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NEWMARKET, ONTARIO -- (Marketwired) -- 05/07/13 -- AirBoss of America Corp. (TSX: BOS) -
Three months ended March 31($thousands, except shares and per share amounts) 2013 2012----------------------------------------------------------------------------Net sales 54,359 69,899Gross margin 6,492 7,602Earnings before interest, tax and amortization from operations (EBITDA) (Note 1) 4,314 4,605Interest expense 192 243----------------------------------------------------------------------------Net income 2,046 2,287----------------------------------------------------------------------------Net income per share - Basic 0.09 0.10 - Diluted 0.09 0.10----------------------------------------------------------------------------Common shares outstanding (millions) - Basic 22,498,247 23,143,122 - Diluted 22,699,617 23,314,005----------------------------------------------------------------------------
Net income has increased by 17% over the 4th quarter of 2012; however, decreased by 10% compared to the same period in 2012. Whilst the change from the same period a year ago is primarily due to a decline in sales of rubber compounds into the heavy conveyor belt market for coal mining, all other sectors in this business have maintained or increased slightly in volume. Sales dollars were also affected by declining raw material prices compared to a year ago. As is industry practice, fluctuations are passed along to customers. Sales volumes are anticipated to increase in Q2 by between 10% and 20% and again at the end of Q3 when a significant increase in tire tolling business is scheduled, as previously stated.
The Engineered Products business which includes Industrial Rubber products and AirBoss-Defense was on plan for the quarter and this is expected to continue for the year. There are opportunities to increase results compared to plan by penetrating different geographical territories, although any contracts won in Defense would likely not impact results significantly until the following year.
Product development is progressing in all areas with new products on schedule in the case of defense and with additional technical resources put in place to support increases in rubber compounding.
AirBoss of America Corp. develops, manufactures, and sells high quality, proprietary rubber-based products offering enhanced performance to military and industrial markets. The Company is a world leader in the development and production of CBRN protective wear. With a capacity to supply 250 million pounds of rubber annually to a diverse group of rubber manufacturers, AirBoss is also one of North America's largest custom rubber compounding companies. The Company's shares trade on the TSX under the symbol BOS. Visit www.airbossofamerica.com.
