Alpha Pro Tech, Ltd. Announces Third Quarter 2024 Financial Results
Alpha Pro Tech (APT) reported Q3 2024 financial results with overall sales decreasing 11.2% to $14.3 million compared to Q3 2023. The Building Supply segment saw a 23.2% decline to $8.8 million, while Disposable Protective Apparel segment increased 18.4% to $5.5 million. Net income was $862,000 ($0.08 per diluted share), down from $1.4 million ($0.12 per diluted share) in Q3 2023. The company maintains a strong financial position with $18.4 million in cash and $48.7 million in working capital with no debt.
Alpha Pro Tech (APT) ha riportato i risultati finanziari del terzo trimestre del 2024, evidenziando una diminuzione complessiva delle vendite dell'11,2%, pari a 14,3 milioni di dollari rispetto al terzo trimestre del 2023. Il segmento É forniture per l'edilizia ha registrato una flessione del 23,2%, arrivando a 8,8 milioni di dollari, mentre il segmento di abbigliamento protettivo usa e getta ha visto un aumento del 18,4%, toccando i 5,5 milioni di dollari. Il reddito netto è stato di 862.000 dollari (0,08 dollari per azione diluita), in calo rispetto a 1,4 milioni di dollari (0,12 dollari per azione diluita) registrati nel terzo trimestre del 2023. L'azienda mantiene una solida posizione finanziaria con 18,4 milioni di dollari in contante e 48,7 milioni di dollari in capitale circolante, senza indebitamento.
Alpha Pro Tech (APT) reportó los resultados financieros del tercer trimestre de 2024, mostrando una disminución general en las ventas del 11.2%, alcanzando 14.3 millones de dólares en comparación con el tercer trimestre de 2023. El segmento de Suministros de Construcción vio una disminución del 23.2% a 8.8 millones de dólares, mientras que el segmento de Ropa Protectora Desechable aumentó un 18.4% a 5.5 millones de dólares. Los ingresos netos fueron de 862,000 dólares (0.08 dólares por acción diluida), disminuyendo desde 1.4 millones de dólares (0.12 dólares por acción diluida) en el tercer trimestre de 2023. La empresa mantiene una sólida posición financiera con 18.4 millones de dólares en efectivo y 48.7 millones de dólares en capital de trabajo, sin deudas.
Alpha Pro Tech (APT)는 2024년 3분기 재무 결과를 발표하며 전체 매출이 2023년 3분기 대비 11.2% 감소하여 1,430만 달러에 이르렀다고 보고했습니다. 건축 자재 부문은 23.2% 감소하여 880만 달러로 줄어든 반면, 일회용 보호 의류 부문은 18.4% 증가하여 550만 달러에 도달했습니다. 순이익은 862,000달러(희석주당 0.08달러)로, 2023년 3분기의 140만 달러(희석주당 0.12달러)에서 감소했습니다. 회사는 1,840만 달러의 현금과 4,870만 달러의 운전 자본을 보유하고 있으며, 부채가 없습니다.
Alpha Pro Tech (APT) a publié les résultats financiers du troisième trimestre 2024, montrant une diminution globale des ventes de 11,2 %, atteignant 14,3 millions de dollars par rapport au troisième trimestre 2023. Le segment des Fournitures de Construction a connu une baisse de 23,2 % pour atteindre 8,8 millions de dollars, tandis que le segment des Vêtements de Protection Jetables a augmenté de 18,4 % pour atteindre 5,5 millions de dollars. Le revenu net était de 862 000 dollars (0,08 dollars par action diluée), en baisse par rapport à 1,4 million de dollars (0,12 dollars par action diluée) au troisième trimestre 2023. L'entreprise maintient une position financière solide avec 18,4 millions de dollars en liquidités et 48,7 millions de dollars en fonds de roulement, sans dettes.
Alpha Pro Tech (APT) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024, wobei die Gesamtverkäufe im Vergleich zum dritten Quartal 2023 um 11,2 % auf 14,3 Millionen US-Dollar gesunken sind. Der Bereich Baubedarf verzeichnete einen Rückgang von 23,2 % auf 8,8 Millionen US-Dollar, während der Bereich Einweg-Schutzbekleidung um 18,4 % auf 5,5 Millionen US-Dollar anstieg. Der Reingewinn betrug 862.000 US-Dollar (0,08 US-Dollar pro verwässerter Aktie), was einem Rückgang von 1,4 Millionen US-Dollar (0,12 US-Dollar pro verwässerter Aktie) im dritten Quartal 2023 entspricht. Das Unternehmen hat eine starke Finanzlage mit 18,4 Millionen US-Dollar in bar und 48,7 Millionen US-Dollar im Umlaufvermögen und keine Schulden.
