AirBoss of America Realignment Plan

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AirBoss of America is taking strategic steps to optimize its operations and drive long-term growth. The company will assess its real estate holdings to unlock cash, along with reviewing product lines as it transitions into distinct manufacturing products and rubber solutions segments.

Segmented Reporting for Enhanced Clarity

Moving forward, AirBoss will report its results under two key segments, offering a clearer view of its performance. The rubber solutions segment will encompass rubber compounding operations in Quebec, consolidating with the manufacturer products arm. This new structure will streamline operations, prioritize investments, and pave the way for sustainable growth.

Forecast and Expected Charges

Anticipating challenges, AirBoss foresees an adjusted per-share loss of between 30 cents and 20 cents for 2023. Sales are expected to decrease to $420 million to $430 million, compared to $477 million in 2022. The company plans for an inventory writedown charge of $8 million and a goodwill impairment charge linked to defense operations.

Strategic Real Estate Monetization

To facilitate the development of a modern rubber compounding facility, AirBoss will explore opportunities to monetize its real estate holdings. This move will not only support growth but also enhance operational efficiency by freeing up cash reserves.

Focus on Product Lines

While driving growth through its Manufactured Products segment, AirBoss will conduct a thorough review of individual product lines. This strategic assessment aims to optimize offerings, ensuring alignment with market demands and driving value for stakeholders.

By streamlining operations, prioritizing investments, and enhancing its product offerings, AirBoss of America is poised for a transformative journey towards sustainable growth.

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