ALPHA PRO TECH LTD
For the period ended Sep 30, 2026. Filed Nov 10, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 10, 2026
APT$6.25+12.6%Stored close · as of Nov 10, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001437749-26-026551
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-10.
0001437749-26-036029
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 103 previous paragraphs and 99 current paragraphs.
34 unchanged; 42 reworded; 23 added; 27 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
Building Supply segment sales for the three months ended September 30, 2026, increased by $157,000, or 1.7%, to $9,431,000, compared to $9,274,000 for the three months ended September 30, 2025.
Current report
Sales of other woven material were down 22.0% in the third quarter of 2026 compared to the same period of 2025, primarily due to timing of orders but year to date sales for the product line are basically flat compared to the prior year period.
Current report
Sales of disposable protective garments, which comprised 90% of the segment sales, increased by $1,521,000 or 30.6% in the third quarter of 2026, compared to the same period of 2025. The sales increase was primarily due to improved sales across our distribution network comprised of our large international channel partner and national and regional distributors. In addition, a considerable portion of the increase was attributable to higher selling prices compared to the third quarter of 2025. The disposable protective garments product line continues to demonstrate positive momentum, with most major categories performing well ahead of the third quarter of 2025. Sales of shoe covers, lab coats and frocks, gowns, and bouffant caps are all contributing to this improved performance. The breadth of growth across these product categories is encouraging and provides an opportunity to further expand customer relationships and capture incremental business. As we enter the final quarter of 2026, our focus is on building upon this broader-based improvement, deepening customer relationships, and identifying additional opportunities to expand sales across the portfolio in 2027.
Current report
Sales of our face mask and face shield products in the third quarter of 2026, which comprise the remaining 10% of the segment sales, were up by $141,000 or 25.9% compared to the same period in 2025. The face mask and face shield product lines are showing encouraging improvement, with both face mask and face shields posting solid gains over the prior year period. Management hopes to continue to build on this progress through focused customer engagement, targeted promotional programs, and the pursuit of new business opportunities to sustain growth and strengthen our position in these markets.
Current report
Building Supply segment sales for the nine months ended September 30, 2026 increased by $253,000, or 0.9%, to $28,982,000, compared to $28,729,000 for the nine months ended September 30, 2025.
Current report
Gross Profit. Gross profit increased by $1,069,000, or 18.2%, to $6,937,000 for the three months ended September 30, 2026, from $5,868,000 for the three months ended September 30, 2025. The gross profit margin was 41.8% for the three months ended September 30, 2026, compared to 39.7% for the three months ended September 30, 2025.
Current report
Gross profit margin for the third quarter of 2026 improved compared to the prior year period, primarily reflecting the rescission in late February 2026 of the 50% IEEPA tariffs on goods from India, following a U.S. Supreme Court decision invalidating the use of IEEPA to authorize such tariffs. However, the U.S. Government subsequently announced a new 10% tariff under Section 122 of the Trade Act of 1974. Accordingly, the Company continues to incur tariff costs, although at a lower rate.
Current report
Gross profit increased by $2,040,000, or 11.7%, to $19,431,000 for the nine months ended September 30, 2026, from $17,391,000 for the nine months ended September 30, 2025. The gross profit margin was 39.0% for the nine months ended September 30, 2026, compared to 38.4% for the nine months ended September 30, 2025.
Current report
The net change in gross profit for the nine months September 30, 2026 due to the IEEPA tariff refund was $364,000, which was due to lower cost of goods sold. Excluding the IEEPA tariff refund, gross profit increased by $1,676,000, or 9.6%, to $19,067,000* for the nine months ended September 30, 2026, from $17,391,000 for the nine months ended September 30, 2025. Excluding the tariff refund, gross profit margin was 38.2%* for the nine months ended September 30, 2026, compared to 38.4% for the nine months ended September 30, 2025.
Current report
Income from Operations. Income from operations increased by $873,000, or 79.6%, to $1,970,000 for the three months ended September 30, 2026, compared to $1,097,000 for the three months ended September 30, 2025. The increased income from operations was primarily due to an increase in gross profit of $1,069,000, partially offset by an increase in selling, general and administrative expenses of $173,000 and an increase in depreciation and amortization expenses of $23,000. Income from operations as a percentage of net sales for the three months ended September 30, 2026, was 11.9%, compared to 7.4% for the three months ended September 30, 2025.
