Just in case some of you may have missed this/
ALPHA PRO TECH LTD. REPORTS 43% INCREASE IN FIRST QUARTER NET INCOME;
TOTAL SALES INCREASE BY 11.1%, APPAREL DIVISION SALES INCREASE BY 45.6%
-- BALANCE SHEET STRENGTHENED SIGNIFICANTLY
SALT LAKE CITY--May 13, 1997--Alpha Pro Tech Ltd. (OTC:APTD) announced
today that net income for the first quarter of 1997 increased by 43%
over the similar period last year.
Specifically, net income totaled $66,000 for the three months ended March
31, 1997, compared to $46,000 in the comparable 1996 period. Gross profit
margins for the first three months of this year climbed to 38.6% versus
35.9% in the first quarter of 1996. For the first quarter ended March 31,
1997, total sales rose to $3,985,000 versus $3,586,000 in the comparable
quarter last year, representing an increase of 11.1%.
Apparel Division sales continued their strong growth performance by posting
an increase of 45.6%, to the $2,280,000 level, while mask and eye shield
sales declined by 21.9%, and Unreal Lambskin(R) sales were relatively flat.
In addition to the strong increase in total sales and net income for the
first quarter, the company's balance sheet as of March 31, 1997, reflects
a much improved position with current assets totaling $7,264,000, and
current liabilities of $2,813,000, for a current ratio of nearly 2.6,
the best in the company's history. At the same time, stockholders'
equity amounted to $6,164,000 for the three months ended March 31, 1997,
versus $3,850,000 for the year ended Dec. 31, 1996.
Al Millar, president of Alpha Pro Tech Ltd., commented: "Alpha Pro Tech,
as management expected, got off to a solid start in 1997, as evidenced by
the strong showing in both sales growth and advancement in net income.
"We are particularly pleased with the robust growth that continues in
the Apparel Division, and while sales of eye shields and masks continue
to be negatively impacted by a generally weak medical sales environment,
we have seen recent evidence of a turnaround and expect improvement as
the year unfolds.
"As we have stated repeatedly, management is not content with showing just
marginal profitability, and we currently believe that the ensuing quarters
of 1997 will show increasing profit growth. Management believes this is
possible through continued sales to the food service industry of the Aqua
Trak Black(TM) protective shoe cover, and the beneficial impact of the
Standard Textile agreement which uses Alpha Pro Tech for the manufacture
of reusable products."
Millar continued: "Not to be overlooked is the significant improvement
during the first quarter in the company's balance sheet, which is now at
the strongest position in corporate history. Consequently, with our strong
cash position, net interest will likely also contribute to an improving
1997 profit picture."
Alpha Pro Tech develops, manufactures and markets innovative disposable
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, Wis.; Valdosta, Ga.; and
Benjamin Hill and Nogales, Mexico.
*T
Financial Summary
For Three Months
Ended March 31,
(unaudited)
1997 1996
Sales $3,985,000 $3,586,000
Gross Profit 1,540,000 1,287,000
Net Income 66,000 46,000
Income Per Share ($0.00) ($0.00)
Weighted average number
of shares outstanding 22,216,718 19,963,963
Selected Balance Sheet Items
March 31, 1997 Dec. 31, 1996
Cash $1,613,000 $ 275,000
Current Assets $7,264,000 $5,614,000
Current Liabilities $2,813,000 $3,414,000
Stockholders' equity $6,164,000 $3,850,000
*T
Statements contained in this news release which are not historical fact are
forward-looking statements based upon management's current expectations that
are subject to risks and uncertainties that could cause actual results to
differ materially from those set forth in or implied by forward-looking
statements. These risks are described in the company's Form 10-K for
the fiscal year ended Dec. 31, 1996 filed with the U.S. Securities and
Exchange Commission.
CONTACT:
Alpha Pro Tech
Al Millar or Donna Millar
905/479-0654
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