markets. The Company is a world leader in the development and production of CBRN protective wear. With a capacity to supply 250 million pounds of rubber annually to a diverse group of rubber manufacturers, AirBoss is also one of North America's largest custom rubber compounding companies. The Company's shares trade on the TSX under the symbol BOS. Visit www.airbossofamerica.com.The annual meeting is scheduled for 4:30 p.m. EDT Wednesday, May 12, 2010 at the Company's head office at which time the results for the 1st Quarter will also be discussed. Please follow the link on our website or at www.marketwire.com under webcasts or dial in to the following numbers: 416-695-6616 or Toll Free: 1-800-769-8320. Direct Replay Access number: 1-800-408-3053. Note 1: Three months ended March 31 ($ thousands) 2010 2009 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net income before non-controlling interest 3,032 469 Interest expense 369 524 Amortization from continuing operations 1,199 1,154 Provision for income taxes 1,745 191 ---------------------------------------------------------------------------- EBITDA 6,345 2,338 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AIRBOSS FORWARD LOOKING STATEMENT DISCLAIMERCertain 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 2009 Annual Report to Shareholders under the heading "Risk Factors".FOR FURTHER INFORMATION PLEASE CONTACT: 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