Alpha Pro Tech Ltd (APT) 2012 Q2 法說會逐字稿

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Alpha Pro Tech second-quarter and year-to-date 2012 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. (Operator Instructions).

女士們，先生們，大家好！感謝各位的耐心等待。歡迎參加Alpha Pro Tech 2012年第二季及年初至今業績電話會議。今天的演示期間，所有參與者將處於「僅收聽」模式。演示結束後，會議將開放提問環節。 （操作員指示）。

This conference is also being recorded today, Tuesday, August 7 of 2012. I would now like to turn the conference over to our host for today Mr. Brett Maas of Hayden IR. Please go ahead, sir.

今天，也就是2012年8月7日星期二，本次會議也將錄製。現在，我想將會議交給今天的主持人，Hayden IR 的 Brett Maas 先生。先生，請開始。

Thank you and good afternoon. We would like to thank everyone for joining us today for Alpha Pro Tech's second-quarter and year-to-date 2012 earnings conference call. The call today will be hosted by Al Millar, President, and Mr. Lloyd Hoffman, Chief Financial Officer.

謝謝大家，下午好！感謝各位今天參加Alpha Pro Tech 2012年第二季及年初至今業績電話會議。今天的電話會議將由總裁Al Millar先生和財務長Lloyd Hoffman先生主持。

Following their discussions, there will be a formal Q&A session open to participants on the call. Before we get started, I'm going to review the Safe Harbor statement.

討論結束後，將有一個正式的問答環節，向與會人員開放。在開始之前，我將先回顧安全港聲明。

This conference call contains forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties and assumptions as described from time to time in registration statements, annual reports and other periodic reports that the Company has filed with the Securities and Exchange Commission.

本次電話會議包含依據《1995 年私人證券訴訟改革法》安全港條款所作的前瞻性陳述。前瞻性陳述涉及公司向美國證券交易委員會提交的註冊聲明、年度報告和其他定期報告中不時描述的風險、不確定性和假設。

All statements and other than statements of historical facts, which address the Company's expectations or sources of capital or to express the Company's expectations for future with respect to financial performance or operational strategies, can be identified as forward-looking statements.

除歷史事實陳述外，所有涉及公司預期或資金來源或表達公司對未來財務表現或經營策略的預期的陳述均可視為前瞻性陳述。

As a result, there can be no assurance that the Company's results will not be materially different from those described herein.

因此，無法保證公司的業績不會與本文所述的業績有重大差異。

Forward-looking statements may be identified by such words as believe, anticipate, estimate or expect, which reflect the current views of the Company with respect to future events. We caution listeners that these forward-looking statements speak only as of the date hereof. The Company hereby expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which our statements are based.

前瞻性陳述可能包含「相信」、「預期」、「估計」或「期望」等字眼，這些字眼反映公司目前對未來事件的看法。我們提醒聽眾，這些前瞻性陳述僅代表截至本新聞稿發布之日的觀點。本公司特此明確聲明，不承擔任何義務或承諾公開發布任何此類陳述的更新或修訂，以反映公司預期的變化或我​​們陳述所依據的事件、條件或情況的變化。

With that out of the way, I would like to turn the call over to Al Millar, president, for opening comments. Al, the floor is yours.

好了，現在我想把電話交給主席艾爾·米勒，請他發表開場發言。艾爾，現在輪到你了。

Thanks, Brett. Thanks, everyone, who joined us for our earnings call today. I am joined by Lloyd Hoffman, our CFO.

謝謝，布雷特。感謝今天參加我們財報電話會議的各位。我的財務長勞埃德‧霍夫曼也參加了這次電話會議。

We continue to rebuild profitability and showed solid increases in net income, as well as higher revenues and lower expenses for the three and six months ended June 30, 2012, over the year ago period. Net income for the second quarter and six months has increased from the year ago period. With the year-to-date revenue growth of 6.5%, the leverage we have instilled into our business is reflected in the increased net income of 131%.

