NEWMARKET, Ontario, Aug. 13, 2024 (GLOBE NEWSWIRE) -- AirBoss of America Corp. (TSX:BOS) (OTCQX:ABSSF) (the "Company" or "AirBoss") today announced its second quarter 2024 results. The Company will host a conference call and webcast to discuss the results on August 14th at 9:00 a.m. (ET), the details of which are outlined below. All dollar amounts are shown in thousands of United States dollars ("US $" or "$"), except per share amounts, unless otherwise noted. Recent Highlights Commenced shipments in the third quarter of 2024 under AirBoss Manufactured Products' defense business' recently-announced contract valued at up to $45 million to provide its Bandolier multipurpose energetic system to a NATO partner nation; Declared a quarterly dividend of C$0.035 per common share; Retained TD Securities Inc. as its financial advisor to assist the Company with its strategic review of various alternatives to create value for shareholders; and Received court approval of the settlement of the class action lawsuit which was pending against the Company in Canada. "Despite the continued economic slowdown occurring in North America, which impacted both AirBoss Rubber Solutions ("ARS") and AirBoss Manufactured Products ("AMP"), the Company remained focused on operational execution, aggressive deleveraging and cost management, as we drove our strategy to broaden and grow ARS while refocusing on core product lines at AMP," said Chris Bitsakakis, President and Co-CEO of AirBoss. "Although both segments continued to experience softness in the past quarter, we are encouraged by the recently announced Bandolier awards that have begun shipping in the third quarter of 2024 as well as increased momentum in the CBRN markets, which are expected to drive improved performance at AMP in the second half of 2024 and into 2025 and beyond." "Management continues to be focused on prioritizing investments and growth that will drive long-term shareholder value," added Gren Schoch, Chairman and Co-CEO. "We also continued to work on executing the previously-announced strategic transition, and have retained TD Securities Inc. as our financial advisor to assist in our review of various alternatives to create value for shareholders. In addition to the continued momentum at the Company as we execute our long-term strategy, we note that the courts approved the settlement of the class action lawsuit which was pending against the Company in Canada, which will conclude this matter." In thousands of US dollars, except share data   Three-months ended June 30 Six-months ended June 30 (unaudited)   2024   2023   2024   2023   Financial results:         Net sales 95,367   114,058   198,857   231,134   Profit (loss) (9,568 ) (2,613 ) (14,495 ) (1,158 ) Adjusted Profit1 (2,717 ) (2,613 ) (7,644 ) (1,042 ) Earnings (loss) per share (US$)         – Basic (0.35 ) (0.10 ) (0.53 ) (0.04 ) – Diluted (0.35 ) (0.10 ) (0.53 ) (0.04 ) Adjusted earnings per share1 (US$)         – Basic (0.10 ) (0.10 ) (0.28 ) (0.04 ) – Diluted (0.10 ) (0.10 ) (0.28 ) (0.04 ) EBITDA1 (779 ) 5,167   3,538   15,335   Adjusted EBITDA1 6,072   5,167   10,389   15,487   Net cash provided by (used in) operating activities 11,123   16,897   5,556   22,899   Free cash flow1 7,274   14,540   (104 ) 19,721   Dividends declared per share (CAD$) 0.035   0.100   0.105   0.200   Capital additions 5,612   2,410   7,771   3,515   Financial position: June 30, 2024   December 31, 2023 Total assets 334,454       356,656   Debt2 122,621       131,092   Net Debt1 92,564       88,213   Shareholders' equity 132,761       148,857   Outstanding shares* 27,130,556       27,130,556   *27,130,556 at August 13, 2024         1 See Non-IFRS and Other Financial Measures.2 Debt as at June 30, 2024 and December 31, 2023 include lease liabilities of $13,128 and $13,890, respectively. Financial Results Consolidated net sales for Q2 2024 decreased by 16.4% to $95,367 compared with the second quarter of 2023 ("Q2 2023") and for 2024 year-to-date decreased by 14.0% to $198,857 compared with 2023 year-to-date. The decreases were primarily due to lower sales at AMP in addition to lower volumes at ARS. Consolidated gross profit for Q2 2024 decreased by $9,123 to $8,463, compared with Q2 2023, driven by volume at AMP and specifically in the defense business with additional softness experienced at the rubber molded products operations, along with a $6,049 inventory write-down related to its inventory of nitrile gloves and medical gowns due to significant downward shifts in pricing. Gross profit as a percentage of net sales decreased to 8.9% in Q2 2024 compared with 15.4% for Q2 2023, primarily due to reductions at AMP driven by volume and product mix, partially offset by improvements at ARS. Consolidated gross profit for 2024 year-to-date decreased by $16,887 to $22,636 compared with 2023 year-to-date, driven primarily by volume reductions at AMP, along with a $6,049 inventory write-down related to its inventory of nitrile gloves and medical gowns due to significant downward shifts in pricing. Gross profit as a percentage of net sales decreased to 11.4% for 2024 year-to-date compared with 17.1% for 2023 year-to-date. This decrease was primarily a result of the significant reduction at AMP's defense and rubber molded products operations driven by volume partially offset by operational improvements and margin expansion at ARS. Adjusted EBITDA for Q2 2024 increased by 17.5%, compared to the same period in 2023 and decreased by 32.9% for 2024 year-to-date, compared with 2023 year-to-date. Financial Position The Company retains a $150 million credit facility and a net debt to TTM Adjusted EBITDA ratio of 4.27x (from 3.30x at December 31, 2023). Dividend The Board of Directors of the Company has approved a quarterly dividend of C$0.035 per common share, to be paid on October 15, 2024 to shareholders of record at September 30, 2024. Segment Results In the Rubber Solutions segment, net sales for Q2 2024 decreased by 13.1% to $59,001, from $67,917 in Q2 2023 and decreased by 8.1% to $124,470 for 2024 year-to-date, from $135,473 for 2023 year-to-date. For the quarter, volume decreased by 20.2% with decreases in ...