AirBoss reports ‘strong' financial results for third quarter

NEWMARKET, Ontario—AirBoss of America Corp. posted "strong" financial results for the third quarter, stating that "a combination of domestic sourcing, advanced buying tactics and the development of alternative sources helped mitigate the impact of numerous global challenges."

"I'm very pleased to report a strong quarter of progress for AirBoss, including the production and final commencement of shipments for the remaining portion of the 18 million boxes of nitrile patient examination gloves for the U.S. Strategic National Stockpile for HHS," said Chris Bitsakakis, AirBoss president and chief operating officer. "Although Q3 financial performance was impacted by the shift to the right of $116 million of sales due to West Coast port backlogs and COVID-19 lockdowns, we are reiterating our 2021 outlook and expect record results in the fourth quarter."

AirBoss reported third quarter net sales of $112 million and nine-month sales of $337.8 million, down 31.2 percent and 8.6 percent, respectively, from 2020 results.

AirBoss said the decreases can be attributed to AirBoss Defense Group's delivery of the FEMA and Department of House and Human Services powered air purifying respirator contracts in the prior year, "partially offset by increased sales at (AirBoss) Rubber Solutions across the majority of customer sectors."

The firm reported gross profit for the third quarter dropped 43.6 percent to $25.8 million, driven by lower volumes at its AirBoss Defense Group related to a government contract recognized in the same period in the prior year, lower volume at Engineered Products and continued freight and raw material increases. For the nine-month period, consolidated gross profit fell 11.3 percent to $84.9 million.

Bitsakakis cited the $42.5-million acquisition of Ace Elastomer (color and specialty rubber compounding) and the installation of new technology to improve automation and efficiencies at AirBoss' engineered products facility as third quarter highlights.

"With $12.4 million in cash and cash equivalents, $50.5 million in undrawn availability under its credit facilities (and) $200 million in inventories for delivery to customers, AirBoss enters the remainder of 2021 in strong financial condition," the company said in announcing its results.