2 unchanged sentences
The Company’s common stock trades on the NYSE American (formerly the NYSE MKT, the NYSE Amex and the American Stock Exchange) (the “NYSE American”) under the symbol “APT.”
−Removed: As of February 28, 2025, the Company’s common stock was held by 89 shareholders of record and approximately 12,437 beneficial owners.
+Added: As of March 1, 2026, the Company’s common stock was held by 79 shareholders of record and approximately 10,800 beneficial owners.
The holders of the Company’s common stock are entitled to receive such dividends as may be declared by the Board of Directors of the Company from time to time to the extent that funds are legally available for payment thereof.
11 unchanged sentences
as Part of Publicly
−Removed: Announced Program (1)
+Added: Approximate Dollar
+Added: Value of Shares that
+Added: Purchased Under the
October 1 - 31, 2025
1 unchanged sentence
December 1 - 31, 2025
−Removed: On December 23, 2024, the Company announced that the Board of Directors had authorized a $2,000,000 expansion of the Company’s existing share repurchase program.
+Added: On June 27, 2025, the Company announced that the Board of Directors had authorized a $2,000,000 expansion of the Company’s existing share repurchase program.
All of the shares included in this table were purchased pursuant to this program.
3 unchanged sentences
We did not sell any unregistered equity securities during the periods covered by this Annual Report on Form 10-K.
−Removed: Management ’ s Discussion and Analysis of Financial Condition and Results of Operations.
−Removed: You should read the following discussion and analysis together with our consolidated financial statements and the notes to our consolidated financial statements, which appear elsewhere in this report.
−Removed: Special Note Regarding Forward-Looking Statements
−Removed: Certain information set forth in this Annual Report on Form 10-K contains “forward-looking statements” within the meaning of federal securities laws.
−Removed: Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions, including, without limitation, our expected orders, new products, production levels and sales in 2025, and other information that is not historical information.
−Removed: When used in this report, the words “estimates,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “predicts,” “potential,” “may,” “continue” or “should,” and variations of such words or similar expressions are intended to identify forward-looking statements.
−Removed: We may make additional forward-looking statements from time to time.
−Removed: We caution readers that these forward-looking statements speak only as of the date hereof.
−Removed: The Company hereby expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which such statements are based.
−Removed: All forward-looking statements, whether written or oral and whether made by us or on our behalf, are expressly qualified by this special note.
−Removed: Any expectations based on these forward-looking statements are subject to risks and uncertainties.
−Removed: These risks and other factors include, but are not limited to, those listed below and under “Risk Factors,” and elsewhere in this report.
−Removed: These and many other factors could affect the Company’s future operating results and financial condition and could cause actual results to differ materially from expectations based on forward-looking statements made in this document or elsewhere by the Company or on its behalf.
−Removed: Special Note Regarding Smaller Reporting Company Status
−Removed: We are filing this Annual Report on Form 10-K as a “smaller reporting company” (as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended) based on our public float (the aggregate market value of our common equity held by non-affiliates of the Company) as of the last business day of our second fiscal quarter of 2024.
−Removed: As a result of being a smaller reporting company, we are allowed and have elected to omit certain information from this Management’s Discussion and Analysis of Financial Condition and Results of Operations;
−Removed: however, we have provided all information for the periods presented that we believe to be appropriate and necessary to aid in an understanding of the current consolidated financial position, changes in financial position and results of operations of the Company.
−Removed: Critical Accounting Policies and Estimates
−Removed: The preparation of our financial statements in conformity with U.S.
−Removed: generally accepted accounting principles (“U.S.
−Removed: GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of net sales and expenses during the periods reported.
−Removed: We base estimates on past experience and on various other assumptions that are believed to be reasonable under the circumstances.
−Removed: The application of these accounting policies on a consistent basis enables us to provide timely and reliable financial information.
