Sales of Alpha Pro's Disposable Protective Apparel down
10 May '11
5 min read
The Consolidated Balance Sheet remained strong with a current ratio of 41:1 as of March 31, 2011, compared to 39:1 as of December 31, 2010. The Company completed the quarter with cash and cash equivalents of $2.8 million, down from $5.3 million as of December 31, 2010, and working capital of $29.9 million, up from working capital of $29.8 million at December 31, 2010. The decrease in cash and cash equivalents was primarily due to cash used in operating activities of $2.7 million, partially offset by cash provided by investing activities of $189,000 and cash provided by financing activities of $16,000.
Lloyd Hoffman, Chief Financial Officer, commented, “The decrease in cash and cash equivalents for the three months ended March 31, 2011 was primarily due to an increase in our accounts receivable of $2.2 million as a result of a Building Supply segment sales incentive program in which extended payment terms were granted. We expect cash to improve in the coming periods. In addition, the number of days of sales outstanding as of March 31, 2011 was 60 days, compared to 33 days as of December 31, 2010. Days of sales outstanding are expected to return to normal levels in the second quarter of 2011.”
Mr. Hoffman concluded, “Inventory decreased by $1.0 million, or 6.1%, to $16.3 million as of March 31, 2011 from $17.3 million as of December 31, 2010. The decrease was primarily due to a decrease in inventory for the Disposable Protective Apparel segment of $925,000 to $5.8 million as of March 31, 2011. Inventory for the Infection Control segment decreased by $343,000, or 7.4%, to $4.3 million, primarily due to the sale of the lines of medical bed pads and pet beds. In addition, inventory for the Building Supply segment increased by $215,000, or 3.6%, to $6.1 million as of March 31, 2011.”
The Company currently has no outstanding debt and maintains an unused $3.5 million credit facility. The Company believes that current cash balances and the funds available under its credit facility will be sufficient to satisfy projected working capital and planned capital expenditures for the foreseeable future.
20240830145952.gif)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