我們持續重塑獲利能力，淨利穩定成長，截至2012年6月30日的三個月和六個月，營收與去年同期相比有所增加，支出則有所下降。第二季和六個月的淨利潤較去年同期成長。年初至今的營收成長了6.5%，我們為業務注入的槓桿作用體現在淨利成長131%。

Overall sales increased for the second quarter of 2012 from the year ago period led by another strong quarter of Disposable Protective Apparel sales. Disposable Apparel revenue has shown increases in four of the past six quarters. This reflects the continued strong demand from our major international supply chain partner and its end-users and also in line with the expectations we set a year ago for this division.

2012年第二季度，整體銷售額較去年同期有所成長，其中一次性防護衣銷售額再創佳績，並維持強勁成長。在過去六個季度中，一次性防護服收入有四個季度實現成長。這反映了我們主要國際供應鏈合作夥伴及其終端用戶持續強勁的需求，也符合我們一年前對該部門設定的預期。

Second-quarter Building Supply segment sales were a quarterly record, slightly ahead of the previous record in the second quarter of 2011, and sales increased 14% over our first quarter. Building Supply segment sales were also up year-to-date. Building Supply segment revenue currently comprises approximately 60% of our total consolidated revenue.

建築供應部門第二季銷售額創下季度新高，略高於2011年第二季的紀錄，季增14%。建築供應部門的銷售額年初至今也實現了成長。目前，建築供應部門的收入約占我們合併總收入的60%。

Current offerings include our REX synthetic roof underlayment, REX housewrap, as well as REX Wrap FORTIS, our nonperforated breathable housewrap.

目前提供的產品包括我們的 REX 合成屋頂襯墊、REX 房屋包裹，以及我們的無孔透氣房屋包裹 REX Wrap FORTIS。

In addition, in the first quarter of 2012, we launched TECHNOply, an economy version of our synthetic roof underlayment to capture market share in the lower end of the market.

此外，2012 年第一季度，我們推出了 TECHNOply，這是我們合成屋頂襯墊的經濟版，以佔領低端市場的份額。

This product started to contribute to the top line in the second quarter of 2012 and is expected to be a growth product for the Company, which was backed by sales increasing from $16,000 in the first quarter when we were launching the product to over $200,000 in our second quarter.

該產品於 2012 年第二季度開始為公司帶來收入貢獻，並有望成為該公司的一款成長產品，其銷售額從我們推出該產品的第一季的 16,000 美元增長至第二季度的 200,000 美元以上。

Sales of our REX Wrap FORTIS nonperforated breathable housewrap introduced in 2011 continues to be slower than anticipated, but the product is expected to start contributing more significantly to the sales line when the higher-end building market picks up.

我們於 2011 年推出的 REX Wrap FORTIS 無孔透氣房屋包裝的銷售速度持續低於預期，但隨著高端建築市場的回暖，該產品預計將開始對銷售線做出更大的貢獻。

We believe that the overall market opportunity pre-housing collapse for both the underlayment and housewrap have been cut significantly over the last several years. Yet we were still able to grow this business from $5 million in 2007 to a current run rate of around $25 million in 2012. This is why we continue to be excited about the future of the Building Supply segment and expect continued growth going forward and will continue to introduce new products to our Building Supply segment as we see opportunities arise.

我們認為，過去幾年，在房地產市場崩盤之前，無論是地墊還是房屋包裹材料，其整體市場機會都已大幅減少。然而，我們仍能將這項業務的營業額從2007年的500萬美元成長到2012年的約2,500萬美元。正因如此，我們仍然對建築供應部門的未來充滿期待，並期待未來繼續成長，並將在看到機會時繼續為建築供應部門推出新產品。

The growth in the Building Supply and Disposable Apparel segments for the quarter was offset by a decrease in Infection Control segment sales for the three and six months ended June 30. Infection Control segment sales is by far our smallest segment at below 10% of our consolidated revenue.

本季建築供應和一次性服裝部門的成長被截至 6 月 30 日的三個月和六個月感染控制部門銷售額的下降所抵消。感染控制部門的銷售額是我們迄今為止最小的部門，不到我們合併收入的 10%。

Gross margin for the second-quarter and year-to-date period declined due to an increase in raw material prices and competitive pricing pressures for our Building Supply products. During the second quarter, we secured a new contract manufacturing facility for our Disposable Protective Apparel segment outside of China.

