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Press release from Marketwire

AirBoss Announces 2010 Results Strong Performance Continues

Wednesday, March 23, 2011

AirBoss Announces 2010 Results Strong Performance Continues14:10 EDT Wednesday, March 23, 2011NEWMARKET, ONTARIO--(Marketwire - March 23, 2011) - AirBoss of America Corp. (TSX:BOS) 2010 Highlights: 4th Quarter Net Income increases 31% EPS for year increases 112% to $0.55 Dividends increased 69% Rubber Compounding sales volumes increase 22% Debt, net of cash, reduced 53% AirBoss of America Corp. ("AirBoss") announces the following results:Three months endedTwelve months endedDecember 31December 31($ thousands, except shares and per share amounts)2010200920102009Net Sales64,68057,729240,447209,921Gross margin9,7847,44235,52521,439Earnings before interest, tax and amortization from continuing operations (EBITDA) (Note 1)7,2465,45426,97716,313Interest expense3663821,4901,736Net income3,4512,63713,0516,276 Net income per share -Basic0.150.110.550.26-Diluted0.140.110.540.26 Cash flow before changes in non-cash working capital from continuing operations 9,1763,36223,1809,972 Common shares outstanding (millions) -Basic23.923.823.923.7-Diluted24.423.924.223.7The strong financial performance of the first three quarters continued during the fourth quarter driven primarily by increased volumes and capacity utilization in the Rubber Compounding business and strong demand for AirBoss-Defense CBRN protective wear. We expect this to continue into 2011.Rubber Compounding volumes are expected to continue to be strong particularly in the first and fourth quarters of 2011 in accordance with major customer forecasts. Volumes could be as much as 30% higher than in 2010 during these periods. A new sales and compound development operation is planned for North Carolina to support the increased sales levels and it should be operational in the second quarter of 2011.Sales prices will increase due to significant raw material price increases. Price increases have been accepted throughout the market as manufacturers take steps to secure supply of materials that are becoming increasingly difficult to source.AirBoss-Defense continues to enjoy a high degree of visibility; by the end of February orders had been received for approximately two thirds of the division's annual sales budget for 2011. Our commitment to the development of products in partnership with government, the academic community and business affiliates will increase in 2011 and we expect to have a new dedicated development site in operation in the second half of the year.The financial condition of the Company continues to be strong with an excellent working capital position and substantial unused borrowing capacity. We continue to pursue opportunities to broaden the scope of AirBoss in personal protection products through both acquisition and product development.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 year end results is scheduled for 8:00 am EDT, March 24, 2011. Please follow the link on our website or at www.marketwire.com under "webcasts" or dial in to the following numbers: 416-695-6622 or Toll Free: 1-800-952-6845. Direct Replay Access number: 1-800-408-3053. 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 endedTwelve months endedDecember 31December 31($ thousands)2010200920102009Net Income3,4512,63713,0516,276Interest expense3663821,4901,736Amortization from continuing operations1,4521,3985,3555,582Provision for income taxes1,9771,0377,0812,719EBITDA from continuing operations7,2465,45426,97716,313AIRBOSS 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, and retail 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: R.L. HagermanAirBoss of America Corp.CEO(905) 751-1188ORStephen RichardsAirBoss of America Corp.CFO(905) 751-1188www.airbossofamerica.com