Disposable protective apparel maker Alpha Q2 sales up 2.8%

Highlights:

- For the quarter ended June 30, 2013, Building Supply segment sales increased by 9.6% to a record $7.1 million, compared to $6.4 million for the quarter ended June 30, 2012; the Building Supply segment comprised 63.3% of total revenues for the 2013 second quarter.

- For the quarter ended June 30, 2013, net income was $474,000, compared to $374,000 in the 2012 second quarter. Net income as a percentage of sales was 4.2%, compared with 3.4% in the 2012 second quarter.

- Cash increased to $6.1 million as of June 30, 2013 from $4.6 million as of December 31, 2012.

Consolidated sales for the second quarter increased 2.8% to $11.2 million from $10.9 million for the comparable quarter of 2012. Building Supply segment sales for the three months ended June 30, 2013 increased by 9.6% to a record $7.1 million, compared to $6.4 million for the same period of 2012. The sales mix of the Building Supply segment for the three months ended June 30, 2013 was 65% for synthetic roof underlayment and 35% for housewrap. This compared to 68% for synthetic roof underlayment and 32% for housewrap for the second quarter of 2012. Sales for the Disposable Protective Apparel segment for the three months ended June 30, 2013 decreased 12.6% to $3.1 million, compared to $3.5 million for the same period of 2012. Infection Control segment sales for the three months ended June 30, 2013 increased by 14.0% to $1.0 million, compared to $917,000 for the same period of 2012. Mask sales were up by 30.0% to $750,000, and shield sales were down by 13.3% to $295,000.

Al Millar, President of Alpha Pro Tech, commented, “Overall, the Building Supply and Infection Control segments led the increase in sales for the second quarter of 2013. In 2012, we introduced TECHNOply, an economy version of our synthetic roof underlayment, to capture market share in the lower end of the market. For the first six months of 2013, TECHNOply had three times the sales of the same period in 2012 and contributed approximately 9% of total synthetic roof underlayment sales, as compared to 3% for all of 2012.

"TECHNOply is expected to be a growth product for the Company. Sales of our newest housewrap, REX Wrap Fortis non-perforated breathable housewrap, are starting to gain traction. For the first six months of 2013, REX Wrap Fortis sales increased seven-fold over the same period of 2012 and comprised 9% of total housewrap sales. Sales of REX Wrap Fortis are expected to increase significantly in 2013. We will continue to introduce new products in our Building Supply segment as we see opportunities arise.”

Consolidated sales for the six months ended June 30, 2013 increased 0.7% to $20.6 million from $20.5 million for the comparable period of 2012. This increase consisted of increased sales in the Building Supply and Infection Control segments, partially offset by decreased sales in the Disposable Protective Apparel segment.

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Alpha Pro Tech