Alpha Pro Tech (APT) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 were $57.8 million, down 5.5% year-over-year; net income was $3.9 million, down 6.2% from 2023.

• Cash at year-end was $18.6 million with no debt; working capital stood at $47.5 million.

• Building Supply segment sales declined 11.0% to $36.0 million, while Disposable Protective Apparel sales rose 5.0% to $21.9 million.

Financial highlights

• Gross profit for 2024 was $22.9 million, up 0.5% year-over-year; gross margin improved to 39.6% from 37.3%.

• Q4 2024 net sales were $13.8 million, down 9.5% from Q4 2023; Q4 net income was $847,000, down 20.2%.

• Basic and diluted EPS for 2024 were $0.35, unchanged from 2023.

• Operating income for 2024 was $4.5 million, down from $4.7 million in 2023.

Outlook and guidance

• Management expects growth in the Building Supply segment in 2025, with projected increases in housing starts.

• Disposable protective garments are expected to continue growing in 2025, supported by new distribution agreements.

• Gross margin may face pressure in 2025 due to volatile ocean freight rates and ongoing economic uncertainty.