ALPHA PRO TECH, LTD. ANNOUNCES SECOND QUARTER 2025 FINANCIAL RESULTS Exhibit 99.1 Second Quarter Net Sales Increased 2.4% to $16.7 Million, Compared to $16.3 Million for the Second Quarter of 2024 FOR IMMEDIATE RELEASE Company Contact: Investor Relations Contact: Alpha Pro Tech, Ltd. HIR Holdings Donna Millar Cameron Donahue 905-479-0654 651-707-3532 e-mail: ir@alphaprotech.com e-mail: cameron@hirholdings.com Nogales, Arizona –August 7, 2025 – Alpha Pro Tech, Ltd. (NYSE American: APT), a leading manufacture ...

FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No.001-15725 Alpha Pro Tech, Ltd. (Exact Name of Registrant as Specified in Its Charter) Delaware, U.S.A. 63-1009183 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) UNITED ...

Core Viewpoint - Alpha Pro Tech, Ltd. reported a 2.4% increase in net sales for the second quarter of 2025, reaching $16.7 million compared to $16.3 million in the same period of 2024, despite challenges in the housing market and a decline in disposable protective apparel sales [1][5][7]. Financial Performance - Consolidated sales for the second quarter of 2025 were $16.7 million, an increase of $383,000 or 2.4% from $16.3 million in the second quarter of 2024 [5][7]. - Net income for the second quarter of 2025 was $1.2 million, or $0.12 per diluted share, down from $1.6 million, or $0.15 per diluted share in the same quarter of 2024, representing a decrease of 24.3% [11][19]. - Gross profit decreased by $710,000, or 10.4%, to $6.1 million for the second quarter of 2025, with a gross profit margin of 36.8%, down from 42.0% in the same period of 2024 [9][10]. Segment Performance - Building Supply segment sales increased by $1.1 million, or 11.5%, to $11.1 million in the second quarter of 2025, driven by a 10.6% increase in synthetic roof underlayment sales and a 17.0% increase in housewrap sales compared to the same period in 2024 [6][7]. - Disposable Protective Apparel segment sales decreased by $760,000, or 12.0%, to $5.6 million, primarily due to an 11.3% decrease in disposable protective garments and a 28.3% decrease in face mask sales [7][8]. Market Conditions - The housing market showed continued weakness, with single-family housing starts down 9.0% compared to the same quarter in 2024, yet the company outperformed the market in its Building Supply segment [2][3]. - Management expressed optimism for further growth in the Building Supply segment in the second half of 2025, despite ongoing uncertainties in housing starts and economic volatility [3]. Cash and Balance Sheet - As of June 30, 2025, the company had cash and cash equivalents of $14.5 million and working capital of $47.5 million, with no debt [12][13]. - The current ratio improved to 17:1 as of June 30, 2025, compared to 16:1 at the end of 2024 [12].

Part I [Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) Alpha Pro Tech reported Q1 2025 net sales of **$13.8 million**, up 2.5% YoY, and net income of **$613,000**, up 6.4%, maintaining a solid financial position with **$47.0 million** working capital Condensed Consolidated Balance Sheet Highlights | Metric | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | 13,352,000 | 18,636,000 | | Total current assets | 49,340,000 | 50,639,000 | | Total assets | 72,182,000 | 73,742,000 | | **Liabilities & Equity** | | | | Total current liabilities | 2,306,000 | 3,123,000 | | Total liabilities | 10,454,000 | 11,508,000 | | Total shareholders' equity | 61,728,000 | 62,234,000 | Condensed Consolidated Statements of Income (Q1) | Metric | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | Net sales | 13,822,000 | 13,482,000 | | Gross profit | 5,392,000 | 5,417,000 | | Income from operations | 455,000 | 326,000 | | Net income | 613,000 | 576,000 | | Diluted EPS | 0.06 | 0.05 | Condensed Consolidated Statements of Cash Flows (Q1) | Metric | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | (3,959,000) | (1,169,000) | | Net cash used in investing activities | (135,000) | (83,000) | | Net cash used in financing activities | (1,190,000) | (616,000) | | **Decrease in cash and cash equivalents** | **(5,284,000)** | **(1,868,000)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's two segments, a **41.7%** equity investment in Harmony Plastics, **$1.2 million** stock repurchases, and predominant U.S. sales and assets - The company operates in two segments: Building Supply (construction weatherization products) and Disposable Protective Apparel (garments, masks, shields), with products sold under the "Alpha Pro Tech" brand and private labels, predominantly in the U.S[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) - During Q1 2025, the company repurchased and