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Mask sales down by 69.5%, Alpha Pro Tech
11
Aug '10
Alpha Pro Tech, Ltd., a leading manufacturer of products designed to protect people, products and environments, including disposable protective apparel, infection control and building supply products, announced financial results for the three and six months ended June 30, 2010.

Consolidated sales for the second quarter of 2010 decreased by $3.3 million, or 22.9%, to $11.2 million, from $14.5 million in the second quarter of 2009. Sales for the Disposable Protective Apparel segment for the three months ended June 30, 2010 decreased by $1.2 million, or 20.3%, to $4.8 million, compared to $6.1 million for the same period of 2009.

Building Supply segment sales for the three months ended June 30, 2010 increased by $1.1 million, or 29.4%, to $4.9 million, compared to $3.8 million for the same period of 2009. Building Supply segment sales were the second highest on record exceeded only by sales in the third quarter of 2009. The increase in Building Supply segment sales was primarily due to a 24.0% increase in sales of REX SynFelt synthetic roof underlayment and a 45.9% increase in sales of REX Wrap housewrap, as compared to the second quarter of 2009.

The sales mix of the Building Supply segment for the three months ended June 30, 2010 was 68% for synthetic roof underlayment and 32% for housewrap. This compared to 71% for synthetic roof underlayment and 29% for housewrap for the second quarter of 2009. Infection Control segment sales for the three months ended June 30, 2010 decreased by $3.2 million, or 67.9%, to $1.5 million, compared to $4.7 million for the same period of 2009. Mask sales were down by 69.5%, to $1.1 million, and shield sales were down by 72.6%, to $0.3 million.

Al Millar, President of Alpha Pro Tech, commented, “The decrease in sales in the Disposable Protective Apparel segment was partially due to a decline in sales of disposable shoecovers to our former largest distributor. We have and continue to expect to sell our apparel line to this distributor, excluding shoe and bootcovers. This decrease was partially offset by increased sales to a broad base of our distribution network and, in particular, to a major national distributor. Sales to this national distributor increased over two and a half times in the second quarter of 2010, as compared to the same period of 2009.”

Mr. Millar continued, “During the second quarter, we increased our Building Supply segment sales team in anticipation of significant growth in the coming periods. Discussions with potential and existing distributors have been very encouraging. In addition to growth opportunities with existing products, we are also excited about the launch of a breathable housewrap in the third quarter of 2010 that should increase our potential market share. We are very optimistic about the future of this segment.”

Mr. Millar 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 down in the second quarter of 2010, primarily due to the final shipments of 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 and commenced shipping in the fourth quarter of 2008. General shield sales also decreased in the second quarter of 2010, partially related to the H1N1 Influenza A pandemic of 2009.”

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