On this page of StockholderLetter.com we present the latest annual shareholder letter from ALPHA PRO TECH LTD — ticker symbol APT. Reading current and past APT letters to shareholders can bring important insights into the investment thesis.

 •  4/29/2024 Letter Continued (Full PDF)
 •  4/28/2023 APT Stockholder Letter
 •  More "Construction Materials & Machinery" Category Stockholder Letters
 •  APT Benford's Law Stock Score = 99

APT Shareholder/Stockholder Letter Transcript:

CORPORATE
PROFILE
TABLE OF CONTENTS
1
2
4
6
Financial Highlights
To Our Shareholders
Apparel, Masks & Shields
Building Products
Financials
Corporate Information


Entering fiscal year 2024, Alpha Pro Tech is positioned strongly both operationally and
financially, emanating from our success in 2023, which saw expanded production
capacity and new product innovation. We also focused on driving operational cash flow,
which e   orts culminated in our cash position increasing by over 25%, to $20.4 million
despite spending approximately $4 million to repurchase shares in 2023.
The strategic research and development investments to expand our product o   erings
and capital investments to increase production capacity have positioned the company
for incremental growth in 2024 and beyond. The launch of our housewrap accessories
line in 2022 saw a 180.5% increase in sales during 2023 and we continue to make
inroads into the multi-family and commercial construction sector, evidenced by a 33.9%
increase in premium housewrap sales in 2023. We also expanded our roofing products
with the launch of our self-adhered product line in late 2023, which we expect to grow
revenue within our current customer base and allow for expansion into new markets
and business segments.
The company experienced the six highest revenue quarters on record for the Building
Supply segment over the past eight quarters: the second, third, and fourth quarters of
2023 and the first, second and third quarters of 2022. These achievements come
despite the continued softness in the housing market, as new U.S. housing starts in
2023 decreased by 8.8%, compared to 2022. Despite this decline, Building Supply
segment sales for 2023 increased by $3.5 million, or 9.4%, to a record sales year of
$40.4 million, compared to $36.9 million in 2022.

Overall, our consolidated sales for the year ended December 31, 2023, decreased to $61.2 million, from
$62.0 for the year ended December 31, 2022, representing a decrease of $749,000, or 1.2%. This
decrease consisted of decreased sales in the Disposable Protective Apparel segment of $4.2 million,
partially o   set by the $3.5 million increase in sales in the Building Supply segment. The Disposable
Protective Apparel segment decrease was due to a 4.0% increase in sales of core disposable protective
garments, o   set by a 62.3% decrease in sales of face masks and a 75.5% decrease in sales of
face shields.
Our balance sheet remains strong with cash of $20.4 million as of December 31, 2023, up 25.1% from the
prior year, and working capital of over $50 million with no debt, continuing our strong financial position.
Our investments to scale capacity and launch new products, which both expands our breadth in current
markets and opens up new market opportunities, positions the company to further drive shareholder
value. This growth and expansion will be executed by our dedicated employees, which have been the
backbone to our success.
In closing, I want to thank our shareholders for their continued support and trust in Alpha Pro Tech.
Sincerely,
Lloyd Ho   man
President and
Chief Executive O   cer



 4/29/2024 Letter Continued (Full PDF)