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CORPORATE
PROFILE

Alpha Pro Tech, Ltd. (the Company) 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 of 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.
TABLE OF CONTENTS
1 Financial Highlights
2 To Our Shareholders
4 Apparel, Masks & Shields
6 Building Products

Financials

Corporate Information

FINANCIAL HIGHLIGHTS

1 ANNUAL REPORT 2022
Lloyd Hoffman
President and
Chief Executive Officer

TO
OUR
SHAREHOLDERS

I am proud to share with you our annual report for the fiscal year ending on December 31, 2022. First and foremost, your continued trust and confidence in AlphaProTech have been instrumental in our success, and we remain committed to delivering long-term value to our shareholders. I am pleased to report that AlphaProTech has continued to demonstrate resilience, adaptability, and growth in our core markets: Building Supply products and Disposable Protective Apparel garments.

In 2022, we continued to make strategic investments in research and development, expanding our product offerings and strengthening our market position. Our commitment to innovation has led to the launch of new products, primarily in the Building Supply segment, which provide additional market opportunities.

During the year, the majority of our incremental pandemic-related sales returned to normalized levels. As a result, we saw an oversupply of inventory levels with our largest customer in our Disposable Protective Apparel segment, which negatively impacted sales in the first half of the year. While we were encouraged that sales to our end customers continued to expand, it was not until the second half of the year that we saw the normalization of ordering patterns and, with that, a 27% growth of sales in this segment over this time period, including 32% growth in our fourth quarter ended December 31, 2022.

Our Building Supply segment faced some challenges in the later part of 2022, but through new product launches, such as our flashing portfolio and the pending launch of our line of self-adhered roofing products, as well as expanding our housewrap growth strategy to pursue incremental market share of the multi-family building market, we believe this segment is well-positioned despite uncertain market conditions.
2 ANNUAL REPORT 2022
We further strengthened our manufacturing capabilities in 2022 to meet increased product demand. By expanding our production capacity, optimizing our supply chain, and enhancing our operational processes, we ensured the timely delivery of high-quality products to our customers.

We also continued to prioritize safety in our operations, implementing protocols to protect our employees, partners and customers from potential health and safety risks. Our commitment to maintaining the highest standards of quality, safety, and compliance has been instrumental in building trust and confidence among our customers, stakeholders, and the communities we serve.

Our consolidated sales for the year ended December 31, 2022, decreased to $62.0 million, from $68.6 million for the year ended December 31, 2021, representing a decrease of $6.7 million or 9.7%. This decrease consisted of lower sales in the Disposable Protective Apparel segment of $6.7 million, partially offset by increased sales in the Building Supply segment of $48,000. The majority of this decrease was driven by the normalization of facemask and shield sales, which decreased between 2021 and 2022 by 43.8% and 25.6%, respectively.

Our balance sheet remains strong, with cash of $16.3 million as of December 31, 2022, and working capital of over $50 million with no debt, maintaining our strong financial position.

At AlphaProTech, we recognize that our success is not only measured by financial performance but also by our impact on society and the environment. We remain committed to our corporate social responsibility initiatives, guided by our core values of integrity, accountability, and sustainability. We also recognize that responsible and sustainable business practices are essential for the long-term success of our company and the well-being of our planet.

Looking ahead, we are optimistic about the future of AlphaProTech. We believe that our strong market position, diversified product portfolio, and unwavering commitment to quality and innovation will continue to drive our growth and success. We remain focused on expanding our market share, driving operational efficiencies, and pursuing strategic opportunities that align with our long-term vision. As we enter 2023, we are optimistic about both our disposable protective garments and building supply products. In our Disposable Protective Apparel segment, we have started to see more consistent ordering patterns from our distributor customers, which is a strong indication of more balanced inventories in the marketplace. Likewise, in Building Supply, we are encouraged by our growth potential in the coming year, however, economic uncertainty surrounding interest rates, the possibility of a recession and the continued slowdown in construction could negatively impact this segment.

I want to express my sincere appreciation to our dedicated employees, whose hard work, dedication, and passion have been instrumental in our achievements. Their unwavering commitment to excellence and customer satisfaction have been the driving force behind our success, and I am incredibly proud to lead such a talented team.

In conclusion, I want to thank our shareholders for their continued support and trust in AlphaProTech. We remain committed to delivering value and driving sustainable growth for our shareholders, while continuing to prioritize the health and safety of our employees, customers, and communities. We look forward to another successful year and are excited about the opportunities that lie ahead.

Sincerely, Lloyd Hoffman President and
Chief Executive Officer
3 ANNUAL REPORT 2022
  • Apparel,
    Masks
    & Shields
  • AlphaProTech is a leader in the manufacturing of disposable protective apparel for the clean room, controlled environment and general industrial markets. We are committed to supplying high value and superior performing products to our customers. Our Critical Cover® disposable apparel line is designed to protect people, products and manufacturing environments. The goal in the design and manufacture of all Critical Cover® apparel is to keep the wearer cool, clean and comfortable while providing the right level of protection and minimizing the risk of contamination. To achieve this, we offer a comprehensive selection of materials and garment designs to meet a wide range of applications and customer preferences.

    At AlphaProTech, we are dedicated to manufacturing the highest quality disposable apparel and continuously striving to maintain our leadership position with new and innovative materials and product designs. The depth of our design and manufacturing capabilities allows us to create new products that meet evolving market requirements and customer needs.

    Complementing our disposable apparel offering is a full line of single-use protective Face Masks, Face Shields and other ancillary products, including a NIOSH Approved N95 Respirator that is manufactured in the United States. These products are primarily sold in the dental and healthcare markets to protect healthcare workers and their patients. In this space, we work closely with dental and medical distributors worldwide, as well as with many regional distributors.