Current report
Income from operations increased by $1,675,000, or 58.0%, to $4,562,000 for the nine months ended September 30, 2026, compared to $2,887,000 for the nine months ended September 30, 2025. The increased income from operations was primarily due to an increase in gross profit of $2,040,000 partially offset by an increase in selling, general and administrative expenses of $307,000 and an increase in depreciation and amortization expenses of $58,000. Income from operations as a percentage of net sales for the nine months ended September 30, 2026, was 9.1%, compared to 6.4% for the nine months ended September 30, 2025.
Current report
The net change in income from operations for the nine months September 30, 2026 due to the IEEPA tariff refund was $349,000. Excluding the impact of the IEEPA tariff refund, income from operations increased by $1,326,000, or 45.9%, to $4,213,000* for the nine months ended September 30, 2026, compared to $2,887,000 for the nine months ended September 30, 2025.The increased income from operations was primarily due to an increase in gross profit of $1,676,000, partially offset by an increase in selling, general and administrative expenses of $292,000 and an increase in depreciation and amortization expenses of $58,000. Income from operations as a percentage of net sales for the nine months ended September 30, 2026, was 8.4%, compared to 6.4% for the nine months ended September 30, 2025.
Current report
Income before Provision for Income Taxes. Income before provision for income taxes for the three months ended September 30, 2026, was $2,530,000, compared to $1,293,000 for the same period of 2025, representing an increase of $1,237,000, or 95.7%. This increase in income before provision for income taxes was due to an increase in income from operations of $873,000 and an increase in other income of $364,000.
Current report
The net change in income before provision for income taxes for the third quarter of 2026 due to the IEEPA tariff refund was $167,000. Excluding the impact of the IEEPA tariff refund, income before provision for income taxes for the three months ended September 30, 2026, was $2,363,000*, compared to $1,293,000 for the same period of 2025, representing an increase of $1,070,000, or 82.8%.
Current report
Income before provision for income taxes for the nine months ended September 30, 2026, was $5,799,000, compared to $3,676,000 for the same period of 2025, representing an increase of $2,123,000, or 57.8%. This increase in income before provision for income taxes was due to an increase in income from operations of $1,675,000 and an increase in other income of $448,000.
Current report
The net change in income before provision for income taxes for the nine months ended September 30, 2026 due to the IEEPA tariff refund was $461,000. Excluding the impact of the IEEPA tariff refund, income before provision for income taxes for the nine months ended September 30, 2026, was $5,338,000*, compared to $3,676,000 for the same period of 2025, representing an increase of $1,662,000, or 45.2%.
Current report
Provision for Income Taxes.The provision for income taxes for the three months ended September 30, 2026, was $605,000, compared to $317,000 for the same period of 2025. The estimated effective tax rate was 23.9% for the three months ended September 30, 2026, compared to 24.5% for the three months ended September 30, 2025.
Current report
The net change in provision for income taxes for the third quarter of 2026 due to the IEEPA tariff refund was $43,000. Excluding the impact of the IEEPA tariff refund, the provision for income taxes for the three months ended September 30, 2026, was $562,000*, compared to $317,000 for the same period of 2025. The estimated effective tax rate was 23.8% for the three months ended September 30, 2026, compared to 24.5% for the three months ended September 30, 2025.
Current report
The provision for income taxes for the nine months ended September 30, 2026, was $1,346,000, compared to $843,000 for the same period of 2025. The estimated effective tax rate was 23.2% for the nine months ended September 30, 2026, compared to 22.9% for the nine months ended September 30, 2025.
Current report
The net change in provision for income taxes for the nine months ended September 30, 2026 due to the IEEPA tariff refund was $118,000. Excluding the impact of the IEEPA tariff refund, the provision for income taxes for the nine months ended September 30, 2026, was $1,228,000*, compared to $843,000 for the same period of 2025. The estimated effective tax rate was 23.0% for the nine months ended September 30, 2026, compared to 22.9% for the nine months ended September 30, 2025.
Current report
Net Income. Net income for the three months ended September 30, 2026, was $1,925,000, compared to net income of $976,000 for the same period of 2025, representing an increase of $949,000, or 97.2%. The net income increase between the three months ended September 30, 2026 and the same period of 2025 was due to an increase in income before provision for income taxes of $1,237,000, partially offset by an increase in provision for income taxes of $288,000. Net income as a percentage of net sales was 11.6% for the three months ended September 30, 2026, compared to 6.6% for the same period of 2025. Basic and diluted earnings per common share for the three months ended September 30, 2026 and 2025, were $0.19 and $0.09, respectively.
