Alpha Pro Tech, Ltd. Announces Second Quarter 2024 Financial Results
Alpha Pro Tech (NYSE American: APT) reported Q2 2024 financial results with net income of $1.6 million or $0.15 per diluted share, up 43.5% from Q2 2023. Net sales increased 1.1% to $16.3 million. The Building Supply segment saw a 5.7% decrease in sales, while the Disposable Protective Apparel segment experienced a 13.8% increase. The company maintained a strong financial position with $16.2 million in cash and $50.7 million in working capital as of June 30, 2024. Despite challenges in the housing market, APT saw growth in disposable protective garments and face mask sales. The company continues its stock repurchase program, having bought back 515,000 shares in H1 2024.
Alpha Pro Tech (NYSE American: APT) ha riportato i risultati finanziari del Q2 2024 con un utile netto di 1,6 milioni di dollari o 0,15 dollari per azione diluita, in aumento del 43,5% rispetto al Q2 2023. Le vendite nette sono aumentate dell'1,1% a 16,3 milioni di dollari. Il segmento delle forniture per costruzioni ha registrato una diminuzione del 5,7% nelle vendite, mentre il segmento dell'abbigliamento protettivo monouso ha visto un incremento del 13,8%. L'azienda ha mantenuto una solida posizione finanziaria con 16,2 milioni di dollari in cassa e 50,7 milioni di dollari in capitale circolante al 30 giugno 2024. Nonostante le sfide del mercato immobiliare, APT ha visto una crescita nelle vendite di indumenti protettivi monouso e mascherine. L'azienda continua il suo programma di riacquisto di azioni, avendo riacquistato 515.000 azioni nel primo semestre del 2024.
Alpha Pro Tech (NYSE American: APT) reportó los resultados financieros del Q2 2024 con un ingreso neto de 1,6 millones de dólares o 0,15 dólares por acción diluida, un aumento del 43,5% en comparación con el Q2 2023. Las ventas netas aumentaron un 1,1% a 16,3 millones de dólares. El segmento de suministros de construcción experimentó una disminución del 5,7% en las ventas, mientras que el segmento de ropa protectora desechable tuvo un aumento del 13,8%. La empresa mantuvo una sólida posición financiera con 16,2 millones de dólares en efectivo y 50,7 millones de dólares en capital de trabajo al 30 de junio de 2024. A pesar de los retos en el mercado de la vivienda, APT vio un crecimiento en las ventas de prendas protectoras desechables y mascarillas. La compañía continúa su programa de recompra de acciones, habiendo recomprado 515,000 acciones en la primera mitad de 2024.
알파 프로 테크(뉴욕증권거래소 아메리칸: APT)는 2024년 2분기 재무 결과를 보고하며,순이익 160만 달러 또는 희석 주당 0.15 달러를 기록했다고 발표했으며, 이는 2023년 2분기 대비 43.5% 증가한 수치입니다. 순매출은 1.1% 증가하여 1630만 달러에 달했습니다. 건설 자재 부문은 5.7% 매출 감소를 보였고, 일회용 보호 의류 부문은 13.8% 증가했습니다. 이 회사는 2024년 6월 30일 기준으로 1620만 달러의 현금과 5070만 달러의 운전 자본을 보유하며 강한 재무 상태를 유지하고 있습니다. 주택 시장의 어려움에도 불구하고 APT는 일회용 보호 의류와 마스크 판매에서 성장을 보였습니다. 이 회사는 2024년 상반기 동안 515,000주의 자사주 매입을 지속하고 있습니다.
Alpha Pro Tech (NYSE American: APT) a annoncé ses résultats financiers pour le 2ème trimestre 2024 avec un résultat net de 1,6 million de dollars ou 0,15 dollar par action diluée, en hausse de 43,5 % par rapport au 2ème trimestre 2023. Les ventes nettes ont augmenté de 1,1 % pour atteindre 16,3 millions de dollars. Le segment des fournitures de construction a enregistré une baisse de 5,7 % des ventes, tandis que le segment des vêtements de protection jetables a connu une augmentation de 13,8 %. L'entreprise a maintenu une solide position financière avec 16,2 millions de dollars en liquidités et 50,7 millions de dollars en fonds de roulement au 30 juin 2024. Malgré les défis du marché du logement, APT a connu une croissance des ventes de vêtements de protection jetables et de masques faciaux. L'entreprise poursuit son programme de rachat d'actions, ayant racheté 515 000 actions au premier semestre de 2024.
Alpha Pro Tech (NYSE American: APT) hat die finanziellen Ergebnisse für das 2. Quartal 2024 veröffentlicht, mit einem Nettoergebnis von 1,6 Millionen Dollar oder 0,15 Dollar pro verwässerter Aktie, was einem Anstieg von 43,5 % im Vergleich zum 2. Quartal 2023 entspricht. Der Nettoumsatz erhöhte sich um 1,1 % auf 16,3 Millionen Dollar. Der Bereich Bauzubehör verzeichnete einen Rückgang der Verkäufe um 5,7 %, während der Bereich Einwegschutzbekleidung ein Plus von 13,8 % verbuchte. Das Unternehmen hielt eine starke finanzielle Position mit 16,2 Millionen Dollar in Bar und 50,7 Millionen Dollar im Umlaufvermögen zum 30. Juni 2024. Trotz der Herausforderungen auf dem Wohnungsmarkt verzeichnete APT ein Wachstum bei den Verkäufen von Einwegschutzkleidung und Gesichtsmasken. Das Unternehmen setzt sein Aktienrückkaufprogramm fort und hat in der ersten Hälfte 2024 insgesamt 515.000 Aktien zurückgekauft.
