Alpha Pro Tech(US:APT) Newsfilter·2024-03-13 13:00Core Insights - Alpha Pro Tech, Ltd. reported a net sales increase of 24.9% in Q4 2023, reaching $15.3 million compared to $12.2 million in Q4 2022 [1][6] - The Building Supply segment saw significant growth, with sales rising by 55.7% to $9.8 million, while the Disposable Protective Apparel segment experienced a decline of 7.7% to $5.5 million [1][6] - The company achieved a net income of $1.1 million in Q4 2023, an increase of 88.1% from $564,000 in Q4 2022 [1][18] Financial Performance - For the year ended December 31, 2023, consolidated sales decreased slightly by 1.2% to $61.2 million from $62.0 million in 2022 [8][9] - The Building Supply segment's annual sales increased by 9.4% to a record $40.4 million, driven by a 22.2% rise in housewrap sales [9][10] - The Disposable Protective Apparel segment's sales decreased by 16.8% to $20.8 million, primarily due to a significant drop in face mask and face shield sales [10] Segment Analysis - The Building Supply segment accounted for approximately 42% of sales from synthetic roof underlayment, 47% from housewrap, and 11% from other woven materials for the year ended December 31, 2023 [9] - The sales mix for the Disposable Protective Apparel segment was approximately 88% for disposable protective garments, 9% for face masks, and 3% for face shields [10][8] Profitability Metrics - Gross profit for Q4 2023 decreased by 18.6% to $5.7 million, with a gross profit margin of 37.4% compared to 39.4% in Q4 2022 [11] - For the year ended December 31, 2023, gross profit increased by 5.3% to $22.8 million, with a gross profit margin of 37.3%, up from 35.0% in 2022 [12] Expenses and Income - Selling, general and administrative expenses for Q4 2023 increased by 16.0% to $4.5 million, but as a percentage of net sales, they decreased to 29.5% [13] - For the year ended December 31, 2023, these expenses rose by 9.6% to $17.8 million, representing 29.0% of net sales [14] - Income from operations for Q4 2023 increased by 27.8% to $1.0 million, while for the year, it decreased by 11.1% to $4.1 million [15][16] Other Income and Net Income - Other income for Q4 2023 increased significantly by 222.9% to $352,000, driven by higher interest income [17] - Net income for the year ended December 31, 2023, was $4.2 million, a 27.6% increase from $3.3 million in 2022 [19] Balance Sheet Highlights - As of December 31, 2023, the company had cash and cash equivalents of $20.4 million, an increase from $16.3 million in 2022 [20] - Working capital totaled $50.5 million, with a current ratio of 21:1 [20] - Inventory decreased by 17.5% to $20.1 million, reflecting a reduction in both segments [20] Stock Repurchase Program - The company had $2.2 million available for stock purchases under its repurchase program and repurchased 951,010 shares at a cost of $4.0 million during 2023 [21]