Current report
Net income for the nine months ended September 30, 2026, was $4,453,000 compared to net income of $2,833,000 for the same period of 2025, representing an increase of $1,620,000, or 57.2%. The net income increase between the nine months ended September 30, 2026 and the same period of 2025 was due to an increase in income before provision for income taxes of $2,123,000, partially offset by an increase in provision for income taxes of $503,000. Net income as a percentage of net sales was 8.9% for the nine months ended September 30, 2026, compared to 6.3% for the same period of 2025. Basic earnings per common share for the nine months ended September 30, 2026 and 2025, were $0.44 and $0.27, respectively. Diluted earnings per common share for the nine months ended September 30, 2026 and 2025, were $0.43 and $0.27, respectively
Current report
Accounts payable and accrued liabilities as of September 30, 2026 increased by $2,603,000, or 84.2%, to $5,696,000, from $3,093,000 as of December 31, 2025. Excluding the accrued withholding taxes, which represent a non-cash financing activity, accounts payable and accrued liabilities increased by $2,092,000, as reflected in the condensed consolidated statement of cash flows. The increase was primarily due to advanced deposits of IEEPA tariffs.
Removed paragraphs (27)
Previous report
Subsequent to June 30, 2026, the Company received approximately $3.2 million in refunds from the CBP related to previously paid IEEPA tariffs. This is in addition to the approximately $300,000 in refunds received (and recorded) during the second quarter of 2026. Although approximately $3.2 million of refunds were received after quarter-end and prior to the filing of this Form 10-Q, the IEEPA tariff matters related to the $3.2 million remain subject to ongoing litigation, including pending appeals, and the ultimate resolution of these matters has not been finalized. Given the uncertainty related to the litigation, management concluded that the ultimate collectability of the $3.2 million could not be deemed to be probable as of June 30, 2026. Accordingly, no additional amounts related to the $3.2 million have been recognized in the accompanying condensed consolidated financial statements as of June 30, 2026.
Previous report
Building Supply segment sales for the three months ended June 30, 2026, increased by $608,000, or 5.5%, to $11,692,000, compared to $11,084,000 for the three months ended June 30, 2025.
Previous report
Sales of disposable protective garments, which comprised 93% of the segment sales, increased by $1,458,000 or 29.0% in the second quarter of 2026, compared to the same period in 2025. The sales increase was primarily due to improved sales to our largest international channel partner, as well as national and regional distributors. A considerable portion of the increase was attributable to higher selling prices, primarily driven by the impact of U.S. tariffs. Sales of our face mask and face shield products in the second quarter of 2026, which comprise the remaining 7% of the segment sales, were down by $64,000 compared to the same period in 2025.
Previous report
Building Supply segment sales for the six months ended June 30, 2026 increased by $95,000, or 0.5%, to $19,551,000, compared to $19,456,000 for the six months ended June 30, 2025.
Previous report
Sales of other woven material were up 15.1% year to date in 2026 compared to the same period in 2025, primarily due to increased sales to our largest customer for this product line.
Previous report
Gross Profit. Including the impact of the IEEPA tariff refund, gross profit increased by $847,000, or 13.8%, to $6,978,000 for the three months ended June 30, 2026, from $6,131,000 for the three months ended June 30, 2025. The gross profit margin was 37.4% for the three months ended June 30, 2026, compared to 36.8% for the three months ended June 30, 2025.
Previous report
Excluding the IEEPA tariff refund, gross profit increased by $553,000, or 9.0%, to $6,684,000 for the three months ended June 30, 2026, from $6,131,000 for the three months ended June 30, 2025. The gross profit margin was 35.8% for the three months ended June 30, 2026, compared to 36.8% for the three months ended June 30, 2025.
Previous report
Including the impact of the IEEPA tariff refund, gross profit increased by $971,000, or 8.4%, to $12,494,000 for the six months ended June 30, 2026, from $11,523,000 for the six months ended June 30, 2025. The gross profit margin was 37.6% for the six months ended June 30, 2026, compared to 37.8% for the six months ended June 30, 2025.
Previous report
Excluding the IEEPA tariff refund, gross profit increased by $677,000, or 5.9%, to $12,200,000 for the six months ended June 30, 2026, from $11,523,000 for the six months ended June 30, 2025. The gross profit margin was 36.7% for the six months ended June 30, 2026, compared to 37.8% for the six months ended June 30, 2025.
