Alpha Pro Tech, Ltd. Announces First Quarter 2024 Financial Results
Alpha Pro Tech, announced its first-quarter 2024 financial results. Total sales decreased by 2.3% to $13.5 million compared to the prior year. Disposable Protective Apparel sales increased by 1.4%, while Building Supply segment sales decreased by 4.5%. The company reported a net income of $576,000 for Q1 2024. Cash stood at $18.5 million with no debt as of March 31, 2024.
Gross profit increased by 8.7% to $5.4 million for Q1 2024, with a margin of 40.2%. Net income rose by 4.3% to $576,000 compared to the same period in 2023. The company has a strong cash position of $18.5 million and working capital of $50.3 million.
Selling, general, and administrative expenses rose by 12.4% to $4.8 million for Q1 2024. Income from operations decreased by 23.5% to $326,000. The building supply segment saw a decrease in sales, particularly in synthetic roof underlayment and other woven material.
Insights
Total Sales Decreased by
Housewrap and Accessory Product Sales Increase by
- Net sales for the first quarter of 2024 were
$13.5 million , down2.3% , compared to$13.8 million for the first quarter of 2023.- Building Supply segment sales decreased by
$391,000 , or4.5% , to$8.2 million , compared to$8.6 million for the three months ended March 31, 2023. - Disposable Protective Apparel segment sales increased by
$73,000 , or1.4% , to$5.24 million , compared to$5.17 million for the same period of 2023.
- Building Supply segment sales decreased by
- Net income for the first quarter of 2024 was
$576,000 , or$0.05 per diluted share compared to net income of$552,000 , or$0.05 per diluted share for the same period of 2023. - Cash of
$18.5 million and working capital of$50.3 million , with no debt, as of March 31, 2024.
NOGALES, Ariz., May 08, 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 financial results for the three month period ended March 31, 2024.
Lloyd Hoffman, President and Chief Executive Officer of Alpha Pro Tech, commented, “The Building Supply segment continues to show strength, as it achieved
Our housewrap and accessories sales continue to significantly outperform the market, with
The synthetic roof underlayment market has also been affected by the uncertain economic conditions, more offshore competition and a push in the market to reduce product selling prices. Despite these pressures, our synthetic roof underlayment sales performed reasonably well, despite being down
Other woven material sales decreased by
Management expects growth in the building supply segment in the coming year, especially in housewrap sales. While housing starts are weak nationally, we have continued to grow market share. We also hope to build on our success within the multi-family and commercial segment and the single-family segment. However, there continues to be uncertainty in housing starts and the economy in general that could affect this segment.
Sales of disposable protective garments in the first quarter in 2024 were up by
Face mask and face shield sales are still suffering from the post COVID-19 residual excess inventories at the distributor level, but sales in the fourth quarter of 2023 and first quarter of 2024 showed improvement and approximately doubled as compared to the prior two quarters. The market continues to be saturated with products but we’re cautiously optimistic that face mask and face shield sales will show growth in the coming year,” concluded Mr. Hoffman.
Net sales
Consolidated sales for the three months ended March 31, 2024, decreased to
Building Supply Segment:
Building Supply segment sales for the three months ended March 31, 2024, decreased by
The sales mix of the Building Supply segment for the three months ended March 31, 2024, was approximately
Disposable Protective Apparel Segment:
Sales for the Disposable Protective Apparel segment for the three months ended March 31, 2024, increased by
The sales mix of the Disposable Protective Apparel segment for the three months ended March 31, 2024, was approximately
Gross profit
Gross Profit. Gross profit increased by
The gross profit margin in 2024 was positively affected by a margin increase in both the Disposable Protective Apparel and Building Supply segments. Management expects the gross profit margin could be negatively affected by the ongoing wars in Ukraine and the Middle East, which have resulted in increased freight rates.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased by
The change in expenses by segment for the three months ended March 31, 2024, was as follows: Disposable Protective Apparel was up by
Income from Operations
Income from operations decreased by
Other Income
Other income increased by
Net Income
Net income for the three months ended March 31, 2024, was
Balance Sheet
As of March 31, 2024, the Company had cash and cash equivalents (“cash”) of
Inventory increased by
Colleen McDonald, Chief Financial Officer, commented, “During the three months ended March 31, 2024, we repurchased 270,000 shares of common stock under our stock repurchase program at a cost of
The Company currently has no outstanding debt and believes that the current cash balance will be sufficient to satisfy projected working capital needs and planned capital expenditures for the foreseeable future.
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 Salt Lake City, Utah; 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 estimated and projected earnings, expectations regarding order volume, timing of fulfillment of orders, production capacity and our plans to ramp up production and expand capacity, product demand, availability of raw materials and supply chain access, margins, costs, expenditures, cash flows, sources of capital, growth rates and future financial and operating results 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, our exposure to foreign currency exchange risks related to our unconsolidated affiliate operations in India; potential failure to remediate the material weakness in our internal controls; our partnership with a joint venture partner; the loss of any major customer or a reduction in order volume by our customers; 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; changes in global economic conditions; security breaches or disruptions to the information technology infrastructure; risks related to climate change and natural disasters or other events beyond our control; 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.
