Alpha Pro Tech(APT) - 2024 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2024 decreased by 11.2% to $14.3 million, down from$16.1 million in Q3 2023[2] - Net income for Q3 2024 was $862,000, or$0.08 per diluted share, down from $1.4 million, or$0.12 per diluted share in Q3 2023, representing a decrease of 39.7%[26] - For the nine months ended September 30, 2024, net income was $3.082 million, a decrease of 1.5$3.128 million in the same period of 2023[27] - Net sales for the three months ended September 30, 2024, were $14.25 million, down from$16.05 million in the same period of 2023, representing a decrease of 11.2%[36] - Net income for the three months ended September 30, 2024, was $862,000, down from$1.43 million in the same period of 2023, indicating a decrease of 39.7%[36] Segment Performance - Building Supply segment sales fell by 23.2% to $8.8 million, compared to a record$11.4 million in Q3 2023[2] - Disposable Protective Apparel segment sales increased by 18.4% to $5.5 million, up from$4.6 million in the same period of 2023[2] - The Building Supply segment saw a 16.2% decrease in housewrap sales and a 25.1% decrease in synthetic roof underlayment sales compared to Q3 2023[6] - Face mask sales surged by 124.3% and face shield sales increased by 204.5% in Q3 2024, indicating a recovery in demand[4] Profitability and Expenses - Gross profit for Q3 2024 decreased by 9.1% to $5.5 million, with a gross profit margin of 38.5$4.5 million for Q3 2024, rising to 31.6% of net sales from 27.3% in 2023[20] - Operating expenses for the three months ended September 30, 2024, totaled $4.75 million, an increase from$4.61 million in the same period of 2023[36] Cash and Assets - As of September 30, 2024, the company had cash and cash equivalents of $18.4 million, a decrease from$20.4 million as of December 31, 2023, primarily due to cash used in investing and financing activities[28] - Inventory increased by $946,000, or 4.7$21.1 million as of September 30, 2024, driven by a 33.6% increase in the Building Supply segment[29] - Total assets increased to $73.33 million as of September 30, 2024, from$68.76 million as of December 31, 2023[33] - Total liabilities rose to $11.26 million as of September 30, 2024, compared to$7.20 million as of December 31, 2023[34] Management Outlook - Management expects growth in the Building Supply segment as housing market uncertainty abates and new home starts stabilize[4] - The company's current ratio was 19:1 as of September 30, 2024, down from 21:1 as of December 31, 2023[28] - The company repurchased 180,000 shares of common stock at a cost of $1.0 million during the three months ended September 30, 2024, with a total of 21.1 million shares repurchased at approximately$54.1 million[30]