Alpha Pro Tech, Ltd. Announces First Quarter 2025 Financial Results
- Net sales increased 2.5% YoY to $13.8 million
- Net income grew 6.4% to $613,000 ($0.06 per diluted share)
- Strong balance sheet with $13.4M cash and $47.0M working capital with no debt
- Synthetic roof underlayment sales up 21.8%
- Active share repurchase program with $1.6M still available
- Gross profit margin declined to 39.0% from 40.2% YoY
- Face mask sales decreased 50.5% due to excess channel partner inventory
- Housewrap sales declined 20.9% due to weak housing market
- Potential margin pressure from new tariffs on India-sourced products
Insights
APT shows modest growth amid housing slowdown with strong balance sheet but faces margin pressure and mixed segment performance.
Alpha Pro Tech's Q1 2025 results paint a picture of a company navigating mixed market conditions with reasonable success. The company achieved a
The performance across segments reveals significant divergence. Within the Building Supply segment (up
In the Disposable Protective Apparel segment (up
Profitability shows mild improvement with net income increasing
The balance sheet remains exceptionally strong with
The tariff situation creates a dual dynamic – potentially advantageous against Chinese competitors while posing risks for their India-sourced products. The hiring of a Director of Product and Business Development signals recognition of the need to pursue new growth avenues.
Total Sales Increased by
- Net sales for the first quarter of 2025 were
$13.8 million , up2.5% , compared to$13.5 million for the first quarter of 2024- Building Supply segment sales increased by
$132,000 or1.6% , to$8.4 million , compared to$8.2 million for the three months ended March 31, 2024 - Disposable Protective Apparel segment sales increased by
$208,000 or4.0% , to$5.5 million , compared to$5.2 million for the same period of 2024
- Building Supply segment sales increased by
- Net income for the first quarter of 2025 was
$613,000 or$0.06 per diluted share, compared to$576,000 , or$0.05 per diluted share, for the first quarter of 2024 - Cash of
$13.4 million and working capital of$47.0 million with no debt, as of March 31, 2025
NOGALES, Ariz., May 08, 2025 (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, 2025.
Lloyd Hoffman, President and Chief Executive Officer of Alpha Pro Tech, commented, “The housing market continued to show weakness in the first quarter of 2025, continuing the weak trend of 2024, with single-family housing starts down
Sales of synthetic roof underlayment, which were up
Management expects growth in the Building Supply segment in the coming year and is encouraged by business in the pipeline. However, there continues to be uncertainty in housing starts and the economy in general that could affect this segment.”
Mr. Hoffman continued, “Sales of face masks in the first quarter of 2025 were negatively affected by excessive purchases primarily by one of our channel partners in the later part of 2024 in preparation for the 2025 flu/COVID season. Thus, their on-hand inventory in the first quarter of 2025 was higher than historical levels. We anticipate demand to improve once inventory levels return to more normal levels. Our partnerships remain strong with a mutual desire to achieve organic growth in 2025.
Lastly, there remains uncertainty and volatility in the economy due to tariffs. Management believes that the Company is well positioned as a significant portion of our competition purchase disposable protective garments from China which currently have significantly higher tariff rates than the products that we source from India. This puts us in a favorable cost position in relation to those competitors. However, new tariffs on India may negatively affect our margins on products we produce there.”
2025 First Quarter Financial Results:
Consolidated sales for the three months ended March 31, 2025, increased to
Building Supply segment sales for the three months ended March 31, 2025, increased by
Disposable Protective Apparel segment sales for the three months ended March 31, 2025, increased by
Gross Profit
Gross profit decreased by
The gross profit margin in the three months ended March 31, 2025 was negatively affected by a margin decrease in both the Disposable Protective Apparel and Building Supply segments. Gross profit margin was negatively affected primarily by the inventory received last year which incurred higher ocean freight rates. There was significant volatility in ocean freight rates in 2024, due to factors such as geopolitical tensions, labor disputes and market dynamics but in the first quarter of 2025 we began experiencing an easing of those freight rates.