−Removed: Our significant accounting policies and estimates are more fully described in Note 2 – “Summary of Significant Accounting Policies” in the notes to our consolidated financial statements in Item 8.
−Removed: Our critical accounting policies and estimates include the following:
−Removed: Accounts Receivable:
−Removed: Accounts receivable are recorded at the invoice amount and do not bear interest.
−Removed: The allowance for credit losses is the Company’s best estimate of the amount of expected credit losses in the Company’s existing accounts receivable;
−Removed: however, changes in circumstances relating to accounts receivable may result in a requirement for additional allowances in the future.
−Removed: The Company pools accounts receivable based on risk characteristics, which include type of customer and age of open receivable balance.
−Removed: The allowance for credit losses pool is estimated based on historical write-off experience and known conditions, adjusted for management’s reasonable and supportable expectations of future conditions.
−Removed: Account balances are charged against the allowance when management determines that the probability for collection of an account balance is remote.
−Removed: As of December 31, 2024, 2023, and 2022, the Company had accounts receivable totaling $4,894,000, $6,545,000 and $6,973,000, respectively.
−Removed: As of December 31, 2024, and 2023, the Company had recorded an allowance for credit losses on accounts receivable of $35,000 for both periods respectively.
−Removed: Inventories include freight-in, materials, labor and overhead costs and are stated at the lower of cost or net realizable value.
−Removed: Allowances are recorded for slow-moving, obsolete or unusable inventory.
−Removed: We assess our inventory for estimated obsolescence or unmarketable inventory and write-down the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future sales and supply on-hand, if necessary.
−Removed: If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required.
−Removed: In 2024 and 2023, we recorded approximately $416,000 and $292,000, respectively, in write-downs of inventory.
−Removed: Foreign currency translation:
−Removed: Our unconsolidated affiliate operations are in India, so U.S.
−Removed: GAAP requires the Company to adjust the value of its investment for changes in foreign currency exchange rates.
−Removed: We determine the functional currency of our joint venture based upon the primary currency used to generate and expend cash, which is the currency of the country in which the joint venture is located.
−Removed: For joint ventures with functional currencies other than the U.S.
−Removed: dollar, our investment in that joint venture is translated into U.S.
−Removed: dollars using period-end exchange rates.
−Removed: The resulting foreign currency translation gains or losses are deferred as AOCL and reclassified to earnings only upon sale or liquidation of that business.
−Removed: We determine if an arrangement is a lease at its inception.
−Removed: Operating leases are included as right-of-use (“ROU”) assets and lease liabilities on our consolidated balance sheet.
−Removed: ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date.
−Removed: Our leases do not provide an implicit interest rate, and, therefore, we estimate our collateralized borrowing rate under similar terms based on the information available at the commencement date in determining the present value of future minimum lease payments.
−Removed: Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
−Removed: We do not record leases on our consolidated balance sheet with a term of one year or less.
−Removed: We elected a package of transition practical expedients permitted under the standards of the Financial Accounting Standards Board (“FASB”), which included not reassessing whether any expired or existing contracts are or contain leases, not reassessing the lease classification of expired or existing leases, and not reassessing initial direct costs for existing leases.
−Removed: We also elected a practical expedient to not separate lease and non-lease components.
−Removed: We did not elect the practical expedient to use hindsight in determining our lease terms or assessing impairment of our ROU assets.
−Removed: As of December 31, 2024, we had $8.7 million in ROU assets and $8.8 million in lease liabilities.
−Removed: Revenue Recognition:
−Removed: Net sales includes revenue from products and shipping and handling charges, net of estimates for product returns and any related sales incentives.
−Removed: Our customer contracts have a single performance obligation:
−Removed: transfer control of products to customers.
−Removed: Revenue is measured as the amount of consideration that we expect to receive in exchange for transferring control of products.
−Removed: All revenue is recognized when we satisfy our performance obligations under the applicable contract.