retired **221,413** shares of common stock for **$1,178,000**, with **$1,564,000** remaining available under the repurchase program as of March 31, 2025[25](index=25&type=chunk) - The company holds a **41.7%** ownership in Harmony Plastics Private Limited, a joint venture in India, from which Alpha Pro Tech purchased **$4.76 million** of inventory and recorded **$141,000** in equity income in Q1 2025[36](index=36&type=chunk)[41](index=41&type=chunk) Segment Sales (Q1) | Segment | Q1 2025 Sales ($) | Q1 2024 Sales ($) | | :--- | :--- | :--- | | Building Supply | 8,372,000 | 8,240,000 | | Disposable Protective Apparel | 5,450,000 | 5,242,000 | | **Consolidated Net Sales** | **13,822,000** | **13,482,000** | - For Q1 2025, **98.7%** of net sales (**$13.65 million**) were generated in the United States, and **86.0%** of long-lived assets (**$7.24 million**) are located in the U.S[55](index=55&type=chunk)[56](index=56&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=20&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Consolidated sales increased **2.5%** in Q1 2025, with gross margin slightly down due to freight costs, but lower SG&A boosted operating income by **39.6%**, while cash decreased due to operations and repurchases [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Q1 2025 consolidated sales rose **2.5%** to **$13.8 million**, driven by Building Supply and Disposable Protective Apparel growth, despite a gross margin contraction to **39.0%** and a **50.5%** drop in face mask sales - Building Supply sales increased **1.6%** to **$8.4 million**, with a **21.8%** rise in synthetic roof underlayment sales offsetting a **20.9%** drop in housewrap sales, attributed to lower housing starts and reduced sales to private-label distributors[80](index=80&type=chunk)[82](index=82&type=chunk)[84](index=84&type=chunk) - Disposable Protective Apparel sales grew **4.0%** to **$5.45 million**, driven by a **12.0%** increase in disposable protective garments due to new and expanded distribution agreements, partially offset by a **50.5%** decrease in face mask sales due to high channel partner inventory levels[87](index=87&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - Gross profit margin decreased from **40.2%** to **39.0%** year-over-year, negatively affected by higher ocean freight rates on inventory received in 2024, though the company is now experiencing an easing of these rates[92](index=92&type=chunk)[93](index=93&type=chunk) - Selling, general and administrative (SG&A) expenses decreased by **3.2%** to **$4.7 million**, primarily due to lower employee compensation in the Building Supply segment and reduced corporate overhead expenses[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) - Net income increased **6.4%** to **$613,000**, or **$0.06** per diluted share, compared to **$576,000**, or **$0.05** per diluted share, in Q1 2024[103](index=103&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased by **$5.3 million** to **$13.4 million** in Q1 2025, primarily due to operating activities and stock repurchases, yet the company maintains strong liquidity with **$47.0 million** working capital Key Liquidity Metrics | Metric | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | 13,352,000 | 18,636,000 | | Working capital | 47,035,000 | 47,516,000 | | Current ratio | 21:1 | N/A | - Cash decreased by **$5.3 million** in Q1 2025 due to **$4.0 million** used in operations, **$0.1 million** in investing activities, and **$1.2 million** in financing activities[104](index=104&type=chunk) - During Q1 2025, the company repurchased **221,413** shares of common stock for **$1,178,000**, with **$1,564,000** remaining available for repurchases under the program as of March 31, 2025[112](index=112&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=26&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, Alpha Pro Tech is exempt from providing quantitative and qualitative disclosures about market risk - As a smaller reporting company, Alpha Pro Tech, Ltd. is not required to provide quantitative and qualitative disclosures about market risk[117](index=117&type=chunk) [Controls and Procedures](index=26&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 - Based on an evaluation as of March 31, 2025, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[120](index=120&type=chunk) - There were no changes in internal control over financial reporting during the first quarter of 2025 that have materially affected, or are reasonably likely to materially affect, these controls[121](index=121&type=chunk) Part II [Legal Proceedings](index=27&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in ordinary course litigation, but does not anticipate a material financial impact from these proceedings - The company is involved in ordinary course litigation but does not expect it to have a material financial impact[122](index=122&type=chunk) [Risk Factors](index=27&type=section&id=ITEM%201A.