Net Income
Net income for the three months ended March 31, 2025, was
Balance Sheet
As of March 31, 2025, the Company had cash of
Colleen McDonald, Chief Financial Officer, commented, “As of March 31, 2025, we had
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 4 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 effects of tariff policies and potential countermeasure; potential liabilities from environmental laws and regulations; uncertainties with respect to the development, deployment, and use of artificial intelligence; 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.
| 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 |
-- Tables follow –
Consolidated Balance Sheets (Unaudited)
| March 31, | December 31, | |||||||||
| 2025 | 2024 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 13,352,000 | $ | 18,636,000 | ||||||
| Accounts receivable, net | 6,671,000 | 3,692,000 | ||||||||
| Accounts receivable, related party | 1,001,000 | 1,202,000 | ||||||||
| Inventories, net | 23,565,000 | 22,733,000 | ||||||||
| Prepaid expenses | 4,751,000 | 4,376,000 | ||||||||
| Total current assets | 49,340,000 | 50,639,000 | ||||||||
| Property and equipment, net | 8,412,000 | 8,520,000 | ||||||||
| Goodwill | 55,000 | 55,000 | ||||||||
| Right-of-use assets | 8,485,000 | 8,714,000 | ||||||||
| Equity investment in unconsolidated affiliate | 5,890,000 | 5,814,000 | ||||||||
| Total assets | $ | 72,182,000 | $ | 73,742,000 | ||||||
| Liabilities and Shareholders' Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 887,000 | $ | 1,283,000 | ||||||
| Accrued liabilities | 502,000 | 947,000 | ||||||||
| Current portion of lease liabilities | 917,000 | 893,000 | ||||||||
| Total current liabilities | 2,306,000 | 3,123,000 | ||||||||
| Lease liabilities, net of current portion | 7,645,000 | 7,882,000 | ||||||||
| Deferred income tax liabilities, net | 503,000 | 503,000 | ||||||||
| Total liabilities | 10,454,000 | 11,508,000 | ||||||||
| Commitments and contingencies | ||||||||||
| Shareholders' equity: | ||||||||||
| Common stock, $.01 par value: 50,000,000 shares authorized; | ||||||||||
| 10,595,465 and 10,816,878 shares outstanding as of | ||||||||||
| March 31, 2025 and December 31, 2024, respectively | 106,000 | 108,000 | ||||||||
| Additional paid-in capital | 16,157,000 | 16,368,000 | ||||||||
| Retained earnings | 47,029,000 | 47,257,000 | ||||||||
| Accumulated other comprehensive loss | (1,564,000 | ) | (1,499,000 | ) | ||||||
| Total shareholders' equity | 61,728,000 | 62,234,000 | ||||||||
| Total liabilities and shareholders' equity | $ | 72,182,000 | $ | 73,742,000 | ||||||
(1) The condensed consolidated balance sheet as of December 31, 2024, 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 | |||||||||||
| March 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Net sales | $ | 13,822,000 | $ | 13,482,000 | |||||||
| Cost of goods sold, excluding depreciation | |||||||||||
| and amortization | 8,430,000 | 8,065,000 | |||||||||
| Gross profit | 5,392,000 | 5,417,000 | |||||||||
| Operating expenses: | |||||||||||
| Selling, general and administrative | 4,694,000 | 4,847,000 | |||||||||
| Depreciation and amortization | 243,000 | 244,000 | |||||||||
| Total operating expenses | 4,937,000 | 5,091,000 | |||||||||
| Income from operations | 455,000 | 326,000 | |||||||||
| Other income: | |||||||||||
| Equity in income of unconsolidated affiliate | 141,000 | 138,000 | |||||||||
| Interest income, net | 176,000 | 258,000 | |||||||||
| Total other income | 317,000 | 396,000 | |||||||||
| Income before provision for income taxes | 772,000 | 722,000 | |||||||||
| Provision for income taxes | 159,000 | 146,000 | |||||||||
| Net income | $ | 613,000 | $ | 576,000 | |||||||
| Basic earnings per common share | $ | 0.06 | $ | 0.05 | |||||||
| Diluted earnings per common share | $ | 0.06 | $ | 0.05 | |||||||
| Basic weighted average common shares outstanding | 10,724,760 | 11,285,296 | |||||||||
| Diluted weighted average common shares outstanding | 10,836,581 | 11,389,394 | |||||||||
FAQ
What were Alpha Pro Tech's (APT) Q1 2025 earnings per share?
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