AirBoss logs record first quarter with $144.5 million in sales

NEWMARKET, Ontario—On the heels of a record fourth quarter financial report for 2021, AirBoss of America Corp. reported record results for the first quarter of 2022.

"I'm pleased to report that Q1 2022 was the strongest first quarter in the company's history, with continued execution within (AirBoss Defense Group) and our focus on operating efficiency gains throughout the business, offsetting the challenging market conditions we continue to face," said Chris Bitsakakis, president and chief operating officer of AirBoss.

Net sales for the first quarter 2022 increased by 34.6 percent to $144.5 million over the $107.3 million in net sales recorded in the first quarter of 2021.

EBITDA increased by 37 percent to $19.7 million for the first quarter of 2022, compared to $14.4 million EBITDA in the first quarter of 2021.

And overall profit rose to $9.6 million in the first quarter of 2022, compared to $6.3 million in the first quarter of 2021.

Much of the continued financial success of the company stemmed from the now-complete contract with U.S. Health and Human Services for delivery of nitrile gloves within the AirBoss Defense Group segment. The largest contract ever for the company, AirBoss has delivered $237 million of the $288 million in nitrile gloves that originally was contracted for by HHS and Office of the Assistant Secretary for Preparedness and Response.

"Despite the increased issues being faced by an already fractured supply chain, the employees at AirBoss were able to find a way to deliver most of the original volumes under the HHS contract, posting several consecutive months as the largest importer of nitrile gloves to the United States," Bitsakakis said.

Softer volumes within the engineered solutions segment partially offset overall net sales, AirBoss noted. Engineered solutions was "impacted by record raw material increases, significant supply chain challenges and electronic chip shortages as OEMs flex production, with vehicle inventories remaining at historically low levels while demand remains strong."

Capital expenditures decreased to $2.1 million in the first quarter of 2022, compared to $9.8 million in capital additions for the first quarter of 2021.

• AirBoss Defense Group saw its net sales increase by 42 percent to about $64 million in the first quarter of 2022 compared to the first quarter of 2021.

This increase was due to the completion of the nitrile glove contract as well as financial improvements in operations at the company's Acton Vale, Quebec, location, AirBoss said.

• Net sales in the rubber solutions segment increased by 52.4 percent to $56.7 million in the first quarter of 2022, compared to the first quarter of 2021.

This was the result of better control of overhead costs, which were offset by raw material, labor and logistics costs, according to AirBoss.

• Net sales in engineered solutions decreased by 7.8 percent to $29.8 million in the first quarter of 2022 against the first quarter of 2021.

AirBoss said this was caused by lower volumes caused by microchip shortages in the SUV, light truck and mini-van markets, both OEM and aftermarket sales.

AirBoss said it expects supply line constraints and raw material challenges to continue well into 2022.

But with its solid financial position, including a record pipeline of $1.5 billion, AirBoss said it will look to both inorganic and organic growth initiatives moving forward.

In particular, the company is eying the North American rubber market to grow its rubber solutions segment "in selected compounds."

The company said it will target additional acquisition opportunities "with a focus on new compounds, technical capabilities and geographic reach."

Finally, AirBoss will look to grow its defense group and first responder segments with survivability solutions, such as the AirBoss 100 Half Mask Respirator System and the integration of the Ace Elastomers and BlackBox Biometrics businesses.

"Building on ADG's acquisition of Blackbox Biometrics in early 2021, we are in active pursuit of new sales opportunities related to our Blast Gauge System of lightweight wearable blast overpressure sensors, with a primary focus on military personnel," said Gren Schoch, chairman and CEO of AirBoss. "As well, new innovations like our AirBoss 100 Half Mask Respirator add further depth to our product lineup and place us in a competitive position to secure new business going forward."

A day after the first quarter results were announced May 11, AirBoss of America conducted its general meeting, electing board members and appointing auditors.

Elected to the AirBoss Board of Directors for 2022 were Anita Antenucci, David Camilleri, Mary Matthews, Robert McLeish, Stephen Ryan, P. Gren Schoch and Alan Watson.