%20Risk%20Factors) A new risk factor highlights potential cost increases and supply chain disruptions from recently announced and future tariff policies, including a **10%** baseline tariff - A new risk factor has been added regarding tariff policies, with President Trump announcing additional tariffs, including a **10%** 'baseline' reciprocal tariff on most U.S. trading partners, which could increase costs for products manufactured in countries like Vietnam, India, and Mexico[124](index=124&type=chunk)[125](index=125&type=chunk) - The company warns that these tariffs and potential countermeasures could increase the cost of raw materials and finished goods, disrupt the global supply chain, and adversely affect financial condition and results of operations[126](index=126&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased **221,413** shares for approximately **$1.17 million** under its publicly announced program, with **$1.56 million** remaining available Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share ($) | | :--- | :--- | :--- | | January 2025 | 47,700 | 5.39 | | February 2025 | 77,100 | 5.36 | | March 2025 | 96,613 | 5.16 | | **Total** | **221,413** | **5.28** | - As of March 31, 2025, **$1,564,000** was available for repurchase under the company's stock repurchase plan, which expires on December 15, 2026[127](index=127&type=chunk) - The company did not sell any unregistered equity securities during the quarter[128](index=128&type=chunk) [Other Information](index=28&type=section&id=ITEM%205.%20Other%20Information) No material information was reported under this item, and no directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements - During the reporting period, none of the Company's directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement[130](index=130&type=chunk) [Exhibits](index=29&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications and Interactive Data Files in Inline XBRL - The exhibits include CEO and CFO certifications (**31.1**, **31.2**, **32.1**, **32.2**) and the Interactive Data Files in Inline XBRL format (**101**, **104**)[133](index=133&type=chunk)

e-mail: ir@alphaprotech.com e-mail: cameron@hirholdings.com Nogales, Arizona –May 8, 2025 – 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 March 31, 2025. Exhibit 99.1 ALPHA PRO TECH, LTD. ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS Total Sales Increased by 2.5% to $13.8 Million, Compared to ...

Core Viewpoint - Alpha Pro Tech, Ltd. reported a modest increase in sales for the first quarter of 2025 despite ongoing challenges in the housing market and economic uncertainty, with a focus on growth in the Building Supply segment and a strong performance in synthetic roof underlayment sales [2][6][7]. Financial Performance - Consolidated sales for Q1 2025 were $13.8 million, up 2.5% from $13.5 million in Q1 2024 [6][7]. - Net income for Q1 2025 was $613,000, representing a 6.4% increase from $576,000 in Q1 2024, with earnings per diluted share rising to $0.06 from $0.05 [12][22]. - Gross profit decreased slightly by $25,000 to $5.4 million, with a gross profit margin of 39.0%, down from 40.2% in the previous year [10][11]. Segment Performance - The Building Supply segment saw sales increase by $132,000, or 1.6%, to $8.4 million, driven by a 21.8% increase in synthetic roof underlayment sales and an 89.3% increase in other woven materials, although housewrap sales fell by 20.9% [7][8]. - The Disposable Protective Apparel segment's sales rose by $208,000, or 4.0%, to $5.5 million, attributed to a 12.0% increase in disposable protective garments, despite a significant decline in face mask sales [9]. Market Conditions - The housing market showed continued weakness, with single-family housing starts down 4.7% compared to Q1 2024, impacting housewrap sales [2]. - Economic uncertainty and inventory levels from previous excessive purchases affected face mask sales, with expectations for demand to improve as inventory normalizes [4]. Strategic Outlook - Management remains optimistic about growth in the Building Supply segment, citing a strong pipeline of business opportunities, while acknowledging ongoing uncertainties in housing starts and the broader economy [4]. - The company is well-positioned competitively due to sourcing products from India, which currently faces lower tariff rates compared to competitors sourcing from China [5].

