UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): April 8, 2020

 

Alpha Pro Tech, Ltd.

(Exact name of registrant as specified in its charter)

 

Delaware, U.S.A.

01-15725

63-1009183

(State or other jurisdiction of

incorporation)

(Commission File Number)

(IRS Employer Identification No.)

     

60 Centurian Drive, Suite 112

Markham, Ontario, Canada

  L3R 9R2
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (905) 479-0654

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

APT

NYSE American

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ⃞

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ⃞

 

 

 

Item 8.01.          Other Events.

 

On April 8, 2020, Alpha Pro Tech, Ltd. (the “Company”) issued a press release announcing an update to the status of orders for the Company’s personal protective equipment products resulting primarily from a continued increase in customer demand due to the coronavirus (Covid-19) pandemic. A copy of the press release is attached hereto as Exhibit 99.1.

 

Item 9.01.          Financial Statements and Exhibits.

 

(d)

Exhibits

 

 

Exhibit Number

Exhibit

     
 

99.1

Press Release dated April 8, 2020

 

 

Forward-Looking Statements

 

Certain statements made in this Current Report on Form 8-K constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements instead of historical facts and may be identified generally by the use of forward-looking terminology and words such as “expects,” “anticipates,” “estimates,” “believes,” “predicts,” “intends,” “plans,” “potentially,” “may,” “continue,” “should,” “will” and words of similar meaning. Without limiting the generality of the preceding statement, all statements in this report relating to product demand, inventory levels, production plans and capacity, fulfillment schedules, estimated and projected earnings, margins, costs, expenditures, cash flows, sources of capital, growth rates and future financial and operating results are forward-looking statements. The Company cautions investors that any such forward-looking statements are only estimates based on current information and involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. The Company cannot give assurances that any such statements will prove to be correct. Factors that could cause actual results to differ materially from those estimated by the Company include the risks, uncertainties and assumptions described from time to time in the Company’s public releases and reports filed with the Securities and Exchange Commission, including, but not limited to, the Company’s most recent Annual Report on Form 10-K. The Company also cautions investors that the forward-looking information described herein represents the Company’s outlook only as of this date, and the Company undertakes no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this report. Given these uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

ALPHA PRO TECH, LTD.

 

 

 

 

 

Dated: April 8, 2020

By:

/s/ Colleen McDonald

 

 

 

Name: Colleen McDonald

 

 

 

Title: Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 99.1

 

 

ALPHA PRO TECH PROVIDES UPDATE ON PERSONAL PROTECTIVE EQUIPMENT (PPE)

ORDERS RESULTING FROM COVID-19 PANDEMIC

 

FOR IMMEDIATE RELEASE

Company Contact:

Alpha Pro Tech, Ltd.                          

Donna Millar                               

905-479-0654     

e-mail: ir@alphaprotech.com

Investor Relations Contact:

Hayden IR

Cameron Donahue

651-653-1854

e-mail: cameron@haydenir.com

 

NOGALES, Arizona, April 8, 2020 (GLOBE NEWSWIRE) -- Alpha Pro Tech, Ltd. (NYSE American: APT), a leading manufacturer of products designed to protect people, products and environments, including disposable protective apparel and building products, today announced an update to the status of orders booked for personal protective equipment (PPE) products in APT’s disposable protective apparel product suite, including the company’s proprietary N-95 Particulate Respirator face mask and face shields.

 

As of April 7, 2020, APT has booked approximately $36.7 million in orders for the company’s proprietary N-95 Particulate Respirator face mask since January 27, 2020, an increase of $14.1 million, or 62%, from the $22.6 million in orders reported as of March 11, 2020, and the company continues to experience greater demand. APT has seen exponential increases not only in near-term demand, but also in longer-term ongoing purchase orders that have request dates that extend beyond the third quarter of 2020 and into the first half of 2021. Approximately 20% of the booked orders fall into the latter category. As a result of a ramp up in production, the company fulfilled approximately $3.7 million of the orders in the first quarter of 2020, which was slightly below the previously estimated forecast of $4.0 million, primarily as a result of delays at the company’s manufacturing facility in Utah following an earthquake in March. The remaining backlog of N-95 face mask orders that are not requested before the beginning of the fourth quarter of 2020 is expected to be fulfilled by the end of the third quarter of 2020. The company still expects its phase 1 ramp up plan on N-95 face mask production to be completed by early May and is in the process of a phase 2 expansion that will involve building additional N-95 face mask production lines to further increase capacity. The phase 2 expansion is expected to be operational by late summer 2020. The fulfillment forecast described above does not take into account any increased production capacity from the phase 2 ramp up plan.

