AirBoss of America Corp.

Good morning, everyone, and thank you for joining us for the Airbus shareholders meeting and discussion of the first quarter 2024 results. My name is Glenn Schock, and I'm the chairman and co-CEO of Airbus. With me today are Chris Bitsakakis, our president and co-CEO, Frankie Tilly, our CFO, and Chris Fegel, our EVP and general counsel. Our agenda today will start with a discussion of the first quarter 2024 results. followed by a shareholders meeting. With respect to our results discussion, we will review the operational highlights for the quarter, followed by a discussion of our financial results. We will then hold the shareholder meeting, followed by taking questions from participants. Before we begin, I would like to remind listeners that our remarks today contain a forward-looking statement, including our estimates of future developments. We invite listeners to review risk factors related to our business, in our annual information form and our MD&A, both of which are available on CDAR plus on the corporate website. Also, we will discuss certain non-GAAP measures, including EBITDA. Reconciliations of these measures are available in our MD&A. And finally, please note that our reporting currency is in U.S. dollars. References today will be in U.S. dollars unless otherwise indicated. With that, I'll now turn this over to Chris Vitsakakis for the operational review. Chris.

Thank you, Brent, and good morning, everyone. During Q1 2024, Airbus maintained its focus on operational execution, aggressive deleveraging activities, and the recently announced strategic transition, despite continuing to deal with challenging economic headwinds that impacted each segment to varying degrees. The company focused on risk mitigation plans in response to these economic challenges, and managing costs with additional overhead reduction steps taken in manufactured products defense business. During the quarter, the company also amended its revolving credit facility to replace the leverage and interest coverage ratios with minimum adjusted EBITDA and liquidity requirements until the end of 2024. This amendment will give Airbus added flexibility in the execution of our long-term plan. As disclosed during Q1 2024, the company completed a resegmentation which included a shift in reportable segments commencing with results for the fourth quarter of 2023 and the year ended December 31st, 2023. Airbus now reports results under two segments, Airbus Rubber Solutions and Airbus Manufactured Products. The ARS segment consists of the former Rubber Solutions segment and the rubber compounding operations at Acton Vale Quebec that were previously included in the Airbus Defense Group segment. The new AMP segment consists of Airbus Engineered Products, formerly a standalone unit, and Airbus Defense Group, also formerly a standalone unit. ARS experienced improvements in most business lines compared to Q4 2023 and Q1 2024, with a strong quarter with respect to sales volume and EBITDA. Despite impressive performance during the earlier part of 2023, there was pronounced softness experienced at the end of Q4 2023, as sales were impacted by customers focused on reducing inventory levels. Building on the traction experienced in Q1 2024, the segment remains focused on executing on its strategy to deliver strong results with specialized products, expanded production of a broader array of compounds, both white and color, and enhanced flexibility in attracting and fulfilling new business through identified synergies and margin expansion. As a segment, rubber solutions continue to invest in research and development to support enhanced collaboration with customers. The A&P segment experienced continued softness in the rubber-molded products operations because of OEMs shuttering production in the current quarter to rebalance vehicle inventory levels and the ongoing impact from labor disruptions which impacted OEMs in the earlier part of the prior quarter. The business continued its focus on managing costs and a commitment to drive efficiencies and best-in-class automation, as well as diversification of its product lines into adjacent sectors. The defense business experienced continued softness across the product portfolio throughout the quarter. Management continued its focus on operational improvements and executed on additional cost-cutting measures. In addition, the defense business continued to collaborate with its key customers with the goal of leveraging opportunities aligned with its growth initiatives. subject to timing as delays in the conversion of these opportunities continued through the first quarter of 2024. The ability to recover in volumes in 2024 for each segment will remain subject to the ongoing challenges related to the continued inflation pressures in the ongoing global geopolitical challenges and the successful conversion of key opportunities. Having said that, we continue to view any such challenges as transient, and we will be continuing to focus on our long-term strategic plans. As was announced earlier this year, the company went through an in-depth review of corporate strategy and has established a bold new direction that will be executed on over the next few years. The resegmentation of the company's key business lines was the first step in narrowing focus on the ongoing key growth drivers for Airbus. As such, the company will focus on growing the core rubber solution segment by emphasizing rubber compounding as the main driver for sustainable growth and productivity and focusing on innovation in custom rubber compounding while aiming to expand market share through organic and inorganic means. Additionally, there will be a purposeful enhancement of diversification through a broadening of product breadth, technological advancements, and investments in specialty compound niches. AMP's growth strategy will be focused on diversifying and expanding its range of rubber molded products while simultaneously narrowing the range of defense products through a renewed focus on core competencies. And as was recently announced, we will be undertaking a strategic review of all individual product lines currently manufactured and sold by the company in its manufactured product segment in an effort to better identify core versus non-core business. Any resultant divestitures which may occur based on the results of this process will be structured to enhance the speed of both deleveraging efforts as well as the execution of non-organic growth opportunities for ARS. These efforts may additionally be enhanced with the monetization of real estate assets and the establishment of world-class greenfield operations. Airbus will focus on these priorities while investing core areas of the business to expand a solid foundation that will support long-term growth. I will now pass the call over to Frank for the financial review. Frank?