- Disposable Protective Apparel segment sales increased 18.4% to $5.5 million
- Face mask sales increased 124.3% and face shield sales up 204.5%
- Strong balance sheet with $18.4M cash and no debt
- Gross profit margin improved to 38.5% from 37.6% year-over-year
- Overall sales decreased 11.2% to $14.3 million
- Building Supply segment sales declined 23.2% to $8.8 million
- Net income decreased 39.7% to $862,000
- Earnings per share declined to $0.08 from $0.12 year-over-year
- Selling, general and administrative expenses increased 2.6% to $4.5 million
Insights
The Q3 2024 results reveal mixed performance with concerning trends. Overall revenue declined by
However, there are positive indicators: the Disposable Protective Apparel segment grew
The company's active share repurchase program and potential opportunities from hurricane-related rebuilding efforts in the southeast could provide near-term catalysts.
The housing market headwinds are significantly impacting APT's building products division. The
However, the recent hurricanes Helene and Milton could drive increased demand for building materials in the southeast region. The company's Georgia plant location positions them strategically to capitalize on reconstruction efforts. The exploration of additional products like roof and deck flashing, particularly for coastal and high-wind markets, shows forward-thinking adaptation to evolving building codes.
Overall sales decreased by
Disposable Protective Apparel segment sales increased by
Building Supply segment sales decreased by
- Net sales for the third quarter of 2024 were
$14.3 million , down11.2% , compared to$16.1 million for the third quarter of 2023- Building Supply segment sales decreased by
$2.7 million , or23.2% , to$8.8 million compared to a record$11.4 million for the three months ended September 30, 2023 - Disposable Protective Apparel segment sales increased by
18.4% to$5.5 million , compared to$4.6 million for the same period of 2023
- Building Supply segment sales decreased by
- Net income for the third quarter of 2024 was
$862,000 , or$0.08 per diluted share, compared to$1.4 million , or$0.12 per diluted share, for the third quarter of 2023 - Cash and cash equivalents of
$18.4 million and working capital of$48.7 million with no debt, as of September 30, 2024
NOGALES, Ariz., Nov. 06, 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 nine month periods ended September 30, 2024.
Lloyd Hoffman, President and Chief Executive Officer of Alpha Pro Tech, commented, “The U.S. housing market continues to face challenges, with housing starts down
Management is encouraged for the remainder of 2024, as our robust inventory and plant location in Georgia will allow us to assist in the southeast rebuild after hurricanes Helene and Milton. Since the first storm, we have seen a surge in synthetic roof underlayment orders, which we expect to have a positive effect on the fourth quarter of 2024. We are exploring additional products such as roof and deck flashing. As building codes evolve, we see this as an opportunity to capture additional business, specifically in coastal and high wind markets. We expect growth in the Building Supply segment when uncertainty in the housing market abates and flat to positive new home starts statistics become apparent.”
“Sales of disposable protective garments in the third quarter of 2024 were up by
Net Sales
Three months ended September 30, 2024, compared to three months ended September 30, 2023
Consolidated sales for the three months ended September 30, 2024, decreased to
Building Supply Segment
Building Supply segment sales for the quarter ended September 30, 2024 decreased by
The sales mix of the Building Supply segment for the three months ended September 30, 2024, was approximately
Other woven material sales decreased by
Disposable Protective Apparel Segment
Disposable Protective Apparel segment sales for the three months ended September 30, 2024 increased by
The sales mix of the Disposable Protective Apparel segment for the three months ended September 30, 2024, was approximately
Nine months ended September 30, 2024, compared to nine months ended September 30, 2023
Consolidated sales for the nine months ended September 30, 2024 decreased to
Building Supply Segment
Building Supply segment sales for the nine months ended September 30, 2024 decreased by
The sales mix of the Building Supply segment for the nine months ended September 30, 2024 was
Disposable Protective Apparel Segment
Sales for the Disposable Protective Apparel segment for the nine months ended September 30, 2024 increased by
The sales mix of the Disposable Protective Apparel segment for the nine months ended September 30, 2024 was
Sales of disposable protective garments for the nine months ended September 30, 2024 increased by
Gross Profit