- Net income increased by 43.5% to $1.6 million in Q2 2024
- Earnings per diluted share rose to $0.15 from $0.10 year-over-year
- Net sales grew by 1.1% to $16.3 million in Q2 2024
- Disposable Protective Apparel segment sales increased by 13.8%
- Gross profit margin improved to 42.0% from 37.9% in Q2 2023
- Strong financial position with $16.2 million in cash and no debt
- Building Supply segment sales decreased by 5.7%
- Cash and cash equivalents decreased from $20.4 million to $16.2 million since December 31, 2023
- Selling, general and administrative expenses increased by 6.8% to $4.9 million
- Housing market weakness with housing starts down 7.4% in Q2 2024
- Potential negative impact on gross profit margin due to recent increases in ocean freight rates
Insights
Alpha Pro Tech's Q2 2024 results show positive momentum despite challenging market conditions. The company reported a
The Disposable Protective Apparel segment performed exceptionally well, with a
Investors should note the improved gross profit margin of
Alpha Pro Tech's performance reflects broader market trends. The 7.4% decrease in housing starts has impacted the Building Supply segment, particularly affecting premium products like REX™ Wrap Fortis. This aligns with the current economic uncertainty and slowdown in the housing sector.
The Disposable Protective Apparel segment's growth suggests a normalization of demand post-COVID. The
The company's introduction of self-adhered roofing products shows adaptability to market demands. This product line expansion could be important for future growth, especially if it leads to conversions of their full line of mechanically fastened products. Investors should monitor the performance of this new line as an indicator of the company's ability to innovate in challenging market conditions.
Alpha Pro Tech's Q2 results highlight the company's resilience in a challenging environment. The Building Supply segment's performance, while down, outperformed the broader market decline in housing starts. This suggests potential market share gains or effective pricing strategies.
The strong performance in Disposable Protective Apparel is noteworthy. The
The company's improved gross margins demonstrate effective cost management and potentially improved pricing power. However, the warning about potential margin pressure due to increased ocean freight rates is a concern to monitor. The company's debt-free status and strong cash position (
Net income for the quarter ended June 30, 2024 was
- Net sales for the second quarter of 2024 were
$16.3 million , up1.1% , compared to$16.1 million for the second quarter of 2023- Building Supply segment sales decreased by
$596,000 or5.7% , to$9.9 million , compared to$10.5 million for the three months ended June 30, 2023 - Disposable Protective Apparel segment sales increased by
13.8% , to$6.3 million , compared to$5.6 million for the same period of 2023
- Building Supply segment sales decreased by
- Net income for the second quarter of 2024 was
$1.6 million , or$0.15 per diluted share, compared to$1.1 million , or$0.10 per diluted share, for the second quarter of 2023 - Cash and cash equivalents of
$16.2 million and working capital of$50.7 million , with no debt, as of June 30, 2024
NOGALES, Ariz., Aug. 07, 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 and six month periods ended June 30, 2024.
Lloyd Hoffman, President and Chief Executive Officer of Alpha Pro Tech, commented, “In our Building Supply segment, the housing market continues to show weakness, with housing starts down
The synthetic roof underlayment market has also been affected by lower housing starts, 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, with our economy underlayment, which makes up approximately
Other woven material sales increased by
Management expects the remainder of 2024 to be challenging from a sales standpoint, as single family and multi-family housing starts are both projected to finish lower than 2023. We expect growth in the building supply segment when uncertainty in the housing market abates.”
“Sales of disposable protective garments in the second quarter of 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 second quarter of 2024 and year to date 2024 are showing signs of improvement. The market continues to be saturated with products, but we are cautiously optimistic that face mask and face shield sales will continue to show growth in 2024,” added Hoffman.
Net Sales
Three months ended June 30, 2024 compared to three months ended June 30, 2023
Consolidated sales for the three months ended June 30, 2024, increased to
Building Supply Segment
Building Supply segment sales for the three months ended June 30, 2024, decreased by
The sales mix of the Building Supply segment for the three months ended June 30, 2024, was approximately
Disposable Protective Apparel Segment
Sales for the Disposable Protective Apparel segment sales for the three months ended June 30, 2024, increased by
The sales mix of the Disposable Protective Apparel segment for the three months ended June 30, 2024, was approximately
Six months ended June 30, 2024 compared to six months ended June 30, 2023
Consolidated sales for the six months ended June 30, 2024, decreased to
Building Supply Segment
Building Supply segment sales for the six months ended June 30, 2024 decreased by
The sales mix of the Building Supply segment for the six months ended June 30, 2024 was
Disposable Protective Apparel Segment
Disposable Protective Apparel segment sales for the six months ended June 30, 2024 increased by
The sales mix of the Disposable Protective Apparel segment for the six months ended June 30, 2024 was
Gross Profit
Gross profit increased by
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. However, management expects the gross profit margin could be negatively impacted by recent significant increases in ocean freight rates.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased by
Selling, general and administrative expenses increased by
Income from Operations
Income from operations increased by
Income from operations increased by
Other Income
Other income increased by
Other income increased by
Net Income
Net income for the three months ended June 30, 2024, was
Net income for the six months ended June 30, 2024, was
Balance Sheet
As of June 30, 2024, the Company had cash and cash equivalents of
Inventory increased by
Colleen McDonald, Chief Financial Officer, commented, “During the six months ended June 30, 2024, we repurchased 515,000 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.
