AirBoss Provides Updated Outlook Following Announcement of Ace Elastomer Acquisition

NEWMARKET, Ontario, Aug. 18, 2021 (GLOBE NEWSWIRE) — 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. …

Source: AirBoss