Financial Performance Overview

Alpha Pro Tech, Ltd. is a leading manufacturer and distributor of a variety of products for the building supply and disposable protective apparel markets. The company’s financial report for the three months ended March 31, 2025 provides insights into its recent performance and outlook.

Shareholder’s Equity

During the first quarter of 2025, Alpha Pro Tech repurchased and retired 221,413 shares of its common stock for $1,178,000. This was part of the company’s ongoing share repurchase program, which had $1,564,000 remaining as of March 31, 2025.

The company also granted stock options and restricted stock units (RSUs) to employees and non-employee directors under its 2020 Omnibus Incentive Plan. As of March 31, 2025, there was $574,000 of unrecognized compensation cost related to the RSU grants, expected to be recognized over the next 1.5 years. Additionally, $74,000 of unrecognized compensation cost related to stock option grants was expected to be recognized over the next 1.37 years.

Inventories

Alpha Pro Tech’s inventories, net of reserves, totaled $23,565,000 as of March 31, 2025, up from $22,733,000 at the end of 2024. This increase was driven by higher raw materials and work-in-process levels, reflecting the company’s efforts to maintain adequate inventory to meet customer demand.

Equity Investment in Unconsolidated Affiliate

Alpha Pro Tech has a 41.7% ownership interest in Harmony Plastics Private Limited, a joint venture in India that produces building products and supplies products for the company’s Disposable Protective Apparel segment. For the first quarter of 2025, Alpha Pro Tech recorded $141,000 in equity in income of the unconsolidated affiliate, compared to $138,000 in the same period of 2024.

Recent Accounting Pronouncements

The company discussed two recent accounting standards issued by the Financial Accounting Standards Board (FASB) that will impact future financial reporting. ASU 2023-09 addresses income tax disclosures, while ASU 2024-03 requires enhanced expense disaggregation disclosures. Alpha Pro Tech is currently evaluating the impact of these new standards.

Outlook

While the financial report did not provide explicit forward-looking statements, the company’s ongoing investments in inventory, product development, and its joint venture in India suggest a focus on positioning itself to meet anticipated demand in its key markets. The share repurchase program also indicates management’s confidence in the company’s long-term prospects.