由於原物料價格上漲以及建築供應產品面臨的競爭性定價壓力，第二季及年初至今的毛利率有所下降。第二季度，我們在中國境外為一次性防護服部門新建了一家合約生產工廠。

This facility is now up and running. In addition to increasing our capacity for this segment, which was needed with the strong revenue rebound over the last year, it eliminates the duty imposed by US Customs on some of our Chinese-made goods.

該工廠現已投入運作。除了提升我們該業務部門的產能（這是去年收入強勁反彈的必要條件）之外，它還免除了美國海關對我們部分中國製造產品徵收的關稅。

I will now turn the call over to Lloyd, who will take you through the financials and provide more details.

現在我將把電話轉給勞埃德，他將向您介紹財務狀況並提供更多細節。

Thanks, Al. Consolidated sales for the second quarter of 2012 increased by 5.6% to $10.9 million from $10.3 million. Sales for the year increased 6.5% to $20.5 million from $19.2 million.

謝謝，Al。 2012年第二季合併銷售額從1,030萬美元成長5.6%至1,090萬美元。全年銷售額從1,920萬美元成長6.5%至2,050萬美元。

I will now spend a few minutes discussing the segment sales for the second quarter and year-to-date.

我現在將花幾分鐘討論一下第二季和年初至今的分部銷售情況。

Building Supply segment sales for the second quarter increased slightly to a quarterly record of $6.44 million from $6.36 million in the second quarter last year, which was our previous record. This increase in the second quarter is primarily due to a 6% increase in REX housewrap with sales of REX synthetic roof underlayment being basically flat.

建築材料供應部門第二季銷售額小幅成長，達644萬美元，創下季度新高，高於去年同期的636萬美元（此前創下的歷史最高紀錄）。第二季銷售成長主要得益於REX房屋包裝材料銷售額成長6%，而REX合成屋頂襯墊銷售額則基本持平。

Building Supply sales for the six months increased 8.4% to $12 million from $11.1 million. The year-to-date increase is primarily due to 6.1% increase in housewrap and a 9% increase in synthetic roof underlayment.

建築材料業務上半年銷售額成長8.4%，從1,110萬美元增至1,200萬美元。年初至今的成長主要得益於房屋包裹材料銷售額成長6.1%，以及合成屋頂襯墊銷售額成長9%。

For the three and six months periods for this year and last year, our sales mix in Building Supply was approximately 70/30 respectively for synthetic roof underlayment versus housewrap.

在今年和去年的三個月和六個月期間，我們建築供應部門的合成屋頂襯墊和房屋包裹材料的銷售組合分別約為 70/30。

Sales for the Disposable Protective Apparel segment for the second quarter increased by 21.6% to $3.5 million from $2.9 million. That increase is primarily due to a strong demand from a major international supply chain partner.

一次性防護服業務部門第二季銷售額從290萬美元成長21.6%至350萬美元。這一成長主要得益於一家大型國際供應鏈合作夥伴的強勁需求。

For the six months of 2012, sales of apparel increased 10.9% to $6.4 million from $5.8 million.

2012 年上半年，服裝銷售額從 580 萬美元成長 10.9% 至 640 萬美元。

Infection Control segment sales for the second quarter decreased to $917,000 from $1.051 million. And sales for the six months in that segment decreased 13.3% to $2 million from $2.3 million.

感染控制部門第二季銷售額從105.1萬美元降至91.7萬美元。該部門上半年銷售額從230萬美元下降13.3%至200萬美元。

Mask sales were down $200,000. Shield sales have basically been flat, and the balance of the $100,000 is due to a product line that we sold last year. Overall the $200,000 mask decline -- well, the overall decline for both the three months and six months is primarily due to a decline in industrial mask sales as a result of our previous largest industrial distributor launching its own line of masks.

口罩銷售額下降了20萬美元。防護罩銷售額基本上持平，剩下的10萬美元是由於我們去年銷售的一條產品線。總體而言，口罩銷售額下降了20萬美元——嗯，三個月和六個月的整體下降主要是由於工業口罩銷售額下降，因為我們之前最大的工業產品經銷商推出了自己的口罩產品線。

Turning to gross profit. Gross profit for the second quarter decreased to 35.5% as compared to 37.7%. And for the year, it is the same -- 35.5% as compared to 37.2%.

