Alpha Pro Tech (APT) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 decreased 11.2% year-over-year to $14.3M, with Building Supply down 23.2% and Disposable Protective Apparel up 18.4%.

• Net income for Q3 2024 was $862K ($0.08 per share), down 39.7% from Q3 2023; nine-month net income was $3.08M, nearly flat year-over-year.

• Gross profit margin improved to 38.5% in Q3 2024 from 37.6% in Q3 2023; nine-month margin rose to 40.3%.

• Management expects growth in Building Supply as housing market uncertainty abates and positive impact from hurricane-related demand.

Financial highlights

• Q3 2024 net sales: $14.3M (down 11.2% YoY); nine months: $44.0M (down 4.2% YoY).

• Q3 2024 net income: $862K (down 39.7% YoY); nine months: $3.08M (down 1.5% YoY).

• Q3 2024 EPS: $0.08 (down from $0.12); nine months: $0.28 (up from $0.26).

• Cash and equivalents at September 30, 2024: $18.4M; working capital: $48.7M; no debt.

• Inventory increased 4.7% to $21.1M, mainly due to higher Building Supply segment inventory.

Outlook and guidance

• Management anticipates growth in Building Supply segment as housing market stabilizes and expects positive Q4 impact from hurricane recovery demand.

• Disposable Protective Apparel segment expected to continue growth, especially in face masks and shields as market excess inventory declines.

• New self-adhered roofing products launched in late 2023 are expected to drive future revenue.