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Alpha Pro Tech L T D. ALPHA PRO TECH, LTD. ANNOUNCES FIRST QUARTER 2010 FINANCIAL RESULTS First Quarter 2010 Consolidated Revenues Increase 24.7% and Building Supply Segment Revenues Increase 109.4% from same period of 2

Key Takeaway: ALPHA PRO TECH, LTD. ANNOUNCES FIRST QUARTER 2010 FINANCIAL RESULTS First Quarter 2010 Consolidated Revenues Increase 24.7% and Building Supply Segment Revenues Increase 109.4% from same period of 2009 Company Contact : Investor Relations Contact : Alpha Pro Tech, Ltd. Hayde

Full Press Release Details

ALPHA PRO TECH, LTD. ANNOUNCES FIRST QUARTER 2010 FINANCIAL RESULTS

First Quarter 2010 Consolidated Revenues Increase 24.7% and Building
Supply Segment Revenues Increase 109.4% from same period of 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
First quarter 2010 revenue increased 24.7% to $11.6 million from $9.3
million in the first quarter of 2009, led by a 109.4% increase in Building
Supply segment sales.
income increased 33.7% for the three months ended March 31, 2010 to $0.7
million, compared to net income of $0.5 million for the three months ended March 31,
increased by $2.9 million, or 22.4%, to $16.0 million as of March 31, 2010
from December 31, 2009. The increase was primarily due to an increase in
inventory for the Infection Control segment as the result of a stockpiling of
N-95 particulate respirator masks, as well as an increase for the Disposable
Protective Apparel segment.
Company revised its Disposable Protective Apparel segment
distribution strategy as it shifts its Critical Cover product line from its previous exclusive
distributor to a broader, more diverse distribution network.
Nogales, Arizona May 5, 2010, 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
first quarter ended March 31, 2010.
sales for the first quarter of 2010 increased 24.7% to $11.6 million from $9.3
million in the comparable quarter in 2009.
Sales for the Disposable Protective Apparel segment for the three months
ended March 31, 2010 increased by 5.2% to $5.1 million, compared to $4.8
million for the same period of 2009. Building Supply segment sales for the
three months ended March 31, 2010 increased by 109.4% to $4.7 million,
compared to $2.3 million for the same period of 2009. Building Supply segment sales were also up
18.0% sequentially from $4.0 million in the fourth quarter of 2009. The segment increase was primarily due to a
135.8% increase in sales of REX SynFelt synthetic roof underlayment and a
73.6% increase in sales of REX Wrap housewrap from the first quarter of 2009. The sales mix of the Building Supply segment
for the three months ended March 31, 2010 was 70% for synthetic roof
underlayment and 30% for housewrap. This compared to 64% for synthetic roof
underlayment and 36% for housewrap for the first quarter of 2009. Infection Control segment sales for the three
months ended March 31, 2010 decreased by 18.5% to $1.8 million, compared
to $2.2 million for the same period of 2009.
Mask sales were up by 22.3%, or $0.2 million, and shield sales were down
by 61.6%, or $0.7 million.
Millar, President of Alpha Pro Tech commented, Sales for the Disposable
Protective Apparel segment increased primarily due to improved sales of
disposable shoecovers. The segment increase was related primarily to increased
to a broad base of our distribution network and, in particular, to a major
national distributor with which we have preferred vendor status and from which
we received the Outstanding Performance Controlled Environments vendor award
for 2009. The increase was partially offset by decreased sales to our largest
distributor. Sales in the first quarter
of 2010 continued to be adversely affected by a supply chain delay of goods
from Asia. This delay is expected to be
resolved in the second quarter of 2010.
continued, As we announced in late March 2010, we are shifting to a more
diversified, broader and global distribution strategy for our Disposable
Protective Apparel product line as we shift away from VWR International, LLC as
the sole distributor of our Critical
Cover product line. We are working
closely with our distribution partners to ensure continuity in our distribution
channel to minimize potential supply-chain interruptions. We are committed to
producing the highest quality products, and we have an obligation to our
customers and our shareholders to protect our brand. The change in our relationship with our
largest disposable protective apparel distributor could adversely affect sales
in the short term, but we expect it to be beneficial in the long term as we
develop a broader base of distribution.
This is similar to the distribution change that we implemented in the
Building Supply segment in 2007, and, ultimately, it was the catalyst of our
growth in that segment over the past few years.
concluded, Shield sales were down in the first quarter of 2010 due to a $1.7
million non-recurring shield order received in the fourth quarter of 2008. That
order was shipped out over a period of three quarters beginning in the fourth
quarter of 2008. The increase in mask sales for the three months ended March 31,
2010 was primarily attributable to an increase in our general purpose line of
facemasks. Our N-95 respirator mask sales were up slightly in the first quarter
of 2010 and are expected to return to pre-H1N1 levels in 2010 unless concerns
relating to the global H1N1 Influenza A pandemic resume, although we continue
to work on securing large international orders for our N-95 respirator mask
that are unrelated to H1N1.
profit for the three months ended March 31, 2010 increased 21.1% to $5.0
million for the first quarter 2010, or 42.9% gross profit margin, from $4.1
million, or 44.2% gross profit margin, for the same period in 2009. Gross profit margin for the three months
ended March 31, 2010 was negatively affected by the change in product mix
in which Building Supply segment sales, which have lower margins, increased as
a percentage of total sales.
general and administrative expenses increased by 16.8% to $3.8 million for the
first quarter 2010 from $3.2 million for the same quarter last year. The increase was primarily due to increased
employee compensation, increased sales and marketing expenses and increased
travel expenses. As a percentage of net
sales, selling, general and administrative expenses decreased to 32.5% for the
three months ended March 31, 2010 from 34.7% for the same period in 2009.
income increased 33.7% for the three months ended March 31, 2010 to $0.7
million, compared to net income of $0.5 million for the three months ended March 31,
2009. Net income as a percentage of
sales for the three months ended March 31, 2010 and 2009 was 5.9% and
5.5%, respectively. Basic income per
share for the three months ended March 31, 2010 and 2009 was $0.03 and
$0.02, respectively. Diluted income per
share for the three months ended March 31, 2010 and 2009 was $0.03 and
$0.02, respectively.
Balance Sheet remained strong with a current ratio of 17 to 1 as of March 31,
2010. The Company completed the quarter
with cash and cash equivalents of $5.4 million, down from $9.8 million as of December 31,
Last updated: May 6, 2010