Previous report
Income from Operations. Including the impact of the IEEPA tariff refund, income from operations increased by $677,000, or 50.7%, to $2,012,000 for the three months ended June 30, 2026, compared to $1,335,000 for the three months ended June 30, 2025. The increased income from operations was primarily due to an increase in gross profit of $847,000, partially offset by an increase in selling, general and administrative expenses of $142,000 and an increase in depreciation and amortization expenses of $28,000. Income from operations as a percentage of net sales for the three months ended June 30, 2026, was 10.8%, compared to 8.0% for the three months ended June 30, 2025.
Previous report
Excluding the impact of the IEEPA tariff refund, income from operations increased by $398,000, or 29.8%, to $1,733,000* for the three months ended June 30, 2026, compared to $1,335,000 for the three months ended June 30, 2025. The increased income from operations was primarily due to an increase in gross profit of $553,000, partially offset by an increase in selling, general and administrative expenses of $127,000 and an increase in depreciation and amortization expenses of $28,000. Income from operations as a percentage of net sales for the three months ended June 30, 2026, was 9.3%, compared to 8.0% for the three months ended June 30, 2025.
Previous report
Including the impact of the IEEPA tariff refund, income from operations increased by $802,000, or 44.8%, to $2,592,000 for the six months ended June 30, 2026, compared to $1,790,000 for the six months ended June 30, 2025. The increased income from operations was primarily due to an increase in gross profit of $971,000 partially offset by an increase in selling, general and administrative expenses of $134,000 and an increase in depreciation and amortization expenses of $35,000. Income from operations as a percentage of net sales for the six months ended June 30, 2025, was 7.8%, compared to 5.9% for the six months ended June 30, 2025.
Previous report
Excluding the impact of the IEEPA tariff refund, income from operations increased by $523,000, or 29.2%, to $2,313,000* for the six months ended June 30, 2026, compared to $1,790,000 for the six months ended June 30, 2025.The increased income from operations was primarily due to an increase in gross profit of $677,000, partially offset by an increase in selling, general and administrative expenses of $119,000 and an increase in depreciation and amortization expenses of $35,000. Income from operations as a percentage of net sales for the six months ended June 30, 2026, was 7.0%, compared to 5.9% for the six months ended June 30, 2025.
Previous report
Income before Provision for Income Taxes. Including the impact of the IEEPA tariff refund, income before provision for income taxes for the three months ended June 30, 2026, was $2,384,000, compared to income before provision for income taxes of $1,611,000 for the same period of 2025, representing an increase of $773,000, or 48.0%. This increase in income before provision for income taxes was due to an increase in income from operations of $677,000 and an increase in other income of $96,000.
Previous report
The net change in income before provision for income taxes for the second quarter of 2026 due to the IEEPA tariff refund was $294,000.
Previous report
Excluding the impact of the IEEPA tariff refund, income before provision for income taxes for the three months ended June 30, 2026, was $2,090,000*, compared to income before provision for income taxes of $1,611,000 for the same period of 2025, representing an increase of $479,000, or 29.7%. This increase in income before provision for income taxes would have been due to an increase in income from operations of $398,000 and an increase in other income of $81,000.
Previous report
Including the impact of the IEEPA tariff refund, income before provision for income taxes for the six months ended June 30, 2026, was $3,269,000, compared to income before provision for income taxes of $2,383,000 for the same period of 2025, representing an increase of $886,000, or 37.2%. This increase in income before provision for income taxes was due to an increase in income from operations of $802,000 and an increase in other income of $84,000.
Previous report
Excluding the impact of the IEEPA tariff refund, income before provision for income taxes for the six months ended June 30, 2026, was $2,975,000*, compared to income before provision for income taxes of $2,383,000 for the same period of 2025, representing an increase of $592,000, or 24.8%. This increase in income before provision for income taxes was due to an increase in income from operations of $523,000 and an increase in other income of $69,000.
Previous report
Provision for Income Taxes. Including the impact of the IEEPA tariff refund, the provision for income taxes for the three months ended June 30, 2026, was $558,000, compared to $367,000 for the same period of 2025. The estimated effective tax rate was 23.4% for the three months ended June 30, 2026, compared to 22.8% for the three months ended June 30, 2025.
