AirBoss Announces Corporate Update and Preview of Annual 2023 Results

NEWMARKET, Ontario, Feb. 26, 2024 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX: BOS) (OTCQX:ABSSF) (the “Company” or “AirBoss”) today announced details of its new strategic transition, including a shift in reportable segments commencing with its results for the fourth quarter and year ended December 31, 2023. The Company has also provided a preview of its annual 2023 financial results along with details for the upcoming Q4 2023 results conference call.

Reportable Segments Update and Strategic Transition

Beginning with the fourth quarter and year ended December 31, 2023, AirBoss will report results under two reportable segments: (1) AirBoss Rubber Solutions (“ARS”), and (2) AirBoss Manufactured Products (“AMP”). The new Rubber Solutions segment will consist of the former rubber solutions segment and the rubber compounding operations at Acton Vale, Quebec previously included in the AirBoss Defense Group segment. The new Manufactured Products segment will consist of AirBoss Engineered Products, formerly a standalone segment, and AirBoss Defense Group, formerly a standalone segment (other than the rubber compounding operations at Acton Vale, Quebec).

AirBoss’ senior leadership team undertook an in-depth strategic review of the entire organization, which yielded a blueprint for a strategic transition related to the future growth of the Company. AirBoss’ strategic transition is reflected in these new reportable segments. This transition will consolidate all rubber compounding operations into one segment, emphasizing this segment’s ability to act as the core driver for sustainable growth and productivity. ARS will focus on innovation in custom rubber compounding, while aiming to expand market share through organic and inorganic means. The segment will strive to achieve enhanced diversification by a broadening of product breadth through technological advancements and investments in new specialty compounding assets. In addition, the Company will explore the mid-term monetization of its real estate holdings in an effort to build a state-of-the-art flagship rubber compounding facility while freeing up cash for inorganic growth.

The new AMP segment will consolidate all operations which manufacture or distribute finished products to a variety of target markets including automotive, non-automotive and defense. AMP will continue to drive its own growth strategy while in parallel the Company undertakes an in-depth strategic review of all individual product lines this segment currently manufactures and sells, in order to assess their overall alignment with the new strategic direction of AirBoss.