Mr. Chris Bitsakakis reports

AIRBOSS ANNOUNCES CORPORATE UPDATE AND PREVIEW OF ANNUAL 2023 RESULTS

Airboss of America Corp. has provided details of its new strategic transition, including a shift in reportable segments commencing with its results for the fourth quarter and year ended Dec. 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 Dec. 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, Que., previously included in the Airboss defence group segment. The new manufactured products segment will consist of Airboss engineered products, formerly a stand-alone segment, and Airboss defence group, formerly a stand-alone segment (other than the rubber compounding operations at Acton Vale, Que.).

Airboss's 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's 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 defence. 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.

"Today's announcement reflects how the leadership team intends to manage the enterprise while executing a realignment and a refocus on core competencies," said Chris Bitsakakis, president and co-chief executive officer. "We have essentially combined all of our rubber compounding assets across the enterprise in order allow the natural synergies to better facilitate an accelerated growth trajectory in Airboss's historic core business. Similarly, we have combined Airboss defence group and the former engineered products segments into the new Airboss manufactured products segment, reflecting the finished-product-focused nature of these operations and driving opportunities for additional synergies."

"We believe this shift in strategic focus supported by these new reportable segments will help prioritize investments, drive long-term growth and be accretive to the company going forward," added Gren Schoch, chairman and co-CEO. "Our goal is to transform Airboss into a global market leader in the custom rubber compounding market and the other industries which it serves."

The company will include supplemental unaudited information containing eight quarters of historical financial information (from the first quarter of 2022 through the fourth quarter of 2023) for the two new reportable segments in its upcoming annual results. The supplemental historical business segment information will not represent a restatement or reissuance of previously issued financial statements, and will relate entirely to segment presentation with no effect on previously reported consolidated results.

Two thousand twenty-three annual results preview

The company currently expects to release audited results, together with this supplemental unaudited information, on March 6, and is providing the following anticipated annual 2023 results in order to give additional visibility to investors:

• Net sales of $420-million (U.S.) to $430-million (U.S.) (2022 -- $477-million (U.S.));
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $23-million (U.S.) to $29-million (2022 -- $45.3-million (U.S.));
• Adjusted earnings per diluted share of 30 U.S. cents to 20 U.S. cents (2022 -- 45 U.S. cents).

Going into 2024, the company remains committed to its long-term priorities, which include growing the core rubber solutions segment, refocusing the range of products which manufactured products sells and investing in core areas of the business to support long-term growth.

Fourth quarter and annual 2023 financial results conference call details

Date:  Thursday, March 7, 2024

Time:  9 a.m. Eastern Time

Dial-in number:  1-800-319-4610 or 416-915-3239

Conference ID:  55506

Webcast:  access on-line

Please connect approximately 10 minutes prior to the beginning of the call to ensure participation.

About Airboss of America Corp.

Airboss of America is a diversified developer, manufacturer and provider of survivability solutions, advanced custom rubber compounds, and finished rubber products that are designed to outperform in the most challenging environments. Founded in 1989, the company operates through two divisions. Airboss rubber solutions is a top-tier North American custom rubber compounder with 500 million turn pounds of annual capacity. Airboss manufactured products is a supplier of anti-vibration and rubber-moulded solutions to the North American automotive market and other sectors, and also a global supplier of personal and respiratory protective equipment and technology for the defence, health care, medical and first-responder communities, through its Airboss defence operations.

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