NEWMARKET, Ontario, March 16, 2021 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX: BOS) (the “Company” or “AirBoss”) today announced updated outlook for 2021. ($US except where otherwise noted)

“For the full year 2021, we are projecting another record year with organic sales and Adjusted EPS growing at approximately 25% or higher,” said Chris Bitsakakis, President and COO of AirBoss. “Our updated outlook reflects the initial $288 million portion of our contract to supply HHS with nitrile rubber gloves, announced earlier today. There remains potential upside for us to significantly raise our current outlook for 2021 if HHS exercises its option to order an additional $288 million of gloves, or if we are successful in obtaining other significant contracts from the $175M in additional opportunities which we are also pursuing.

“In parallel, as we continue to execute on organic growth and capture market share, we are also assessing both tuck in and transformational acquisitions to leverage our strong balance sheet and accelerate our growth strategy.”

2021 Guidance

Due to the uncertainty created by the current pandemic and its impact on the broader economy, the Company is providing anticipated results for the full year ending December 31, 2021 to provide visibility to investors.

Based on its current outlook, but excluding the potential follow-on portion of the Company’s new contract with HHS and any other significant new contracts or significant M&A, AirBoss anticipates recording the following for 2021:

• 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
  

The Company anticipates it will begin to record contribution from the new HHS contract beginning in the second quarter of 2021. Reflecting this timing as well as some contracts that have shifted to the right, the Company anticipates recording revenue growth of approximately 11% and Adjusted EBITDA growth of 44% in the first quarter of 2021 compared to the same period in 2020.

For important information on risk factors related to 2021 Guidance, refer to “AirBoss Forward Looking Information Disclaimer” later in this news release.

Accounting Assumptions

The above guidance reflects certain accounting assumptions including:

• EBITDA margin compression vs 2020 primarily reflecting sales mix
• Depreciation and amortization expense of $18.9 million
• Interest expense of approximately $2.3 million
• An effective tax rate of 27%
• Weighted average fully diluted share count of 28.6 million shares
  

About AirBoss

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. Visit www.airboss.com for more information.

Investor Contact: Chris Bitsakakis, President, Gren Schoch, Chairman and CEO at 905-751-1188

Media Contact: media@airboss.com

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. Our forward-looking information includes conclusions, forecasts and projections related to revenues, adjusted EBITDA and adjusted earnings per share (on a diluted basis). 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 as at December 31, 2020 that can provide financing up to $60,000. 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 press release and, whether as a result of new information, future events or otherwise, AirBoss disclaims any intent or obligation to update publicly this 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 Non – IFRS Financial Measures: Adjusted EBITDA margin and Adjusted earnings per diluted share are directly derived from the consolidated financial statements but do not have a standardized meaning prescribed by IFRS and are not necessarily comparable to similar measure 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.

The Company has not provided a reconciliation of the non-IFRS measures to the nearest IFRS measures included in its full year 2021 financial guidance provided in this release, including Adjusted EBITDA margin and Adjusted earnings per diluted share, because certain reconciling items necessary to accurately project such IFRS measures, particularly net earnings (loss), cannot be reasonably projected due to a number of factors, including potential non-recurring or one-time costs (which are excluded from non-IFRS measures but included in net earnings (loss)), as well as the typical variability arising from the audit of annual financial statements, including, without limitation, certain accounting matters.

For additional information on the Company’s non-IFRS measures, see the Company’s 2020 MD&A.