AirBoss Announces Updated Opportunity Pipeline NEWMARKET, Ontario, Dec. 28, 2021 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX: BOS) (OTCQX: ABSSF) (the “Company” or “AirBoss”) announced today an update with respect to deliveries by AirBoss Defense Group (“ADG”) of nitrile patient examination gloves previously slated for the fourth quarter of 2021. This year has presented unprecedented challenges to ADG, with ongoing customs, logistics and border delays at the ports of Los Angeles and Long Beach, as well as the previously disclosed COVID-19-related factory shutdowns in Malaysia. As a result of the customs, logistics and border delays, glove deliveries originally scheduled for the fourth quarter of 2021 are now expected to be delivered by the end of the first quarter of 2022, which revised delivery window remains within the original timeframe set forth under the contract in respect of such product. Accordingly, as management expects the current customs and border delays to alleviate following the holiday season, the remaining revenue from the contract, representing approximately US$95M of sales, should be recognized in the first quarter of 2022. Management believes this will position the Company for very strong performance in 2022, including a record pipeline of over US$1.5 billion, a significant portion of which it expects to convert in the upcoming year.
Given the corresponding shift in this revenue from the fourth quarter of 2021 to the first quarter of 2022, the Company is revising its 2021 outlook as follows:
- Revenues in the range of US$570 to US$590 million, reflecting growth of approximately 14% – 18% over 2020
- Adjusted EBITDAi margin in the range of 13.0% – 13.5%
- Adjusted Earnings per diluted sharei of US$1.50 to US$1.60, reflecting growth of approximately 3% – 10% over 2020
For important information on risk factors related to this guidance, refer to “AirBoss Forward Looking Information Disclaimer” later in this news release.
ADG continues to work on the significant opportunities in its sales pipeline, which are at record levels and are expected to help augment ADG’s traction and momentum going into 2022. Management believes that the future sourcing of PPE for first responders and healthcare professionals will continue to be a necessity in response to the ongoing COVID-19 pandemic; this is evidenced by the strong pipeline of PPE-related opportunities that ADG is currently pursuing. As a part of overall future emergency preparedness planning, management expects a more unified and streamlined approach to PPE acquisition aimed at reducing complexity, shortening acquisition times and building strategic stockpiles, compared to the fragmented and complex distributor relationship arrangements seen previously. This is expected to continue to be a future driver for the business and ADG is refining its business development approach accordingly. In October of this year, AirBoss also announced that it has received approval from NIOSH for its new AirBoss 100™ Half Mask Respirator which was designed specifically for first responders and health care workers as a more effective solution to the N95 mask. Beyond this, ADG continues to target traditional defense contracts, potentially valued at hundreds of millions of dollars globally over the next several years, for its broader portfolio of survivability solutions. This includes opportunities for its low-burden mask as well as next-generation products like the Blast Gauge™ blast overpressure solution, Bandolier and Rollover Detection Warning System (RDWS). ADG has laid the foundation for transformative growth through its strategy of developing products designed for the protection of soldiers, health care professionals and first responders. The expanding pipeline of opportunities is a validation of this strategy and is expected to drive record growth for AirBoss over the subsequent years.
AirBoss of America Corp.
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 and on the OTCQX under the symbol ABSSF. Visit www.airboss.com or www.adg.com for more information.
Investor Contact: Chris Bitsakakis, President or Gren Schoch, CEO at 905-751-1188.
Media Contact: media@airboss.com