ALPHA PRO TECH, LTD. ANNOUNCES $2 MILLION EXPANSION OF SHARE REPURCHASE PROGRAM

Rhea-AI Summary

Alpha Pro Tech (NYSE American: APT) has announced a $2.0 million expansion of its existing share repurchase program. Combined with the $0.8 million remaining from the previous expansion announced in October 2024, the company now has approximately $2.8 million available for share repurchases. The company plans to execute these repurchases through open market purchases or privately-negotiated transactions, with all acquired shares to be retired. The repurchases will be conducted through a pre-arranged plan following Rule 10b5-1 and Rule 10b-18 guidelines, with additional purchases possible outside the plan based on market conditions.

Positive

• Authorization of additional $2.0 million for share repurchases
• Total of $2.8 million available for buybacks
• Plan to retire all repurchased shares, potentially increasing value for remaining shareholders

Negative

• Use of cash reserves for buybacks may reduce funds available for operational growth
• Potential reduction in stock liquidity due to share retirement

Insights

Financial Analyst

The $2 million share repurchase program expansion is strategically significant for APT, given its market cap of $57.2 million. This represents approximately 3.5% of the company's current market value, which combined with the existing $0.8 million authorization, brings the total potential buyback to $2.8 million or nearly 4.9% of market cap. Share repurchases at this scale typically signal management's confidence in the company's financial health and their belief that shares are undervalued. The implementation through Rule 10b5-1 and 10b-18 provides a structured approach that protects against market manipulation allegations while offering price and timing flexibility. For a small-cap company like APT, this level of buyback could provide meaningful support to the stock price and improve earnings per share metrics through share count reduction.

Market Research Analyst

This buyback expansion demonstrates APT's commitment to shareholder value enhancement in the protective equipment and building products sector. The timing is particularly interesting as it follows their October 2024 authorization, suggesting strong cash flow generation and possibly organic growth opportunities. For retail investors, the key takeaway is the potential positive impact on stock liquidity and price stability. The $2.8 million total authorization creates a price support mechanism, especially important for small-cap stocks where trading volumes can be thin. The flexibility to execute through both planned and opportunistic purchases allows management to optimize the timing and impact of the buyback program, potentially capitalizing on market volatility to acquire shares at advantageous prices.

NOGALES, Ariz., Dec. 23, 2024 (GLOBE NEWSWIRE) -- Alpha Pro Tech, Ltd. (NYSE American: 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 $2.8 million available to repurchase shares of the Company’s common stock, $0.8 million of which remains from the previous expansion, most recently announced in October 2024.

Management anticipates repurchasing shares through open market purchases or through privately-negotiated transactions and intends to retire all shares purchased through the share repurchase program. Open market purchases may be executed by the Company’s broker through a pre-arranged repurchase plan, which operates in accordance with the guidelines specified under Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. Any transactions under the repurchase plan will be effected in accordance with the terms of the plan, including specified price, volume and timing conditions, and will be applied against the amount authorized for the Company’s share repurchase program. Other open market and privately-negotiated purchases may occur from time to time outside the repurchase plan based on market and general business conditions, subject to applicable rules and regulations.

About Alpha Pro Tech, Ltd.

Alpha Pro Tech, Ltd. is the parent company of Alpha Pro Tech, Inc. and Alpha ProTech Engineered Products, Inc. Alpha Pro Tech, Inc. develops, manufactures and markets innovative disposable and limited-use protective apparel products for the industrial, clean room, medical and dental markets. Alpha ProTech Engineered Products, Inc. manufactures and markets a line of construction weatherization products, including building wrap and roof underlayment. The Company has manufacturing facilities in Nogales, Arizona; Valdosta, Georgia; and a joint venture in India. For more information and copies of all news releases and financials, visit Alpha Pro Tech’s website at http://www.alphaprotech.com.

 Certain statements made in this press release constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements instead of historical facts and may be identified generally by the use of forward-looking terminology and words such as “expects,” “anticipates,” “estimates,” “believes,” “predicts,” “intends,” “plans,” “potentially,” “may,” “continue,” “should,” “will” and words of similar meaning. Without limiting the generality of the preceding statement, all statements in this press release relating to the Company’s strategy, including the number of shares of common stock to be repurchased by the Company, if any, are forward-looking statements. We caution investors that any such forward-looking statements are only estimates based on current information and involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. We cannot give assurances that any such statements will prove to be correct. Factors that could cause actual results to differ materially from those estimated by us include the risks, uncertainties and assumptions described from time to time in our public releases and reports filed with the Securities and Exchange Commission, including, but not limited to, our most recent Annual Report on Form 10-K. Specifically, these factors include, but are not limited to, changes in global economic conditions; the inability of our suppliers and contractors to meet our requirements; potential challenges related to international manufacturing; the inability to protect our intellectual property; competition in our industry; customer preferences; the timing and market acceptance of new product offerings; security breaches or disruptions to the information technology infrastructure; the impact of legal and regulatory proceedings or compliance challenges; and volatility in our common stock price and our investments. We also caution investors that the forward-looking information described herein represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this press release. Given these uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

FAQ

How much did Alpha Pro Tech (APT) expand its share repurchase program by in December 2024?

Alpha Pro Tech expanded its share repurchase program by $2.0 million in December 2024.

What is the total amount available for APT's current share repurchase program?

The total amount available for share repurchases is approximately $2.8 million, including $0.8 million remaining from the previous expansion.

How will APT execute its share repurchase program?

APT will execute the repurchases through open market purchases or privately-negotiated transactions, using a pre-arranged repurchase plan under Rule 10b5-1 and Rule 10b-18.

What will APT do with the shares it repurchases?

APT intends to retire all shares purchased through the share repurchase program.

When was APT's previous share repurchase program expansion announced?

The previous expansion of APT's share repurchase program was announced in October 2024.