−Removed: We recognize revenue in connection with transferring control of the promised products to the customer, with revenue being recognized at the point in time when the customer obtains control of the products, which is generally when title passes to the customer upon delivery to a third party carrier for FOB shipping point arrangements and to the customer for FOB destination arrangements, at which time a receivable is created for the invoice sent to the customer.
−Removed: Shipping and handling activities are performed prior to the customer obtaining control of the goods, and are accounted for as fulfillment activities and are not a promised good or service.
−Removed: Shipping and handling charges billed to customers are included in revenue.
−Removed: Shipping and handling costs, associated with the distribution of the Company’s product to the customers, are recorded in cost of goods sold and are recognized when control of the product is transferred to the customer, which is at the time products are delivered to the third party carrier for FOB shipping point arrangements and to the customer for FOB destination arrangements.
−Removed: We estimate product returns based on historical return rates and estimate rebates based on contractual agreements.
−Removed: Using probability assessments, we estimate sales incentives expected to be paid over the term of the contract.
−Removed: Sales taxes and value added taxes in foreign and domestic jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from net sales.
−Removed: The Company manufactures certain private label goods for customers and has determined that control does not pass to the customer at the time of manufacture, based upon the nature of the private labelling.
−Removed: The Company has determined that, as of December 31, 2024, it had no material contract assets, and concluded that its contract liabilities (primarily rebates) had the right of offset against customer receivables.
−Removed: Sales Returns, Rebates and Allowances:
−Removed: Sales revenues are reduced for any anticipated sales returns, rebates and allowances based on historical experience.
−Removed: Since our return policy is only 90 days and our products are not generally susceptible to external factors such as technological obsolescence or significant changes in demand, we are able to make a reasonable estimate for returns.
−Removed: We offer end-user product specific and sales volume rebates to select distributors.
−Removed: Our rebates are based on actual sales and are accrued monthly.
−Removed: Stock - Based Compensation:
−Removed: The Company accounts for stock-based awards using FASB Accounting Standards Codification (“ASC”) 718, Stock Compensation .
−Removed: ASC 718 requires companies to record compensation expense for the value of all outstanding and unvested share-based payments, including employee stock options and similar awards.
−Removed: The fair values of stock option grants are determined using the Black-Scholes option-pricing model and are based on the following assumptions:
−Removed: expected stock price volatility based on historical data and management’s expectations of future volatility, risk-free interest rates from published sources, expected term based on historical data, and no dividend yield, as the Board of Directors currently has no plans to pay dividends in the foreseeable future.
−Removed: The Company accounts for option forfeitures as they occur.
−Removed: The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options that have no vesting restrictions and that are fully transferable.
−Removed: In addition, the option-pricing model requires the input of highly subjective assumptions, including expected stock price volatility.
−Removed: Our stock options have characteristics significantly different from those of traded options, and changes in the subjective input assumptions can materially affect the fair value of such options.
−Removed: In 2024 and 2023, we recorded $463,000 and $170,000, respectively, in compensation expense for share-based awards.
−Removed: Alpha Pro Tech is in the business of protecting people, products and environments.
−Removed: We accomplish this by developing, manufacturing and marketing a line of high-value, disposable protective apparel products for the cleanroom, industrial, pharmaceutical, medical and dental markets.
−Removed: We also manufacture a line of building supply construction weatherization products.
−Removed: Our products are sold under the “Alpha Pro Tech” brand name, as well as under private label.
−Removed: Our products are grouped into two business segments:
−Removed: (i) the Building Supply segment, consisting of construction weatherization products, such as housewrap, housewrap accessories, synthetic roof underlayment and synthetic roof underlayment accessories, as well as other woven material;
−Removed: and (ii) the Disposable Protective Apparel segment, consisting of disposable protective garments (including shoecovers, bouffant caps, coveralls, gowns, frocks and lab coats), face masks and face shields.