 

APT has also seen a significant increase in orders of the company’s face shield products since January 27, 2020, with current orders totaling over $11.6 million, up from the $1.6 million in orders reported as of March 11, 2020. The approximate average annual sales of this product line over the last three years has been $1.6 million. As with the N-95 face mask orders described above, the company has booked face shield orders that have request dates that extend beyond the third quarter of 2020 and into the first half of 2021. Approximately 24% of the booked orders fall into this category. Approximately $1.4 million of face shield orders were fulfilled in the first quarter of 2020. The remaining backlog of face shield orders that are not requested before the beginning of the fourth quarter of 2020 is expected to be fulfilled by the end of the third quarter or early in the fourth quarter of 2020.

 

 

 

The company’s other disposable protective apparel product lines, which include coveralls, gowns, lab coats, shoecovers and bouffant caps, have also seen a significant increase in demand, which primarily began in early March and has continued into April. Although the company remains committed to allocating the necessary resources and procuring the necessary raw materials in an effort to meet the unprecedented demand for these PPE products, the company alerts investors that its joint venture in India that manufacturers these disposable protective apparel product lines is currently under a country-wide, government mandated closure that is expected to last until mid-April, and could be extended. The company has alternative manufacturers that may be pursued, but the joint venture has historically been the primary supply source for these products.

 

The Alpha Pro Tech N-95 Particulate Respirator face mask’s unique flat-fold design features a Positive Facial Lock® (PFL®) and meets the Centers for Disease Control and Prevention’s (CDC) and National Institute for Occupational Safety and Health’s (NIOSH) recommended protection levels for many airborne contaminants. The N-95 face mask filters at least 95% of airborne particles. The integrated Magic Arch® technology creates a comfortable breathing chamber within the N-95 face mask by holding it away from the wearer’s nose and mouth. For more information on APT’s N-95 Particulate Respirator face mask, face shields and other PPE products, visit Alpha Pro Tech’s website at www.alphaprotech.com.

 

About Alpha Pro Tech, Ltd.

Alpha Pro Tech, Ltd. is the parent company of Alpha Pro Tech, Inc. and Alpha ProTech Engineered Products, Inc. Alpha Pro Tech, Inc. develops, manufactures and markets innovative disposable and limited-use protective apparel products for the industrial, clean room, medical and dental markets. Alpha ProTech Engineered Products, Inc. manufactures and markets a line of construction weatherization products, including building wrap and roof underlayment. The Company has manufacturing facilities in Salt Lake City, Utah; Nogales, Arizona; Valdosta, Georgia; and a joint venture in India. For more information and copies of all news releases and financials, visit Alpha Pro Tech’s website at http://www.alphaprotech.com.

 

Certain statements made in this press release constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements instead of historical facts and may be identified generally by the use of forward-looking terminology and words such as “expects,” “anticipates,” “estimates,” “believes,” “predicts,” “intends,” “plans,” “potentially,” “may,” “continue,” “should,” “will” and words of similar meaning. Without limiting the generality of the preceding statement, all statements in this press release relating to product demand, inventory levels, production plans and capacity, estimated and projected earnings, margins, costs, expenditures, cash flows, sources of capital, growth rates and future financial and operating results are forward-looking statements. We caution investors that any such forward-looking statements are only estimates based on current information and involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. We cannot give assurances that any such statements will prove to be correct. Factors that could cause actual results to differ materially from those estimated by us include the risks, uncertainties and assumptions described from time to time in our public releases and reports filed with the Securities and Exchange Commission, including, but not limited to, our most recent Annual Report on Form 10-K. We also caution investors that the forward-looking information described herein represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this press release. Given these uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.