Previous report
The net change in provision for income taxes for the second quarter of 2026 due to the IEEPA tariff refund was $75,000.
Previous report
Excluding the impact of the IEEPA tariff refund, the provision for income taxes for the three months ended June 30, 2026, was $483,000*, compared to $367,000 for the same period of 2025. The estimated effective tax rate was 23.1% for the three months ended June 30, 2026, compared to 22.8% for the three months ended June 30, 2025.
Previous report
Including the impact of the IEEPA tariff refund, the provision for income taxes for the six months ended June 30, 2026, was $741,000, compared to $526,000 for the same period of 2025. The estimated effective tax rate was 22.7% for the six months ended June 30, 2026, compared to 22.1% for the six months ended June 30, 2025.
Previous report
Excluding the impact of the IEEPA tariff refund, the provision for income taxes for the six months ended June 30, 2026, was $666,000*, compared to $526,000 for the same period of 2025. The estimated effective tax rate was 22.4% for the six months ended June 30, 2026, compared to 22.1% for the six months ended June 30, 2025.
Previous report
Net Income. Including the impact of the IEEPA tariff refund net income for the three months ended June 30, 2026, was $1,826,000, compared to net income of $1,244,000 for the same period of 2025, representing an increase of $582,000, or 46.8%. The net income increase between the three months ended June 30, 2026 and the same period of 2025 was due to an increase in income before provision for income taxes of $773,000, partially offset by an increase in provision for income taxes of $191,000. Net income as a percentage of net sales was 9.8% for the three months ended June 30, 2026, compared to 7.5% for the same period of 2025. Basic and diluted earnings per common share for each of the three months ended June 30, 2026 and 2025, were $0.18 and $0.12, respectively.
Previous report
Excluding the impact of the IEEPA tariff refund, net income for the three months ended June 30, 2026, was $1,607,000*, compared to net income of $1,244,000 for the same period of 2025, representing an increase of $363,000, or 29.2%. The net income increase between the three months ended June 30, 2026, and the same period of 2025 was due to an increase in income before provision for income taxes of $479,000, partially offset by a decrease in provision for income taxes of $116,000. Excluding the tariff refund, net income as a percentage of net sales would have been 8.6% for the three months ended June 30, 2026, compared to 7.5% for the same period of 2025. Basic and diluted earnings per common share for each of the three months ended June 30, 2026 and 2025, were $0.16 and $0.12, respectively. The comparison excluding the tariff refund reflects the Company's underlying operating performance without the benefit of the tariff refund.
Previous report
Including the impact of the IEEPA tariff refund, net income for the six months ended June 30, 2026, was $2,528,000 compared to net income of $1,857,000 for the same period of 2025, representing an increase of $671,000, or 36.1%. The net income increase between the six months ended June 30, 2026 and the same period of 2025 was due to an increase in income before provision for income taxes of $886,000, partially offset by an increase in provision for income taxes of $215,000. Net income as a percentage of net sales was 7.6% for the six months ended June 30, 2026, compared to 6.1% for the same period of 2025. Basic earnings per common share for each of the six months ended June 30, 2026 and 2025, were $0.25 and $0.18, respectively. Diluted earnings per common share for each of the six months ended June 30, 2026 and 2025, were $0.24 and $0.18, respectively.
Previous report
Accounts payable and accrued liabilities as of June 30, 2026 decreased by $965,000, or 31.2%, to $2,128,000, from $3,093,000 as of December 31, 2025. The decrease was primarily due to decreases in trade payables and accrued bonuses.
Reworded paragraphs (42)
Previous wording
Recent developments in U.S. trade policy continue to introduce uncertainty regarding the future of global trade relations. Following the inauguration of the second Trump administration, there have been numerous announcements and actions related to tariff increases and other trade restrictions on imports into the United States. Changes in tariffs, quotas, embargoes, or other trade barriers affecting countries from which the Company sources products, or affecting its global network of third-party suppliers, could impact the Company's supply chain and cost structure. In addition, retaliatory measures by affected countries could further disrupt operations or reduce our competitiveness in international markets. The Company continues to monitor evolving trade policies and tariff developments. Future changes in tariffs or other trade restrictions could require the Company to adjust pricing, increase inventory levels, or seek alternative suppliers, any of which could materially affect revenue, gross margins, and results of operations.