−Removed: Our target markets include construction, building supply and roofing distributors;
−Removed: companies in pharmaceutical manufacturing, bio-pharmaceutical manufacturing, medical device manufacturing, lab animal research, and high technology electronics manufacturing (which includes the semi-conductor market);
−Removed: and medical and dental distributors.
−Removed: Our products are used primarily in cleanrooms, industrial safety manufacturing environments, health care facilities, such as hospitals, laboratories and dental offices, and building and re-roofing sites.
−Removed: Our products are distributed principally in the United States through a network consisting of purchasing groups, national distributors, local distributors, independent sales representatives and our own sales and marketing force.
−Removed: Recent developments in U.S.
−Removed: trade policy have introduced uncertainty regarding the future of global trade relations.
−Removed: Following the inauguration of the second Trump administration, there have been numerous announcements made and actions taken related to tariff increases and other trade restrictions regarding imports into the U.S.
−Removed: President Trump has indicated that his administration is likely to impose significant tariffs on imported goods, including a 60% tariff on Chinese imports, a 25% tariff on goods from Canada and Mexico and up to 10% or 20% on all other U.S.
−Removed: Given that we currently source very little from China, this may be a benefit in regards to our competition that does import from China, but any new or increased tariffs, quotas, embargoes, or other trade barriers affecting other countries from which we do source supplies or our global network of third-party suppliers could impact our supply chain and cost structure.
−Removed: Additionally, retaliatory measures by affected countries could further disrupt our operations or reduce our competitiveness in international markets.
−Removed: We continue to monitor these changing tariffs and trade restrictions.
−Removed: If new tariffs or trade restrictions are imposed, we may need to adjust our pricing, increase inventory levels, or seek alternative suppliers, any of which could materially affect our revenue, gross margins, and overall financial performance
−Removed: RESULTS OF OPERATIONS
−Removed: The following table sets forth certain operational data as a percentage of sales for the years indicated:
−Removed: Selling, general and administrative expenses
−Removed: Income from operations
−Removed: Income before provision for income taxes
−Removed: Year ended December 31, 2024 compared to year ended December 31, 2023
−Removed: Consolidated sales for the year ended December 31, 2024, decreased to $57,840,000, from $61,232,000 for the year ended December 31, 2023, representing a decrease of $3,392,000, or 5.5%.
−Removed: This decrease consisted of decreased sales in the Building Supply segment of $4,431,000, partially offset by increased sales in the Disposable Protective Apparel segment of $1,039,000.
−Removed: Building Supply Segment
−Removed: Building Supply segment sales for the year ended December 31, 2024, decreased by $4,431,000, or 11.0%, to $35,965,000 compared to $40,396,000 for the year ended December 31, 2023.
−Removed: The Building Supply segment decrease during the year ended December 31, 2024, was primarily due to a 6.4% decrease in sales of housewrap, an 8.8% decrease in sales of synthetic roof underlayment and a 28.2% decrease in sales of other woven material compared to the same period of 2023.
−Removed: The sales mix of the Building Supply segment for the year ended December 31, 2024, was approximately 42% for synthetic roof underlayment, 49% for housewrap and 9% for other woven material.
−Removed: This compared to approximately 42% for synthetic roof underlayment, 47% for housewrap and 11% for other woven material for the year ended December 31, 2023.
−Removed: Our synthetic roof underlayment product line primarily includes REX SynFelt®, REX TECHNOply® and TECHNO SB and our synthetic roof underlayment accessories consist of our new self-adhered TECHNOplus and REX Ultra HT.
−Removed: Our housewrap product line primarily consists of REX Wrap®, REX Wrap Plus® and REX™ Wrap Fortis.
−Removed: Housewrap accessories consist of REXTREME Window and Door Flashing and REX™ Premium Seam Tape.
−Removed: The housing market continues to be weak, with housing starts down 4.4% in 2024 compared to 2023.
−Removed: Although sales of the core building products (housewrap and synthetic roof underlayment) were down 7.9% in 2024, which exceeds the decline in housing starts, a closer look reveals the issues we faced.
