AirBoss Announces 1st Quarter 2003 Results.Business Editors NEWMARKET, Ontario--(BUSINESS WIRE)--May 8, 2003 AirBoss of America Corp. ("AirBoss") is pleased to announce the following results for the three-month period ended March 31, 2003: -0-
(000's except shares and per share amounts)
Three months ended March 31
2003 2002
---- ----
Net Sales $48,516 $43,708
Gross profit 7,245 7,288
Earnings before interest, taxes &
amortization (EBITDA)(Note) 3,009 3,090
Interest 673 761
Income before income taxes 1,001 1,287
Net income 672 754
Earnings per share - Basic $0.03 $0.03
- Diluted $0.03 $0.03
EBITDA per share (weighted) (Note) $0.13 $0.14
Cash flow $1,950 $2,294
Cash flow per share (weighted) 0.09 0.10
Common shares outstanding (million):
- Basic 22.5 22.5
- Diluted 23.1 22.5
Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased by 11% for the quarter ended March 31, 2003 to $48.5 million as compared to $43.7 million the previous year. This increase is attributable to increased volumes in our rubber compounding business and significant increases in sales of NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. (Nuclear, Biological, Chemical) military protective wear. These trends are expected to continue although order lead times in the rubber compounding business remain short. Sales by our Railway Products division are marginally lower than in the same period a year ago due to the scheduling of track construction projects but this will correct itself in the second quarter. The Company sells more than half of its products and buys more than half of its raw materials in U.S. dollars. It also maintains a large amount of net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. denominated in U.S. dollars. The effect of the devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the U.S. dollar in the first quarter of 2003 was to negatively impact earnings before tax by $1.2 million dollars or $0.03 per share after tax. This combined with the increased working capital necessary to support the increased sales has resulted in a requirement to change a debt covenant in the existing long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. agreements. The Company does not anticipate any problems in completing this in the short term, as ratios have essentially remained unchanged year over year. Key raw materials such as natural and synthetic rubber synthetic rubber: see rubber. , as well as carbon black increased in price dramatically in the 1st quarter and there is a time lag incurred prior to these cost increases being passed along to major customers. There are indications that these prices have peaked but margins were affected in the quarter. Although earnings per share were flat year over year, sales were up by 11% and earnings per share would have been approximately double if it were not for the adverse effect of $0.03 per share resulting from the approximate 7% appreciation of the Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents . The Company will continue to be negatively impacted in the second quarter as a result of the change in value of U.S. dollar denominated assets if the Canadian dollar continues to appreciate. Obviously once the dollar has stabilized the negative impact will be eliminated and if the Canadian dollar goes back to year end levels there will be a positive reversal of these write downs. AirBoss is a manufacturer of proprietary rubber products for the military and transportation industry. AirBoss is also one of North America's largest custom rubber mixing companies serving a wide range of industries. Note The Company discloses EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , a financial measurement used by interested parties. EBITDA does not have a standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. meaning prescribed by GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). and is not comparable to similar measures presented by other issuers. EBITDA is not a measure of performance under GAAP and should not be considered in isolation or as a substitute for net income under GAAP. AIRBOSS FORWARD LOOKING STATEMENT DISCLAIMER This report contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which reflect management's best judgement based on factors currently known but involve significant risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including but not limited to risks more fully described in the "Risk factors" section of the Company's Annual Report, and other risks detailed in filings with the Ontario Securities Commission The Ontario Securities Commission (OSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of Ontario. The OSC is an Ontario Crown corporation which reports to the Ontario legislature through the Minister of Finance. . Forward-looking information provided pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. established by recent securities legislation should be evaluated in the context of these factors. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion