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Alpha Pro Tech L T D. ALPHA PRO TECH, LTD. ANNOUNCES FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS FOR THE PERIOD ENDED DECEMBER 31, 2009 Company Reports Record Revenues and Net Income for the Fourth Quarter and Full Ye

Key Takeaway: ALPHA PRO TECH, LTD. ANNOUNCES FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS FOR THE PERIOD ENDED DECEMBER 31, 2009 Company Reports Record Revenues and Net Income for the Fourth Quarter Company Contact : Investor Relations Contact : Alpha Pro Tech, Ltd. Hayden IR Al Millar/D

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ALPHA PRO TECH, LTD. ANNOUNCES FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS FOR THE PERIOD ENDED DECEMBER 31, 2009

Company Reports Record Revenues and Net Income for the Fourth Quarter
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
Fourth quarter 2009 revenue increased by 107.3% to a record $18.9
million from $9.1 million in the 2008 fourth quarter, led by a 254.3% increase
in Infection Control sales, a 124.0% increase in Building Supply sales and a
31.1% increase in Disposable Protective Apparel sales.
Revenue for 2009 increased by 66.8% to a record $59.7 million from
$35.8 million in 2008, with record annual revenues for all product segments.
income increased 1,098.6% for the three months ended December 31, 2009 to
a record $3.5 million, compared to net income of $0.3 million for the three
months ended December 31, 2008.
Net income increased 478.1% for 2009 to a
record $9.0 million, compared to net income of $1.6 million for 2008.
Inventory increased by $1.0 million, or 8.6%,
to $13.1 million as of December 31, 2009 from December 31, 2008. The increase was primarily due to an increase
in inventory for the Infection Control segment as the result of a significant
increase in sales, partially offset by a decrease in inventory for the Building
Nogales, Arizona March 9, 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 record financial results for the fourth quarter and the full
year ended December 31, 2009.
sales for the 2009 fourth quarter increased 107.3% to $18.9 million from $9.1
million in the comparable quarter in 2008.
Sales for the Disposable Protective Apparel segment increased by 31.1%
in the fourth quarter of 2009, to a quarterly record of $6.5 million compared
to $5.0 million for the same period of 2008.
Protective Apparel segment sales in the fourth quarter of this year,
although a high for the year, were still adversely affected by a supply chain
issue in which goods from Asia were delayed due to the high demand for products
relating to the global H1N1 Influenza A pandemic. Building Supply (formerly known as the
Engineered Products segment) segment sales for the three months ended December 31,
2009 increased by 124.0% to $4.0 million, compared to $1.8 million for the same
period of 2008. The increase for the
quarter was primarily due to a 113.6% increase in sales of REX Synfelt
synthetic roof underlayment and a 73.0% increase in sales of REX Wrap house
wrap. The sales mix of the Building
Supply segment sales for the fourth quarter of 2009 was 74% for synthetic roof
underlayment and 26% for house wrap. This is compared to 70% for synthetic roof
underlayment and 30% for house wrap in the fourth quarter of 2008. Infection Control segment sales for the three
months ended December 31, 2009 increased by 254.3% to a quarterly record
of $8.4 million, compared to $2.4 million for the same period of 2008. This
quarterly record was also up 33.1% sequentially from the previous quarterly
record of $6.3 million set in the third quarter of 2009. Mask sales were up by 504.0%, and shield
sales were down by 12.4% for the fourth quarter of 2009.
Consolidated sales for
the full year ended December 31, 2009 increased 66.8% to a record $59.7
million from $35.8 million for 2008.
Sales for the Disposable Protective Apparel segment increased 12.4% to
an annual record of $22.7 million from $20.2 million for the same period of
2008. The segment increase was primarily
related to increased sales to the Company s largest distributor as well as
increased sales from a broad base of the Company s distribution network.
Disposable Protective Apparel segment sales during 2009, although a
record annual high, were adversely affected by a supply chain issue in which
goods from Asia were delayed due to the high demand for products relating to
the global H1N1 Influenza A pandemic. Building Supply segment (formerly known as the
Engineered Products segment) sales increased in 2009 by 86.1% to an annual
record of $15.3 million in 2009 from $8.2 million in 2008, primarily due to a
103.6% increase in sales of REX Synfelt synthetic roof underlayment and a 41.0% increase
in sales of REX Wrap house wrap. The sales mix of the
Building Supply segment sales for the full year of 2009 was 72% for synthetic
roof underlayment and 28% for house wrap.
This is compared to 64% for synthetic roof underlayment and 36% for
house wrap in 2008. Infection Control segment sales increased by
194.7% to an annual record of $21.7 million in 2009 from $7.4 million in 2008. Mask sales in
2009 compared to 2008 were up by 283.3%, or $12.8 million, to $17.4 million,
and shield sales were up by 86.8%, or $1.8 million, to $3.8 million.
Millar, President of Alpha Pro Tech, commented, Our fourth quarter revenues
and profitability continued the positive momentum that we experienced in our
earlier quarters in 2009, which allowed us to deliver record results. We continued to see substantial sales growth
in our REX Synfelt synthetic roof underlayment and, to a lesser extent, our
house wrap products. We are currently
working on opportunities with existing and new distributors, and we are
optimistic about the Building Supply segment throughout 2010 and further into
the future. In the Disposable Protective
Apparel segment, we expect increased sales from a broad base of our
distributors in 2010, but sales to our largest distributor, which were up in
2009, are expected to
in 2010. Our N-95 Particulate Respirator
face mask sales started to slow down in the latter part of the fourth quarter
and are expected to return to pre-H1N1 levels in 2010, unless concerns relating
to the global H1N1 Influenza A pandemic resume.
profit increased 157.5% to $9.7 million for the fourth quarter 2009, or 51.1%
gross profit margin, from $3.8 million, or 41.1% gross profit margin, for the
same period in 2008.
profit increased by 86.5% to $28.9 million for the full year ended December 31,
2009 from $15.5 million in 2008. The gross profit margin was 48.4% for the full
year ended December 31, 2009, compared to 43.3% for 2008. Gross profit margin for the three months and
full year ended December 31, 2009 was positively affected by the change in
product mix in which Infection Control sales, which have higher margins,
increased as a percentage of total sales.
general and administrative expenses increased by 36.5% to $4.4 million for the
fourth quarter 2009 from $3.2 million for the same quarter last year. The increase was primarily due to increased
employee compensation, increased executive bonuses and increased sales
commission. As a percentage of net
sales, selling, general and administrative expenses decreased to 23.2% for the
three months ended December 31, 2009 from 35.3% for the same period in
general and administrative expenses increased by $2.1 million, or 16.3%, to
Last updated: Mar 9, 2010