談到毛利。第二季毛利率從37.7%下降至35.5%。全年毛利維持不變，為35.5%，去年同期為37.2%。

As Al had previously mentioned, gross profit margin for the quarter and the year has been negatively affected by Building Supply segment margins due to increased material costs and competitive pricing pressure.

正如 Al 先前提到的，由於材料成本增加和競爭性定價壓力，本季和全年的毛利率受到建築供應部門利潤率的負面影響。

We do expect overall consolidated gross margins to be in the 35%, 36% range going forward.

我們確實預計未來整體合併毛利率將在 35% 至 36% 之間。

Selling, general and administrative expenses in the second quarter decreased by 2.2% to $3.2 million from $3.3 million, and as a percentage of sales, the expenses decreased to 29.9% as compared to 32.1%.

第二季銷售、一般及行政開支從 330 萬美元下降 2.2% 至 320 萬美元，佔銷售額的百分比從 32.1% 下降至 29.9%。

SG&A for the year has decreased to $6.5 million from $6.7 million the previous year and, as a percentage of sales, have decreased year-to-date to 31.6% compared to 34.7%.

本年度銷售、一般及行政費用從上年的 670 萬美元降至 650 萬美元，佔銷售額的百分比從 34.7% 降至 31.6%。

This year-to-date decrease in expenses is primarily due to decreases in the Building Supply segment, the Infection Control segment, as well as decreased corporate expenses. That is partially offset by increased Disposable Protective Apparel segment, which has had some significant growth.

年初至今的支出減少主要歸因於建築供應部門、感染控制部門以及公司支出的減少。一次性防護服部門的顯著成長部分抵消了上述支出的減少。

Net income in the second quarter was $374,000 as compared to $304,000, an increase of 23%. As a percentage of sales, net income for the second-quarter 2012 versus 2011 was 3.4% versus 3% respectively.

第二季淨利為37.4萬美元，去年同期為30.4萬美元，較去年同期成長23%。以銷售額佔比計算，2012年第二季淨利為3.4%，去年同期為3%。

Basic and diluted income per share was $0.01 compared to -- or $0.02 -- I am sorry -- compared to $0.01.

每股基本收益和稀釋收益均為 0.01 美元，而去年同期為 0.02 美元——抱歉——去年同期為 0.01 美元。

Year-to-date net income has increased by 131.3% to $444,000 as compared to $199,000, and as a percentage of sales it is 2.1% this year compared to 1% last year. And basic and diluted income is $0.01, again as compared to -- $0.02 as compared to $0.01.

年初至今的淨利潤成長了131.3%，達到44.4萬美元，而去年同期為19.9萬美元。佔銷售額的百分比為2.1%，而去年同期為1%。基本及稀釋利潤為0.01美元，去年同期為0.02美元，今年同期為0.01美元。

Turning to the balance sheet. The balance sheet remains very strong with a current ratio of 35 to 1. Cash decreased to $7.2 million compared to $7.5 million as of December, but has increased from the $5.5 million as of March. Working capital is strong at $29.5 million.

再來看看資產負債表。資產負債表依然非常強勁，流動比率為35:1。現金從12月的750萬美元降至720萬美元，但較3月的550萬美元增加。營運資金強勁，達2,950萬美元。

The decrease in cash is due to cash used in financing. We've purchased stock of approximately $500,000, and $400,000 was spent in investing activities, which was partially offset by cash provided by operations of $700,000.

現金減少是由於融資所用現金。我們買了價值約50萬美元的股票，其中40萬美元用於投資活動，但部分被70萬美元的營運活動現金抵銷。

Year-to-date inventory is down $1.3 million with Disposable Protective Apparel inventory being down $1.1 million; Infection Control and Building Supply both being done by $100,000 each.

年初至今的庫存減少了 130 萬美元，其中一次性防護服庫存減少了 110 萬美元；感染控制和建築供應都減少了 10 萬美元。

In the second quarter, we repurchased 231,000 shares of common stock at a cost of $322,000. Year-to-date we have repurchased approximately 382,000 shares at a cost of $528,000. As of June 30, 2012, we have repurchased a total of 7.9 million shares of common stock at a cost of $9.7 million.