−Removed: Excluding the decline of sales to two private label distributors, which were beyond our control, the 2024 sales performance of our core building products would have resulted in a lower percentage decline than the reduction in housing starts, indicating that we otherwise outperformed the market.
−Removed: In addition, the percentage change in sales for all of 2024 improved slightly over the first nine months of 2024.
−Removed: Synthetic roof underlayment sales in the fourth quarter of 2024 exceeded sales in the same quarter of 2023.
−Removed: Housewrap sales were encouraging through the first nine months of 2024 especially since the percentage decline of housing starts was higher than the percentage decline of housewrap sales.
−Removed: Lower housewrap sales in the final quarter of 2024 were primarily due to one of our larger distributors losing some end user’s business but we have not lost share with this distributor.
−Removed: Presenting an additional challenge in 2024, multi-family housing starts in 2024 were down 11.3% compared to 2023 with 2024 being the lowest in ten years.
−Removed: Management expects growth with this distributor and in the housewrap category in the coming year, when uncertainty in the housing market is expected to abate.
−Removed: Sales of synthetic roof underlayment which were down double digits through the first nine months of 2024, ended the year down single digits.
−Removed: After hurricanes Helene and Milton, we saw a surge in synthetic roof underlayment orders in the fourth quarter of 2024 to assist in the southeast rebuild.
−Removed: Sales of this product line continue to be affected by the uncertain economic conditions, more offshore competition and a push in the market to reduce product selling prices.
−Removed: We launched our new line of self-adhered roofing products in late 2023 and have achieved revenue in 2024, and we expect continued growth within our current customer base and into new markets.
−Removed: We are exploring additional products in the roofing market and expect growth in 2025 in the synthetic roof underlayment category.
−Removed: Despite the challenges faced in 2024, our efforts are now focused on builders and contractors and we are educating the industry on our extensive manufacturing capabilities which are expected to contribute to future growth.
−Removed: Our top fifteen accounts have increased compared to 2023, excluding one of our top accounts mentioned above.
−Removed: This is a testament to the hard work and commitment of our sales team.
−Removed: Late in the year, we added two Territory Mangers who will assist in strengthening relationships with our customers and driving new business.
−Removed: We also created the position of Director of Product and Business Development.
−Removed: This role will be instrumental in helping APT expand its product offerings and explore new opportunities and industries where we currently do not have a presence.
−Removed: Sales of other woven material sales decreased by $1,326,000, or 28.2% in 2024 compared to 2023, primarily due to one of our customers being acquired by another company.
−Removed: The Company is pursuing new opportunities for other woven material that could improve sales, and as mentioned above, we have hired a Director of Product and Business Development.
−Removed: Management expects growth in the Building Supply segment in the coming year, as the projected number of housing starts in 2025 is expected to increase.
−Removed: However, there continues to be uncertainty in housing starts and the economy in general that could affect this segment.
−Removed: Disposable Protective Apparel Segment
−Removed: Sales for the Disposable Protective Apparel segment for the year ended December 31, 2024, increased by $1,039,000, or 5.0%, to $21,875,000, compared to $20,836,000 for 2023.
−Removed: This segment increase was due to a 0.8% increase in sales of disposable protective garments and a 43.5% increase in sales of face shields, partially offset by a 34.6% decrease in sales of face masks.
−Removed: The sales mix of the Disposable Protective Apparel segment for the year ended December 31, 2024, was approximately 85% for disposable protective garments, 11% for face masks and 4% for face shields.
−Removed: This sales mix is compared to approximately 88% for disposable protective garments, 9% for face masks and 3% for face shields for the year ended December 31, 2023.
−Removed: Sales of disposable protective garments in 2024 were up approximately 19% as compared to pre-pandemic levels, increasing due to further integration and growth among some of our largest regional channel partners.
−Removed: We have signed new distribution agreements with regional and national channel partners, which should provide for an enhanced level of engagement and mutual growth incentives.
