AirBoss Reports Net Income for Nine Months Ending Sept 30, 1998
12 November 1998
AirBoss Reports 51% Sales and 76% Net Income Growth For Nine Months Ending September 30, 1998
TORONTO--Nov. 11, 1998--
(thousands except per share)
Nine Months Nine Month Three Months
Ended September 30 Change Ended September 30
------------------- ---------- ------------------
1998 1997 1998 1997
---- ---- ---- ----
Sales $61,225 $40,442 +51% $19,766 $14,604
Cost of Sales 50,621 34,903 +45% 16,103 12,597
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Gross Profit 10,604 5,539 +91% 3,663 2,007
Expenses 5,058 4,013 +26% 2,057 1,539
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Net Income
before taxes 5,546 1,526 +263% 1,606 468
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Income taxes 1,974 (500) 605 (500)
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Net Income $3,572 $2,026 +76% $1,001 $968
======= ======= ---- ======= =======
E.P.S. -Basic $0.214 $0.122 $0.060 $0.058
Fully Diluted $0.204 $0.118 $0.058 n/a
Toronto based AirBoss of America Corp. (TSE:BOS) reports sales of $61.2 million for the first three quarters of 1998 compared to $40.4 in the same period in 1997. Net income increased by 76% to $3.6 million.
The Kitchener Ontario custom rubber mixing division continues to perform slightly ahead of expectations although it was affected during the quarter by a planned maintenance shutdown of one-sixth of the available production time. Sales were also affected by the temporary loss of O.E. tire volume due to the G.M. strike. Volume picked up strongly in the last half of September and record sales for the division were recorded in October.
A 15% capacity increase was completed by the end of the quarter and plans are to have a further 80% increase completed by mid next year.
AirBoss tire sales increased in units over the previous year but dollar sales were flat due to lower rubber prices which were passed along to customers.
The Railway Products Division had record sales for the quarter due to significant orders for our new plastic pads in addition to continued strong demand for rubber pads.
AirBoss is a manufacturer of custom rubber compounds and proprietary rubber moulded products including patented off-road tire and rail fastening products. AirBoss is listed on the Toronto Stock Exchange under the symbol BOS.