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].

Financial Performance - Net income for Q2 2024 was $1.6 million, or $0.15 per diluted share, representing a 43.5% increase from $1.1 million, or $0.10 per diluted share, in Q2 2023[1][18] - Net sales for Q2 2024 were $16.3 million, up 1.1% from $16.1 million in Q2 2023, driven by a 13.8% increase in Disposable Protective Apparel segment sales[2][7] - Gross profit for Q2 2024 increased by $735,000, or 12.0%, to $6.8 million, with a gross profit margin of 42.0% compared to 37.9% in Q2 2023[13] - Income from operations for Q2 2024 increased by $400,000, or 30.5%, to $1.7 million, with an operating margin of 10.5% compared to 8.1% in Q2 2023[15] - Net income for the three months ended June 30, 2024, was $1.6 million, compared to $1.1 million for the same period in 2023, indicating a significant increase[28] - Basic earnings per common share for the three months ended June 30, 2024, were $0.15, compared to $0.10 for the same period in 2023[28] Sales Performance - Disposable Protective Apparel segment sales increased by $770,000, or 13.8%, to $6.3 million in Q2 2024, marking the highest quarter in two years[2][9] - Building Supply segment sales decreased by $596,000, or 5.7%, to $9.9 million in Q2 2024, primarily due to a 9.0% decline in housewrap sales[3][8] - The Company reported net sales of $16.3 million for the three months ended June 30, 2024, compared to $16.1 million for the same period in 2023, representing a 1.1% increase[28] Expenses and Margins - Selling, general and administrative expenses rose by $309,000, or 6.8%, to $4.9 million in Q2 2024, increasing as a percentage of net sales to 30.0% from 28.4%[14] - Operating expenses increased to $5.1 million for the three months ended June 30, 2024, compared to $4.8 million for the same period in 2023[28] Cash and Assets - Cash and cash equivalents as of June 30, 2024, were $16.2 million, with working capital totaling $50.7 million and no debt[2][20] - The Company currently has no outstanding debt and believes its cash balance will satisfy projected working capital needs[21] - Total assets increased to $72.7 million as of June 30, 2024, from $68.8 million as of December 31, 2023[27] Inventory and Stock Repurchase - Inventory increased by $654,000, or 3.2%, to $20.8 million as of June 30, 2024, from $20.1 million as of December 31, 2023[21] - The Company repurchased 515,000 shares of common stock at a cost of $2.7 million during the six months ended June 30, 2024, totaling 20.9 million shares repurchased at approximately $54.4 million[21] - As of June 30, 2024, the Company had $1.5 million available for additional stock purchases under its stock repurchase program[21] Future Outlook - Management expects continued growth in Disposable Protective Apparel sales for the remainder of 2024, despite challenges in the Building Supply segment[5] - The company launched a new line of self-adhered roofing products in late 2023, anticipating revenue growth from this product line[4]

Core Insights - Alpha Pro Tech, Ltd. reported a net sales increase of 1.1% to $16.3 million for Q2 2024 compared to Q2 2023, driven by growth in the Disposable Protective Apparel segment, while the Building Supply segment experienced a decline [1][6][9]. Financial Performance - Net income for Q2 2024 was $1.6 million, a 43.5% increase from $1.1 million in Q2 2023, with earnings per diluted share rising from $0.10 to $0.15 [1][18]. - For the six months ended June 30, 2024, net income was $2.2 million, up 30.7% from $1.7 million in the same period of 2023 [19]. Segment Performance - Building Supply segment sales decreased by 5.7% to $9.9 million in Q2 2024, attributed to a 7.4% decline in housing starts and a 9.0% drop in housewrap sales [2][7]. - Disposable Protective Apparel segment sales increased by 13.8% to $6.3 million in Q2 2024, with notable growth in face masks (81.0%) and face shields (64.1%) [8][11]. Gross Profit and Margins - Gross profit for Q2 2024 increased by 12.0% to $6.8 million, with a gross profit margin of 42.0%, up from 37.9% in Q2 2023 [12][13]. - For the six months ended June 30, 2024, gross profit rose by 10.6% to $12.3 million, with a margin of 41.2% compared to 37.1% in the prior year [13]. Expenses - Selling, general and administrative expenses increased by 6.8% to $4.9 million in Q2 2024, representing 30.0% of net sales, up from 28.4% in Q2 2023 [14]. - For the six months ended June 30, 2024, these expenses rose by 9.5% to $9.7 million, accounting for 32.7% of net sales [14]. Balance Sheet - As of June 30, 2024, the company had cash and cash equivalents of $16.2 million and working capital of $50.7 million, with no outstanding debt [20][21]. - Inventory increased by 3.2% to $20.8 million, driven by a 26.9% rise in the Building Supply segment inventory [20]. Market Outlook - The company anticipates continued challenges in the Building Supply segment due to projected declines in single-family and multi-family housing starts for the remainder of 2024 [4]. - Management expects growth in the Disposable Protective Apparel segment to continue, supported by increased sales to major customers [4][5].

