Yahoo Finance

• Consolidated Net Sales: $96.2 million, a decrease of 5.9% from Q3 2023.

• Consolidated Gross Profit: $16.1 million, an increase of $2.3 million compared to Q3 2023.

• ARS Net Sales: $54.5 million, a decrease of 6.7% compared to Q3 2023.

• ARS Volume Decrease: 17.5% overall, with tolling volume down 74.3% and non-tolling volume down 8.2%.

• ARS Gross Profit: $8.3 million, consistent with Q3 2023.

• AMP Net Sales: $45.5 million, a decrease of 5.7% compared to Q3 2023.

• AMP Gross Profit: $7.8 million, compared to $5.6 million in Q3 2023.

• Cash Used in Operating Activities: $1.1 million in Q3 2024 compared to $8.7 million provided in Q3 2023.

• Capital Expenditures: $1.6 million in Q3 2024 versus $1.5 million in Q3 2023.

• Net Debt Balance: $97.2 million at the end of Q3 2024 versus $88.2 million at the end of Q4 2023.

• Revolving Credit Facility: $112.4 million drawn against a $150 million facility at the end of Q3 2024.

• Warning! GuruFocus has detected 8 Warning Signs with ABSSF.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AirBoss of America Corp (ABSSF) commenced shipments under the Bandolier contract and was awarded the isolation gown contract from HHS, indicating a rebound in their defense product line businesses.

• The company has secured over $150 million in new contracts for its defense segment, which will contribute to backlog into 2025 and beyond.

• Despite economic headwinds, AirBoss of America Corp (ABSSF) managed to expand margins in its AirBoss Rubber Solutions (ARS) segment through strategic initiatives.

• The defense business showed positive traction in Q3 2024, with improvements in operational costs and reduced overheads.

• AirBoss of America Corp (ABSSF) is focusing on long-term growth by investing in research and development, enhancing product diversification, and exploring acquisition opportunities.

Negative Points

• Consolidated net sales for Q3 2024 decreased by 5.9% compared to the prior year, primarily due to lower volumes in ARS and AMP's rubber-molded products business.

• ARS experienced a significant volume decrease of 17.5%, with tolling volumes down by 74.3%, indicating ongoing challenges in the segment.

• The rubber molded products business within AMP faced continued softness due to economic headwinds and increased vehicle inventories impacting production schedules.

• Cash used in operating activities during Q3 2024 was $1.1 million, a reversal from $8.7 million provided in Q3 2023, indicating cash flow challenges.

• Net debt increased to $97.2 million by the end of Q3 2024, up from $88.2 million at the end of Q4 2023, reflecting higher leverage.