−Removed: In addition, we signed a new agreement with our largest international channel partners and achieved elevated status and were named as a preferred supplier going forward.
−Removed: We believe this achievement will provide some growth opportunities, and management expects continued growth for disposable protective garments in 2025.
−Removed: The significant growth in face masks and shields was a direct result of a return to a pre-pandemic business model.
−Removed: Together, with both our dental and medical channel partners, we have overcome the negative impact of excess inventories.
−Removed: Our partnerships in this segment remain strong and, through further integration and buy-side incentives, we anticipate a steady growth trajectory going forward.
−Removed: Gross Profit.
−Removed: Gross profit increased by $104,000, or 0.5%, to $22,933,000 for the year ended December 31, 2024, from $22,829,000 for the year ended December 31, 2023.
−Removed: The gross profit margin was 39.6% for the year ended December 31, 2024, compared to 37.3% for the year ended December 31, 2023.
−Removed: The gross profit margin in 2024 was positively affected by a margin increase in both the Disposable Protective Apparel and Building Supply segments.
−Removed: However, management expects that the gross profit margin could be negatively affected next year by ocean freight rates that experienced significant volatility in 2024, due to factors such as geopolitical tensions, labor disputes and market dynamics.
−Removed: As we progress into next year, the outlook suggests both challenges and potential easing of freight rates.
−Removed: Selling, General and Administrative Expenses.
−Removed: Selling, general and administrative expenses increased by $839,000, or 4.7%, to $18,611,000 for the year ended December 31, 2024, from $17,772,000 for the year ended December 31, 2023.
−Removed: As a percentage of net sales, selling, general and administrative expenses increased to 32.2% for the year ended December 31, 2024, from 29.0% for 2023.
−Removed: The change in expenses by segment for the year ended December 31, 2024, was as follows:
−Removed: Disposable Protective Apparel expenses were up by $672,000, or 14.3%;
−Removed: Building Supply expenses were down by $505,000, or 6.6%;
−Removed: and corporate unallocated expenses were up by $672,000, or 12.5%.
−Removed: The decrease in the Building Supply segment expenses was primarily related to decreased employee compensation, travel and insurance expenses.
−Removed: The increase in the Disposable Protective Apparel segment expenses was primarily related to increased employee compensation, marketing and rent expenses.
−Removed: The increase in corporate unallocated expenses was primarily due to increased employee compensation, stock option and restricted stock expenses, reorganization costs, professional fees, insurance expenses and general office expenses.
−Removed: The reorganization costs were incurred in connection with moving our face mask manufacturing facility from Utah to Arizona during 2024.
−Removed: This relocation of our face mask manufacturing facility is expected to result in lower expenses for this product line.
−Removed: In accordance with the terms of his employment agreement, the Company’s current President and Chief Executive Officer is entitled to an annual bonus equal to 5% of the pre-tax profits of the Company, excluding bonus expense, up to a maximum of $1.0 million.
−Removed: A bonus amount of $264,000 was accrued for the year ended December 31, 2024, compared to $286,000 for the year ended December 31, 2023.
−Removed: Depreciation and Amortization.
−Removed: Depreciation and amortization expense decreased by $52,000, or 5.6%, to $873,000 for the year ended December 31, 2024, from $925,000 for the year ended December 31, 2023.
−Removed: The decrease was primarily due to a decrease in depreciation in the Building Supply segment.
−Removed: Income from Operations.
−Removed: Income from operations decreased by $683,000, or 16.5%, to $3,449,000 for the year ended December 31, 2024, compared to $4,132,000 for the year ended December 31, 2023.
−Removed: The decreased income from operations was primarily due to an increase in selling, general and administrative expenses of $839,000, partially offset by an increase in gross profit of $104,000 and a decrease in depreciation and amortization expenses of $52,000.
−Removed: Income from operations as a percentage of net sales for the year ended December 31, 2024, was 6.0%, compared to 6.8% for 2023.