    Many of our USA-made Face Masks feature an innovative and patented design called the Positive Facial Lock or PFL®. The PFL® advantage utilizes our exclusive Twist-Seal technology that allows the wearer to create a custom fit to their own facial features. The PFL® technology’s seal can prevent many airborne contaminants from entering the wearer’s breathing zone. Additionally, to facilitate comfort and breathability, many of our Face Masks also contain a second patented feature called the Magic Arch®. The Magic Arch® is an integrated feature that upholds the structure and design of the Face Mask, preventing it from coming in contact with the wearer’s nose and mouth. The PFL® and Magic Arch® work in concert to provide the wearer with a comfortable and effective device and an intangible sense of confidence in their work.

    Other products in this category include protective Face Shields, Combination Face Mask & Shield (protecting against both airborne and splash hazards), and Isolation Gowns. These additional products are designed for use in a variety of healthcare environments to enhance the protection of the healthcare workers and their patients.

    AlphaProTech has been in the disposable protective garment and Face Mask /Face Shield manufacturing business for over 30 years. We utilize the latest materials, designs and manufacturing processes to produce premium products for the marketplace. We take pride in what we do and are dynamically positioned to meet the ever-changing needs of our customers.
4 ANNUAL REPORT 2022
AlphaProTech garments
are available in a wide
selection of materials
and configurations to
protect the wearer
as needed.
5 ANNUAL REPORT 2022
  • Building
    Products
  • AlphaProTech continues to bring innovative products for the weatherization of a building structure to market by building on our core strengths.

    One of our key strengths is being vertically integrated in our manufacturing process. We started with one synthetic underlayment and have expanded our product line to the five products we now offer today. Similarly, we had just two housewrap products in the beginning and currently offer five distinct products that meet diverse market demands. We continue to enhance our new and complementary product offerings, driving additional sales of all product lines.

    As we enter a new year, we are preparing to launch our new line of self-adhered roof underlayment to complement our well-known mechanically fastened lines. This expansion ensures that we have more to offer on each roof installation project, from the most basic up to the architectural-specified construction jobs. Furthermore, we are enhancing our side wall protection offerings by adding window and door flashings, including a new flexible flashing material for the multi-family and commercial construction business. As we gain more market share penetration, we will continue to develop additional products in order to address the demands and changes in construction practices.

    Building our product line was just the start for us. We have continued to build our distribution outlets with the addition of more specialized construction distribution customers. These customers give us more touch points in the market to get our products in the hands of contractors across the country. To support this growth, we invested in building a stronger sales team to ensure that our ‘REX’ branded products and, more importantly, AlphaProTech become the leader in our industry. Additionally, we have developed a comprehensive program for architects and specifiers involved in multi-family and commercial construction jobs, ensuring that not only will our name appear in front of more end users, but also that it will be easier to obtain our products through our new distribution network.

    As we continue to increase our product offerings, we also continue to build on the strength of our warranty programs. Our portfolio of products is designed to work together seamlessly, allowing us to offer a warranty package that leads the industry and is second to none.

    Building on our strengths doesn’t stop at just the products, people, and distribution. As a true product manufacturer, we ensure that our products meet today’s vigorous building standards and codes every single time. We have enhanced our manufacturing operations by investing in state-of-the-art equipment that utilizes the latest technology available, ensuring that we have the capacity to accommodate our growth in products, people, and distribution. Our manufacturing processes ensure our success and allow us to react to the market movements and needs in a timely fashion, with quality stamped into every single product we ship out the door.

    With the ability to build on our strengths, AlphaProTech is building for a bigger tomorrow and becoming a market leader in the weatherization of homes and buildings across the country. As we continue down this path, we will continue to have you covered, in every direction!
6 ANNUAL REPORT 2022
From single family
to multi-family
developments, we
cover from the roofs
to the walls. Our
system has you covered
in every direction.
7 ANNUAL REPORT 2022

FINANCIAL
INFORMATION

Download Financial Information

CORPORATE
INFORMATION

MARKET FOR SHARES

The Company’s common shares are quoted on the NYSE American 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 on the NYSE American Exchange for the periods indicated.

As of April 13, 2023 we had 12,373,206 shares outstanding and 105 shareholders of record.

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 15 Avenue
Brooklyn, NY 11219

INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM

Tanner LLC
3300 N. Triumph Blvd., Suite 410
Lehi, UT 84043

LEGAL COUNSEL

Maynard Nexsen PC
1901 6th Avenue N, Suite 1700
Birmingham, AL 35203

FORM 10-K

A copy of the Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission for the fiscal year ended December 31, 2022 is available upon request without charge to persons who are beneficial shareholders as of the record date for the 2023 Annual Meeting. 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

President and Chief Executive Officer and Director

Colleen McDonald

Chief Financial Officer

Danny Montgomery

Sr. V.P. Manufacturing and Director

Donna Millar

Investor Relations and Director

David Garcia

Director
Retired Independent Businessman

Dr. John Ritota

Director
Dentist – Ritota & Ritota P.A.

James W.A. Buchan

Director
Management – Bell Canada

Benjamin A. Shaw

Director
Sr. Director & Controller – Western Governors University

ANNUAL MEETING

The Annual Meeting of Shareholders will be held:
Monday, June 12, 2023 at 9:30 am
Courtyard by Marriott Markham
65 Minthorn Blvd.
Markham, Ontario L3T 7Y9
905 707-6533
Corporate Head Office
60 Centurian Drive
Suite 112
Markham, Ontario
L3R 9R2
Phone: 800 847-9725
Fax: 905 479-9732
Email: ir@alphaprotech.com