Exhibit 1
Alpha Pro Tech
LTD.
ALPHA PRO TECH, LTD. ANNOUNCES 27%
INCREASE IN NET INCOME FOR THE
THIRD QUARTER OF 2006
·
11% INCREASE IN NET REVENUE
TO $9.0 MILLION
·
EARNINGS PER SHARE OF $0.11 FOR
THE NINE MONTHS
·
42% GROWTH IN ENGINEERED PRODUCT
SALES
FOR IMMEDIATE RELEASE
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Company Contact :
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Investor Relations Contact
:
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Alpha Pro Tech, Ltd.
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Hayden Communications, Inc.
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Al Millar/Donna Millar
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Brett Maas/Cameron Donahue
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905-479-0654
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843-272-4653
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email: ir@alphaprotech.com
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Nogales, Arizona – November
1, 2006, Alpha Pro Tech (AMEX: APT; CHX: APT)
a leading manufacturer of products
designed to protect people, products and environments, including
disposable protective apparel and building products, announced its
financial results for the third quarter and nine-month period ended
September 30, 2006.
Consolidated sales for the third
quarter ended September 30, 2006 increased 11.1% to $9.0 million
from $8.1 million in the comparable 2005 quarter. The increase was
primarily due to increased sales of construction supply
weatherization products and infection control segment sales along
with a slight increase in disposable protective apparel products,
offset by a slight decrease in extended care product sales. Sales
for the Disposable Protective Apparel segment for the quarter
increased slightly to $5.2 million compared to $5.1 million for the
same period of 2005 and, while sales remain down year to date
compared to last year, sales during this past quarter of $5.2
million were in fact the third highest in company history next only
to the second quarter of 2005 and 2006. Management expects growth
from this segment in 2006 as the Company continues it launch of its
ComforTech® line of products. Infection Control segment sales
for the quarter increased 22.8% to $1.48 million compared to $1.2
million for the same period of 2005. Mask sales in this segment, in
particular sales of the Company’s N-95 NIOSH approved
respirator mask, continued to be strong in the third quarter of
2006 as concerns about Avian Flu have not abated. Engineered
Products segment sales for the quarter increased 41.9% to $1.97
million compared to $1.39 million for the same period of 2005. This
increase is an extremely positive indication of the strength of the
Engineered Products line as the third quarter for 2005 was
favorably affected by hurricane Katrina-related orders and a
year-over-year increase measured against a disaster-related spike
in sales should be a good leading indicator.
Al Millar, President of Alpha Pro
Tech commented, “Our Engineered Products segment continues to
be a strong growth driver and we expect to see strong continued
growth from this division. Even though sales in the Disposable
Apparel segment are down year to date, we expect that the fourth
quarter will be significantly better than the fourth quarter of
last year. On September 16, 2006 we announced the signing of a new
distribution contract with our largest distributor. Under the terms
of the multiple-year contract that was effective January 1, 2006,
they will retain the exclusive right to sell our private label
Critical Cover® products. In addition, we will now have the
right to sell Alpha Pro Tech branded products to other new
distributors. This new contract further strengthens our
relationship with our largest distributor and will enable us to
gain additional market share as we develop relationships with new
distributors.”
Gross profit increased by 12.5% to
$4.1 million for the quarter, or 45.9% gross profit margin, from
$3.65 million, or 45.3% gross profit margin, for the same period in
2005. Gross profit margin on the Engineered Products segment was
32.6% for the third quarter compared to 28.2% for the same period
of 2005, continuing the Company’s positive trend in improving
the segment’s gross profit margin. Gross profit on this
product line is expected to trend into the mid 30%
range.
Selling, general and administrative
expenses increased by 8.8% to $2.64 million for the quarter from
$2.42 million for the same quarter last year. Despite the increase
in operating expenses in whole dollars, operating expenses as a
percentage of revenue decreased to 29.4% from 30.1% for the
quarter.
Income from operations increased by
23.2%, to $1.35 million for the quarter as compared to income from
operations of $1.1 million for the quarter ended September 30,
2005. The provision for income taxes for the quarter was $518,000
compared to $407,000 for the quarter ended September 30, 2005,
resulting in an effective tax rate o
