Back to Top

Print
Download
Full Report
Save Page
Print Saved
Pages

Disposable Protective Apparel

Infection Control

Building Supply Products

Corporate Profile

Alpha Pro Tech, Ltd. is in the business of protecting people, products and environments.

The Company accomplishes this by being a leading designer, developer, manufacturer and marketer of high-value disposable protective apparel, building supply, infection control and other products for the medical, dental, cleanroom, pharmaceutical, industrial safety, construction supply and consumer markets.

The Company’s growth strategy is to provide innovative solutions to its customers and create meaningful value for its shareholders. Alpha Pro Tech has a reputation for combining extensive research and development with the highest levels of responsiveness, quality, safety and reliability.

Alpha Pro Tech’s manufacturing facilities and offices are located in Arizona, Georgia and Utah in the United States, as well as in Canada and India.

2015 Business Segment Sales
IN $ MILLIONS

Total
Sales
$45.0

  • Infection Control
  • Disposable Protective Apparel
  • Building Supply Products

2014 Business Segment Sales
IN $ MILLIONS

Total
Sales
$47.6

  • Infection Control
  • Disposable Protective Apparel
  • Building Supply Products

TABLE OF CONTENTS


  • 1 To Our Shareholders
  • 4 Disposable Protective Apparel
  • 6 Infection Control
  • 8 Building Supply Products (Synthetic Roof Underlayment)
  • 10 Building Supply Products (Housewrap)
  • Financial Information
  • Corporate Information

To Our Shareholders

Alexander Millar
Chairman & President

Lloyd Hoffman
Chief Executive Officer

It was a challenging year for Alpha Pro Tech in 2015, as both revenue and profitability declined year over year. Consolidated sales for 2015 were $45.0 million, down $2.7 million, with the Building Supply segment down $1.7 million, the Infection Control segment down $1.0 million, and the Disposable Protective Apparel segment remaining flat. The decline in Building Supply segment sales was due to competition in the building market, which led to an influx of lower quality and lower cost imports that put pressure on our pricing. The trend we are now seeing in the market is that customers are recognizing the value proposition of our quality product and the benefit of dealing with a vertically integrated supplier. Customers value our reputation, service, quality in manufacturing and brand recognition.

The decrease in Infection Control segment sales was the result of the Ebola outbreak in the fourth quarter of 2014, which was not repeated in 2015. Despite this, we remained profitable, drove growth in our new Building Supply segment products and strengthened our distribution network in our Disposable Protective Apparel segment, which has positioned the Company for growth in 2016.

Our goal for 2016 is to achieve both top and bottom line growth, as we are optimistic that results can be achieved across all segments. We will continue to innovate, launch new products and further build our brands in our business segments,   as well

1Annual Report 2015

To Our Shareholders

as continue to strengthen our distribution networks. Our proven track record should give shareholders comfort that we will prevail during challenging periods and that both profitability and growth remain our primary objectives going forward.

We continue to have a strong balance sheet, which provides us with the flexibility to invest in opportunities while remaining financially stable. As of December 31, 2015, cash increased by 76% to $9.7 million. Cash generated from operating activities in 2015 was $6.0 million, and we continue to have no debt. That being said, management continues to believe that our share repurchase program is an effective use of our strong balance sheet and cash position. In 2015, we purchased 973,100 shares and have purchased 12.5 million shares since the inception of the repurchase program. All stock is retired upon purchase, and we plan on continuing to remain active in the repurchase market during 2016.

We are also excited to highlight a recent realignment of our management team. Lloyd Hoffman has been promoted to the role of Chief Executive Officer and a position on the Board of Directors. Al Millar has been promoted to the role of Chairman of the Board and will continue to serve as President. Lastly, Colleen McDonald has been promoted to the role of Chief Financial Officer. We think this new structure will drive further success and operational efficiencies in the years to come.

2Annual Report 2015

We are committed to delivering significantly improved financial results and shareholder value. We look forward to keeping you informed on our progress and continuing to build an Alpha Pro Tech that creates value for you while protecting people, products and environments. As always, we thank you for your continued support.

