AirBoss revises 2021 outlook based on delayed nitrile glove shipments

NEWMARKET, Ontario—AirBoss of America Corp. is revising its 2021 outlook based on a delayed shipment of nitrile gloves from Malaysia to be sold by its AirBoss Defense Group business segment.

"This year has presented unprecedented challenges to ADG, with ongoing customs, logistics and border delays at the ports of Los Angeles and Long Beach, as well as the previously disclosed COVID-19-related factory shutdowns in Malaysia," the company said in a Dec. 28 news release.

As a result, glove deliveries that should have been received in the fourth quarter of 2021 are now expected in the first quarter of this year. AirBoss said this timeframe remains within the company's contractual obligation window for delivery.

The Newmarket-based firm said sales are expected to be about $95 million for the remaining revenue from the contract, which should be realized in the first quarter of 2022.

"Management expects the current customs and border delays to alleviate following the holiday season," AirBoss said.

The revenue should position the company for "strong performance" in 2022, including a "record pipeline of over U.S. $1.5 billion," a significant portion of which it expects to convert in the upcoming year.

• Revenues are expected in the range of $570 million to $590 million, reflecting growth of approximately 14 to 18 percent over 2020;
• Adjusted EBITDA margin is forecast in the range of 13 to 13.5 percent; and
• Adjusted earnings per diluted share of $1.50 to $1.60, reflecting growth of between 3 and 10 percent (over 2020).

AirBoss noted in its end-of-year financial update that it continues to maintain priority for first responders and health care professionals in the fight against COVID-19, and also expects supply chain challenges to ease somewhat.

"As a part of overall future emergency preparedness planning, management expects a more unified and streamlined approach to PPE acquisition aimed at reducing complexity, shortening acquisition times and building strategic stockpiles, compared to the fragmented and complex distributor relationship arrangements seen previously," AirBoss said.

In October 2021, AirBoss saw its 100-brand Half Mask Respirator approved, a respirator designed as a more effective solution to the N95 mask.

ADG continues its prominence in the traditional defense field as well, with its Blast Gauge blast overpressure product, Bandolier and Rollover Detection Warning System.

Founded in 1989, AirBoss of America comprises AirBoss Defense Group, AirBoss Rubber Solutions and AirBoss Engineered Products.