Financial Performance - Net sales for 2024 decreased to $57.84 million, down 7.2% from $61.23 million in 2023[198]. - Consolidated net income for the year ended December 31, 2024, was $3,929,000, down from $4,189,000 in 2023, a decrease of about 6.2%[273]. - The company reported an income tax expense of $1,091,000 for the year ended December 31, 2024[192]. - The provision for income taxes for 2024 was $1,091,000, a decrease from $1,236,000 in 2023, reflecting an 11.8% reduction[261]. - Total comprehensive income for 2024 was $3.87 million, down from $4.24 million in 2023, impacted by foreign currency translation losses[199]. Assets and Liabilities - Total assets increased to $73,742,000 as of December 31, 2024, compared to $68,763,000 in 2023, reflecting a growth of approximately 4.3%[196]. - Total liabilities rose to $11,508,000 in 2024, compared to $7,195,000 in 2023, marking an increase of approximately 60%[196]. - Cash and cash equivalents decreased to $18,636,000 in 2024 from $20,378,000 in 2023, a decline of about 8.5%[196]. - Accounts receivable, net, fell to $3,692,000 in 2024, down from $5,503,000 in 2023, representing a decrease of approximately 33%[196]. - Deferred income tax liabilities increased to $503,000 in 2024 from $442,000 in 2023, a rise of about 13.8%[196]. - Property and equipment net value rose to $8,520,000 in 2024 from $5,587,000 in 2023, with machinery and equipment increasing to $16,732,000[240]. - Long-lived assets, net of accumulated depreciation and amortization, increased to $8,520,000 as of December 31, 2024, from $5,587,000 in 2023, representing an increase of approximately 52.1%[274]. Inventory and Receivables - Inventories increased to $22,733,000 in 2024, up from $20,131,000 in 2023, indicating a rise of about 13%[196]. - Total inventory increased to $22,733,000 in 2024 from $20,131,000 in 2023, with raw materials at $10,948,000 and finished goods at $8,851,000[239]. - Accounts receivable decreased to $4.89 million in 2024 from $6.55 million in 2023, reflecting improved collection efforts[214]. - The Company’s accounts receivable from Customer A accounted for 36% of total accounts receivable as of December 31, 2024, up from 34% in 2023[280]. Operating Expenses - Operating expenses increased to $19.48 million in 2024, compared to $18.70 million in 2023, primarily due to higher selling, general, and administrative expenses[198]. - Stock-based compensation expense for 2024 was $59,000, up from $25,000 in 2023, with 29,675 restricted stock equity awards granted in 2024[225]. - Operating lease expenses increased from approximately $1,285,000 in 2023 to $1,650,000 in 2024, marking a 28.5% increase[263]. Segment Performance - The Building Supply segment generated net sales of $35,965,000 in 2024, down from $40,396,000 in 2023, reflecting a decrease of about 10.7%[273]. - The Disposable Protective Apparel segment reported net sales of $57,840,000 in 2024, compared to $61,232,000 in 2023, indicating a decline of approximately 5.5%[273]. - The Company’s total segment income for the Building Supply segment was $5,746,000 in 2024, slightly up from $5,703,000 in 2023, an increase of about 0.8%[273]. - The Company’s total segment income for the Disposable Protective Apparel segment was $4,481,000 in 2024, compared to $4,385,000 in 2023, an increase of approximately 2.2%[273]. Shareholder Actions - The Company repurchased and retired 831,000 shares of common stock for $4,452,000 in 2024, compared to 951,010 shares for $4,002,000 in 2023, indicating a 12% increase in repurchase value[251]. - The Company accrued a cash bonus of $264,000 for the year ended December 31, 2024, compared to $286,000 for 2023, reflecting a decrease of approximately 7.7%[269]. Other Financial Information - The company holds a noncontrolling equity investment in a foreign entity valued at $5,814,000 as of December 31, 2024, up from $5,247,000 in 2023[196]. - The foreign currency translation losses reduced the balance of equity in unconsolidated affiliates by $1,499,000 and $1,437,000 as of December 31, 2024, and 2023, respectively[231]. - The accumulated other comprehensive loss on equity in unconsolidated affiliate was $1,499,000 as of December 31, 2024, compared to $1,437,000 in 2023, indicating a 4.3% increase[260]. - The Company has written off a $490,000 deposit related to a lawsuit for equipment that was never delivered, pending any recovery[266]. - The company plans to continue focusing on its building supply and disposable protective apparel segments to drive future growth[203].

