-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FRGcGovyd+ucUwdMWDcIE7dFSUMFeXd0qMfx5P4FvE6WxaCLjRkkwwSkBjz+BghZ 2uyCcWB4106KRHa9SAjKgw== 0001104659-06-031821.txt : 20060508 0001104659-06-031821.hdr.sgml : 20060508 20060508095943 ACCESSION NUMBER: 0001104659-06-031821 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060508 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060508 DATE AS OF CHANGE: 20060508 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALPHA PRO TECH LTD CENTRAL INDEX KEY: 0000884269 STANDARD INDUSTRIAL CLASSIFICATION: ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842] IRS NUMBER: 631030494 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15725 FILM NUMBER: 06815077 BUSINESS ADDRESS: STREET 1: 60 CENTURIAN DR STREET 2: SUITE 112 CITY: MARKHAM ONTARIO CANA STATE: A6 BUSINESS PHONE: 9054790654 MAIL ADDRESS: STREET 1: 60 CENTURION DR STREET 2: STE 112 CITY: MARKHAM ON STATE: A6 FORMER COMPANY: FORMER CONFORMED NAME: BFD INDUSTRIES INC DATE OF NAME CHANGE: 19930328 8-K 1 a06-11377_18k.htm CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


 

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 8, 2006

ALPHA PRO TECH, LTD.
(Exact Name of Registrant as Specified in Its Charter)

Delaware

 

01-15725

 

63-1009183

 

(State or other jurisdiction of

 

(Commission File Number)

 

(I.R.S. Employer

 

 incorporation or organization)

 

 

 

Identification No.)

 

 

60 Centurian Drive, Suite 112, Markham, Ontario L3R 9R2

Address of principal offices  Zip Code

 

Registrant’s telephone number including area code: 905-479-0654

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o            Written communications puruant to Rule 425 under the Securities Act (17 CFR 230.425)

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CRF 240.14a-12)

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(4))

 




 

Item 2.02   Results of Operations and Financial Condition.

On May 8, 2006 registrant issued a release announcing its financial results for the first quarter ended March 31, 2006.

The text of that release is filed herewith as an exhibit to this report on form 8-K.

Item 9.01   Financial Statements and Exhibits.

(c) Exhibits:

Exhibit 1. Release dated May 8, 2006 announcing registrants financial results for the first quarter ended March 31, 2006.

 

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused the report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Alpha Pro Tech, Ltd.

 

 

              (Registrant)

 

 

 

 

 

 

 

Date May 8, 2006

/s/ LLOYD HOFFMAN

 

 

Lloyd Hoffman

 

 

Chief Financial Officer and Senior Vice President

 

 



EX-1 2 a06-11377_1ex1.htm EX-1

 

Exhibit 1.

Alpha Pro Tech LTD.

ALPHA PRO TECH, LTD. ANNOUNCES 14% INCREASE IN REVENUE AND 46%
INCREASE IN NET INCOME FOR THE FIRST QUARTER OF 2006

Significant Increase in Sales of Engineered Products and Infection Control Contribute to Overall Revenue Growth

FOR IMMEDIATE RELEASE

Company Contact:

Investor Relations Contact:

Alpha Pro Tech, Ltd.

Hayden Communications, Inc.

Al Millar/Donna Millar

Matthew Hayden/Brett Maas

905-479-0654

843-272-4653

email: ir@alphaprotech.com

 

 

·                  Total revenue increases 14.2% to $8.0 million

·                  Engineered Products revenue increases 80% to $1.8 million

·                  Infection Control products up 38.4% driven by an increase in mask sales

·                  Operating margins improved to 13.0% versus 9.8%  last year

Nogales, Arizona — May 08, 2006, 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, 2006.

Revenues for the first quarter were $8.0 million, an increase of 14.2% from $7.0 million for the comparable prior year period. Sales of construction supply weatherization products, including the Engineered Products segment’s building wrap and roof underlayment, totaled $1.8 million compared to $1.0 million for the first quarter last year, representing an increase of 80.0%. Engineered Product sales improved as a result of improved sales & marketing efforts within this segment. Sales of Disposable Protective Apparel products were $4.1 million for the quarter and were down 4.1% from last year. Sales continued to be impacted by a slowdown in orders related to the Company’s largest distributor reducing overall internal inventory levels. During the second half of March, sales to this distributor returned to more normalized historical levels with order momentum increasing into April. Sales of Infection Control products, including the Company’s mask and eye shields, were $1.7 million compared to $1.2 million for the first quarter last year, representing an increase of 38.4%. Specifically, sales of the Company’s N-95 Respirator mask increased significantly in part due to heightened concerns regarding the Avian Flu.

Al Millar, President of Alpha Pro Tech commented, “We made further progress during this quarter which enabled us to achieved a double digit increase in revenue driven by sales growth in both our Engineered Products and Infection control segments. During the quarter we began to take on a more proactive role with PermaR, our exclusive distributor for our Engineered Products line, and as a result of our combined efforts we experienced an 80% increase in sales. We believe our Engineered Product




revenues will continue to improve and expect to at least achieve the $8.0 million minimum in place for the year. Additionally, we are also encouraged to see improving orders from our largest apparel distributor late in the quarter. This improvement, in conjunction with strong demand for our Engineered Products and with increased demand for our Infection control products, has provided a solid foundation for continued growth in 2006.

