Alpha Pro Tech, Ltd. Announces Second Quarter 2024 Financial Results
Rhea-AI Summary
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.
Positive
- 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
Negative
- 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
News Market Reaction
On the day this news was published, APT gained 4.10%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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 |
FAQ
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