Financial Performance - Net sales for the year ended December 31, 2024, were $57.8 million, down 5.5% compared to $61.2 million for the year ended December 31, 2023[4] - Net income for the year ended December 31, 2024, was $3.9 million, a decrease of 6.2% from $4.2 million in 2023, with earnings per share remaining at $0.35[20] - Gross profit for the year ended December 31, 2024, increased by 0.5% to $22.9 million, with a gross profit margin of 39.6% compared to 37.3% in 2023[17] - Net sales for the year ended December 31, 2024, were $57,840,000, a decrease of 5.8% compared to $61,232,000 in 2023[27] - Gross profit for the year ended December 31, 2024, was $22,933,000, slightly up from $22,829,000 in 2023, indicating a stable gross margin[27] - Net income for the year ended December 31, 2024, was $3,929,000, down from $4,189,000 in 2023, reflecting a decline of approximately 6.2%[27] - Basic earnings per share remained stable at $0.35 for both 2024 and 2023, despite fluctuations in net income[27] Cash and Assets - Cash as of December 31, 2024, was $18.6 million, with working capital of $47.5 million and no debt[4] - Cash and cash equivalents decreased to $18,636,000 in 2024 from $20,378,000 in 2023, a decline of approximately 8.5%[26] - Total assets increased to $73,742,000 in 2024 from $68,763,000 in 2023, representing a growth of approximately 2.8%[26] - Property and equipment, net, increased significantly to $8,520,000 in 2024 from $5,587,000 in 2023, reflecting a growth of approximately 52.1%[26] - Total shareholders' equity rose to $62,234,000 in 2024 from $61,568,000 in 2023, an increase of about 1.1%[26] Sales Performance - Sales of disposable protective garments increased by approximately 19% compared to pre-pandemic levels, with a projected continued growth in 2025[9] - Sales of synthetic roof underlayment saw a surge in the fourth quarter of 2024, attributed to rebuilding efforts after hurricanes, with expectations for growth in 2025[6] - Building Supply segment sales for the year ended December 31, 2024, decreased by 11.0% to $36.0 million, primarily due to declines in housewrap and other woven material sales[14] - Sales of other woven material decreased by $1.3 million, or 28.2%, primarily due to a customer acquisition, prompting the company to pursue new opportunities[8] Shareholder Actions - The company repurchased 831,000 shares of common stock at a cost of $4.5 million during the year, with a total of 21.2 million shares repurchased at approximately $54.8 million[22] Future Outlook - Management expects growth in the Building Supply segment in 2025, contingent on housing starts and economic conditions[9]

Core Viewpoint - Alpha Pro Tech, Ltd. reported a decline in net sales and net income for the year ended December 31, 2024, primarily due to challenges in the housing market and competition, but remains optimistic about future growth in specific product segments [2][9][20]. Financial Performance - Net sales for the year ended December 31, 2024, were $57.8 million, down 5.5% from $61.2 million in 2023 [9][13]. - Net income for the year was $3.9 million, a decrease of 6.2% from $4.2 million in 2023, with earnings per diluted share remaining at $0.35 for both years [20]. - For the three months ended December 31, 2024, consolidated sales decreased to $13.8 million, down 9.5% from $15.3 million in the same period of 2023 [10][29]. Segment Performance - Building Supply segment sales for the year decreased by 11.0% to $36.0 million, primarily due to declines in housewrap and synthetic roof underlayment sales [14]. - Disposable Protective Apparel segment sales increased by 5.0% to $21.9 million, driven by growth in face shield sales [15]. Market Conditions - The housing market showed weakness, with housing starts down 4.4% in 2024 compared to 2023, impacting sales of core building products [2]. - Multi-family housing starts were down 11.3% in 2024, marking the lowest level in ten years [3]. Product Insights - Sales of synthetic roof underlayment saw a surge in the fourth quarter of 2024 due to rebuilding efforts after hurricanes, although overall sales were affected by economic uncertainty and competition [4]. - Housewrap sales declined by 2.6% in 2024, which was less than the decline in housing starts, indicating some market resilience [3]. Balance Sheet Highlights - As of December 31, 2024, the company had cash of $18.6 million and working capital of $47.5 million, with no debt [9][22]. - The current ratio was 16:1, down from 21:1 in 2023, reflecting a decrease in liquidity [22]. Strategic Initiatives - The company is focusing on strengthening relationships with builders and contractors and has added new Territory Managers to drive sales [5]. - New distribution agreements with regional and national partners are expected to enhance growth opportunities in the disposable protective garments segment [7].