Financial Performance - Net sales for the three months ended March 31, 2024, were $13,482,000, a decrease of 2.3% compared to $13,800,000 for the same period in 2023[11] - Gross profit increased to $5,417,000 for the three months ended March 31, 2024, compared to $4,982,000 in the same period of 2023, reflecting a gross margin improvement[11] - Net income for the three months ended March 31, 2024, was $576,000, up from $552,000 in the same period of 2023, indicating a growth of 4.4%[11] - Basic earnings per share remained stable at $0.05 for both the three months ended March 31, 2024, and 2023[11] - Operating expenses rose to $5,091,000 for the three months ended March 31, 2024, compared to $4,556,000 in the same period of 2023, an increase of 11.7%[11] - Consolidated net sales for the three months ended March 31, 2024, were $13,482,000, a decrease of 2.3% from $13,800,000 in the same period of 2023[59] - Net income for Q1 2024 was $576,000, an increase of $24,000, or 4.3%, compared to $552,000 in Q1 2023, with net income as a percentage of net sales at 4.3%[112] Assets and Liabilities - Total assets increased to $72,712,000 as of March 31, 2024, up from $68,763,000 at December 31, 2023, representing a growth of 2.8%[7] - Total current liabilities decreased to $2,065,000 as of March 31, 2024, from $2,566,000 at December 31, 2023, a reduction of 19.6%[8] - Shareholders' equity increased to $61,643,000 as of March 31, 2024, compared to $61,568,000 at December 31, 2023, reflecting a slight increase of 0.1%[9] - Total current assets decreased slightly to $52,389,000 as of March 31, 2024, from $53,064,000 as of December 31, 2023[6] - Total accrued liabilities decreased to $449,000 as of March 31, 2024, from $1,103,000 on December 31, 2023, a reduction of 59.3%[50] Cash Flow and Investments - The company reported a net cash used in operating activities of $(1,169,000) for Q1 2024, an improvement from $(1,697,000) in Q1 2023, reflecting a decrease of 31%[21] - Cash and cash equivalents decreased to $18,510,000 as of March 31, 2024, down from $20,378,000 at December 31, 2023, a decline of 9.2%[6] - Cash and cash equivalents at the end of Q1 2024 were $18,510,000, up from $13,821,000 at the end of Q1 2023, marking an increase of 34.5%[21] - The company had $777,000 available for share repurchase under its program as of March 31, 2024[28] - The company repurchased 270,000 shares of common stock for $1,417,000 during Q1 2024, compared to 200,000 shares for $833,000 in Q1 2023, representing a 70% increase in repurchase value[28] Segment Performance - The Building Supply segment generated sales of $8,240,000 for the three months ended March 31, 2024, down from $8,631,000 in 2023, reflecting a decline of 4.5%[59] - The Disposable Protective Apparel segment reported sales of $5,242,000 for the three months ended March 31, 2024, an increase of 1.4% from $5,169,000 in 2023[59] - Core Building Supply products achieved 7.6% growth in sales in Q1 2024 compared to the same period in 2023[96] - Housewrap sales increased by 24.3% in Q1 2024 compared to the prior year, significantly outperforming the market[96] - Disposable Protective Apparel segment sales increased by $73,000, or 1.4%, to $5,242,000 in Q1 2024, driven by a 6.3% increase in face mask sales and a 7.6% increase in face shield sales[102] Compensation and Expenses - Stock-based compensation increased significantly to $109,000 in Q1 2024 from $22,000 in Q1 2023, indicating a rise of 395.5%[21] - The company recognized $94,000 in compensation expense for restricted stock awards in Q1 2024, up from $18,000 in Q1 2023, which is an increase of 422.2%[34] - Selling, general and administrative expenses increased to 36.0% of net sales in 2024 from 31.3% in 2023[92] - Selling, general and administrative expenses increased by $534,000, or 12.4%, to $4,847,000 in Q1 2024, representing 36.0% of net sales compared to 31.3% in Q1 2023[106] Inventory and Receivables - As of March 31, 2024, total inventories amounted to $20,769,000, an increase of 3.2% from $20,131,000 on December 31, 2023[41] - Accounts receivable increased by $938,000, or 14.3%, to $7,483,000 as of March 31, 2024, with days sales outstanding rising to 47 days from 40 days[115] - Inventory increased by $638,000, or 3.2%, to $20,769,000 as of March 31, 2024, primarily due to a 20.6% increase in the Building Supply segment[115] Legal and Regulatory - The Company is pursuing a lawsuit for $490,000 in compensatory damages related to undelivered equipment, which has been written off pending recovery[77] - The Company does not anticipate that pending litigation will materially affect its financial condition or results of operations[78] - The Company has filed income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions, accounting for income taxes using the asset and liability method[73] - The Company is exposed to various risks, including foreign currency exchange risks and reliance on suppliers, which could impact financial performance[81] - The Company’s growth objectives depend on the successful market acceptance of new product offerings and the ability to renew its product pipeline[81] Accounting Policies - The Company is classified as a "smaller reporting company," allowing it to omit certain information from its Management's Discussion and Analysis[84] - There have been no material changes to the Company's critical accounting policies and estimates since December 31, 2023[86] - The company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements, which will enhance segment reporting disclosures starting in fiscal years after December 31, 2023[1]