−Removed: Other Income.
−Removed: Other income increased by $278,000 to income of $1,571,000 for the year ended December 31, 2024, compared to $1,293,000 for 2023.
−Removed: The increase was primarily due to an increase in equity in income of unconsolidated affiliate of $152,000, an increase in interest income of $96,000 and a gain on sale of assets of $30,000.
−Removed: Income before Provision for Income Taxes.
−Removed: Income before provision for income taxes for the year ended December 31, 2024, was $5,020,000, compared to income before provision for income taxes of $5,425,000 for 2023, representing a decrease of $405,000, or 7.5%.
−Removed: This decrease in income before provision for income taxes was due to a decrease in income from operations of $683,000, partially offset by an increase in other income of $278,000.
−Removed: Provision for Income Taxes .
−Removed: The provision for income taxes for the year ended December 31, 2024, was $1,091,000, compared to $1,236,000 for 2023.
−Removed: The estimated effective tax rate was 21.8% for the year ended December 31, 2024, compared to 22.8% for the year ended December 31, 2023.
−Removed: The Company does not record a tax provision on equity in income of unconsolidated affiliate, which reduces the effective tax rate.
−Removed: Net income for the year ended December 31, 2024, was $3,929,000 compared to net income of $4,189,000 for 2023, representing a decrease of $261,000, or 6.2%.
−Removed: The net income decrease between 2024 and 2023 was due to a decrease in income before provision for income taxes of $405,000, partially offset by a decrease in provision for income taxes of $145,000.
−Removed: Net income as a percentage of net sales was 6.8% for both years ended December 31, 2024 and 2023.
−Removed: Basic and diluted earnings per common share for the years ended December 31, 2024 and 2023, were $0.35.
−Removed: LIQUIDITY AND CAPITAL RESOURCES
−Removed: As of December 31, 2024, the Company had cash and cash equivalents (“cash”) of $18,636,000 and working capital of $47,516,000.
−Removed: As of December 31, 2024, the Company’s current ratio (current assets/current liabilities) was 16:1, compared to a current ratio of 21:1 as of December 31, 2023.
−Removed: Cash decreased by 8.5%, or $1,742,000, to $18,636,000 as of December 31, 2024, compared to $20,378,000 as of December 31, 2023, and working capital decreased by $2,982,000, to $47,516,000 from $50,498,000 as of December 31, 2023.
−Removed: The decrease in cash from December 31, 2023, was due to cash used in investing activities of $3,776,000 and cash used in financing activities of $3,664,000, partially offset by cash provided by operating activities of $5,698,000.
−Removed: Net cash provided by operating activities of $5,698,000 for the year ended December 31, 2024 was due to net income of $3,922,000, as adjusted primarily by the following:
−Removed: stock-based compensation expense of $463,000, depreciation and amortization expense of $873,000, equity in income of unconsolidated affiliate of $629,000, gain on sale of assets of $30,000, operating lease asset amortization of $899,000, and increase in deferred income taxes of $61,000, a decrease in accounts receivable of $1,651,000, a decrease in prepaid expenses of $1,635,000, an increase in inventory of $2,602,000, an increase in accounts payable and accrued liabilities of $325,000, and a decrease in lease liabilities of $876,000, all compared to December 31, 2023.
−Removed: Accounts receivable decreased by $1,651,000, or 25.2%, to $4,894,000 as of December 31, 2024, from $6,545,000 as of December 31, 2023.
−Removed: The decrease in accounts receivable was primarily related to decreased sales in the latter part of 2024 compared to the same period of 2023.
−Removed: The number of days that sales remained outstanding as of December 31, 2024, calculated by using an average of accounts receivable outstanding and annual revenue, was 36 days, compared to 40 days as of December 31, 2023.
−Removed: Inventory increased by $2,602,000, or 12.9%, to $22,733,000 as of December 31, 2024, from $20,131,000 as of December 31, 2023.