Sales Performance - Consolidated sales for the three months ended September 30, 2024, decreased to $14,251,000, down from $16,053,000 for the same period in 2023, representing a decrease of $1,802,000, or 11.2%[78] - Building Supply segment sales for the three months ended September 30, 2024, decreased by $2,651,000, or 23.2%, to $8,798,000 compared to $11,449,000 for the same period in 2023[79] - Disposable Protective Apparel segment sales for the three months ended September 30, 2024, increased by $849,000, or 18.4%, to $5,453,000 compared to $4,604,000 for the same period in 2023[85] - Consolidated sales for the nine months ended September 30, 2024, decreased to $44,023,000 from $45,967,000 for the same period in 2023, representing a decrease of $1,944,000, or 4.2%[88] - Building Supply segment sales for the nine months ended September 30, 2024, decreased by $3,637,000, or 11.9%, to $26,979,000 compared to $30,616,000 for the same period in 2023[89] - Sales of disposable protective garments in the third quarter of 2024 were up by 6.9%, primarily due to increased sales to regional and national distributors[87] - Disposable Protective Apparel segment sales increased by $1,693,000, or 11.0%, to $17,044,000 for the nine months ended September 30, 2024, compared to $15,351,000 for the same period in 2023[94] Profitability and Expenses - Gross profit for the nine months ended September 30, 2024, increased by $620,000, or 3.6%, to $17,743,000, with a gross profit margin of 40.3%, compared to 37.3% for the same period in 2023[98] - Selling, general and administrative expenses increased by $959,000, or 7.2%, to $14,234,000 for the nine months ended September 30, 2024, representing 32.3% of net sales, up from 28.9% in 2023[102] - Income from operations decreased by $386,000, or 12.2%, to $2,775,000 for the nine months ended September 30, 2024, with an operating margin of 6.3%, down from 6.9% in 2023[109] - Net income for the nine months ended September 30, 2024, was $3,082,000, a decrease of $46,000, or 1.5%, with a net income margin of 7.0%, compared to 6.8% in 2023[118] Cash Flow and Liquidity - Cash and cash equivalents decreased by 9.7%, or $1,984,000, to $18,394,000 as of September 30, 2024, compared to $20,378,000 as of December 31, 2023[119] - Inventory increased by $946,000, or 4.7%, to $21,077,000 as of September 30, 2024, driven by a 33.6% increase in the Building Supply segment inventory[122] - The current ratio as of September 30, 2024, was 19:1, down from 21:1 as of December 31, 2023[119] - Other income for the nine months ended September 30, 2024, increased by $224,000 to $1,165,000, primarily due to increased interest income[111] - Net cash used in investing activities for the nine months ended September 30, 2024, was $2,333,000, compared to $487,000 for the same period in 2023, primarily for the purchase of property and equipment[126] - Net cash used in financing activities for the nine months ended September 30, 2024, was $2,936,000, compared to $2,569,000 for the same period in 2023, with $3,731,000 spent on common stock repurchase[128] - As of September 30, 2024, the company had $1,463,000 available for stock purchases under its stock repurchase program, having repurchased 695,000 shares at a cost of $3,731,000 during the nine months[129] - The company believes its current cash balance and expected cash flow from operations will be sufficient to meet projected working capital and planned capital expenditures for the foreseeable future[130] Management Outlook - Management expects growth in the Building Supply segment as uncertainty in the housing market abates, with a surge in synthetic roof underlayment orders following hurricanes Helene and Milton[83] - Management expects growth in the Building Supply segment in the coming year, contingent on housing starts[93] Accounting Standards and Compliance - The FASB issued ASU 2023-09 in December 2023, which will enhance income tax disclosures, effective for fiscal years beginning after December 15, 2024, and the company is evaluating its impact[131] - ASU 2023-07 was issued in November 2023 to improve reportable segment disclosures, effective for fiscal years beginning after December 31, 2023, and the company is currently assessing its implications[132] - Management has not identified any new accounting standards that merit further discussion at this time[133] - As a smaller reporting company, the company is not required to provide additional market risk disclosures[134] Market Conditions - The synthetic roof underlayment market has been affected by uncertain economic conditions and increased offshore competition, but new self-adhered roofing products launched in late 2023 are expected to drive revenue growth[91] - Other woven material sales decreased by 27.2% in the third quarter of 2024 compared to the same period in 2023, primarily due to decreased sales to a customer that was acquired by another company[82]