Gross profit for the quarter increased to $3.6 million, or 45.7% of sales, compared to $3.2 million, or 45.3% of sales for the comparable period last year. Gross margins benefited from a larger percentage of total revenue contribution from mask and eye shield sales which are among the highest margin products for the Company. Gross profit within the Engineered Products segment was 29.5% for the quarter compared to 20.6% for the same period of 2005. The Company expects that gross margins within this segment will increase towards the low to mid 30% range by the second half of this year as production continues to increase at the Company’s India manufacturing facility. Excluding Engineered Products, gross profit margin was 50.3% for the quarter ended March 31, 2006 compared to 49.3% for the same period of 2005.

Selling, general and administrative expenses were $2.5 million, an increase of 6.1% from the $2.4 million for the first quarter last year. Expenses increased to support overall revenue growth particularly within Engineered Products. Despite the increase in overall expense dollars, expenses decreased as a percentage of revenue to 31.3% compared to 33.7% last year.

Income from operations increased by 50.7%, to $1,034,000 for the quarter as compared to income from operations of $686,000 for the quarter ended March 31, 2005. Income from operations increased to 13.0% of revenue from 9.8% last year, indicating increased leverage in the business. The provision for income taxes for the quarter was $381,000 compared to $258,000 for the quarter ended March 31, 2005, resulting in an effective tax rate of 37.0% which was relatively unchanged versus last year.

Net income for the quarter increased to 46.2% to $649,000, or $0.03 per fully diluted share, compared to net income of $444,000, or $0.02 per fully diluted share, for the quarter ended March 31, 2005.

The balance sheet continued to remain strong with a current ratio of 7.3:1 on March 31, 2006. The Company completed the quarter with cash and cash equivalents of $882,000 and working capital of $15.2 million. Inventories during the quarter totaled $10.8 million and were up 3.0% versus the comparable quarter last year. The Company has continued to experience an elevated inventory level associated with the expected increase in Engineered Product sales. Management believes that inventories will return towards more normalized levels in the second half of the year as sales of these products continue to increase. The Company currently has no outstanding debt and maintains an unused $3.5 million credit facility.

Mr. Millar concluded, “We continue to remain focused on not only growing revenues but also improving our overall profitability as evidenced by our increase in operating margins this past quarter. As our revenues continue to grow, we believe we have the opportunity to improve our margin structure due to higher utilization of our facilities and improved economies of scale. Despite a difficult comparison versus the second quarter of 2005, which was uncharacteristically strong, we remain optimistic on our prospects for both revenue and earnings growth for the full year.”

About Alpha Pro Tech, Ltd.




Alpha Pro Tech develops, manufactures and markets innovative disposable and limited-use protective apparel products for the industrial, clean room, medical and dental markets. In addition, Alpha ProTech  Engineered Products, Inc. manufactures and markets a line of construction weatherization products, including building wrap, roof underlayment and mold resistant framing sealant. The Company has manufacturing facilities in Salt Lake City, Utah; Nogales, Arizona; Janesville, Wisconsin; Valdosta, Georgia; and a joint venture in India. For more information and copies of all news releases and financials, visit Alpha Pro Tech’s Website at http://www.alphaprotech.com.

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.

# # #

- tables follow —




Alpha Pro Tech, Ltd.

Consolidated Statements of Operations (Unaudited)

 

 

For the Three Months Ended
March 31,

 

 

 

2006

 

2005

 

Net sales

 

$

7,971,000

 

$

6,982,000

 

 

 

 

 

 

 

Cost of goods sold, excluding depreciation and amortization

 

4,330,0003

 

3,821,000

 

 

 

 

 

 

 

Gross margin

 

3,641,000

 

3,161,000

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

Selling, general and administrative

 

2,496,000

 

2,352,000

 

Depreciation and amortization

 

111,000

 

123,000

 

 

 

 

 

 

 

Income from operations

 

1,034,000

 

686,000

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

Equity in income (loss) of unconsolidated affiliates

 

(9,000

)

 

Interest, net

 

5,000

 

16,000

 

 

 

 

 

 

 

Income before provision for income taxes

 

1,030,000

 

702,000

 

 

 

 

 

 

 

Provision for income taxes

 

381,000

 

258,000

 

 

 

 

 

 

 

Net income

 

$

649,000

 

$

444,000

 

 

 

 

 

 

 

Basic net income per share

 

$

0.03

 

$

0.02

 

 

 

 

 

 

 

Diluted net income per share

 

$

0.03

 

$

0.02

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

24,066,144

 

23,646,008

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

25,035,255

 

25,042,812

 

 

 

 

 

 

 

 

Balance Sheet Highlights

 

 

March 31st

 

December 31st

 

 

 

2006

 

2005

 

Cash

 

$

882,000

 

$

1,163,000

 

Total Current Assets

 

$

17,464,000

 

$

16,761,000

 

Net Property and Equipment

 

$

3,374,000

 

$

3,389,000

 

Total Assets

 

$

22,710,000

 

$

21,871,000

 

 

 

 

 

 

 

Total Current Liabilities

 

$

2,422,000

 

$

2,576,000

 

Total Liabilities

 

$

3,074,000

 

$

3,228,000

 

Shareholder’s Equity

 

$

19,636,000

 

$

18,643,000

 

Total Liabilities and Equity

 

$

22,710,000

 

$

21,871,000

 

 

 



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