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 STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE S ...

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 ...

Total Sales Increased by 2.5% to $13.8 Million, Compared to the Prior Year PeriodNet sales for the first quarter of 2025 were $13.8 million, up 2.5%, compared to $13.5 million for the first quarter of 2024 Building Supply segment sales increased by $132,000 or 1.6%, to $8.4 million, compared to $8.2 million for the three months ended March 31, 2024Disposable Protective Apparel segment sales increased by $208,000 or 4.0%, to $5.5 million, compared to $5.2 million for the same period of 2024 Net income for th ...

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]

Financial Performance - Net sales for Q3 2024 decreased by 11.2% to $14.3 million, down from $16.1 million in Q3 2023[2] - Net income for Q3 2024 was $862,000, or $0.08 per diluted share, down from $1.4 million, or $0.12 per diluted share in Q3 2023, representing a decrease of 39.7%[26] - For the nine months ended September 30, 2024, net income was $3.082 million, a decrease of 1.5% from $3.128 million in the same period of 2023[27] - Net sales for the three months ended September 30, 2024, were $14.25 million, down from $16.05 million in the same period of 2023, representing a decrease of 11.2%[36] - Net income for the three months ended September 30, 2024, was $862,000, down from $1.43 million in the same period of 2023, indicating a decrease of 39.7%[36] Segment Performance - Building Supply segment sales fell by 23.2% to $8.8 million, compared to a record $11.4 million in Q3 2023[2] - Disposable Protective Apparel segment sales increased by 18.4% to $5.5 million, up from $4.6 million in the same period of 2023[2] - The Building Supply segment saw a 16.2% decrease in housewrap sales and a 25.1% decrease in synthetic roof underlayment sales compared to Q3 2023[6] - Face mask sales surged by 124.3% and face shield sales increased by 204.5% in Q3 2024, indicating a recovery in demand[4] Profitability and Expenses - Gross profit for Q3 2024 decreased by 9.1% to $5.5 million, with a gross profit margin of 38.5% compared to 37.6% in Q3 2023[17] - Selling, general and administrative expenses increased by 2.6% to $4.5 million for Q3 2024, rising to 31.6% of net sales from 27.3% in 2023[20] - Operating expenses for the three months ended September 30, 2024, totaled $4.75 million, an increase from $4.61 million in the same period of 2023[36] Cash and Assets - As of September 30, 2024, the company had cash and cash equivalents of $18.4 million, a decrease from $20.4 million as of December 31, 2023, primarily due to cash used in investing and financing activities[28] - Inventory increased by $946,000, or 4.7%, to $21.1 million as of September 30, 2024, driven by a 33.6% increase in the Building Supply segment[29] - Total assets increased to $73.33 million as of September 30, 2024, from $68.76 million as of December 31, 2023[33] - Total liabilities rose to $11.26 million as of September 30, 2024, compared to $7.20 million as of December 31, 2023[34] Management Outlook - Management expects growth in the Building Supply segment as housing market uncertainty abates and new home starts stabilize[4] - The company's current ratio was 19:1 as of September 30, 2024, down from 21:1 as of December 31, 2023[28] - The company repurchased 180,000 shares of common stock at a cost of $1.0 million during the three months ended September 30, 2024, with a total of 21.1 million shares repurchased at approximately $54.1 million[30]

Core Viewpoint - Alpha Pro Tech, Ltd. reported a decrease in overall sales for the third quarter of 2024, primarily driven by challenges in the Building Supply segment, while the Disposable Protective Apparel segment showed growth. Financial Performance - Net sales for Q3 2024 were $14.3 million, down 11.2% from $16.1 million in Q3 2023 [1][4] - Net income for Q3 2024 was $862,000, or $0.08 per diluted share, compared to $1.4 million, or $0.12 per diluted share, in Q3 2023 [1][24] - For the nine months ended September 30, 2024, net sales decreased to $44.0 million from $46.0 million, a decline of 4.2% [10] Segment Performance Building Supply Segment - Sales decreased by 23.2% to $8.8 million in Q3 2024, down from $11.4 million in Q3 2023 [1][5] - The decline was attributed to a 16.2% drop in housewrap sales, a 25.1% decrease in synthetic roof underlayment, and a 27.2% decrease in other woven materials [5][11] - For the nine months ended September 30, 2024, sales decreased by 11.9% to $27.0 million compared to $30.6 million in the same period of 2023 [11] Disposable Protective Apparel Segment - Sales increased by 18.4% to $5.5 million in Q3 2024, compared to $4.6 million in Q3 2023 [1][8] - The growth was driven by a 6.9% increase in disposable protective garments, a 124.3% increase in face masks, and a 204.5% increase in face shields [8][13] - For the nine months ended September 30, 2024, sales increased by 11.0% to $17.0 million compared to $15.4 million in the same period of 2023 [13] Operational Insights - Gross profit for Q3 2024 decreased by $551,000, or 9.1%, to $5.5 million, with a gross profit margin of 38.5% [16] - Selling, general and administrative expenses increased by 2.6% to $4.5 million for Q3 2024, representing 31.6% of net sales [19] - Income from operations decreased by 48.2% to $737,000 for Q3 2024, compared to $1.4 million in Q3 2023 [21] Balance Sheet Highlights - As of September 30, 2024, cash and cash equivalents were $18.4 million, with working capital of $48.7 million and no debt [1][26] - Inventory increased by 4.7% to $21.1 million, driven by a 33.6% increase in the Building Supply segment [27] Market Context - The U.S. housing market faced challenges, with housing starts down 4.0% in Q3 2024 compared to the prior year [2] - Multi-family housing starts for the first nine months of 2024 were down 30.5%, marking the lowest level in ten years [2]

