Alpha Pro Tech disposable apparel Q1 sales rise 10.5%

- Sales for the Disposable Protective Apparel segment increased by $0.3 million, or 10.5%; the increase was primarily due to an increase in sales of disposable protective apparel to regional and national distributors.

- Sales for the Building Supply segment decreased by $0.4 million, or 7.6%; REXfSynFelt synthetic roof decreased by 23.3%, and REXWrap housewrap increased by 22.5% for the quarter.

- Gross profit increased by 6.9% to $3.7 million, or 38.8% gross margin, compared to $3.4 million, or 35.6% gross margin, for the first quarter of 2012 due to a decrease in Building Supply segment material costs.

- Subsequent to March 31, 2013, cash and cash equivalents improved to $5.0 million from $3.3 million as of March 31, 2013.

Consolidated sales for the first quarter decreased 1.8% to $9.5 million from $9.6 million for the comparable quarter of 2012. Building Supply segment sales for the three months ended March 31, 2013 decreased by 7.6% to $5.2 million, compared to $5.6 million for the same period of 2012. The sales mix of the Building Supply segment for the three months ended March 31, 2013 was 58% for synthetic roof underlayment and 42% for housewrap.

This compared to 69% for synthetic roof underlayment and 31% for housewrap for the first quarter of 2012. Sales for the Disposable Protective Apparel segment for the three months ended March 31, 2013 increased 10.5% to $3.2 million, compared to $2.9 million for the same period of 2012. Infection Control segment sales for the three months ended March 31, 2013 decreased by 5.2% to $1.07 million, compared to $1.1 million for the same period of 2012.

Al Millar, President of Alpha Pro Tech, commented, “The decrease in Building Supply segment sales was primarily due to a 23.3% decrease in sales of REXSynFelt synthetic roof underlayment due to cold and winter weather conditions, partially offset by a 22.5% increase in sales of REX Wrap housewrap. Sales of our newest housewrap, REX Wrap Fortis, a non-perforated breathable housewrap, are starting to gain traction. In the first quarter of 2013, REX Wrap Fortis sales increased six-fold over the first quarter in 2012 and comprised 9% of total housewrap sales. Sales of REX Wrap Fortis are expected to increase significantly in 2013.”

Mr. Millar continued, “In the first quarter of 2013, TECHNOply, the economy version of our synthetic roof underlayment, which is designed to capture market share in the lower end of the market, delivered 18 times the sales of the same period in 2012. This contributed approximately 10% of total synthetic roof underlayment sales for the quarter as compared to 6% for all of 2012.

"We believe that the outlook for the Building Supply segment is promising and that we are in a good position to take advantage of significant growth prospects as the housing market continues to recover. We will continue to introduce new products in our Building Supply segment as we see opportunities arise.”

Mr. Millar concluded, “Sales for the Disposable Protective Apparel segment increased by 10.5%, primarily due to an increase in sales to regional and national distributors. Management is emphasizing a more diversified and broader distribution strategy for our Critical Cover protective apparel product line. We believe that this strategy is gaining momentum and will continue to grow our revenues and market share.”

Alpha Pro Tech