Alpha Pro Tech, Ltd. Announces Second Quarter 2025 Financial Results

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].