Thanks, Chris, and good morning, everyone. As a reminder, all dollar amounts presented today are in U.S. dollars, except for dividend per share, which are in Canadian dollars. Percentage changes for Q1 of 2024 are compared to Q1 of 2023 unless otherwise stated. I also want to remind you that Airbus now reports results under two segments, Airbus Rubber Solutions and Airbus Manufactured Products. To be respectful of your time today, I will aim to be brief in my summary of our Q1 2024 results. Starting from the top line, Airbus's consolidated net sales for Q1 2024 were $103.5 million, a decrease of 11.6% from the prior year due to lower sales primarily at manufactured products and additional softness at rubber solutions. Consolidated gross profit for Q1 2024 decreased by $7.8 million to $14.2 million, compared with Q1 2023. This decrease was driven primarily by lower volumes at manufactured products and more specifically in the defense business, with additional softness experienced with the rubber molded products operations. Turning now to our individual segments, net sales in the rubber solution segment for Q1 of 2024 were $65.5 million, a decrease of 3.1% compared to Q1 of 2023. Rubber Solutions experienced progressive traction over the prior quarter and saw volumes bounce back in Q1 of 2024. Volume was up 2.3% with increases in several sectors due to increased momentum in most sectors specifically towards the end of the quarter. Gross profit within Rubber Solutions was $11 million, which was an increase of 27.9% from Q1 of 2023. This gross profit improvement was driven by the increased volume, the impacts of product mix, and the management of controllable overhead. At manufactured products, net sales for Q1 of 2024 decreased by 26.2% to 42.3 million from 57.4 million in Q1 of 2023. The reduction was primarily due to the decrease across most of the defense product lines in addition to lower volumes in the rubber-molded products business, specifically in SUV and and light truck platforms driven by economic headwinds and softness which impacted production schedules across certain OEMs and Tier 1 suppliers in the quarter. Gross profit at manufactured product segment for Q1 2024 decreased to $3.1 million from $13.3 million in Q1 2023. This gross profit reduction was primarily the result of unfavorable volume and product mix in the defense products business in addition to volume in the rubber-molded Thank you. Thank you. Thank you. growth initiatives, and minor upgrades with rubber solutions and manufactured products. By the end of Q1 of 2024, our net debt balance was $97.6 million. We expect to fund the company's 2024 operating cash requirements, including required working capital investments, capital expenditures, and scheduled debt repayments from cash on hand, cash flow from operations, and committed borrowing capacity. Our current revolving credit facility provides financing up to $150 million. Currently, $108.3 million is drawn against this credit facility. With that, I will pass it over to Grant for the Chairman's Award winners and for closing remarks.