第二季度，我們回購了23.1萬股普通股，回購成本為32.2萬美元。年初至今，我們已回購約38.2萬股，回購成本為52.8萬美元。截至2012年6月30日，我們已回購了790萬股普通股，回購成本為970萬美元。

We retire all stocks upon its repurchase. Future repurchases are expected to be funded from cash on hand and cash flows from operating activities.

回購完成後，我們將註銷所有股票。未來回購資金預計將來自庫存現金和營運活動產生的現金流。

The Company currently has no outstanding debt and maintains an unused $3.5 million credit facility.

該公司目前沒有未償還債務，並保留未使用的 350 萬美元信貸額度。

With that, I would like to turn the call over to Al for closing comments.

說完這些，我想把電話交給 Al 來做最後的評論。

Thanks, Lloyd. Our strategy to broaden our Disposable Protective Apparel distribution channels with nonexclusive distribution partners is helping to expand our market penetration. We have shown quarterly growth year over year since December 2010 quarter. We are encouraged by the progress we made and expect this progress to continue.

謝謝，勞埃德。我們與非獨家分銷合作夥伴拓展一次性防護服分銷管道的策略正在幫助我們擴大市場滲透率。自2010年12月季度以來，我們的季度業績一直保持年增。我們對所取得的進展感到鼓舞，並期待這種成長能夠持續下去。

We have expanded our Building Supply product offerings with the launch of the TECHNOply economy version of our synthetic roof underlayment in the first quarter of 2012. We expect this will help capture market share in the lower end of synthetic roof underlayment market and be a growth driver for this division going forward.

我們在 2012 年第一季推出了 TECHNOply 經濟版合成屋頂襯墊，從而擴大了我們的建築供應產品範圍。我們預計此舉將有助於我們佔領合成屋頂襯墊市場低端的市場份額，並成為該部門未來的成長動力。

Our expanding array of Building Supply products at different price points has allowed us to continue our year-over-year growth, even in the face of a lagging economy and weak new home construction market. Our brand recognition, reputation for quality and industrial certifications are certainly factors in the acceptance of the product and increased the market opportunity we have in these highly competitive markets.

我們不斷擴展的建築供應產品系列，涵蓋不同價位，即使在經濟低迷和新房建設市場疲軟的背景下，我們仍能保持同比增長。我們的品牌知名度、卓越的品質和行業認證無疑是產品獲得認可的因素，也增加了我們在競爭激烈的市場中的市場機會。

Infection Control segments in the second half of 2012 are expected to be consistent with the first half of the year.

2012 年下半年感染控制部門的業績預計將與上半年持平。

Gross margins were slightly under 36% for the quarter and six months, primarily due to Building Supply raw material costs and competitive pricing pressures. However, we expect gross margins in the 36% range are sustainable, and we continue to make improvements in our business to improve these, one of which I referenced earlier in the call regarding shifting a portion of our manufacturing outside of China. As always, we will keep a careful eye on expenses and leverage our operating efficiencies throughout the organization. We maintain our expectation of growing the topline during 2012, but are also excited on the additional upside opportunities with the new building products and are encouraging growth into Disposable Protective Apparel.

本季和六個月的毛利率略低於36%，主要原因是建築供應原料成本和競爭性定價壓力。然而，我們預計36%左右的毛利率是可持續的，並且我們將繼續改進業務以提高毛利率，其中之一就是我在之前的電話會議上提到將部分生產轉移到中國以外。我們將一如既往地密切關注費用支出，並在整個組織內提升營運效率。我們維持2012年營收成長的預期，同時也對新建築產品帶來的額外成長機會感到興奮，並鼓勵一次性防護服業務的成長。

That concludes our prepared remarks for the day, and I would now like to open the call up for your questions. Thanks for joining us.

今天的準備發言到此結束，現在我想開始回答大家的提問。感謝大家的參與。

(Operator Instructions). [Michael Brick], Oppenheimer & Co.

（操作員指令）。 [Michael Brick]，Oppenheimer & Co.

I would just like to get an idea of we are a month into the third quarter, do you see anything different? Just some color on what is going on this quarter.

我想了解一下，現在已經進入第三季一個月了，您發現有什麼不同嗎？只是想簡單介紹一下本季的情況。

Into the third quarter, Michael?