Current wording
Recent developments in U.S. trade policy continue to introduce uncertainty regarding the future of global trade relations. Following the inauguration of the second Trump administration, there have been numerous announcements and actions related to tariff increases and other trade restrictions on imports into the United States. Changes in tariffs, quotas, embargoes, or other trade barriers affecting countries from which the Company sources products, or affecting its global network of third-party suppliers, could impact the Company's supply chain and cost structure. In addition, retaliatory measures by affected countries could further disrupt our operations or reduce our competitiveness in international markets. The Company continues to monitor evolving trade policies and tariff developments. Future changes in tariffs or other trade restrictions could require the Company to adjust pricing, increase inventory levels, or seek alternative suppliers, any of which could materially affect revenue, gross margins, and results of operations.
Previous wording
On February 20, 2026, the U.S. Supreme Court ruled inLearning Resources, Inc. v. Trump that the President lacked authority under the International Emergency Economic Powers Act ("IEEPA") to impose certain tariffs. During the three months ended June 30, 2026, the Company recognized a recovery of approximately $300,000 of previously paid IEEPA tariffs under the gain contingency model. The related refunds, including applicable statutory interest, were received from U.S. Customs and Border Protection (the “CBP”) during June 2026. The U.S. government has appealed the court's decision, and the litigation remains ongoing. The Company will continue to monitor developments related to the litigation and U.S. trade policy.
Current wording
On February 20, 2026, the U.S. Supreme Court ruled inLearning Resources, Inc. v. Trump that the President lacked authority under the International Emergency Economic Powers Act ("IEEPA") to impose certain tariffs. During the nine months ended September 30, 2026, the Company received a recovery of approximately $3,500,000 of previously paid IEEPA tariffs. The related refunds, including applicable statutory interest, were received from U.S. Customs and Border Protection (the “CBP”). The U.S. government has appealed the court's decision, and the litigation remains ongoing. The Company will continue to monitor developments related to the litigation and U.S. trade policy.
Previous wording
For the Three and Six months ended June 30, 2026 compared to the Three and Six months ended June 30, 2025
Current wording
For the Three and Nine months ended September 30, 2026 compared to the Three and Nine months ended September 30, 2025
Previous wording
Sales.Consolidated sales for the three months ended June 30, 2026, increased to $18,674,000, from $16,672,000 for the three months ended June 30, 2025, representing an increase of $2,002,000, or 12.0%. This increase consisted of increased sales in the Building Supply segment of $608,000 and increased sales in the Disposable Protective Apparel segment of $1,394,000.
Current wording
Sales.Consolidated sales for the three months ended September 30, 2026, increased to $16,604,000, from $14,785,000 for the three months ended September 30, 2025, representing an increase of $1,819,000, or 12.3%. This increase consisted of increased sales in the Building Supply segment of $157,000 and increased sales in the Disposable Protective Apparel segment of $1,662,000.
Previous wording
The Building Supply segment sales increase during the three months ended June 30, 2026, was primarily due to a 1.2% increase in sales of housewrap, a 3.4% increase in sales of synthetic roof underlayment, a 6.0% increase in sales of other woven material and a 25.0% decrease in rebates as compared to the same period of 2025.
Current wording
The Building Supply segment sales increase during the three months ended September 30, 2026, was primarily due to a 13.1% increase in sales of housewrap, partially offset by a 6.3% decrease in sales of synthetic roof underlayment, and a 22.0% decrease in sales of other woven material as compared to the same period of 2025.
Previous wording
The sales mix of the Building Supply segment for the three months ended June 30, 2026, was approximately 40% for synthetic roof underlayment, 50% for housewrap and 10% for other woven material, which was the same for the three months ended June 30, 2025. Our synthetic roof underlayment product line primarily includes REX SynFelt®, REX TECHNOply® and TECHNO SB and our synthetic roof underlayment accessories consist of our new self-adhered TECHNOplus Ice & Water and REX Hi Temp. Our housewrap product line primarily consists of REX Wrap®, REX Wrap Plus® and REX™ Wrap Fortis. Housewrap accessories consist of REXTREME Window and Door Flashing and REX™ Premium Seam Tape.