Sincerely,

Alexander W. Millar
Chairman & President

Lloyd Hoffman
Chief Executive Officer

3Annual Report 2015

We Have You Covered From Head to Toe

Disposable Protective Apparel

Protecting People, Products and Environments...

Alpha Pro Tech is a leader in the disposable protective apparel market and is committed to supplying high value and superior performance. Our Critical Cover® apparel is designed to protect people, products and manufacturing environments.

The goal in the design and manufacture of all Critical Cover® Garments is to keep the wearer cool, clean and comfortable and to provide the right level of protection for the wearer, as well as to protect the environment from possible contamination. To achieve this, we offer a comprehensive selection of materials and garment designs to meet a wide range of applications and environments.

APT

We are dedicated to producing the highest quality products and continually striving to maintain our leadership position with new and innovative product design and development. The depth of our design and manufacturing capabilities allows us to create new products to meet evolving market requirements and customer needs.

4Annual Report 2015

Critical Cover® GenPro® Bouffant Basic Head Protection for Non-Hazardous Environments

Critical Cover® UltraGrip™ Shoe Covers The Ultimate in Slip and Fall Protection

ComforTech™ Coveralls Provide superior protection without sacrificing comfort

Critical Cover® ComforTech® Lab Coats Keep Wearers Cool, Comfortable and Protected

Head-to-toe protective garments highlight Alpha Pro Tech’s limited-use Apparel portfolio. From Pharmaceutical Production to Medical Device to Electronics, we manufacture a variety of configurations and performance characteristics so that our materials exceed the expectations of our customers and the critical environments in which they operate.

5Annual Report 2015

We Have You Covered

Infection Control

Critical Cover® Facemasks and Face Shields

Alpha Pro Tech designs and manufactures a wide range of Facemasks and Face Shields for the Medical, Dental, Laboratory and light industrial marketplaces.

Critical Cover®
CoolOne™
Facemasks
Hypoallergenic, fluid resistant sensitive skin Facemask

PFL® N95 NIOSH Approved Particulate Respirator Meets Centers for Disease Control (CDC) and World Health Organization (WHO) recommended protection levels where applicable

Critical Cover® Coverall®
Face Shields
Protection against light splash and particles

APT

Our Facemasks incorporate Alpha Pro Tech’s patented and integrated Magic Arch® and PFL® (Positive Facial Lock®) features that enhance user comfort and product performance.

6Annual Report 2015

The innovative and patented Positive Facial Lock® (PFL®) feature utilizes our exclusive Twist-Seal® technology that allows the user to create a custom fit. Our integrated Magic Arch® prevents the mask from coming in contact with the user’s nose and mouth, thereby making it easier to breathe while enhancing filtration efficiency.

Critical Cover® ShieldMate® Facemask with integrated Eye Shield

Alpha Pro Tech brings to market a series of innovative and protective Face Masks and Face Shields with a variety of configurations and long-standing patented technologies. With a broad customer reach, we manufacture infection control products for the safety of Healthcare practitioners (Physicians, Dentists and Patient Care Workers), as well as Researchers in the scientific marketplace.

7Annual Report 2015

We Have You Covered

Building Supply Products
Synthetic Roof Underlayment

Alpha Pro Tech has developed three distinct synthetic underlayments, broadening our market reach into all areas of the roofing industry.

We have you covered from the walls to the roof.

Products that go unseen, Protection that gets noticed.

REX TECHNOply™
Synthetic Roof
Underlayment

APT

All of these products currently fly under the REX brand that is widely recognized in the industry today as a market leader.

8Annual Report 2015

REX TECHNO SB™ Synthetic
Roof Underlayment

Alpha Pro Tech is recognized in the industry as a leading manufacturer, innovator and creator of premium synthetic underlayments evidenced by our numerous private label manufacturing agreements outside of our proprietary brands. Products that go unseen, protection that gets noticed - that is what Alpha Pro Tech is recognized for.