Gross profit decreased 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 affected 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 decreased by
Income from operations decreased by
Other Income
Other income decreased by
Other income increased by
Net Income
Net income for the three months ended September 30, 2024, was
Net income for the nine months ended September 30, 2024, was
Balance Sheet
As of September 30, 2024, the Company had cash and cash equivalents of
Inventory increased by
Colleen McDonald, Chief Financial Officer, commented, “During the three months ended September 30, 2024, we repurchased 180,000 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) | |||||||||||||
| September 30, | December 31, | ||||||||||||
| 2024 | 2023 (1) | ||||||||||||
| Assets | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 18,394,000 | $ | 20,378,000 | |||||||||
| Accounts receivable, net | 5,626,000 | 5,503,000 | |||||||||||
| Accounts receivable, related party | 645,000 | 1,042,000 | |||||||||||
| Inventories, net | 21,077,000 | 20,131,000 | |||||||||||
| Prepaid expenses | 5,668,000 | 6,010,000 | |||||||||||
| Total current assets | 51,410,000 | 53,064,000 | |||||||||||
| Property and equipment, net | 7,216,000 | 5,587,000 | |||||||||||
| Goodwill | 55,000 | 55,000 | |||||||||||
| Right-of-use assets | 8,939,000 | 4,810,000 | |||||||||||
| Equity investment in unconsolidated affiliate | 5,705,000 | 5,247,000 | |||||||||||
| Total assets | $ | 73,325,000 | $ | 68,763,000 | |||||||||
| Liabilities and Shareholders' Equity | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable | $ | 934,000 | $ | 802,000 | |||||||||
| Accrued liabilities | 901,000 | 1,103,000 | |||||||||||
| Lease liabilities | 871,000 | 661,000 | |||||||||||
| Total current liabilities | 2,706,000 | 2,566,000 | |||||||||||
| Lease liabilities, net of current portion | 8,113,000 | 4,187,000 | |||||||||||
| Deferred income tax liabilities, net | 442,000 | 442,000 | |||||||||||
| Total liabilities | 11,261,000 | 7,195,000 | |||||||||||
| Commitments and contingencies | |||||||||||||
| Shareholders' equity: | |||||||||||||
| Common stock, $.01 par value: 50,000,000 shares authorized; | |||||||||||||
| 10,952,878 and 11,416,212 shares outstanding as of | |||||||||||||
| September 30, 2024 and December 31, 2023, respectively | 110,000 | 114,000 | |||||||||||
| Additional paid-in capital | 16,442,000 | 16,339,000 | |||||||||||
| Retained earnings | 46,926,000 | 46,552,000 | |||||||||||
| Accumulated other comprehensive loss | (1,414,000 | ) | (1,437,000 | ) | |||||||||
| Total shareholders' equity | 62,064,000 | 61,568,000 | |||||||||||
| Total liabilities and shareholders' equity | $ | 73,325,000 | $ | 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 Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Net sales | $ | 14,251,000 | $ | 16,053,000 | $ | 44,023,000 | $ | 45,967,000 | |||||||||
| Cost of goods sold, excluding depreciation | |||||||||||||||||
| and amortization | 8,767,000 | 10,018,000 | 26,280,000 | 28,844,000 | |||||||||||||
| Gross profit | 5,484,000 | 6,035,000 | 17,743,000 | 17,123,000 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Selling, general and administrative | 4,502,000 | 4,387,000 | 14,234,000 | 13,275,000 | |||||||||||||
| Depreciation and amortization | 245,000 | 225,000 | 734,000 | 687,000 | |||||||||||||
| Total operating expenses | 4,747,000 | 4,612,000 | 14,968,000 | - | 13,962,000 | ||||||||||||
| Income from operations | 737,000 | 1,423,000 | 2,775,000 | 3,161,000 | |||||||||||||
| Other income: | |||||||||||||||||
| Equity in income of unconsolidated affiliate | 97,000 | 180,000 | 435,000 | 392,000 | |||||||||||||
| Gain on sale of asset | 30,000 | - | 30,000 | - | |||||||||||||
| Interest income, net | 235,000 | 222,000 | 700,000 | 549,000 | |||||||||||||
| Total other income | 362,000 | 402,000 | 1,165,000 | 941,000 | |||||||||||||
| Income before provision for income taxes | 1,099,000 | 1,825,000 | 3,940,000 | 4,102,000 | |||||||||||||
| Provision for income taxes | 237,000 | 395,000 | 858,000 | 974,000 | |||||||||||||
| Net income | $ | 862,000 | $ | 1,430,000 | $ | 3,082,000 | $ | 3,128,000 | |||||||||
| Basic earnings per common share | $ | 0.08 | $ | 0.12 | $ | 0.28 | $ | 0.26 | |||||||||
| Diluted earnings per common share | $ | 0.08 | $ | 0.12 | $ | 0.28 | $ | 0.26 | |||||||||
| Basic weighted average common shares outstanding | 11,075,527 | 11,781,071 | 11,103,467 | 11,974,336 | |||||||||||||
| Diluted weighted average common shares outstanding | 11,173,739 | 11,781,071 | 11,194,178 | 11,974,336 | |||||||||||||
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 |
FAQ
What was Alpha Pro Tech's (APT) revenue in Q3 2024?
How much did APT's Building Supply segment sales decrease in Q3 2024?
What was APT's earnings per share (EPS) in Q3 2024?
How much cash does Alpha Pro Tech (APT) have as of September 30, 2024?
