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Bullboard - Stock Discussion Forum AirBoss of America Corp ABSSF


Primary Symbol: T.BOS

AirBoss of America Corp. is a Canada-based company, which is a diversified developer, manufacturer and provider of survivability solutions, advanced custom rubber compounds and finished rubber products that are designed to outperform in the challenging environments. The Company operates through two segments: AirBoss Rubber Solutions and AirBoss Manufactured Products. The AirBoss Rubber... see more

TSX:BOS - Post Discussion

AirBoss of America Corp > Airboss Provides Earnings Update
View:
Post by Daudau11 on Oct 31, 2022 6:26pm

Airboss Provides Earnings Update

AirBoss Provides Corporate Update and Preview of Q3 2022 Results

T.BOS 

NEWMARKET, Ontario, Oct. 31, 2022 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX: BOS)(OTCQX:ABSSF) (the “Company” or “AirBoss”) today released a corporate update and preview of results for the third quarter of 2022 (“Q3 2022”), including the Company’s decision to take a non-cash charge with respect to nitrile patient examination gloves held in inventory by AirBoss Defense Group (“ADG”).

Based on significant downward shifts in pricing in the nitrile glove market during 2022, the Company has determined that it is necessary to take a non-cash charge in respect of nitrile gloves held in ADG’s finished goods inventory. In addition, upon inspection, it was determined that a portion of the gloves no longer meet ADG’s safety standards, and arrangements have been made for disposal of the affected glove supply. As a result of these factors, a material portion of the gloves will be disposed of, and a corresponding non-cash, non-covenant-impacting write-down of inventory totaling US$57 million will be taken.

“We have seen pricing in the nitrile glove market drop by over 80% due to a massive influx of imported low-cost product. Given these shifts in the nitrile glove market and related considerations, we have taken the unfortunate decision to write off a material amount of the gloves we hold in inventory, despite continued pursuit of sale opportunities and a general expectation that pricing will eventually rebound and drive future sales,” expressed Gren Schoch, Chairman and CEO of AirBoss. “We have arranged for the safe, cost-effective disposal of a portion of the glove supply in question, and ongoing costs related to storage of this inventory will no longer be incurred.”

Mr. Schoch further noted, “We also want to take this opportunity to remind investors that ADG’s relationships with its customers remain very strong and that this division continues to pursue significant opportunities for its portfolio of personal protective equipment. In addition, the actions undertaken by the Engineered Products segment to address its key challenges continue to positively move forward and management is optimistic of results materializing in the near term.”

Q3 2022 Results Preview

Due to the continued challenges being experienced by the Company and the write-down noted above, the Company is providing anticipated results for Q3 2022 to provide visibility to investors. AirBoss anticipates recording the following for Q3 2022:

  • Revenues in the range of US$102.0 to US$105.0 million
  • Adjusted EBITDA¹ in the range of US$1.0 to US$1.4 million
  • Adjusted EPS¹ in the range of ($0.44) to ($0.47)

Important information on risk factors related to this guidance are noted in the “AirBoss Forward Looking Information Disclaimer” later in this news release.

Q3 2022 Conference Call

The Company also reminds investors that it will release its third quarter results after market close on Tuesday November 8, 2022. The release will be followed by a conference call to discuss its financial results on Wednesday November 9, 2022 at 9:00 am ET.

  Date: Wednesday, November 9, 2022
  Time: 9:00 am ET
  Dial-in No.: 1-800-319-4610 or 416-915-3239
  Conference ID: 55506
  Webcast Link: https://www.gowebcasting.com/12233
     

Please connect approximately 10 minutes prior to the beginning of the call to ensure participation.

Comment by Possibleidiot01 on Nov 01, 2022 7:27am
Big writedown on white nitrile gloves ( 80% cheaper now)  which is evidence any effect from the pandemic is OVER. It's also proof the supply chain has healed itself , at least for this product. Could be the reason the stock has been going down for a long time .
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