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Alpha Pro Tech L T D. ALPHA PRO TECH, LTD. ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2009 Company Reports Record Revenues and Net Income in Second Quarter 2009 FOR IMMEDIATE RELEASE

Key Takeaway: ALPHA PRO TECH, LTD. ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2009 Company Reports Record Revenues and Net Income in Second Quarter 2009 Company Contact : Investor Relations Contact : Alpha Pro Tech, Ltd. Hayden IR Al Millar/Donna Millar

Full Press Release Details

ALPHA PRO TECH, LTD. ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2009

Company Reports Record Revenues and Net Income in Second Quarter 2009
Company Contact : Investor Relations Contact :
Alpha Pro Tech, Ltd. Hayden IR
Al Millar/Donna Millar Cameron Donahue
905-479-0654 651-653-1854
e-mail: ir@alphaprotech.com e-mail: cameron@haydenir.com
Second quarter revenue increased 63.2% to a record $14.5 million from
$8.9 million in the 2008 second quarter, led by a 184.5% increase in Infection
Control sales and a 95.3% increase in Building Supply (formerly known
as Engineered Products) sales.
income increased 463.4% for the three months ended June 30, 2009 to a
record $2.2 million, compared to net income of $385,000 for the three months
ended June 30, 2008.
Inventory decreased by $2.7 million, or
22.4%, to $9.4 million as of June 30, 2009 from December 31, 2008,
primarily due to a decrease in inventory in the Building Supply segment.
The Company accelerated production of its
N-95 respirator masks to provide sufficient quantities to address increased
demand amidst concern regarding the swine influenza A (H1N1 Influenza A) virus
Alpha Pro Tech was added to the Russell
Microcap Index on June 30, 2009, which remains in place for one year,
resulting in automatic inclusion in the appropriate growth and value style
Nogales, Arizona August 5, 2009, Alpha Pro Tech (NYSE
Amex: APT) a leading manufacturer of products designed to
protect people, products and environments, including disposable protective
apparel and building products, today announced its financial results for
the three and six month periods ended June 30, 2009.
sales for the three months ended June 30, 2009 increased 63.2% to $14.5
million from $8.9 million in the comparable period of 2008. Sales for the Disposable Protective Apparel
segment increased by 14.0% to $6.1 million in the second quarter of 2009,
compared to $5.3 million for the same period of 2008. Building Supply (formerly known as Engineered
Products) segment sales for the three months ended June 30, 2009 increased
by 95.3% to a quarterly record of $3.8 million, compared to $1.9 million for
2008. The increase for the quarter is primarily due to a 171.7% increase in
sales of REX Synfelt synthetic roof underlayment and a 14.3% increase in sales
of REX Wrap house wrap. The sales mix of the Building Supply segment sales for
the second quarter of 2009 and 2008 was 71% and 51%, respectively, for
synthetic roof underlayment and 29% and 49%, respectively, for house wrap. Infection Control segment sales for the three
months ended June 30, 2009 increased by 184.5% to a quarterly record of
$4.7 million, compared to $1.7 million for the same period of 2008. Mask sales were up by 222.8%, or $2.5
million, and shield sales were up by 172.1%, or $0.6 million.
Millar, President of Alpha Pro Tech, commented, Our Building Supply
distribution channel strategy continues to strengthen each and every quarter as
we bring on new distributors into the mix. Our REX Synfelt synthetic roof
underlayment is being positively received as a superior product in the
industry, and we believe that it is a cost effective and a better alternative
to felt paper. As the market evolves from felt paper to synthetic roof
underlayment, which is a significant opportunity for the Company, we believe
that we are in a very good position to pick up market share. As well, our
high-quality, multi-color printed house wrap gives us a distinct competitive
advantage in the marketplace and is growing even during this weak building
market and economic downturn. In addition, our distribution channel strategy
should continue to broaden our ability to take advantage of market
opportunities, particularly for synthetic roof underlayment and house wrap,
throughout this year and into the future. We continue to work on opportunities
with new and existing distributors and we are very optimistic about the future
growth of this segment.
continued, Respiratory N-95 mask sales were up significantly in the second
quarter and are expected to continue to be substantially stronger than normal
for the foreseeable future amidst concerns regarding the global H1N1 Influenza
A (commonly known as Swine Flu ) pandemic.
Shield sales improved in the second quarter of 2009, primarily due to
the shipment of approximately $400,000 of shields, which was the balance of the
$1.7 million shield order received in the fourth quarter of 2008 from the same
customer from whom we received a non-recurring order in the first quarter of
2007. This $1.7 million non-recurring
shield order commenced shipping in the fourth quarter of 2008, was shipped out
over a period of three quarters and is now complete. General shield sales also
increased in the second quarter.
Consolidated sales for
the six months ended June 30, 2009, increased 45.2% to $23.9 million from
$16.4 million for the same period of 2008.
Sales for the Disposable Protective Apparel segment increased 11.5% to
$10.9 million during the six months ended June 30, 2009 from $9.8 million
during the same period in 2008, resulting primarily from increased sales to our largest distributor,
as well as, increased sales to a broad base of our distribution network. Building Supply segment sales increased by 83.2% to
$6.0 million from $3.3 million in the same period last year, primarily due to a
136.5% increase in sales of REX Synfelt synthetic roof underlayment and a 17.4% increase
in sales of REX Wrap house wrap. The sales mix of the
Building Supply segment sales for the first six months of 2009 and 2008 was 68%
and 53%, respectively, for synthetic roof underlayment and 32% and 47%,
respectively, for house wrap. Infection Control segment sales increased by 106.4% to
$6.9 million for the six months ended June 30, 2009 from $3.4 million for
the same period of 2008. Mask sales were
up by 111.7%, or $2.4 million, shield sales were up by 181.9%, or $1.3 million,
and sales of medical bed pad and pet beds were down $0.2 million.
profit for the three months ended June 30, 2009, increased 75.4% to $6.9
million from $3.9 million for the same period in 2008. The gross profit margin was 47.2% for the
three months ended June 30, 2009, compared to 44.0% for the same period of
2008. Gross profit increased by 49.2% to
$11.0 million for the six months ended June 30, 2009 from $7.4 million for
the same period in 2008. The gross
profit margin was 46.0% for the six months ended June 30, 2009, compared
to 44.8% for the same period in 2008.
profit margin for the three and six month periods ended June 30, 2009 has
been positively affected by the change in product mix in which Infection
Control segment sales, which have higher margins, increased as
percentage of total sales. Conversely, gross profit margin for the Disposable
Protective Apparel segment for the three and six months was lower than the same
periods of 2008. Although the Disposable
Protective Apparel segment gross margin was lower than the same period of 2008,
it was improved from the fourth quarter of 2008 as we passed on a price
increase to our distributors due to cost increases in the second half of 2008.
Last updated: Aug 5, 2009