Full Press Release Details
TECH, LTD. ANNOUNCES THIRD QUARTER 2010 FINANCIAL RESULTS
Company Launches Breathable Housewrap Product to Compete in Approximate
$800 Million Dollar Marketplace
| Company Contact : | Investor Relations Contact : | |
| Alpha Pro Tech, Ltd. | Hayden IR | |
| Al Millar/Donna Millar | Cameron Donahue | |
| e-479-654 | 651-653-1854 | |
| e-mail: ir@alphaprotech.com | e-mail: cameron@haydenir.com |
Supply segment sales increased 7.8% sequentially to $5.2 million from $4.9
million at June 30, 2010 but was essentially flat compared to sales of
$5.3 million at September 30, 2009.
Inventory increased by $4.6 million, or
34.8%, to $17.7 million as of September 30, 2010 from $13.1 million as of December 31,
2009; although up year to date, both Disposable Protective Apparel segment and
Infection Control segment inventories were down from June 30, 2010;
inventory for the Building Supply segment increased to $4.4 million as a result
of increased year to date and expected future sales.
The Company continues to broaden and diversify the distribution network
for its Disposable Protective Apparel segment as it shifts its Critical Cover
product line from its previous exclusive distributor relationship.
The Company has begun marketing a non-perforated breathable housewrap
under the name of REX Fortis.
Non-perforated breathable housewrap sales comprise the majority of the
Nogales, Arizona November 8, 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 financial results for
the three and nine months ended September 30, 2010.
sales for the third quarter of 2010 decreased 38.9% to $10.3 million from $16.9
million in the comparable quarter in 2009. Sales for the Disposable Protective
Apparel segment for the three months ended September 30, 2010 decreased by
28.2% to $3.8 million, compared to $5.3 million for the same period of 2009.
Building Supply segment sales for the three months ended September 30,
2010 decreased by 1.0% to $5.2 million, compared to $5.3 million for the same
period of 2009, but were up 7.8% sequentially from $4.9 million in the second
quarter ended June 30, 2010. The flat sales were primarily due to an 8.2%
decrease in sales of REX SynFelt synthetic roof underlayment, partially offset
by a 23.6% increase in sales of REX Wrap housewrap. The sales mix of the
Building Supply segment for the three months ended September 30, 2010 was
68% for synthetic roof underlayment and 32% for housewrap. This compared to 75% for synthetic roof
underlayment and 25% for housewrap for the third quarter of 2009. Infection
Control segment sales for the three months ended September 30,
decreased by 79.4% to $1.3 million, compared to $6.3 million for the same
period of 2009. Mask sales were down by 84.6% to $0.8 million and shield sales
were down by 57.4% to $0.4 million.
Millar, President of Alpha Pro Tech, commented, The decrease in sales for the
Disposable Protective Apparel segment was partially due to a decline in sales
of disposable protective apparel to our former largest distributor. We have
sold and continue to expect to sell our apparel line to this distributor,
excluding shoe and boot covers, but at lower than previous levels. The decrease
was partially offset by increased sales to a broad base of our distribution
network, in particular to a major national distributor with whom we have
preferred vendor status and from whom we received the Outstanding Performance
Controlled Environments vendor award for 2009. Sales to this national
distributor doubled in the third quarter of 2010, compared to the same period
of 2009. Although the change in our relationship with our former largest
disposable protective apparel distributor has adversely affected sales, we
believe that it could be beneficial in the long term as we develop a broader
base of distribution.
continued, In addition to growth opportunities with existing Building Supply
segment products, we launched REX Fortis housewrap, our first non-perforated
breathable housewrap, in the third quarter of 2010. The non-perforated
breathable housewrap market accounts for the majority of the total housewrap
market, so our REX Fortis housewrap should increase our overall housewrap
market share. Revenue from REX Fortis housewrap should commence in the fourth
quarter of 2010 and should contribute to our growth in 2011. We remain excited about the future of the
Building Supply segment.
concluded, The decrease in mask sales was primarily attributable to a decrease
in demand for our N-95 respirator mask sales relating to the global H1N1
Influenza A pandemic in 2009. Shield sales were also down in the third quarter
of 2010 due to a decrease in demand relating to the H1N1 Influenza A pandemic.
sales for the nine months ended September 30, 2010 decreased 18.6% to
$33.2 million from $40.8 million in the comparable period of 2009. This decrease consisted of decreased sales in the
Infection Control and Disposable Protective Apparel segments, offset primarily
by increased sales in the Building Supply segment.
for the Disposable Protective Apparel segment for the nine months ended September 30,
2010 decreased 15.2% to $13.7 million, compared to $16.2 million for the same
period of 2009. The decrease was primarily due to decreased sales of disposable
protective apparel to the Company s former largest distributor, partially
offset by increased sales to a broader based distribution network, in
particular to the major national distributor mentioned above. Building Supply
segment sales for the nine months ended September 30, 2010 increased by
31.1% to $14.8 million, compared to $11.3 million for the same period of 2009.
The segment increase was primarily due to a 28.0% increase in sales of REX
SynFelt synthetic roof underlayment and a 43.1% increase in sales of REX Wrap
housewrap. The sales mix of the Building Supply segment for the nine months
ended September 30, 2010 was 69% for synthetic roof underlayment and 31%
for housewrap. This compared to 71% for synthetic roof underlayment and 29% for
housewrap for the nine months ended September 2009. Infection Control
segment sales for the nine months ended September 30, 2010 decreased by
65.1% to $4.6 million, compared to $13.3 million for the same period of 2009.
Mask sales were down by 67.9% to $3.2 million, and shield sales were down by
64.1% to $1.1 million. The overall mask sales decrease for the first nine
months of 2010 was primarily due to the surge in N-95 respirator mask sales
commenced in the second quarter of 2009 brought about by concerns regarding an
outbreak of H1N1 Influenza A. Shield sales were down primarily due to
approximately $1.3 million in shields being shipped in 2009 from a total $1.7
million non-recurring shield order received in the fourth quarter of 2008 and
also due to the H1N1 pandemic.
profit for the three months ended September 30, 2010 decreased 53.9% to
$3.8 million for the third quarter 2010, or 36.7% gross profit margin, from
$8.2 million, or 48.6% gross profit margin, for the same period in 2009. Gross
profit for the nine months ended September 30, 2010 decreased 32.3% to
$13.0 million, or 39.2% gross profit margin, from $19.2 million, or 47.1% gross