Sales Performance - Consolidated sales for Q2 2024 increased to $16,289,000, a rise of 1.1% from $16,115,000 in Q2 2023, driven by a $770,000 increase in the Disposable Protective Apparel segment [89]. - Disposable Protective Apparel segment sales rose by $770,000, or 13.8%, to $6,348,000 in Q2 2024, marking the highest quarter in two years [95]. - For the six months ended June 30, 2024, consolidated sales decreased to $29,772,000 from $29,914,000, a decline of 0.5% [97]. - Building Supply segment sales for the first half of 2024 decreased by $986,000, or 5.1%, to $18,181,000 compared to $19,167,000 in the same period of 2023 [97]. - Sales of other woven materials increased by 12.3% in Q2 2024, attributed to higher sales to a major customer [94]. Profitability - Gross profit margin improved to 42.0% in Q2 2024, up from 37.9% in Q2 2023, while net income margin increased to 10.1% from 7.1% [88]. - Gross profit for the three months ended June 30, 2024, increased by $735,000, or 12.0%, to $6,841,000, with a gross profit margin of 42.0% compared to 37.9% for the same period in 2023 [101]. - Income from operations increased by $400,000, or 30.5%, to $1,712,000 for the three months ended June 30, 2024, with an operating margin of 10.5% compared to 8.1% in 2023 [108]. - Net income for the three months ended June 30, 2024, was $1,644,000, an increase of $498,000, or 43.5%, with net income as a percentage of net sales at 10.1% [112]. Expenses and Cash Flow - Selling, general and administrative expenses increased by $309,000, or 6.8%, to $4,884,000 for the three months ended June 30, 2024, representing 30.0% of net sales, up from 28.4% in 2023 [102]. - Net cash used in operating activities was $2,042,000 for the six months ended June 30, 2024, primarily due to an increase in accounts receivable [115]. - Net cash used in financing activities for the six months ended June 30, 2024, was $1,913,000, an increase from $1,538,000 for the same period in 2023 [119]. Balance Sheet Items - As of June 30, 2024, the company had cash and cash equivalents of $16,207,000, a decrease of 20.5% from $20,378,000 as of December 31, 2023 [114]. - Accounts receivable increased by $2,302,000, or 35.2%, to $8,847,000 as of June 30, 2024, reflecting higher sales in the second quarter [116]. - Inventory increased by $654,000, or 3.2%, to $20,785,000 as of June 30, 2024, driven by a 26.9% increase in the Building Supply segment [116]. Stock Repurchase and Future Plans - The company repurchased 515,000 shares of common stock at a cost of $2,701,000 during the six months ended June 30, 2024 [121]. - As of June 30, 2024, the company had repurchased a total of 20,926,627 shares at a cost of approximately $53,027,000 since the repurchase program began in 1999 [121]. - The company has $1,493,000 available for stock purchases under its stock repurchase program as of June 30, 2024 [121]. - Future stock repurchases are expected to be funded from cash on hand and cash flows from operating activities [121]. - The company believes its current cash balance and expected cash flow from operations will be sufficient for projected working capital and planned capital expenditures [121]. Market Conditions and Management Outlook - The housing market remains weak, with housing starts down 7.4% in Q2 2024 compared to the prior year, impacting sales of core building products [91]. - Management expects continued growth in disposable protective garments for the remainder of 2024, despite challenges in face mask and face shield sales due to excess inventories [96]. - Management is exploring new product offerings, including roof deck flashing, to enhance revenue growth in the Building Supply segment [92]. Regulatory Updates - The FASB issued ASU 2023-09 in December 2023, which will enhance income tax disclosures effective for fiscal years beginning after December 15, 2024 [122]. - The FASB also issued ASU 2023-07 in November 2023, improving reportable segment disclosure requirements, effective for fiscal years beginning after December 31, 2023 [123].