AirBoss Announces 2nd Quarter 2002 Results.Business Editors TORONTO--(BUSINESS WIRE)--Aug. 13, 2002 AirBoss of America Corp. ("AirBoss") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :BOS) is pleased to announce the following results for the six months and second quarter ended June 30, 2002:
($000's except shares and per share amounts)
Six months ended Three months ended
June 30 June 30
2002 2001 2002 2001
------- ------- ------- -------
Sales $89,205 $84,810 $45,497 $47,304
Gross profit 15,304 15,142 7,989 8,519
Earnings before interest,
taxes and amortization
(EBITDA) (Note 2) 6,713 7,369 3,623 4,790
Interest 1,512 1,751 751 811
Income before income taxes 3,014 3,128 1,727 2,569
Net income (Note 1) $1,847 $1,584 $1,093 $1,379
Earnings per share - Basic $0.08 $0.07 $0.05 $0.06
(Note 1) - Diluted 0.08 0.07 0.05 0.06
EBITDA per share
(weighted basic) (Note 2) $0.30 $0.33 $0.16 $0.21
Cash flow $4,822 $5,814 $2,528 $3,889
Cash flow per share
(weighted basic) 0.21 0.26 0.11 0.17
Weighted average number of
common shares outstanding
(million):
-Basic 22.5 22.5 22.5 22.5
-Diluted 22.5 22.5 22.5 22.5
Sales for the six month period ended June 30, 2002 increased 5% to $89.2 million. The AirBoss Rubber Compounding division has been successful in replacing most of the revenues lost due to major tire manufacturers' production cutbacks with industrial rubber products sales to both existing and new customers. The sales of railway track fastening clips and military protective wear also remained strong. Sales of rail pads continued to be restricted pending the outcome of ongoing legal actions and this contributed to a slight decline in sales for the three month period ended June 30 compared to last year. Over the next two quarters the Company expects to see continued market share increases in all of its core businesses. Overall market conditions remain unchanged from the first quarter with continued competitive pricing, compressed order lead times and fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. raw materials costs. This continues to create opportunities to add new customers. Note 1 Effective January 1, 2002 new accounting standards require the discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of amortization of goodwill. Instead, goodwill is tested for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. and, if required, written down to fair value. The following table presents the effect on the six months and three months ended June 30, 2001 as if the Company had retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin adopted the change in accounting policy:
Six Months Three Months
----------- ------------
Reported net income for the period $1,584 $1,379
Add back:
Amortization of goodwill 460 280
---------------------------
Adjusted net income for the period $2,044 $1,659
Basic and diluted earnings per share
Net income for the period $0.07 $0.06
Amortization of goodwill 0.02 0.01
---------------------------
Adjusted basic and diluted
earnings per share $0.09 $0.07
Note 2 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 pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). by GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). and is not necessarily 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.
Six Months Three Months
2002 2001 2002 2001
Income before income taxes $3,014 $3,128 $1,727 $2,569
Interest 1,512 1,751 751 811
Amortization 2,187 2,490 1,145 1,410
---------------------------------
EBITDA $6,713 $7,369 $3,623 $4,790
AirBoss is a manufacturer of proprietary rubber and plastic products for the transportation industry and military. AirBoss is also one of North America's largest rubber mixing companies specializing in custom rubber mixing and compound development. AirBoss is listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol BOS. AIRBOSS FORWARD LOOKING STATEMENT DISCLAIMER (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the 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. |
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