-- Tables follow --
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||||||||
| March 31, | December 31, | ||||||||||||
| 2024 | 2023 (1) | ||||||||||||
| Assets | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 18,510,000 | $ | 20,378,000 | |||||||||
| Accounts receivable, net | 6,426,000 | 5,503,000 | |||||||||||
| Accounts receivable, related party | 1,057,000 | 1,042,000 | |||||||||||
| Inventories, net | 20,769,000 | 20,131,000 | |||||||||||
| Prepaid expenses | 5,627,000 | 6,010,000 | |||||||||||
| Total current assets | 52,389,000 | 53,064,000 | |||||||||||
| Property and equipment, net | 5,426,000 | 5,587,000 | |||||||||||
| Goodwill | 55,000 | 55,000 | |||||||||||
| Right-of-use assets | 9,451,000 | 4,810,000 | |||||||||||
| Equity investment in unconsolidated affiliate | 5,391,000 | 5,247,000 | |||||||||||
| Total assets | $ | 72,712,000 | $ | 68,763,000 | |||||||||
| Liabilities and Shareholders' Equity | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable | $ | 713,000 | $ | 802,000 | |||||||||
| Accrued liabilities | 449,000 | 1,103,000 | |||||||||||
| Lease liabilities | 903,000 | 661,000 | |||||||||||
| Total current liabilities | 2,065,000 | 2,566,000 | |||||||||||
| Lease liabilities, net of current portion | 8,562,000 | 4,187,000 | |||||||||||
| Deferred income tax liabilities, net | 442,000 | 442,000 | |||||||||||
| Total liabilities | 11,069,000 | 7,195,000 | |||||||||||
| Commitments and contingencies | |||||||||||||
| Shareholders' equity: | |||||||||||||
| Common stock, $.01 par value: 50,000,000 shares authorized; | |||||||||||||
| 11,372,878 and 11,416,212 shares outstanding as of | |||||||||||||
| March 31, 2024 and December 31, 2023, respectively | 114,000 | 114,000 | |||||||||||
| Additional paid-in capital | 16,861,000 | 16,339,000 | |||||||||||
| Retained earnings | 46,099,000 | 46,552,000 | |||||||||||
| Accumulated other comprehensive loss | (1,431,000 | ) | (1,437,000 | ) | |||||||||
| Total shareholders' equity | 61,643,000 | 61,568,000 | |||||||||||
| Total liabilities and shareholders' equity | $ | 72,712,000 | $ | 68,763,000 | |||||||||
(1) The condensed consolidated balance sheet as of December 31, 2023, has been prepared using information from the audited consolidated balance sheet as of that date.
| Condensed Consolidated Statements of Income (Unaudited) | |||||||||||
| For the Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Net sales | $ | 13,482,000 | $ | 13,800,000 | |||||||
| Cost of goods sold, excluding depreciation | |||||||||||
| and amortization | 8,065,000 | 8,818,000 | |||||||||
| Gross profit | 5,417,000 | 4,982,000 | |||||||||
| Operating expenses: | |||||||||||
| Selling, general and administrative | 4,847,000 | 4,313,000 | |||||||||
| Depreciation and amortization | 244,000 | 243,000 | |||||||||
| Total operating expenses | 5,091,000 | 4,556,000 | |||||||||
| Income from operations | 326,000 | 426,000 | |||||||||
| Other income: | |||||||||||
| Equity in income of unconsolidated affiliate | 138,000 | 109,000 | |||||||||
| Interest income, net | 258,000 | 158,000 | |||||||||
| Total other income | 396,000 | 267,000 | |||||||||
| Income before provision for income taxes | 722,000 | 693,000 | |||||||||
| Provision for income taxes | 146,000 | 141,000 | |||||||||
| Net income | $ | 576,000 | $ | 552,000 | |||||||
| Basic earnings per common share | $ | 0.05 | $ | 0.05 | |||||||
| Diluted earnings per common share | $ | 0.05 | $ | 0.05 | |||||||
| Basic weighted average common shares outstanding | 11,285,296 | 12,150,067 | |||||||||
| Diluted weighted average common shares outstanding | 11,389,394 | 12,193,602 | |||||||||
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| Company Contact: | Investor Relations Contact: |
| Alpha Pro Tech, Ltd. | HIR Holdings |
| Donna Millar | Cameron Donahue |
| 905-479-0654 | 651-707-3532 |
| e-mail: ir@alphaprotech.com | e-mail: cameron@hirholdings.com |
FAQ
<p>What were the total sales for Alpha Pro Tech, in the first quarter of 2024?</p>
The total sales for Alpha Pro Tech, in Q1 2024 were $13.5 million.
<p>How did the Disposable Protective Apparel segment sales perform in the first quarter of 2024?</p>
The Disposable Protective Apparel segment sales increased by 1.4% in the first quarter of 2024.
<p>What was the net income for Alpha Pro Tech, in the first quarter of 2024?</p>
The net income for Alpha Pro Tech, in Q1 2024 was $576,000.
<p>What was the cash position of Alpha Pro Tech, as of March 31, 2024?</p>
Alpha Pro Tech, had a cash position of $18.5 million with no debt as of March 31, 2024.
<p>How did the Building Supply segment sales change in the first quarter of 2024?</p>
The Building Supply segment sales decreased by 4.5% in the first quarter of 2024.