Current wording
The sales mix of the Building Supply segment for the three months ended September 30, 2026, was approximately 35% for synthetic roof underlayment, 50% for housewrap and 15% for other woven material, which was the same for the three months ended September 30, 2025. Our synthetic roof underlayment product line primarily includes REX SynFelt®, REX TECHNOply® and TECHNO SB and our synthetic roof underlayment accessories consist of our new self-adhered TECHNOplus Ice & Water and REX Hi Temp. Our housewrap product line primarily consists of REX Wrap®, REX Wrap Plus® and REX™ Wrap Fortis. Housewrap accessories consist of REXTREME Window and Door Flashing and REX™ Premium Seam Tape.
Previous wording
The housing market continued to show weakness in the second quarter of 2026, as single-family housing starts declined by 4.2% compared to the corresponding period in 2025. This decline in the second quarter of 2026 represents an improvement from the decline of 6.5% in the first quarter of 2026. Single-family housing starts in the U.S. remained constrained by mortgage rates, increased land, labor and construction costs, affordability pressures, macroeconomic uncertainty, and geopolitical volatility, which has led builders to moderate new construction activity.
Current wording
The housing market continued to show weakness in the third quarter of 2026, as single-family housing starts declined by 1.6% compared to the corresponding period of 2025. However, this market decline in the third quarter of 2026 represents an improvement from the decline in the prior quarter. Single-family housing starts in the U.S. remained constrained by mortgage rates, increased land, labor and construction costs, affordability pressures, macroeconomic uncertainty, and geopolitical volatility, which has led builders to moderate new construction activity.
Previous wording
During the second quarter of 2026, we again outperformed the market, as our core building products (housewrap and synthetic roof underlayment) were up by 2.2% compared to the same period of 2025, driven by an increase in both housewrap and synthetic roof underlayment sales. Our synthetic roof underlayment sales increased by 3.4% in the second quarter of 2026 compared to the second quarter of 2025, even though the Asphalt Roofing Manufacturers Association (“ARMA”) reported a 10.0% decline in industry shipments. The Company plans to expand our roofing market product offerings in order to enhance our competitive position and support long-term growth.
Current wording
During the third quarter of 2026, we again outperformed the market, as sales of our core building products (housewrap and synthetic roof underlayment) increased by 5.2% compared to the same period of 2025, driven primarily by a 13.1% increase in housewrap sales. In the third quarter of 2026, our synthetic roof underlayment sales decreased by 6.3% compared to the third quarter of 2025, outperforming the overall market, as the Asphalt Roofing Manufacturers Association (“ARMA”) reported a steeper 13.0% decline in industry shipments.
Previous wording
The building industry outlook for the remainder of 2026 reflects a soft but generally stable market, rather than a meaningful rebound. A modest increase in single-family housing starts is expected in 2027, assuming economic and financing conditions improve. Management remains focused on developing and producing industry-leading products and anticipates growth in the Building Supply segment; however, uncertainty related to the factors described above could adversely impact results.
Current wording
The building industry outlook for the remainder of 2026 reflects a soft but generally stable market, rather than a meaningful rebound. A modest increase in single-family housing starts is expected in 2027, assuming economic and financing conditions improve. The Company plans on expanding our housewrap and synthetic roof underlayment market product offerings in 2027 to enhance our competitive position and support long-term growth. Management remains focused on growth in the Building Supply segment and has recently expanded its sales team; however, uncertainty related to the factors described above could adversely impact results.
Previous wording
Disposable Protective Apparel segment sales for the three months ended June 30, 2026, were $6,982,000, compared to $5,588,000 for the same period in 2025, reflecting an increase of $1,394,000, or 24.9%. The segment experienced strong underlying sales growth during the quarter.
Current wording
Disposable Protective Apparel segment sales for the three months ended September 30, 2026, were $7,173,000, compared to $5,511,000 for the same period of 2025, reflecting an increase of $1,662,000, or 30.2%. The segment experienced strong underlying sales growth during the quarter.
Previous wording
The sales mix of the Disposable Protective Apparel segment for the three months ended June 30, 2026, was approximately 93% for disposable protective garments, 4% for face masks and 3% for face shields. This sales mix is compared to approximately 90% for disposable protective garments, 6% for face masks and 4% for face shields for the three months ended June 30, 2025.
Current wording
The sales mix of the Disposable Protective Apparel segment for the three months ended September 30, 2026, was approximately 90% for disposable protective garments, 6% for face masks and 4% for face shields. This sales mix is compared to approximately 90% for disposable protective garments, 7% for face masks and 3% for face shields for the three months ended September 30, 2025.
