NEWMARKET, Ontario—Economic headwinds continue to impact the bottom line for AirBoss of America Corp., despite the traction gained in the mining and industrial sectors at the end of 2023 and higher volumes realized in the first quarter of this year for AirBoss Rubber Solutions.
"AirBoss remained focused on operational execution, aggressive deleveraging and the implementation of our recently announced strategic transition during the first quarter of 2024, while continuing to navigate challenging economic headwinds," Chris Bitsakakis, president and co-CEO of AirBoss, said during a recent earnings call with investors. "At AirBoss Rubber Solutions, we experienced a strong quarter with respect to sales and EBITDA, progressive traction compared to the prior calendar quarter and volumes which increased during Q1 2024."
The Canadian company saw consolidated net sales decrease by 11.6 percent to about $103.5 million for Q1, as compared to the $117.1 million in net sales in Q1 2023.
Adjusted EBITDA decreased by 58.2 percent compared to Q1 2023, at $4.31 million compared to $10.3 million in Q1 2023.
The nearly 12-percent consolidated sales decrease year-over-year "was primarily attributable to lower sales at both AirBoss Rubber Solutions and AirBoss Manufactured Products."
AMP now comprises the former AirBoss Defense Group, a restructuring that occurred at the conclusion of last year.
"At (AMP), the rubber molded and defense product lines both experienced softness in the quarter," Bitsakakis said. "However, we are encouraged by the recently announced Bandolier awards, totaling up to $57 million, and the positive traction this product line has experienced in the past 12 months."
AirBoss Chairman and co-CEO Gren Schoch said the strategic shift in focus will help prioritize investments and long-term shareholder value.
"Our priorities remain growing (ARS), a renewed focus on core competencies in (AMP) and a focus on adding new compounds and products, technical capabilities and geographic reach into selected North American and international markets," Schoch said. "We remain committed to our goal of growing AirBoss as a global market leader in the custom rubber compounding market and the industries which we serve."
AirBoss of America, founded in 1989, is a developer, manufacturer and provider of survivability solutions, advanced custom rubber compounds and finished rubber products that are designed for challenging environments.