Jul 31, 2023

AirBoss Provides Corporate Update & Preview of Q2 2023 Results

AirBoss of America Corp. (TSX: BOS) (OTCQX: ABSSF) (the “Company” or “AirBoss”) today announced a change to its leadership team and updates at AirBoss Defense Group (“ADG”) which are intended to improve the division’s long-term strength. The Company has also provided a preview of its Q2 2023 financial results along with details for the upcoming Q2 2023 results conference call.

Chris Bitsakakis to Assume New Role as President and Co-CEO

AirBoss is pleased to announce that as of today’s date, Chris Bitsakakis, the current President and Chief Operating Officer of the Company, will assume the role of President and Co-Chief Executive Officer. Gren Schoch will continue in the role of Chairman and will serve alongside Chris as Co-Chief Executive Officer.

“Chris joined AirBoss in November 2017, and has overseen significant growth and enhanced performance in the organization, guiding us through a number of transformative changes,” said Gren Schoch, Chairman and Co-CEO of AirBoss. “His ability to enhance operational discipline, streamline key areas of the business, and attract experienced management to the organization, as well as his focus on growth, innovation, and product development make him ideally suited to play a greater role in our next phase of growth and execution of strategic opportunities. I look forward to continuing my close collaboration with Chris in his new role as we work on growing our core Rubber Solutions segment, driving improved performance from Engineered Products, and pursuing an array of growth and value-creation opportunities within ADG.”

AirBoss Defense Group

AirBoss also announced today that a series of cost-saving measures were implemented across ADG’s operations, including a reduction in its workforce. These changes are intended to streamline the business segment’s operations following a series of acquisitions and reduced business activity from continued delays in expected contract awards. These cost-saving measures are expected to result in approximately $5.0 million in annual cost reductions once fully implemented, while ADG remains fully capable to execute against future awards.

In relation to this announcement, Bitsakakis noted that, “over the past two and a half years, ADG has undergone substantial change. These changes came from acquisitions we had made within the business and from significant swings in our underlying business activity. We’ve taken an important step to closely review our operating practices, and structure ADG to return to profitability, as we await new contract awards. We expect substantial cost efficiencies going forward, while our ability to pursue and capture growth opportunities remains fully intact.”

Q2 2023 Results Preview

To provide additional visibility to investors, the Company is providing anticipated results for Q2 2023. AirBoss expects to record the following for Q2 2023:

  • Revenues in the range of US$112.5 to US$115.0 million
  • EBITDA1 in the range of $5.0 – $5.3 million (Q2 2022: $10.5 million)
  • Earnings per diluted share of US($0.08) to US($0.12)

1 See Non-IFRS and Other Financial Measures Important information on risk factors related to this guidance are noted in the “AirBoss Forward Looking Information Disclaimer” later in this news release.

Q2 2023 Conference Call

The Company will release its second quarter results after market close on Wednesday August 9, 2023. The release will be followed by a conference call to discuss its financial results on Thursday August 10, 2023 at 9:00 am ET. Date: Thursday, August 10, 2023 Time: 9:00 am ET Dail-in Number: 1-800-898-3989 or 416-406-0743 Conference ID: 6965982# Webcast Link: https://www.gowebcasting.com/12647 Please connect approximately 10 minutes prior to the beginning of the call to ensure participation.

Investor Contact: [email protected]

Media Contact: [email protected]

Source: AirBoss of America

Tire and Rubber Association of Canada

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