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APT NYSE AM· Alpha Pro Tech, Ltd.
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APT NYSE AM· Alpha Pro Tech, Ltd.
Earnings report Q3 2023

Alpha Pro Tech Reports Strong Revenue Growth in Q3 2023

Segments of Revenue

Alpha Pro Tech reported total revenue of $16.1 million for the quarter ended September 30, 2023, compared to $14.6 million for the same period in 2022, representing an increase of $1.5 million or 10.3%. The revenue growth was primarily driven by strong performance in the company's core segments.

The company's core segment revenues were as follows:

  1. Building Supply segment revenue increased by $0.8 million, or 11.1%, to $8.1 million in Q3 2023, compared to $7.3 million in Q3 2022. This growth was mainly due to increased demand for the company's building protection products.
  2. Disposable Protective Apparel segment revenue increased by $0.7 million, or 9.5%, to $7.9 million in Q3 2023, compared to $7.2 million in Q3 2022. The growth in this segment was driven by higher sales of disposable protective apparel products.

Strengths

Alpha Pro Tech demonstrated strong financial performance in the latest quarter. The company's net income increased significantly by $927,000, or 184.3%, compared to the same period in 2022. This increase was primarily attributed to a rise in income before provision for income taxes. Additionally, the company achieved a net income margin of 8.9%, indicating efficient cost management and profitability.

Management commented that the revenue growth was driven by increased demand for the company's building protection and disposable protective apparel products. The ongoing focus on product innovation, quality, and customer satisfaction has contributed to the company's strong performance.

Challenges

While Alpha Pro Tech reported overall revenue growth, it is worth noting that the increase of $1.5 million, or 10.3%, in Q3 2023 was lower compared to the previous year's growth rate of 20.5% in the same quarter. This suggests a potential slowdown in revenue growth momentum.

The company also experienced an increase in provision for income taxes, which partially offset the growth in income before taxes. This indicates a higher tax burden on the company's earnings.

Noteworthy

Alpha Pro Tech's net income as a percentage of net sales for Q3 2023 was 8.9%, a significant improvement from 3.4% in the same period of 2022. This indicates improved profitability and efficiency in converting revenue into net income.

Summary

Alpha Pro Tech reported strong revenue growth in the latest quarter, driven by increased demand for building protection and disposable protective apparel products. The company's net income showed a substantial increase, reflecting efficient cost management. However, the growth rate in revenue has slowed compared to the previous year. Overall, Alpha Pro Tech's financial performance demonstrates its ability to capitalize on market opportunities and maintain profitability.

Source documents

Form 10-Q  filed on Nov 08, 2023
121 pages scanned

Reference data

Company financials Q3 revenue 15.3M
Analyst estimates Q3 EPS missed by NaN%
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