Alpha Pro Tech, Ltd. (APT) has reported an 8.48 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $0.55 million, or $0.04 a share in the quarter, compared with $0.51 million, or $0.03 a share for the same period last year. Revenue during the quarter dropped 9.25 percent to $10.75 million from $11.85 million in the previous year period. Gross margin for the quarter expanded 411 basis points over the previous year period to 39.94 percent. Total expenses were 93.81 percent of quarterly revenues, down from 94.65 percent for the same period last year. This has led to an improvement of 84 basis points in operating margin to 6.19 percent.
Operating income for the quarter was $0.67 million, compared with $0.63 million in the previous year period.
Lloyd Hoffman, chief executive officer of Alpha Pro Tech, commented, "Our earnings increased year-over-year as a result of our continued efforts to reduce product costs while controlling operating expenses, despite a softness in Building Supply sales, particularly in our synthetic roof underlayment line of products. A corporate mandate from one of our large distributors to lower inventory levels was a significant driver of lower sales in the Building Supply segment for the quarter. We expect that Building Supply segment sales will accelerate in the latter half of 2017 and may reach record levels."
Working capital declines
Alpha Pro Tech, Ltd. has witnessed a decline in the working capital over the last year. It stood at $25.60 million as at Mar. 31, 2017, down 16.41 percent or $5.03 million from $30.63 million on Mar. 31, 2016. Current ratio was at 13.54 as on Mar. 31, 2017, down from 15.38 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 94 days for the quarter from 208 days for the last year period. Days sales outstanding were almost stable at 35 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 74 days for the quarter compared with 186 days for the previous year period. At the same time, days payable outstanding went up to 16 days for the quarter from 13 for the same period last year.
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