Alpha Pro Tech, Ltd. Announces Third Quarter 2024 Financial Results

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Alpha Pro Tech
Alpha Pro Tech

Overall sales decreased by 11.2% to $14.3 million compared to $16.1 million for the third quarter of 2023

Disposable Protective Apparel segment sales increased by 18.4% to $5.5 million compared to $4.6 million for the prior year period

Building Supply segment sales decreased by 23.2% to $8.8 million compared to a record $11.4 million for the third quarter of 2023

  • Net sales for the third quarter of 2024 were $14.3 million, down 11.2%, compared to $16.1 million for the third quarter of 2023

    • Building Supply segment sales decreased by $2.7 million, or 23.2%, 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

  • 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 4.0% in the third quarter of 2024 compared to the prior year period. During the first six months of 2024, housing starts trailed 2023 by 2.7% while our core building product sales remained nearly flat. In July 2024, housing starts were down 14.3%, leading to our largest customers reducing shipments and adjusting their inventory positions, resulting in decreased sales in the third quarter of 2024. Despite the drop in housing starts in 2024, the percentage decline of sales to those large customers was lower than the percentage decline of housing starts. Presenting an additional challenge in 2024, multi-family housing starts for the first nine months were down 30.5% compared to 2023 and the lowest in ten years. Building Supply segment sales in the third quarter were also being compared to record quarterly sales in the third quarter of 2023.

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.”

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