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Alpha Pro Tech L T D. ALPHA PRO TECH, LTD. ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2009 Company Reports Record Revenues and Net Income in Third Quarter 2009 FOR IMMEDIATE REL

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

Full Press Release Details

ALPHA PRO TECH, LTD. ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2009

Company Reports Record Revenues and Net Income in Third 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
Revenue for the third quarter of 2009 increased 65.3% to a quarterly
record of $16.9 million from $10.2 million in the same quarter 2008, led by a
290.1% increase in revenue in the Infection Control segment and a 67.7%
increase in revenue in the Building Supply segment.
income increased 278.8% for the third quarter of 2009 to a record $2.8 million,
compared to net income of $745,000 in the same quarter of last year.
The Company has accelerated production of its
N-95 respirator masks in the fourth quarter due to increased demand in response
to the H1N1 virus and expects significantly increased sales in the fourth
quarter as compared to the third quarter.
Nogales, Arizona October 27, 2009, Alpha Pro Tech,
Ltd. (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 third quarter and the nine
months ended September 30, 2009.
sales for the third quarter of 2009 increased 65.3% to a quarterly record of
$16.9 million from $10.2 million in the comparable quarter in 2008. Building Supply (formerly known as
Engineered Products) segment sales for the third quarter of 2009 increased by
67.7% to a quarterly record of $5.3 million, compared to $3.2 million in the
same quarter of 2008. This quarterly
record is also up 40.8% sequentially from the previous quarterly record of $3.8
million set in the second quarter of 2009.
The increase for the quarter is primarily due to a 72.6% increase in
sales of REX Synfelt synthetic roof underlayment and a 52% increase in sales
of REX Wrap house wrap. The sales mix of the Building Supply segment for the
third quarter of 2009 was 75% for synthetic roof underlayment and 25% for house
wrap. This is compared to 72% for synthetic roof underlayment and 28% for house
wrap in the third quarter of 2008. Sales
Protective Apparel segment decreased by 3.2% to $5.3 million, compared to $5.4
million for the same period of 2008. Infection Control segment sales for the
third quarter of 2009 increased by 290.1% to a quarterly record of $6.3
million, compared to $1.6 million in the same quarter of 2008. This quarterly
record is also up 34.4% sequentially from the previous quarterly record of $4.7
million set in the second quarter of 2009. Mask sales were up by 378.9%, or $
4.2 million, and shield sales were up by 156.5%, or $ 0.5 million.
Millar, President of Alpha Pro Tech commented, We experienced significant
increases in demand for our N-95 respirator masks due to the H1N1 Influenza A
pandemic. N-95 respirator mask sales are
expected to continue to grow significantly in the fourth quarter from current
levels and are expected to be substantially stronger than normal for the
foreseeable future amidst concerns regarding the global H1N1 Influenza A
pandemic. Sales for the Disposable Protective Apparel segment were adversely
affected by a supply chain issue in which goods from Asia were delayed due to
the high demand for H1N1 products.
continued, Our REX Synfelt synthetic roof underlayment is perceived as a
superior product in the industry, and, 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 secure market
share. Additionally, our high-quality,
multi-color printed house wrap gives us a distinct competitive advantage in the
marketplace, and our market share is expanding even during this weak building
market and economic downturn. Our
Building Supply segment distribution channel strategy continues to strengthen
each and every quarter and should continue to broaden our ability to take
advantage of market opportunities throughout this year and into the future.
Consolidated sales for
the nine months ended September 30, 2009 increased 52.9% to $40.8 million
from $26.7 million in the same period of 2008.
Building Supply segment sales increased by 75.6% to $11.3 million from
$6.4 million in the same period last year, primarily due to a 100.2% increase
in sales of REX Synfelt synthetic roof underlayment and a 32.7% increase
in sales of REX Wrap house wrap. The sales mix of the
Building Supply segment for the first nine months of 2009 was 71% for synthetic
roof underlayment and 29% for house wrap. This is compared to 62% for synthetic
roof underlayment and 38% for house wrap in 2008. Sales for the Disposable Protective Apparel segment
increased 6.2% to $16.2 million from $15.2 million, primarily related to
increased sales to the Company s largest distributor as well as increased sales
to a broad base of the Company s distribution network. Infection Control segment sales increased by 166.2% to
$13.3 million from $5.0 million. Mask sales were
up by 201.1%, or $6.6 million, and shield sales were up by 173.8%, or $1.9
profit increased by 88.5% to $8.2 million for the third quarter of 2009 from
$4.4 million for the third quarter of 2008.
The gross profit margin was 48.6% for the third quarter of 2009,
compared to 42.6%, in the same quarter in 2008.
Gross profit increased by 63.8% to $19.2 million for the nine months
ended September 30, 2009 from $11.7 million for the same period in 2008.
The gross profit margin was 47.1% for the first nine months of 2009, compared
to 44.0% for the same period in 2008.
profit margin for the three and nine months ended September 30, 2009 was
positively affected by the change in product mix in which Infection Control
segment sales, which have higher margins, increased as a percentage of total
general and administrative expenses increased by 18.9% to $3.7 million for the
third quarter 2009 from $3.1 million in the same quarter last year. As a
percentage of net sales, selling, general and administrative expenses decreased
to 21.7% for the third quarter of 2009 from 30.1% in the same quarter of
2008. Selling, general and
administrative expenses increased by $0.9 million, or 9.4%, to $10.3 million
for the first nine months of 2009 from $9.4 million in the same period in 2008.
As a percentage of net sales, selling,
and administrative expenses decreased to 25.3% for the first nine months of
2009 from 35.3% in the same period in 2008.
general and administrative expenses as a percentage of sales are significantly
lower in 2009, and the Company believes that it can now effectively leverage
the infrastructure that it has built to substantially grow the business, while
decreasing expenses as a percentage of sales.
income for the third quarter of 2009 increased by 278.8% to a quarterly record
of $2.8 million, compared to net income of $745,000 in the third quarter of
Last updated: Oct 27, 2009