Alpha Pro Tech(APT) - 2025 Q4 - Annual Report

Financial Performance - Net sales for the year ended December 31, 2025, were $59,142,000, an increase from $57,840,000 in 2024, representing a growth of approximately 2.25%[193] - Gross profit for 2025 was $22,537,000, slightly down from $22,933,000 in 2024, indicating a decrease of about 1.73%[193] - Net income for 2025 was $3,531,000, compared to $3,929,000 in 2024, reflecting a decline of approximately 10.12%[193] - Total comprehensive income for 2025 was $3,083,000, down from $3,867,000 in 2024, indicating a decrease of about 20.2%[198] - Basic earnings per common share for 2025 were $0.34, down from $0.35 in 2024, a decrease of about 2.86%[193] Assets and Liabilities - Total current assets increased to $52,520,000 in 2025 from $50,639,000 in 2024, marking a growth of about 3.69%[191] - Total liabilities rose to $11,654,000 in 2025 from $11,508,000 in 2024, an increase of approximately 1.27%[191] - Cash and cash equivalents at the end of 2025 were $16,988,000, down from $18,636,000 at the end of 2024, reflecting a decrease of 8.8%[198] - Accounts receivable increased to $8,138,000 in 2025 from $4,894,000 in 2024, marking a significant increase of 66.0%[209] - Inventories decreased to $1,200,000 in 2025 from $2,065,000 in 2024, a reduction of approximately 41.9%[210] Shareholder Equity and Stock Activity - The company’s total shareholders' equity as of December 31, 2025, was $62,478,000, an increase from $62,234,000 in 2024, reflecting a growth of 0.4%[196] - The company repurchased and retired 685,313 shares of common stock in 2025, costing $3,345,000, compared to 831,000 shares for $4,452,000 in 2024[198] - The company granted 32,330 restricted stock equity awards in 2025, with a compensation expense of $485,000, compared to 29,675 awards and $404,000 in 2024[220] - The total number of stock options outstanding as of December 31, 2025, was 61,100, with an exercise price of $4.17[251] Expenses - Operating expenses decreased to $18,698,000 in 2025 from $19,484,000 in 2024, a reduction of about 4.03%[193] - Share-based compensation expense increased to $540,000 in 2025 from $463,000 in 2024, an increase of 16.6%[198] - The company recorded depreciation and amortization expense for property and equipment of $925,000 for the year ended December 31, 2025, compared to $873,000 in 2024[237] Taxation - The provision for income taxes for 2025 was $1,138,000, representing an effective tax rate of 24.4%[262] - The company paid a total of $890,000 in taxes for the year 2025, down from $1,435,000 in 2024[262] Foreign Currency and Translation - The company reported a foreign currency translation loss of $448,000 in 2025, compared to a loss of $62,000 in 2024, indicating a significant increase in translation losses[195] - The accumulated other comprehensive loss related to foreign currency translation adjustments was $1,947,000 as of December 31, 2025, up from $1,499,000 in 2024[256] - The company has a foreign currency translation loss of $1,947,000 as of December 31, 2025, affecting the equity in unconsolidated affiliates[226] Segment Performance - The Building Supply segment generated sales of $36,031,000 in 2025, compared to $35,965,000 in 2024, while the Disposable Protective Apparel segment saw sales rise to $23,111,000 from $21,875,000[273] - The total segment income for 2025 was $9,644,000, down from $10,227,000 in 2024, indicating a decrease of approximately 5.7%[273] Miscellaneous - The company does not expect significant effects on consolidated results from interest or currency rate fluctuations, as it does not hedge these risks[174] - The company has no plans to pay cash dividends in the foreseeable future, opting instead to repurchase common shares and fund growth[255] - The company has determined that no impairment of goodwill was required for the years presented[238] - The company is electing to deduct remaining unamortized domestic R&D expenditures entirely in 2025 under the new tax provisions[258] - As of December 31, 2025, the Company reported operating lease right-of-use assets of $7,775,000 and operating lease liabilities of $7,882,000[264] - Customer A accounted for 53% of accounts receivable as of December 31, 2025, up from 36% in 2024, and represented 24% of net sales in 2025[280]