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