Alpha Pro Tech, Ltd. Announces First Quarter 2024 Financial Results

Core Insights - Alpha Pro Tech, Ltd. reported a net sales decrease of 2.3% to $13.5 million for Q1 2024 compared to $13.8 million in Q1 2023, primarily driven by a decline in the Building Supply segment [1][8] - The Building Supply segment experienced a 4.5% decrease in sales, while the Disposable Protective Apparel segment saw a slight increase of 1.4% [1][11] - The company maintains a strong cash position with $18.5 million in cash and no debt as of March 31, 2024 [1][18] Sales Performance - Total net sales for Q1 2024 were $13.5 million, down from $13.8 million in Q1 2023, a decrease of $318,000 [8] - Building Supply segment sales decreased by $391,000 to $8.2 million, while Disposable Protective Apparel segment sales increased by $73,000 to $5.24 million [1][9] - Housewrap and accessory product sales grew significantly by 24.3%, indicating strong market performance [3][9] Segment Analysis - The Building Supply segment's core products, excluding other woven materials, grew by 7.6% year-over-year, despite overall segment decline [2][9] - Sales of synthetic roof underlayment decreased by 5.4%, while other woven material sales plummeted by 71.4% due to customer acquisition and order timing issues [4][5] - The Disposable Protective Apparel segment's sales were bolstered by a 0.5% increase in disposable protective garments and a 6.3% increase in face masks [11][12] Profitability and Expenses - Gross profit increased by 8.7% to $5.4 million, with a gross profit margin of 40.2%, up from 36.1% in the previous year [12] - Selling, general, and administrative expenses rose by 12.4% to $4.8 million, increasing as a percentage of net sales to 36.0% [13][15] - Income from operations decreased by 23.5% to $326,000, primarily due to increased operating expenses [15] Net Income and Financial Position - Net income for Q1 2024 was $576,000, a 4.3% increase from $552,000 in Q1 2023, with earnings per share remaining at $0.05 [17][24] - The company reported a current ratio of 25:1, indicating strong liquidity, with total working capital of $50.3 million [18][19] - Alpha Pro Tech repurchased 270,000 shares at a cost of $1.4 million during the quarter, with a total of 20.7 million shares repurchased to date [19]