Alpha Pro Tech Ltd. Reports Profitable First Quarter; Total Sales Increase by 19%; Net Income Increases 25.8% Over Previous Year.NOGALES Nogales (nōgä`lās), city (1990 pop. 19,489), Santa Cruz co., S Ariz. on the Mexican border with its adjacent city, Nogales (1990 pop. 105,873), Sonora, NW Mexico. There are copper, silver, and lead mines. , Ariz.--(BUSINESS WIRE)--May 5, 1998--Alpha Pro Tech Ltd. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:APTD APTD Aid to the Permanently and Totally Disabled APTD Army Personnel Transformation Directorate APTD Appointed ) today reported consolidated net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $4,742,000 and net income of $83,000 for the quarter ended March 31, 1998. This compares to consolidated net sales of $3,985,000 and net income of $66,000 for the first quarter ended March 31, 1997. These results mark the best first quarter in the company's history. Net sales for the Apparel Division for the first quarter increased 38.6% to $3,160,000, as compared to $2,280,000 for the same period in 1997. This increase was primarily due to increased sales to the company's largest distributor. Sales in this division are expected to continue to grow as a result of the company's strategy toward developing innovative solutions to meet this and other customers' needs. Mask and eye shield sales decreased by $82,000 or 7.6% to $996,000 for the first quarter 1998 from $1,078,000 in the first quarter 1997. Sales of these products should strengthen in the second half of 1998 with the introduction of a new line of masks and shields. Sales from the company's Extended Care Unreal Lambskin(R) and other related products, which includes a line of pet beds, decreased by $40,000 or 6.4% to $587,000 in the first quarter 1998 compared to $627,000 in the same period in 1997. The decrease in sales is primarily the result of the discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of a low margin rolled goods line, which was partially offset by an increase in medical fleece fleece, mat of wool formed by shearing a sheep in one continuous operation. The average fleece weighs from 5 to 10 lb (2.3–4.5 kg); in highbred wool sheep such as the American Merinos a ram's fleece may reach 30 lb (13.6 kg). sales. A small decrease in Alpha's line of pet beds and related products was also responsible for the decrease. The company's line of pet products is expected to improve in the future. Although cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold increased to $2,846,000 for the three months ended March 31, 1998, from $2,445,000 for the same period in 1997, as a percentage of net sales, cost of goods sold decreased to 60% in 1998 from 61.4% a year earlier. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. increased to 40% for the three months ended March 31, 1998, from 38.6% for the three months ended March 31, 1997. The improvement in gross profit is a result of the company's new strategic emphasis on developing innovative high gross profit products, especially for its largest customer, and also on improved manufacturing efficiency as a result of recent capital expenditures. Management expects gross profit margin to continue to remain strong through its strategic emphasis on developing innovative products and processes, but there can be no assurance that these margin improvements will be sustained. Al Millar Millar can refer to:
"Furthermore, the capital expenditures that we made in 1997 are beginning to bring about the results that we envisioned. All of us at Alpha continue to be committed to building a profitable business that responds quickly to customer needs." Millar added that the company has available cash and borrowing to finance all known financial commitments for at least 12 months, and also expects to show positive cash flow for 1998. Alpha Pro Tech develops, manufactures and markets innovative disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. protective apparel products for the medical, dental, industrial, clean room and food service markets. The company has manufacturing facilities in Salt Lake City,; Nogales, Ariz.; Janesville Janesville, city (1990 pop. 52,133), seat of Rock co., S central Wis., on the Rock River; inc. 1853. It is an industrial and commercial center in a grain, dairy farm, and tobacco area. , Wis adv. 1. Certainly; really; indeed. v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis. .; Valdosta, Ga.; and Benjamin Hill and Nogales, Mexico. -0-
Alpha Pro Tech Ltd.
Financial Summary
For Three Months
Ended March 31
(unaudited)
1998 1997
Sales $ 4,742,000 $ 3,985,000
Gross Profit 1,896,000 1,540,000
Net Income 83,000 66,000
Income Per Share ($0.00) ($0.00)
Weighted Average
number of shares
outstanding 24,112,449 22,216,718
Alpha Pro Tech Ltd.
Selected Balance Sheet Items
March 31, 1998 Dec. 31, 1997
Cash $ 302,000 $ 490,000
Current Assets $ 7,242,000 $ 7,411,000
Current Liabilities $ 3,595,000 $ 3,799,000
Stockholders equity $ 5,720,000 $ 5,637,000
-0- The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 ("Act") provides a safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking information made on behalf of the company. All statements, other than statements of historical facts which address the company's expectations of sources of capital, or which express the company's expectation for the future with respect to financial performance or operating strategies, can be identified as forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Such statements made by the company are based on expectations as of the date of this press release and involve risks and uncertainties as well as other factors beyond the control of the company. Actual results may differ materially from the expectations expressed in the forward-looking statements. These risks are described in the company's registration statements filed with the U.S. Securities and Exchange Commission. CONTACT: Alpha Pro Tech Ltd. Al Millar or Donna Millar, 800/847-9725 http://www.alphaprotech.com |
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