Alpha Pro Tech, Ltd. Announces Fourth Quarter and Year Ended December 31, 2021 Financial Results
Alpha Pro Tech, Ltd. (APT) reported 2021 net sales of $68.6 million, the second-highest in its history, down from $102.7 million in 2020, largely due to a 56% decline in Disposable Protective Apparel sales. Building Supply segment sales increased 20.6% to a record $36.9 million. Net income fell to $6.7 million ($0.50 per share), significantly down from $26.9 million ($1.92 per share) in 2020. The company holds $16.3 million in cash with no debt. Positive growth forecasts in the Building Supply segment and a strategic production capacity increase are anticipated.
- Building Supply segment achieved record sales of $36.9 million, a 20.6% increase.
- Synthetic roof underlayment sales increased by 25.9%, showcasing strong demand.
- Anticipated strong growth in 2022 due to increased production capacity and market demand.
- Net income declined by $20.1 million or 74.9% compared to 2020.
- Disposable Protective Apparel segment sales decreased by 56%, significantly impacting overall revenue.
- Gross profit margin decreased to 36.7% from 49.2% due to changes in product mix and rising costs.
Sales for 2021 of
Building Supply Sales Increase by
- Net sales in 2021 of
$68.6 million , second highest in Company history, compared to$102.7 million in 2020. Comparative sales in 2021 were significantly affected by COVID-19 in 2020.- Building Supply segment sales increased by
20.6% , to a record$36.9 million in 2021, compared to$30.6 million in 2020. - Disposable Protective Apparel segment sales decreased by
56.0% to$31.7 million , compared to$72.1 million in 2020.
- Building Supply segment sales increased by
- Net income in 2021 of
$6.7 million , or$0.50 per diluted share, compared to net income of$26.9 million , or$1.92 per diluted share in 2020. - Cash of
$16.3 million and working capital of$50.3 million with no debt as of December 31, 2021.
NOGALES, Ariz., March 09, 2022 (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 and year ended December 31, 2021.
Lloyd Hoffman, President and Chief Executive Officer of Alpha Pro Tech, commented, “The decrease in Disposable Protective Apparel segment sales in 2021 was driven by reduced demand in both our facemasks, primarily our N-95 Particulate Respirator face mask and face shields, partially offset by COVID-19 associated usage of our protective garments. Although face mask and face shield sales were down in 2021, they were higher than any other year on record, with the exception of the past pandemics in 2020 (COVID-19) and 2009 (H1N1). Due to various COVID-19 variants, sales of face masks and face shields are expected to remain higher than pre-pandemic levels in the first quarter of 2022, but it’s uncertain how long this will continue.”
“Our Building Supply segment sales were a record for the year ended December 31, 2021, with continued significant growth due to strong demand for both our synthetic roof underlayment and housewrap products. Synthetic roof underlayment sales were a record in 2021 and increased by
The Company has committed to increasing production capacity in our Building Supply segment by investing approximately
We are encouraged by the current demand for our Building Supply products and anticipate strong continued growth in 2022. We have continued to enjoy increased sales by utilizing a strategic approach to adding additional dealers through aggressive sales strategies, being vertically integrated and having control of our manufacturing, unlike most of our competitors. By adding the additional dealers, distribution channels and additional products in the roofing sector, we expect to maintain our sales growth. We expect our housewrap sales to continue to grow with new home construction remaining high as well as our ability to deliver products in a timely fashion by utilizing our vertically integrated manufacturing capabilities. This coupled with our growing distribution channels has been the backbone of our sales growth,” added Hoffman.
2021 Results
Net Sales
Consolidated sales for the three months ended December 31, 2021, decreased to
Disposable Protective Apparel segment sales for the three months ended December 31, 2021 decreased by
The sales mix of the Disposable Protective Apparel segment for the three months ended December 31, 2021 was approximately
Building Supply segment sales for the three months ended December 31, 2021 increased by
Consolidated sales for the year ended December 31, 2021, decreased to
Sales for the Disposable Protective Apparel segment for the year ended December 31, 2021, decreased by
The sales mix of the Disposable Protective Apparel segment for the year ended December 31, 2021 was approximately
Building Supply segment sales for the year ended December 31, 2021 increased by
The sales mix of the Building Supply segment for the year ended December 31, 2021 was approximately
Gross Profit
Gross profit decreased by
Gross profit decreased by
Going forward, management believes that gross profit margin could continue to be negatively affected by the recent significant increases in ocean freight and other transportation costs as well as raw material price increases. In the current environment, cost increases may rise more rapidly than our sales prices, which could continue to decrease gross profit margin.
Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased by
Selling, general and administrative expenses decreased by
Income from Operations
Income from operations decreased by
Income from operations decreased by
Net Income
Net income for the three months ended December 31, 2021 was
Net income for the year ended December 31, 2021 was
Balance Sheet
As of December 31, 2021, the Company had cash of
Inventory increased by
Colleen McDonald, Chief Financial Officer, commented, “During the year ended December 31, 2021, we repurchased 439,000 shares of common stock 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. The company has made approximately
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, changes in global economic conditions; the effects of the COVID-19 pandemic on our business and operations, the business and operations of those within our supply chain and global economic conditions generally; changes in order volume by our customers; the inability of our suppliers and contractors to meet our requirements; potential challenges related to international manufacturing; our partnership with a joint venture partner; 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.
