Back to News Index news release: 04/29/2004
Alpha Pro Tech, LTD Announces
9.3% Increase in Revenue for First Quarter of 2004
Revenues Increase 9.3% to $5.9 Million
Apparel Sales Increase 17.9%
Gross Profit Margin Increases to 51.1%
Balance Sheet Reports $13.7 Million in Shareholder's Equity and No Debt

NOGALES, ARIZONA - April 29, 2004 -- Alpha Pro Tech (AMEX: APT; CHX:APT), a leading manufacturer of disposable protective apparel and consumer products announced its financial results for the first quarter ended March 31, 2004.

Revenues for the three months ended March 31, 2004 increased 9.3% to $5.9 million, up from $5.4 million for the comparable prior year period. Sales for the Apparel Division for the quarter increased 17.9% to $4.1 million as compared to sales of $3.5 million for the same period of 2003 due to increased sales to the pharmaceutical industry and the industrial safety industry. Mask and eye shield sales for the quarter decreased 9.1% to $1.2 million from $1.3 million in the same period of 2003. The decrease is primarily the result of higher than normal sales of the N-95 Particulate Respirator mask in the first quarter of 2003 related to the initial stages of the SARS outbreak.

Gross profit margin for the quarter increased to 51.1%, compared to margins of 50.9% for the same period in 2003. Income from operations increased to $743,000 for the quarter as compared to income from operations of $739,000 for the same quarter last year. The increase in gross profit of $264,000 was partially offset by an increase in selling, general and administrative expenses of $248,000, and an increase in depreciation and amortization of $12,000. Net income for the quarter ended March 31, 2004 was $467,000, or $0.02 per share, compared to net income of $465,000, or $0.02 per share, for the quarter ended March 31, 2003.

The balance sheet continues to remain strong with a current ratio of 10.2:1 on March 31, 2004. The Company continues to carry no debt, and shareholders’ equity improved to $13.7 million as of March 31, 2004 from $13.0 million as of December 31, 2003.

Al Millar, President of Alpha Pro Tech commented, “We are committed to growing sales through our innovative strategy which includes communicating directly with our end-users to identify their specific requirements. We are also endeavoring to broaden our reach into new verticals as we focus on expanding the breadth of our innovative product offering. In addition, we have increased our sales force to continue to improve our core business growth rate."

Mr. Millar continued, “Our efforts to gain a stronger foothold in the food service industry continues to progress. The testing of our products in various restaurants throughout North America is currently underway. One of the largest fast food franchises in the world is specifically reviewing a corporate roll-out of our high-heat kit consisting of a glove, lightweight apron, and a shield. We expect similar opportunities to develop as restaurants continue to look to improve food and employee safety, while maintaining clean work areas."

Mr. Millar concluded, “We have continued to grow sales and report improved margins with consistent profitability. Our apparel division continues to show strong improvements, underpinning our confidence in the future growth prospects for this line. We continue to receive meaningful orders for our masks and eye shields, a trend we see continuing as healthcare professionals focus on safety for themselves, their environment and their patients. In summary, we offer important products to large and growing industries and believe a variety of environmental factors will continue to drive demand for our unique products, allowing us to expand our product lines while targeting new market segments to expand our customer base.”

Alpha Pro Tech develops, manufactures and markets innovative disposable and limited-use protective apparel products for the medical, dental, industrial, clean-room and food service markets. The Company has manufacturing facilities in Salt Lake City, Utah; Nogales, Arizona; Janesville, Wisconsin; Valdosta, Georgia; and Benjamin Hill, Mexico.
Alpha Pro Tech, LTD
Consolidated Condensed Statements of Income
Three Months Ended
March 31,
2004 2003
Sales $5,853,000 $5,356,000
Cost of Goods Sold(excluding depreciation & amortization) 2,863,000 2,630,000
Gross Margin 2,990,000 2,726,000
Expenses:
      Selling, Geneneral & Admin Expenses 2,115,000 1,867,000
      Depreciation And Amortization 132,000 120,000
Operating Income 743,000 739,000
Interest, Net 1,000 (1,000)
Pretax Income 742,000 740,000
Provision for Income Taxes 275,000 275,000
      Net Income $467,000 $465,000
Basic Earnings Per Share $0.02 $0.02
Diluted Earning Per Share $0.02 $0.02
Basic Weighted Average Shares 23,106,731 22,500,134
Diluted Weighted Average Shares 24,891,891 23,012,139
Balance Sheet Highlights
March 31st December 31st
2004 2003
Cash $2,800,000 $3,427,000
Total Current Assests $12,223,000 $12,756,000
Net Property and Equipment $3,085,000 $3,166,000
Total Assets $15,490,000 $16,096,000
Total Current Liabilities $1,197,000 $2,495,000
Total Liabilities $1,771,000 $3,069,000
Shareholder's Equity $13,719,000 $13,027,000
Total Liabilities And Equity $15,490,000 $16,096,000
The Private Securities Litigation Reform Act of 1995 ("Act") provides a safe harbor for forward-looking information made on behalf of the Company. Forward-looking statements involve risks, uncertainties and assumptions as described from time to time in registration statements, annual reports and other periodic reports and filings of the Company filed with the Securities and Exchange Commission. All statements, other than statements of historical facts which address the Company's expectations of sources of capital or which express the Company's expectations for the future with respect to financial performance or operating strategies, can be identified as forward-looking statements. As a result, there can be no assurance that the Company's future results will not be materially different from those described herein as "believed," "anticipated," "estimated" or "expected," which reflect the current views of the Company with respect to future events. We caution readers that these forward-looking statements speak only as the date hereof. The Company hereby expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which such statement is based.
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