AirBoss Announces 2012 Results

2012 Highlights: - Opened Military Products R&D facility in Bromont, Quebec - North Carolina rubber compounding plant improvements completed - No operating debt - Purchased 836,865 shares (3.5% of outstanding shares) for cancellation under NCIB - Dividends increased by 32%

Marketwired

NEWMARKET, ONTARIO--(Marketwire - Mar 20, 2013) - AirBoss of America Corp. (BOS.TO)

AirBoss of America Corp. ("AirBoss") announces the following results:
 
    Three months ended   Twelve months ended
    December 31   December 31
                 
(In thousands of US dollars, except shares and per share amounts)   2012   2011   2012   2011
Net Sales   54,114   61,654   248,698   282,520
Gross margin   6,260   5,702   26,061   34,853
                 
Earnings before interest, tax and amortization from continuing operations (EBITDA) (Note 1)   4,069   2,990   16,302   25,571
                 
Interest expense   231   305   1,019   1,452
                 
                 
Net income   1,755   595   7,170   13,004
                 
Net income per share                
  -Basic   0.08   0.03   0.31   0.55
  -Diluted   0.08   0.02   0.31   0.54
                 
                 
Net cash provided by operating activities   11,281   19,088   10,855   16,790
                 
Common shares outstanding (millions)                
  -Basic   22.8   23.5   23.0   23.6
  -Diluted   23.0   23.7   23.2   24.1

Fourth quarter sales decreased by $7.5 million compared to 2011 due to decreases in Rubber Compound sales to the heavy conveyor belting and major tire sectors. Gross margins improved for the quarter year-over-year due to product mix, improvements in plant and equipment in North Carolina and increased production of CBRN footwear by the defense products division.

Sales will continue to be negatively impacted in 2013 as long as the belting sales to the coal industry remain depressed. This should be offset mid-year by a forecast increase in volumes to major tire manufacturers.

Despite significant repurchases of shares under its normal course issuer bid program and an increase in dividends paid, the Company ended the year with improved working capital debt to equity ratios, no operating debt and an unused line of credit of CAD $35 million.

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 9:00 am EDT, March 21, 2013. Please follow the link on our website or at www.marketwire.com under "webcasts" or dial in to the following numbers: 416-340-8010 or Toll Free: 1-866-226-1799. 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 ended   Twelve months ended
    December 31   December 31
(In thousands of US dollars)   2012   2011   2012   2011
                 
Net Income   1,755   595   7,170   13,004
Interest expense   231   305   1,019   1,452
Amortization from continuing operations   1,635   1,217   5,783   4,755
Provision for income taxes   448   873   2,330   6,360
EBITDA from continuing operations   4,069   2,990   16,302   25,571

AIRBOSS FORWARD LOOKING STATEMENT DISCLAIMER

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 - 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: impact of general economic conditions; its dependence on key customers; 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; 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 caused by it and non-compliance with environmental laws and regulations; potential product liability and warranty claims and equipment malfunction.

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'' business are more fully discussed in the Management''s Discussion and Analysis of Financial Condition and Results of Operations in the 2011 Annual Report to Shareholders under the heading "Risk Factors".

Contact:
AirBoss of America Corp.
R.L. Hagerman
CEO
(905) 751-1188
AirBoss of America Corp.
Stephen Richards
CFO
(905) 751-1188
www.airbossofamerica.com

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