-- Tables follow --
Consolidated Balance Sheets
| December 31, | December 31, | ||||||||||
| 2021 | 2020 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 16,307,000 | $ | 23,292,000 | |||||||
| Accounts receivable, net of allowance for doubtful accounts of | |||||||||||
| 3,397,000 | 8,132,000 | ||||||||||
| Accounts receivable, related party | 1,383,000 | 905,000 | |||||||||
| Inventories | 24,969,000 | 16,749,000 | |||||||||
| Prepaid expenses | 6,943,000 | 6,087,000 | |||||||||
| Total current assets | 52,999,000 | 55,165,000 | |||||||||
| Property and equipment, net | 6,064,000 | 4,353,000 | |||||||||
| Goodwill | 55,000 | 55,000 | |||||||||
| Definite-lived intangible assets, net | 3,000 | 7,000 | |||||||||
| Right-of-use assets | 2,648,000 | 3,535,000 | |||||||||
| Equity investment in unconsolidated affiliate | 6,120,000 | 5,549,000 | |||||||||
| Total assets | $ | 67,889,000 | $ | 68,664,000 | |||||||
| Liabilities and Shareholders' Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 528,000 | $ | 1,983,000 | |||||||
| Accrued liabilities | 1,250,000 | 2,793,000 | |||||||||
| Customer advance payments of orders | - | 209,000 | |||||||||
| Lease liabilities | 883,000 | 867,000 | |||||||||
| Total current liabilities | 2,661,000 | 5,852,000 | |||||||||
| Lease liabilities, net of current portion | 1,817,000 | 2,719,000 | |||||||||
| Deferred income tax liabilities, net | 791,000 | 563,000 | |||||||||
| Total liabilities | 5,269,000 | 9,134,000 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholders' equity: | |||||||||||
| Common stock, $.01 par value: 50,000,000 shares authorized; | |||||||||||
| 13,115,341 and 13,419,847 shares outstanding as of | |||||||||||
| December 31, 2021 and December 31, 2020, respectively | 132,000 | 135,000 | |||||||||
| Additional paid-in capital | - | 409,000 | |||||||||
| Retained earnings | 62,488,000 | 58,986,000 | |||||||||
| Total shareholders' equity | 62,620,000 | 59,530,000 | |||||||||
| Total liabilities and shareholders' equity | $ | 67,889,000 | $ | 68,664,000 | |||||||
Condensed Consolidated Statements of Income
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||
| Net sales | $ | 13,195,000 | $ | 29,019,000 | $ | 68,637,000 | $ | 102,700,000 | ||||||||||||
| Cost of goods sold, excluding depreciation | ||||||||||||||||||||
| and amortization | 8,250,000 | 14,840,000 | 43,339,000 | 52,218,000 | ||||||||||||||||
| Gross profit | 4,945,000 | 14,179,000 | 25,298,000 | 50,482,000 | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Selling, general and administrative | 3,893,000 | 4,935,000 | 16,554,000 | 18,171,000 | ||||||||||||||||
| Depreciation and amortization | 206,000 | 183,000 | 817,000 | 729,000 | ||||||||||||||||
| Total operating expenses | 4,099,000 | 5,118,000 | 17,371,000 | 18,900,000 | ||||||||||||||||
| Income from operations | 846,000 | 9,061,000 | 7,927,000 | 31,582,000 | ||||||||||||||||
| Other income (expenses): | ||||||||||||||||||||
| Equity in income (loss) of unconsolidated affiliate | (52,000 | ) | 254,000 | 571,000 | 710,000 | |||||||||||||||
| Loss from marketable securities | - | (20,000 | ) | - | (62,000 | ) | ||||||||||||||
| Interest income, net | - | 1,000 | 2,000 | 18,000 | ||||||||||||||||
| Total other income (loss), net | (52,000 | ) | 235,000 | 573,000 | 666,000 | |||||||||||||||
| Income before provision | ||||||||||||||||||||
| for income taxes | 794,000 | 9,296,000 | 8,500,000 | 32,248,000 | ||||||||||||||||
| Provision for income taxes | 194,000 | 2,076,000 | 1,744,000 | 5,360,000 | ||||||||||||||||
| Net income | $ | 600,000 | $ | 7,220,000 | $ | 6,756,000 | $ | 26,888,000 | ||||||||||||
| Basic earnings per common share | $ | 0.05 | $ | 0.53 | $ | 0.51 | $ | 2.00 | ||||||||||||
| Diluted earnings per common share | $ | 0.05 | $ | 0.52 | $ | 0.50 | $ | 1.92 | ||||||||||||
| Basic weighted average common shares outstanding | 13,138,096 | 13,505,909 | 13,225,628 | 13,449,987 | ||||||||||||||||
| Diluted weighted average common shares outstanding | 13,302,013 | 13,947,738 | 13,499,442 | 13,972,145 | ||||||||||||||||
Out-of-period adjustment
During the fourth quarter of 2021, the Company recorded an out-of-period adjustment to correct an error related to a prior year which increased income tax expense by
| 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
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