Company: APT
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015457
Chunk: 15

Company: ALPHA PRO TECH LTD
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 145% tariff on Chinese imports, a tariff on goods from Mexico and up to 10% or 20% on all other U. S. imports, including tariffs of 10% on products we import from India. Given that we currently source very little from China, this may be a benefit in regards to our competition that does import from China, but any new or increased tariffs, quotas, embargoes, or other trade barriers affecting other countries from which we do source supplies or our global network of third-party suppliers could impact our supply chain and cost structure. Additionally, retaliatory measures by affected countries could further disrupt our operations or reduce our competitiveness in international markets. An escalation in trade tensions or the implementation of broader tariffs, trade restrictions or retaliatory measures on our products or components originating from countries outside the U. S. could adversely impact our ability to source necessary components, manufacture products at competitive cost, or sell our products at prices customers are willing to pay. Any such developments could materially and adversely affect our business operations, results of operations and cash flows. We continue to monitor these changing tariffs and trade restrictions. If new tariffs or trade restrictions are imposed, we may need to adjust our pricing, increase inventory levels, or seek alternative suppliers, any of which could materially affect our revenue, gross margins, and overall financial performance.

RESULTS OF OPERATIONS

The following table sets forth certain operational data as a percentage of net sales for the periods indicated:

                                                    For the Three Months             
                                                                                     
                                                         Ended March 31,             
                                                                    2025             
 ─────────────────────────────────────────────────────────────────────────────────────
  Net sales                                                        100.0      100.0  
  Gross profit                                                      39.0       40.2  
  Selling, general and administrative expenses                      34.0       36.0  
  Income from operations                                             3.3        2.4  
  Income before provision for income taxes                           5.6        5.4  
  Net income                                                         4.4        4.3  

For the three months ended March 31, 2025 compared to the three months ended March 31, 2024

Sales. Consolidated sales for the three months ended March 31, 2025, increased to $13,822,000, from $13,482,000 for the three months ended March 31, 2024, representing an increase of $340,000, or 2.5%. This increase consisted of