REX™ SynFelt Synthetic
Roof Underlayment,
our premium brand

The REX Brand is sought after in the building products distribution market. We currently manage our brand sales through our extensive list of two-step distributors, buying groups and one-step roofing dealers. As the brand grows, so does our list of stocking dealers and distributors. All of this culminates in the demand from home builders and roofers installing our products on a daily basis.

9Annual Report 2015

We Have You Covered

Building Supply Products
Housewrap

Along with protecting roofs, Alpha Pro Tech also has a flagship line of weather resistive housewrap barriers for the walls. From the most economical priced point product up to systems that offer newer performance standards in the ever changing building industry, we have you covered.

REX™ Wrap Weather Resistive Barrier on a Multi Family dwelling

In keeping our brand consistent, all of our weather resistive barriers fly under the REX brand. There isn’t a wall system that we don’t have a product to cover, as we start with the everyday wraps and end with drainage systems that are used in complete wall systems. The REX Wrap family of products makes it simple for customers to choose from one brand, one company and one manufacturer.

APT

Our protection goes beyond single family homes. We also cover Multi Family dwellings and Commercial construction.

10Annual Report 2015

Financial Information


Download Financial Information

Corporate
Information

MARKET FOR SHARES The Company’s common shares are quoted on the NYSE MKT Exchange under the trading symbol “APT.”

SHARE PRICE INFORMATION Set forth below are the ranges of daily high and low prices for the Company’s common shares for the periods indicated by the NYSE MKT Exchange.

Quarters Ended 2015 3/31 6/30 9/30 12/31
High $2.91 $2.93 $2.30 $2.25
Low $2.20 $2.11 $1.94 $1.55
Quarters Ended 2014 3/31 6/30 9/30 12/31
High $2.60 $2.30 $3.42 $10.73
Low $1.99 $1.92 $2.01 $2.42

As of April 11, 2016, there were 17,455,454 shares outstanding, 161 shareholders of record and approximately 6,270 beneficial owners.

DIVIDEND POLICY 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. The Company has never declared or paid any dividends on any of its outstanding shares of common stock. It is the current policy of the Board of Directors to retain any earnings to provide for the development and growth of the Company. Consequently, the Company has no current intention to pay cash dividends in the foreseeable future.

TRANSFER AGENT AND REGISTRAR Shareholders should refer specific questions concerning their stock certificates, in writing, directly to the Transfer Agent and Registrar at:

American Stock Transfer & Trust Company
6201 15th Avenue
Brooklyn, NY 11219

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM Tanner LLC
Key Bank Tower at City Creek
36 South State Street, Suite 600
Salt Lake City, UT 84111-1400

LEGAL COUNSEL Maynard, Cooper & Gale, P.C.
1901 Sixth Avenue North
2400 Regions/Harbert Plaza
Birmingham, AL 35203

FORM 10-K A copy of the Form 10-K Annual Report filed by the Company with the Securities and Exchange Commission for the fiscal year ended December 31, 2015 is available upon request without charge to persons who are beneficial shareholders as of the record date for the 2016 Annual Meeting.

FORM 10-K Such written requests should be directed to:
Alpha Pro Tech, Ltd.
60 Centurian Drive, Suite 112
Markham, Ontario L3R 9R2 Canada

OFFICERS AND DIRECTORS Lloyd Hoffman Chief Executive Officer and Director Alexander W. Millar President and Chairman Colleen McDonald Chief Financial Officer Danny Montgomery Sr. V.P. Manufacturing and Director David Anderson Director
Attorney – Anderson Weidner, LLC David Garcia Director
Retired Independent Businessman Russ Manock Director
Chartered Accountant and Partner – Snow & Manock Dr. John Ritota Director
Dentist – Ritota & Ritota P.A.

ANNUAL MEETING The Annual Meeting of Shareholders will be held:
Wednesday, June 15, 2016 at 9:30 am
Edward Village Hotel
50 East Valhalla Drive
Markham, Ontario L3R 0A3 Canada
905-477-2026

Corporate Head Office 60 Centurian Drive
Suite 112
Markham, Ontario
L3R 9R2
Phone: 800 749-1363
Fax: 905 479-9732
Email: ir@alphaprotech.com

www.alphaprotech.com