AirBoss of America provides reportable segments update

Beginning with the fourth quarter and year ended December 31, 2023, AirBoss will report results under two reportable segments: AirBoss Rubber Solutions, and AirBoss Manufactured Products. The new Rubber Solutions segment will consist of the former rubber solutions segment and the rubber compounding operations at Acton Vale, Quebec previously included in the AirBoss Defense Group segment. The new Manufactured Products segment will consist of AirBoss Engineered Products, formerly a standalone segment, and AirBoss Defense Group, formerly a standalone segment. AirBoss’ 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’ 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 defense. 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. The Company will include supplemental unaudited information containing 8 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.