AirBoss Announces Positive Outlook for 2021 Fueled by Strong Organic Sales

NEWMARKET, Ontario, March 16, 2021 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX: BOS) (the “Company” or “AirBoss”) today announced updated outlook for 2021. ($US except where otherwise noted)

“For the full year 2021, we are projecting another record year with organic sales and Adjusted EPS growing at approximately 25% or higher,” said Chris Bitsakakis, President and COO of AirBoss. “Our updated outlook reflects the initial $288 million portion of our contract to supply HHS with nitrile rubber gloves, announced earlier today. There remains potential upside for us to significantly raise our current outlook for 2021 if HHS exercises its option to order an additional $288 million of gloves, or if we are successful in obtaining other significant contracts from the $175M in additional opportunities which we are also pursuing.

“In parallel, as we continue to execute on organic growth and capture market share, we are also assessing both tuck in and transformational acquisitions to leverage our strong balance sheet and accelerate our growth strategy.”

2021 Guidance

Due to the uncertainty created by the current pandemic and its impact on the broader economy, the Company is providing anticipated results for the full year ending December 31, 2021 to provide visibility to investors.

Based on its current outlook, but excluding the potential follow-on portion of the Company’s new contract with HHS and any other significant new contracts or significant M&A, AirBoss anticipates recording the following for 2021:

• Revenues in the range of $630 to $710 million, reflecting growth of approximately 25% - 41% over 2020
• Adjusted EBITDAⁱ margin in the range of 15.0% - 15.5%
• Adjusted Earnings per Diluted Shareⁱ of $1.80 to $2.19, reflecting growth of approximately 24% - 51% over 2020
  

The Company anticipates it will begin to record contribution from the new HHS contract beginning in the second quarter of 2021. Reflecting this timing as well as some contracts that have shifted to the right, the Company anticipates recording revenue growth of approximately 11% and Adjusted EBITDA growth of 44% in the first quarter of 2021 compared to the same period in 2020.

For important information on risk factors related to 2021 Guidance, refer to “AirBoss Forward Looking Information Disclaimer” later in this news release.

Accounting Assumptions

The above guidance reflects certain accounting assumptions including:

• EBITDA margin compression vs 2020 primarily reflecting sales mix
• Depreciation and amortization expense of $18.9 million
• Interest expense of approximately $2.3 million
• An effective tax rate of 27%
• Weighted average fully diluted share count of 28.6 million shares