Financial Performance - Net sales for Q1 2024 were $13.5 million, a decrease of 2.3% from $13.8 million in Q1 2023[2]. - Net income for Q1 2024 was $576,000, representing an increase of 4.3% from $552,000 in Q1 2023, with earnings per share remaining at $0.05[18]. - Gross profit increased by $435,000, or 8.7%, to $5.4 million, with a gross profit margin of 40.2% compared to 36.1% in Q1 2023[13]. - Net sales for March 2024 were $13,482,000, a decrease of 2.3% compared to $13,800,000 in March 2023[27]. - Gross profit increased to $5,417,000 in March 2024, up 8.7% from $4,982,000 in March 2023[27]. - Net income for March 2024 was $576,000, slightly up from $552,000 in March 2023, representing a growth of 4.4%[27]. - Basic earnings per share remained stable at $0.05 for both March 2024 and March 2023[27]. Segment Performance - Building Supply segment sales decreased by $391,000, or 4.5%, to $8.2 million, while Disposable Protective Apparel segment sales increased by $73,000, or 1.4%, to $5.24 million[2][10]. - The Building Supply segment achieved 7.6% growth in core products, excluding other woven materials, despite economic uncertainty in the housing market[3][10]. - Housewrap and accessories sales grew by 24.3%, with premium housewrap line (REX™ Wrap Fortis) sales up 13.7%[4]. - Sales of disposable protective garments increased by 0.5%, with a significant demand indicated by a 24% increase in sales to a major international supply chain partner[7]. Expenses and Liabilities - Selling, general and administrative expenses rose by $534,000, or 12.4%, to $4.8 million, increasing as a percentage of net sales to 36.0% from 31.3%[14]. - Operating expenses rose to $5,091,000 in March 2024, compared to $4,556,000 in March 2023, reflecting an increase of 11.7%[27]. - Total current liabilities decreased to $2,065,000 in March 2024 from $2,566,000 in December 2023, a reduction of 19.6%[25]. Assets and Equity - As of March 31, 2024, the company had cash of $18.5 million and working capital of $50.3 million, with no debt[19]. - Total assets increased to $72,712,000 as of March 31, 2024, compared to $68,763,000 at the end of December 2023, marking a growth of 5.6%[24][26]. - Shareholders' equity increased to $61,643,000 as of March 31, 2024, compared to $61,568,000 at the end of December 2023, reflecting a slight increase of 0.1%[26]. Share Repurchase - The company repurchased 270,000 shares at a cost of $1.4 million during Q1 2024, with a total of 20.7 million shares repurchased at approximately $51.7 million[20]. Forward-Looking Statements - The company cautions that forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from estimates[22]. Equity in Affiliates - The company reported equity in income of unconsolidated affiliates at $138,000 for March 2024, up from $109,000 in March 2023, an increase of 26.6%[27].

Total Sales Decreased by 2.3% to $13.5 Million Compared to the Prior Year Period   Housewrap and Accessory Product Sales Increase by 24.3% Net sales for the first quarter of 2024 were $13.5 million, down 2.3%, compared to $13.8 million for the first quarter of 2023. Building Supply segment sales decreased by $391,000, or 4.5%, to $8.2 million, compared to $8.6 million for the three months ended March 31, 2023.Disposable Protective Apparel segment sales increased by $73,000, or 1.4%, to $5.24 million, compar ...

Nogales, Arizona, April 03, 2024 (GLOBE NEWSWIRE) -- Alpha Pro Tech, Ltd. (NYSE:APT), a leading manufacturer of products designed to protect people, products and environments, including disposable protective apparel and building products, today announced that its Board of Directors has authorized a $2.0 million expansion of the Company's existing share repurchase program. With this authorized expansion, the Company now has approximately $2.7 million available to repurchase shares of the Company's common st ...

Net sales for the fourth quarter of 2023 was $15.3 million, up by 24.9% compared to $12.2 million for the fourth quarter of 2022 Building Supply segment sales increased by $3.5 million, or 55.7%, to $9.8 million, compared to $6.3 million for the three months ended December 31, 2022Disposable Protective Apparel segment sales decreased by 7.7%, to $5.5 million, compared to $5.9 million for the same period of 2022 Net income for the fourth quarter of 2023 was $1.1 million, or $0.09 per diluted share, compared ...