 Net Sales of 25.5 Million, an Increase of 123.4 Year-over-Year Provides Update on Orders for Personal Protective Equipment PPE Net sales for the second quarter of 2020 were 25.5 million, compared to 11.4 million for the second quarter of 2019, up 123.4 year-over-year. Net income for the second quarter of 2020 was 6.2 million, or 0.46 per diluted share, compared to 1.0 million, or 0.08 per diluted share, for the second quarter of 2019, up 475 on a per share basis.NOGALES, Ariz., Aug. 04, 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 financial results for the three month period ended June 30, 2020.Lloyd Hoffman, President and Chief Executive Officer of Alpha Pro Tech, commented, Alpha Pro Tech delivered another exceptional quarter with triple-digit organic revenue growth, a 123 increase compared to the second quarter of 2019. Gross profit margin was nearly 50, which is above our historical average, due to a shift in product mix towards more personal protective equipment PPE and extremely strong cash flow. As a result of the ongoing COVID-19 pandemic, demand for our N-95 face masks and other PPE remains strong and shows no indications of slowing as we move into the second half of 2020. Our backlog of orders continues to increase with current delivery commitments into the second quarter of 2021.Hoffman continued, In our Building Supply segment, we continue to attract more builders and have expanded our distribution network to capture increased demand for our housewrap, window flashing and seam tape. In addition to benefitting from cash flow that has enabled us to build a strong inventory position, we have managed to avoid many of the challenges faced by competitors that rely heavily on third-party imported products from countries hit hard by the pandemic by relying on our U.S.-based manufacturing and our joint venture partner.Our business continues to generate strong cash flows from operations, which enables us to invest in production capabilities and inventory in step with the ongoing demand for PPE and building supplies, added Hoffman.Personal Protective Equipment PPE Orders Resulting from COVID-19 Pandemic The Company began ramping up production of its N-95 Particulate Respirator face mask and face shields in response to a significant increase in customer demand and volume of orders resulting from the initial outbreak of COVID-19 and the declaration by the World Health Organization of the outbreak as a public health emergency of international concern, and, ultimately, a global pandemic. The Company has continued to experience a significant surge in customer demand for the N-95 face mask, face shields and other PPE products as a result of the COVID-19 pandemic.In an effort to meet the unprecedented demand, and to aid communities around the world in responding to the ongoing healthcare crisis, the Company began ramping up production during the first quarter of 2020 of the Companys N-95 face mask, which is manufactured by the Company in the United States. As of August 1, 2020, the Company had booked approximately 66 million in orders for the Companys N-95 face mask since January 27, 2020, of which approximately 10 have request dates in 2021. The Company fulfilled approximately 12 million of the orders through the first six months of 2020. At this time, the Company expects approximately 43 million of the remaining backlog of N-95 face mask orders with request dates in 2020 to be fulfilled by the end of the year, and approximately 11 million of the orders will be fulfilled in 2021. During the second quarter of 2020, the Company brought all available phase 1 N-95 production lines into service and secured raw materials to support the fulfillment of anticipated 2020 orders. In the second quarter, one of the raw materials did have availability constraints; however; the Company has now added additional supply sources, which the Company expects to remove any further bottlenecks and allow full production capacity of phase 1 in the latter part of the third quarter of 2020. Based on increased production capacity and current order demand, the Company expects N-95 face mask sales in the third quarter of 2020 to be significantly higher than the second quarter. The Company continues to expect the phase 2 expansion of additional N-95 face mask manufacturing lines to be initially operational by the latter part of the third quarter of 2020. Once phase 2 is operational, the Company will further ramp up production throughout the remainder of 2020 and expects that for fiscal 2021 the production capacity for the N-95 face mask will be over 100 million. The Company has also seen a significant increase in orders of the Companys face shield products since January 27, 2020, with approximately 6 million of face shield orders fulfilled in the first six months of 2020. At this time, the Company expects face shield sales in the second half of 2020 to exceed the 6 million in sales through the first six months of the year.The Companys other disposable protective garment product line, which include coveralls, gowns, lab coats, shoecovers and bouffant caps, has also seen a significant increase in demand, which primarily began in early March and continued throughout the second quarter. For the remainder of 2020, the Company expects increased demand for these products to continue. During the second quarter of 2020, the Companys India joint venture ceased production due to a government-mandated COVID-19 shutdown, which impacted inventory levels. With the reopening of the joint venture in June, subsequent to the end of the shutdown, shipping of inventory has recommenced, but the temporary shutdown will impact production and sales of disposable protective garments in the third quarter, and production and sales could be further impacted by subsequent shutdowns. Even with these actual and potential delays, however, the Company expects disposable protective garment sales for the second half of 2020 to show continued top line growth. Net sales Consolidated sales for the second quarter of 2020 were 25.5 million, compared to 11.4 million for the second quarter of 2019, an increase of 123.4, reflecting increased sales in the Disposable Protective Apparel segment of 13.3 million and increased sales in the Building Supply segment of 742,000.Sales for the Disposable Protective Apparel segment including disposable protective garments, masks and shields increased by 13.3 million, or 283.6, to 18.0 million, compared to 4.7 million for the same period of 2019. This segment increase was due to a 991.3 increase in sales of face masks, a 973.2 increase in face shields and a 42.3 increase in sales of disposable protective garments. The increase in face mask sales was primarily attributable to increased sales of the Companys N-95 face mask due to the COVID-19 pandemic. Although face mask sales increased very significantly during the quarter, sales could have been even higher without a supply chain issue that the Company experienced. Management anticipates that this issue will be resolved in the third quarter of 2020 and that resolving this issue should bolster sales and inventory levels in the coming quarters. The increase in face shield sales was also due to the pandemic and having a strong inventory position. Building Supply segment sales increased by 742,000, or 11.1, to 7.5 million for the second quarter of 2020, compared to 6.7 million for the same period of 2019. This segment increase was primarily due to an 11.7 increase in sales of the Companys core building products, including an increase in sales of housewrap of 13.1 and an increase in sales of synthetic roof underlayment of 9.9.Consolidated sales for the six months ended June 30, 2020 increased to 43.7 million, up from 23.7 million for the six months ended June 30, 2019, representing an increase of 19.9 million, or 84.1. This increase consisted of increased sales in the Disposable Protective Apparel segment of 18.1 million and increased sales in the Building Supply segment of 1.8 million.Building Supply segment sales for the six months ended June 30, 2020 increased by 1.8 million, or 13.6, to 15.0 million, compared to 13.2 million for the same period of 2019. The Building Supply segment increase was primarily due to an increase in sales of housewrap of 16.5, an increase in sales of synthetic roof underlayment of 11.0 and an increase in sales of other woven material of 17.0 compared to the same period of 2019. Synthetic roof underlayment sales have increased as a result of increased sales of the TECHNO family products. Housewrap sales in the first half of 2020 were positively affected by increased system warranty sales and improved U.S. housing starts.Gross profit Gross profit for the second quarter of 2020 increased by 207.2 to 12.6 million, or 49.5 gross profit margin, compared to 4.1 million, or 36.0 gross profit margin, for the same period of 2019. Gross profit margin was positively affected by the significant change in product mix, with a surge in customer demand in light of the COVID-19 pandemic for face masks in particular the Companys N-95 face mask and face shields, which generally have a higher gross profit margin than the Companys other products.Gross profit increased by 12.3 million, or 137.6, to 21.2 million for the six months ended June 30, 2020, up from 8.9 million for the same period of 2019. The gross profit margin was 48.5 for the six months ended June 30, 2020, compared to 37.6 for the same period of 2019. 