進入第三節，麥可？

Yes, into the current quarter that we are in now.

是的，我們現在處於當前季度。

Yes, I don't see any major changes. We will continue to increase our revenues again, we believe. Just continue to work at growing the business and reduce our expenses.

是的，我認為沒有什麼重大變化。我們相信我們的收入會繼續成長。我們只需要繼續努力發展業務並削減開支。

Okay. You haven't seen any slowdowns or anything like that since last month or so.

好的。從上個月左右開始，您就沒有看到任何速度減慢或類似的情況。

No, we are not really seeing any slowdowns. I would like to think that the US building economy is going to start picking up. That would help us a bunch.

不，我們實際上並沒有看到任何放緩。我認為美國建築業經濟將會開始回升。這將對我們有很大幫助。

Right, right. Well, certain areas have, especially in, I guess, certain parts of Florida things are looking much better.

對，對。嗯，某些地區，尤其是佛羅裡達州的某些地區，情況看起來好多了。

Yes, I see that the overall rental rates are climbing and a little bit in house prices going up a bit. So that is good. Let's hope it continues.

是的，我看到整體租金正在上漲，房價也略有上漲。這很好。希望這種情況能持續下去。

I don't know, in the Infection Control site again, we come back to respiratory illnesses, and I haven't heard of anything large living out of the Orient or anywhere in the world, other than I think I saw some swine flu in Bolivia or somewhere, but that was about all I have seen.

我不知道，在感染控制站點，我們再次回到呼吸道疾病，我還沒有聽說過在東方或世界任何地方出現任何大規模的疾病，除了我認為我在玻利維亞或某個地方看到了一些豬流感，但這就是我所看到的全部。

Yes, it has been very quiet on that front for quite some time.

是的，很長一段時間以來，這方面一直很平靜。

And building continues to be strong, and we are very encouraged by what we are seeing on the disposable side as well.

建築業持續強勁發展，一次性用品方面的表現也令我們感到非常鼓舞。

Great. Thanks a lot, both of you. Congratulations.

太好了。非常感謝你們兩位。恭喜。

(Operator Instructions). Sam Rebotsky, SER Asset Management.

（操作員指令）。 Sam Rebotsky，SER 資產管理公司。

This is the first time participating in the Alpha call, although I have been a shareholder for a long time.

這是我第一次參加 Alpha 會議，儘管我已經擔任股東很久了。

I'm glad you called.

我很高興你打電話來。

Thank you. And you seem to have turned it around and started to be profitable, and it appears that you should continue what you have started now to be profitable for the balance of the year. But are you able to see how much greater profitability you might have at this point in time?

謝謝。看來你們已經扭轉了局面，開始獲利了。看來你們應該繼續保持現在的勢頭，在今年餘下的時間裡繼續盈利。但你們現在能預見未來獲利能力還能提升多少嗎？

That is a pretty tough question to ask. We have been profitable for a long, long period of time. And when we lost the large amount of sales we had a few years back to the one distributor of ours going private-label, I mean that took a big bite out of our revenues some and our profitability. Now we have been rebuilding that nicely, and I don't see that changing.

這個問題很難回答。我們長期以來一直獲利。幾年前，我們失去了一大筆銷售額，因為我們的一家分銷商轉向了自有品牌，這嚴重影響了我們的收入和盈利能力。現在我們正在重建良好的獲利狀況，我認為這種情況不會改變。

I think we will continue to rebuild and regrow the Company. So profitability going forward should be fine.

我認為我們將繼續重建和發展公司。因此，未來的獲利能力應該會不錯。

Okay.

好的。

If you look at this year year-to-date, our revenue has gone up 6.5%. Our income year to date is up about [131]. We don't necessarily expect that to continue, but definitely income is going to grow much faster than our revenue growth.

從今年迄今的數據來看，我們的營收成長了6.5%。年初至今，我們的營收成長了約[131]。我們不一定期望這種情況會持續下去，但收入的成長速度肯定會遠遠快於收入的成長速度。

Okay, that is good. Now as far as the last year, you had two major customers in 15% and 17% in revenue which increased over the previous year. Are you continuing that add-in where you basically have two large customers in similar amounts?

