AirBoss Reports 3rd Quarter 2024 Results
NEWMARKET, Ontario, Nov. 06, 2024 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX:BOS) (OTCQX:ABSSF) (the "Company" or "AirBoss") today announced its third quarter 2024 results. The Company will host a conference call and webcast to discuss the results on November 7th at 9:00 a.m. (ET), the details of which are outlined below. All dollar amounts are shown in thousands of United States dollars ("US $" or "$"), except per share amounts, unless otherwise noted.
Recent Highlights
Commenced shipments in the third quarter of 2024 ("Q3 2024") under AirBoss Manufactured Products' ("AMP") defense business' recently announced contract, valued at up to $45 million, to provide its Bandolier multipurpose energetic system to a NATO partner nation;
AMP's defense business was awarded a contract worth up to $84 million by the U.S. Department of Health and Human Services ("HHS") for the supply of protective isolation gowns. HHS subsequently increased the funded portion of this award from $59M to $69.3M; and
Declared a quarterly dividend of C$0.035 per common share.
"The isolation gown award from HHS and the commencement of shipments under the previously announced Bandolier contract are both very encouraging signs for AMP's defense business. We believe that the increase in new contract awards and solicitations in the last few quarters point to a recovery from the ongoing softness experienced by the Company in the quarter and will have a positive impact for our defense products business, in the remainder of 2024 and into 2025 and beyond," said Chris Bitsakakis, President and Co-CEO of AirBoss. "The Company continued to feel the impact of the ongoing industrial economic slowdown occurring in North America during the quarter, and we remain focused on operational execution and cost management to mitigate the effect of these challenges. We also continued to focus on our strategy to broaden and grow ARS while refocusing on core product lines at AMP."
"We continue to focus on our strategic transition, which we believe will help prioritize investments, growth and drive long-term shareholder value," added Gren Schoch, Chairman and Co-CEO of AirBoss. "Our priorities remain growing the core Rubber Solutions segment, a renewed focus on core competencies in the Manufactured Products segment and a focus on adding new compounds and products, technical capabilities, and geographic reach into selected North American and international markets. We remain committed to our goal of growing AirBoss as a global market leader in the custom rubber compounding market and the industries which we serve."
In thousands of US dollars, except share data
Three-months ended September 30
Nine-months ended September 30
(unaudited)
2024
2023
2024
2023
Financial results:
Net sales
96,204
102,195
295,061
333,329
Profit (loss)
(3,279
)
(4,633
)
(17,774
)
(5,791
)
Adjusted Profit1
(3,279
)
(2,592
)
(10,923
)
(3,634
)
Earnings (loss) per share (US$)
– Basic
(0.12
)
(0.17
)
(0.66
)
(0.21
)
– Diluted
(0.12
)
(0.17
)
(0.66
)
(0.21
)
Adjusted earnings per share1 (US$)
– Basic
(0.12
)
(0.10
)
(0.40
)
(0.13
)
– Diluted
(0.12
)
(0.10
)
(0.40
)
(0.13
)
EBITDA1
6,420
4,490
9,958
19,825
Adjusted EBITDA1
6,420
7,248
16,809
22,735
Net cash provided by (used in) operating activities
(1,071
)
8,727
4,485
31,626
Free cash flow1
(2,897
)
6,633
(3,001
)
26,354
Dividends declared per share (CAD$)
0.035
0.100
0.140
0.300
Capital additions
1,889
2,214
9,660
5,729
Financial position:
September 30, 2024
December 31, 2023
Total assets
327,974
356,656
Debt2
123,061
131,092
Net Debt1
97,227
88,213
Shareholders' equity
129,022
148,857
Outstanding shares*
27,130,556
27,130,556
*27,130,556 at November 6, 2024
1 See Non-IFRS and Other Financial Measures.
2 Debt as at September 30, 2024 and December 31, 2023 included lease liabilities of $12,560 and $13,890, respectively.
Financial Results
Consolidated net sales for Q3 2024 decreased by 5.9% to $96,204 compared with the third quarter of 2023 ("Q3 2023") and for 2024 year-to-date decreased by 11.5% to $295,061 compared with 2023 year-to-date. The decreases were primarily due to lower volumes at AirBoss Rubber Solutions ("ARS") and lower sales at AMP's rubber molded products business partially offset by higher sales in the defense products business.
Consolidated gross profit for Q3 2024 increased by $2,298 to $16,063, compared with Q3 2023, driven by improved volume and mix at AMP, specifically in the defense business, partially offset by additional softness experienced at the rubber molded products operations, along with softness across the ARS customer sectors. Gross profit as a percentage of net sales increased to 16.7% in Q3 2024 compared with 13.5% for Q3 2023, primarily due to improvements at AMP's defense products business and product mix at ARS, partially offset by softer margin percent at AMP's rubber molded products operations. Consolidated gross profit for 2024 year-to-date decreased by $14,589 to $38,699 compared with 2023 year-to-date, driven primarily by volume reductions at AMP and ARS, along ...
