Alpha Pro Tech reports Q4 EPS 9c vs. 5c last year

Reports Q4 revenue $15.3M vs. $12.2M last year. Lloyd Hoffman, President and Chief Executive Officer of Alpha Pro Tech, commented, “We have experienced the six highest 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 housewrap market, as housing starts in 2023 in the United States decreased by 8.8%, compared to the same period a year ago. Management is encouraged by the full year 22.2% increase in housewrap and accessories sales, as we continue to significantly outperform the market through diversification and product development. Sales of our REX Wrap and REX Wrap Plus, our entry-level housewrap products, were up by 15.1% over the prior year, despite the decrease in housing starts, as we continue to form relationships with new dealers. Management expects to see continued growth opportunities with REX Wrap Fortis, our premium housewrap line, as we continue to make inroads into the multi-family and commercial construction sector, evidenced by a 33.9% increase in sales for this product in 2023. We also experienced a 180% increase in sales of our housewrap accessories, REXTREME Window and Door Flashing and REX Premium Seam Tape, in 2023. Management expects that we will continue to see positive trends relative to the industry for both our entry level and premium housewrap and housewrap accessories product lines. The synthetic roof underlayment market has also been affected by the continued decrease in new home starts, economic uncertainty, more offshore competition and a push in the market to reduce product selling prices. Despite these pressures, our synthetic roof underlayment sales also outperformed the market despite being down 3.0% in 2023 compared to 2022. We launched our new line of self-adhered roofing products in late 2023, which management expects will result in revenue growth within our current customer base and allow for expansion into new markets and business segments. We continue to work closely with our customers to develop and expand our product lines. Other woven material sales increased by 18.0% in 2023 compared to the same period of 2022, due to increased sales to our major customer, but management does not expect this to be a growth driver in the coming year.”