好的，很好。就去年而言，你們有兩個主要客戶，分別貢獻了15%和17%的收入，比前一年成長了。你們還會繼續保持這種模式嗎？基本上有兩個大客戶，收入也差不多。

Probably going forward -- you are referring to -- they were the two large customers in the apparel side of our business.

可能未來——您指的是——他們是我們服裝業務的兩個大客戶。

I see.

我懂了。

Right.

正確的。

In the building, you don't have any large customers then.

那麼，大樓裡就沒有任何大客戶。

We have it generally scattered around. But we do have some large customers, of course, but not in monster percentages.

我們的客戶一般都比較分散。當然，我們也有一些大客戶，但比例不大。

Okay. Do you need to increase authorization for a stock buyback if you achieve what you have, or is there any plans for that?

好的。如果達成了目標，是否需要增加股票回購的授權？或有什麼計劃嗎？

Yes, we currently still have $1 million roughly left in our buyback program, and our Board is pretty aggressive on the buyback side of it. So we will continue to buy back our stock.

是的，目前我們的回購計畫還剩下約100萬美元，而且董事會在回購方面非常積極。所以我們會繼續回購股票。

And the fact that the building area should improve, do you expect to concentrate more in the building area, or how do you come to make a judgment whether you concentrate more in one area or another or spend all your efforts (multiple speakers)?

建築領域應該改進，您是否希望在建築領域投入更多精力，或者您如何判斷是否在某個領域投入更多精力或投入所有精力（多個發言者）？

Well, they are entirely separate sales teams. One team works building, one team works apparel, and we are not going to slow down on either side. We're going to drive both segments.

嗯，它們是完全獨立的銷售團隊。一個團隊負責建築業務，一個團隊負責服裝業務，我們不會放慢任何一邊的節奏。我們會同時推動這兩個部門的發展。

Okay. Look, good luck. Let's hope things continue to improve, and as I get more familiar with you, even though I have known you for a long time.

好的。聽著，祝你好運。希望事情會越來越好，而且我會越來越熟悉你，儘管我認識你很久了。

Yes, feel free to call us anytime.

是的，請隨時打電話給我們。

Thank you.

謝謝。

[Wade Smith], [Tullman & Grout].

[韋德·史密斯]，[塔爾曼和格勞特]。

Just looking at the income. Is a equity and income of unconsolidated affiliate -- could you just shed some light on that? I apologize if you have covered this earlier.

只看收入。非合併關聯公司的權益和收入－您能解釋一下嗎？如果您之前已經提到過，我很抱歉。

No problem. Good question. We have a joint venture in Asia for our Building Supply products, and that is what that is.

沒問題。好問題。我們在亞洲有一家建築供應產品的合資企業，就是這樣的。

Okay. Joint venture as in manufacturer?

好的。合資企業是指製造商嗎？

Right.

正確的。

Okay. And are you financing them, or how does that joint venture work -- look like?

好的。你們有為他們提供融資嗎？或者說合資企業是怎麼運作的？

It is roughly at the 58/42 percentage, and they have got 58%.

比例大約是 58/42，他們已經獲得了 58%。

Okay. All right. Okay. That is all I had to ask. Thank you.

好的。好的。好的。我只想問這麼多。謝謝。

Thank you. And management, there are no further questions in the queue. Please continue.

謝謝。管理階層，隊列裡沒有其他問題了。請繼續。

I want to thank everybody for attending us today. And our next conference call, of course, will be at year-end, and we will look forward to talking to you at that time. Thank you.

感謝各位今天的出席。我們的下一次電話會議當然會在年底舉行，我們期待屆時與大家交流。謝謝大家。

Ladies and gentlemen, this concludes the Alpha Pro Tech second-quarter and year-to-date 2012 earnings conference call. If you would like to listen to a replay of today's conference, please dial the toll-free number of 1-877-870-5176, and international participants may dial 1-858-384-5517 and enter the access code of 455-7188.

女士們，先生們，Alpha Pro Tech 2012年第二季及年初至今業績電話會議到此結束。如果您想收聽今天的會議錄音，請撥打免費電話1-877-870-5176，國際參與者請撥打1-858-384-5517並輸入接入碼455-7188。

Thanks, again, for your participation, and you may now disconnect.

再次感謝您的參與，現在您可以斷開連接了。