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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.”
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