AirBoss Provides Updated Outlook Following Announcement of Ace Elastomer Acquisition
August 18 2021 - 6:27PM
AirBoss of America Corp. (TSX: BOS) (OTCQX: ABSSF) (the "Company"
or "AirBoss") today announced an update to its previously disclosed
outlook for full-year 2021, as disclosed on May 12, 2021 and as
recently reiterated on August 10, 2021. All dollar ($) amounts are
in U.S. dollars.
The acquisition of Ace Elastomer, Inc. (“Ace”),
which was announced by the Company earlier today, is expected to
have a positive but nominal impact on the Company’s outlook for
2021, given the expected timing for closing of this transaction.
Accordingly, the Company’s 2021 outlook remains as follows:
- Revenues in the
range of $630 to $710 million, reflecting growth of approximately
25% – 41% over 2020
- Adjusted EBITDAi
margin in the range of 15.0% – 15.5%
- Adjusted
Earnings per diluted sharei of $1.80 to $2.19, reflecting growth of
approximately 24% – 51% over 2020
For periods following fiscal year 2021, the
acquisition of Ace is expected to increase AirBoss Rubber
Solutions’ (“ARS”) sales by approximately 15%, gross profit by
approximately 28% and EBITDAi by approximately 26% over the current
year.
As announced earlier today, the acquisition of
Ace is expected to:
- Increases ARS’
proprietary color and specialty rubber compounding capacity,
complementing investments made by AirBoss in color and specialty
compounding with the addition of two new dedicated lines in
Kitchener, ON in 2019
- Significantly
accelerates ARS’ strategy to expand from traditional black, high
volume product lines into lower volume but typically higher margin
color and specialty markets
- Expands ARS’
reach into the U.S. South and Mid-West
- Minimal overlap
in customer-base presents opportunities for revenue synergies
- Establishes
market leading position for ARS in the rubber roll market
As previously stated, the Company’s guidance is
based on its current outlook, but excludes the potential for new
personal protective equipment (PPE) and health-care related awards
and any other significant new contracts or significant M&A. For
important information on risk factors related to this guidance,
refer to “AirBoss Forward Looking Information Disclaimer” later in
this news release.
Investor Contact: Chris
Bitsakakis, President or Gren Schoch, CEO at 905-751-1188.
Media Contact:
media@airboss.com
AirBoss of America Corp.
AirBoss of America is a leading and diversified
developer, manufacturer and provider of innovative survivability
solutions, advanced custom rubber compounds and finished rubber
products that are designed to outperform in the most challenging
environments. Founded in 1989, the company operates through three
divisions. AirBoss Defense Group is a global leader in personal and
respiratory protective equipment and technology for the defense,
healthcare, medical and first responder communities. AirBoss Rubber
Solutions is a top-tier North American custom rubber compounder
with 500 million turn pounds of annual capacity. AirBoss Engineered
Products is a supplier of innovative anti-vibration solutions to
the North American automotive market and other sectors. The
Company’s shares trade on the TSX under the symbol BOS and on the
OTCQX under the symbol ABSSF. Visit www.airboss.com or
www.airbossrubbersolutions.com for more information.
AIRBOSS FORWARD LOOKING INFORMATION 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 information” or
“forward-looking statements” within the meaning of applicable
securities laws, and can generally be identified by words such as
“will”, “may”, “could” “expects”, “believes”, “anticipates”,
“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.
Statements containing forward-looking
information 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 information involves 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 the
forward-looking information. Numerous factors could cause actual
results to differ materially from those in the forward-looking
information, including without limitation: impact of general
economic conditions, notably including its impact on demand for
rubber solutions and products; dependence on key customers; global
defense budgets, notably in the Company’s target markets, and
success of the Company in obtaining new or extended defense
contracts; 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; AirBoss’ ability to successfully integrate
acquisitions of other businesses and/or companies or to realize on
the anticipated benefits thereof; 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 and non-compliance with environmental
laws and regulations; impact of global health situations; potential
product liability and warranty claims and equipment malfunction.
COVID-19 could also negatively impact the Company’s operations and
financial results in future periods. There is increased uncertainty
associated with future operating assumptions and expectations as
compared to prior periods. As such, it is not possible to estimate
the impacts COVID-19 will have on the Company’s financial position
or results of operations in future periods. While the direct
impacts of COVID-19 are not determinable at this time, the Company
has a credit facility that can provide financing up to $150,000.
This list is not exhaustive of the factors that may affect any of
AirBoss’ forward-looking information.
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 information. All subsequent written and oral
forward-looking information 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 Interim Report and, whether as a result of
new information, future events or otherwise, AirBoss disclaims any
intent or obligation to update publicly the forward-looking
information except as required by applicable laws. Risks and
uncertainties about AirBoss’ business are more fully discussed
under the heading “Risk Factors” in our most recent Annual
Information Form and are otherwise disclosed in our filings with
securities regulatory authorities which are available on SEDAR at
www.sedar.com.
___________________________i This release
contains non-IFRS Measures, including Adjusted EBITDA and Adjusted
Earnings per diluted share. Adjusted EBITDA means net earnings
before interest and financing costs (net of interest income),
income taxes, depreciation and amortization, impairment expenses
and transaction-related costs and certain other items. AirBoss’
non-IFRS measures are directly derived from the Company’s
consolidated financial statements but do not have a standardized
meaning prescribed by IFRS and are not necessarily comparable to
similar measures presented by other issuers. The Company discloses
these terms for use in financial measurements made by interested
parties and investors to monitor the ability of the Company to
generate cash from operations for debt service, to finance working
capital and capital expenditures and to pay dividends. These terms
are not a measure of performance under IFRS and should not be
considered in isolation or as a substitute for net income under
IFRS. Reconciliations of these measures for prior periods are
presented in the Company’s Management’s Discussion & Analysis
(MD&As).
AirBoss of America (TSX:BOS)
Historical Stock Chart
From Mar 2024 to Apr 2024
AirBoss of America (TSX:BOS)
Historical Stock Chart
From Apr 2023 to Apr 2024