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 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 and Quarterly Report on Form 10-Q. 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) | |||||||
| June 30, | December 31, | ||||||
| 2024 | 2023 (1) | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 16,207,000 | $ | 20,378,000 | |||
| Accounts receivable, net | 8,263,000 | 5,503,000 | |||||
| Accounts receivable, related party | 584,000 | 1,042,000 | |||||
| Inventories, net | 20,785,000 | 20,131,000 | |||||
| Prepaid expenses | 6,752,000 | 6,010,000 | |||||
| Total current assets | 52,591,000 | 53,064,000 | |||||
| Property and equipment, net | 5,314,000 | 5,587,000 | |||||
| Goodwill | 55,000 | 55,000 | |||||
| Right-of-use assets | 9,179,000 | 4,810,000 | |||||
| Equity investment in unconsolidated affiliate | 5,533,000 | 5,247,000 | |||||
| Total assets | $ | 72,672,000 | $ | 68,763,000 | |||
| Liabilities and Shareholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 343,000 | $ | 802,000 | |||
| Accrued liabilities | 639,000 | 1,103,000 | |||||
| Lease liabilities | 868,000 | 661,000 | |||||
| Total current liabilities | 1,850,000 | 2,566,000 | |||||
| Lease liabilities, net of current portion | 8,339,000 | 4,187,000 | |||||
| Deferred income tax liabilities, net | 442,000 | 442,000 | |||||
| Total liabilities | 10,631,000 | 7,195,000 | |||||
| Commitments and contingencies | |||||||
| Shareholders' equity: | |||||||
| Common stock, $.01 par value: 50,000,000 shares authorized; 11,127,878 and 11,416,212 shares outstanding as of June 30, 2024 and December 31, 2023, respectively | 111,000 | 114,000 | |||||
| Additional paid-in capital | 16,594,000 | 16,339,000 | |||||
| Retained earnings | 46,825,000 | 46,552,000 | |||||
| Accumulated other comprehensive loss | (1,489,000 | ) | (1,437,000 | ) | |||
| Total shareholders' equity | 62,041,000 | 61,568,000 | |||||
| Total liabilities and shareholders' equity | $ | 72,672,000 | $ | 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 Comprehensive Income (Unaudited) | |||||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 16,289,000 | $ | 16,115,000 | $ | 29,772,000 | $ | 29,914,000 | |||||||
| Cost of goods sold, excluding depreciation and amortization | 9,448,000 | 10,009,000 | 17,513,000 | 18,826,000 | |||||||||||
| Gross profit | 6,841,000 | 6,106,000 | 12,259,000 | 11,088,000 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 4,884,000 | 4,575,000 | 9,732,000 | 8,888,000 | |||||||||||
| Depreciation and amortization | 245,000 | 219,000 | 489,000 | 462,000 | |||||||||||
| Total operating expenses | 5,129,000 | 4,794,000 | 10,221,000 | 9,350,000 | |||||||||||
| Income from operations | 1,712,000 | 1,312,000 | 2,038,000 | 1,738,000 | |||||||||||
| Other income: | |||||||||||||||
| Equity in income of unconsolidated affiliate | 200,000 | 103,000 | 338,000 | 212,000 | |||||||||||
| Interest income, net | 207,000 | 169,000 | 465,000 | 327,000 | |||||||||||
| Total other income | 407,000 | 272,000 | 803,000 | 539,000 | |||||||||||
| Income before provision for income taxes | 2,119,000 | 1,584,000 | 2,841,000 | 2,277,000 | |||||||||||
| Provision for income taxes | 475,000 | 438,000 | 621,000 | 579,000 | |||||||||||
| Net income | $ | 1,644,000 | $ | 1,146,000 | $ | 2,220,000 | $ | 1,698,000 | |||||||
| Basic earnings per common share | $ | 0.15 | $ | 0.10 | $ | 0.20 | $ | 0.14 | |||||||
| Diluted earnings per common share | $ | 0.15 | $ | 0.10 | $ | 0.20 | $ | 0.14 | |||||||
| Basic weighted average common shares outstanding | 11,137,066 | 11,997,443 | 11,281,739 | 12,072,571 | |||||||||||
| Diluted weighted average common shares outstanding | 11,226,341 | 12,013,845 | 11,375,701 | 12,103,419 | |||||||||||
XXX
| 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 |
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