−Removed: The increase was due to an increase in inventory for the Building Supply segment of $3,961,000, or 56.8%, to $10,931,000, partially offset by a decrease in inventory for the Disposable Protective Apparel segment of $1,359,000, or 10.3%, to $11,802,000.
−Removed: Prepaid expenses decreased by $1,634,000, or 27.2%, to $4,376,000 as of December 31, 2024, from $6,010,000 as of December 31, 2023.
−Removed: The decrease was primarily due to decreased prepaid equipment and prepayments for insurance, partially offset by increased prepaid tax payments.
−Removed: Right-of-use assets as of December 31, 2024, increased by $3,904,000 to $8,714,000 from $4,801,000 as of December 31, 2023, primarily as a result of our new Nogales, Arizona lease, partially offset by amortization of the right of use asset.
−Removed: Lease liabilities as of December 31, 2024, increased by $3,927,000 to $8,775,000 from $4,848,000 as of December 31, 2023.
−Removed: The increase in the lease liabilities was primarily the result of our new lease in Nogales, Arizona starting March 1, 2024, partially offset by lease payments made during the period.
−Removed: Accounts payable and accrued liabilities as of December 31, 2024 increased by $325,000, or 17.1%, to $2,230,000, from $1,905,000 as of December 31, 2023.
−Removed: The increase was primarily due to an increase in trade payables and accrued payroll, partially offset by a decrease in accrued bonuses.
−Removed: Net cash used in investing activities was $3,776,000 for the year ended December 31, 2024, compared to net cash used in investing activities of $792,000 for 2023.
−Removed: Investing activities for the year ended December 31, 2024 and 2023 consisted primarily of the purchase of property and equipment.
−Removed: Net cash used in financing activities was $3,664,000 for the year ended December 31, 2024, compared to net cash used in financing activities of $3,578,000 for 2023.
−Removed: Net cash used in financing activities for the year ended December 31, 2024 resulted from the payment of $4,452,000 for the repurchase of common stock and $44,000 for treasury stock excise tax, partially offset by $832,000 in proceeds from the exercise of stock options.
−Removed: Net cash used in financing activities for the year ended December 31, 2023 resulted from the payment of $4,002,000 for the repurchase of common stock and $40,000 for treasury stock excise tax, partially offset by $464,000 in proceeds from the exercise of stock options.
−Removed: As of December 31, 2024, we had $2,742,000 available for stock purchases under our stock repurchase program.
−Removed: During the year ended December 31, 2024, we repurchased 831,000 shares of common stock at a cost of $4,452,000.
−Removed: As of December 31, 2024, we had repurchased a total of 21,242,627 shares of common stock at a cost of approximately $54,778,000 through our repurchase program which commenced in 1999.
−Removed: We retire all stock upon repurchase.
−Removed: Future repurchases are expected to be funded from cash on hand and cash flows from operating activities.
−Removed: We believe that our current cash balance and expected cash flow from operations will be sufficient to satisfy our projected working capital and planned capital expenditures for the foreseeable future.
−Removed: Related Parties
−Removed: During 2024 and 2023, the Company had no related party transactions, other than the Company’s transactions with its non-consolidated affiliate, Harmony.
−Removed: See Note 6 to our consolidated financial statements for more information on our relationship with our non-consolidated affiliate Harmony Plastics Private Limited.
−Removed: New Accounting Standards
−Removed: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):
−Removed: Improvements to Income Tax Disclosures.
−Removed: These amendments address investor requests for enhanced transparency regarding income tax information.
−Removed: Specifically, they improve income tax disclosures related to rate reconciliation and income taxes paid.
−Removed: ASU 2023-09 becomes effective for fiscal years beginning after December 15, 2024, with early adoption permitted.
−Removed: Management periodically reviews new accounting standards that are issued.
−Removed: Management has not identified any other new standards that it believes merit further discussion at this time.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.