Previous wording
Consolidated sales for the six months ended June 30, 2026 were $33,259,000, compared with $30,494,000 for the six months ended June 30, 2025, an increase of $2,765,000, or 9.1%. The increase was attributable to higher sales in both operating segments, consisting of a $95,000 increase in the Building Supply segment and a $2,670,000 increase in the Disposable Protective Apparel segment.
Current wording
Consolidated sales for the nine months ended September 30, 2026 were $49,863,000, compared with $45,279,000 for the nine months ended September 30, 2025, an increase of $4,584,000, or 10.1%. The increase was attributable to higher sales in both operating segments, consisting of a $253,000 increase in the Building Supply segment and a $4,331,000 increase in the Disposable Protective Apparel segment.
Previous wording
The Building Supply segment sales increase during the six months ended June 30, 2026, was primarily due to a 5.9% increase in sales of housewrap and a 15.1% increase in sales of other woven material and a 13.6% decrease in rebates, partially offset by an 11.3% decrease in sales of synthetic roof underlayment, compared to the same period of 2025.
Current wording
The Building Supply segment sales increase during the nine months ended September 30, 2026, was primarily due to a 8.3% increase in sales of housewrap, partially offset by a 9.9% decrease in sales of synthetic roof underlayment and a 0.8% decrease in sales of other woven material compared to the same period of 2025.
Previous wording
The sales mix of the Building Supply segment for the six months ended June 30, 2026 was 51% for housewrap, 39% for synthetic roof underlayment and 10% for other woven material. This compared to 48% for housewrap, 43% for synthetic roof underlayment and 9% for other woven material for the six months ended June 30, 2025.
Current wording
The sales mix of the Building Supply segment for the nine months ended September 30, 2026 was 53% for housewrap, 36% for synthetic roof underlayment and 11% for other woven material. This compared to 49% for housewrap, 40% for synthetic roof underlayment and 11% for other woven material for the nine months ended September 30, 2025.
Previous wording
As per the US Census Bureau, single-family housing starts declined by 5.3% year to date compared to the same period in 2025. The Asphalt Roofing Manufacturers Association (“ARMA”) reported a 10.0% decline in industry shipments compared to the year to date in 2025. Management is encouraged by a 5.9% increase in sales of housewrap and sales of synthetic roof underlayment as compared to the decline in the ARMA figures.
Current wording
As per the US Census Bureau, single-family housing starts declined by 4.0% year to date compared to the same period of 2025. Accordingly, management is encouraged by the year-to-date increase in sales of housewrap of 8.3%.
Previous wording
Disposable Protective Apparel segment sales for the six months ended June 30, 2026increased by $2,670,000, or 24.2%, to $13,708,000, compared to $11,038,000 for the six months ended June 30, 2025.
Current wording
Disposable Protective Apparel segment sales for the nine months ended September 30, 2026increased by $4,331,000, or 26.2%, to $20,881,000, compared to $16,550,000 for the nine months ended September 30, 2025.
Previous wording
The increase in segment sales was primarily driven by strong demand across the Company's disposable protective product lines. Compared with the first six months of 2025, sales of disposable protective garments increased by 26.4%, sales of face masks increased by 5.7%, and sales of face shields increased by 0.9%. These increases contributed to the segment's strong underlying year-over-year growth.
Current wording
The increase in segment sales was primarily driven by strong demand across the Company's disposable protective product lines. Compared with the first nine months of 2025, sales of disposable protective garments increased by 27.8%, sales of face masks increased by 10.3%, and sales of face shields increased by 12.4%. These increases contributed to the segment's strong underlying year-over-year growth.
Previous wording
The sales mix of the Disposable Protective Apparel segment for the six months ended June 30, 2026, was 92% for disposable protective garments, 5% for face masks and 3% for face shields. This sales mix is compared to 90% for disposable protective garments, 6% for face masks and 4% for face shields for the six months ended June 30, 2025.
Current wording
The sales mix of the Disposable Protective Apparel segment for the nine months ended September 30, 2026, was 92% for disposable protective garments, 5% for face masks and 3% for face shields. This sales mix is compared to 90% for disposable protective garments, 6% for face masks and 4% for face shields for the nine months ended September 30, 2025.
Previous wording
The decrease in gross profit margin for the three and six months ended June 30, 2026 compared to the same period of 2025 was driven by IEEPA tariffs ranging from 10% to 50%. IEEPA tariffs were subsequently rescinded on February 24, 2026, following a Supreme Court decision invalidating the use of IEEPA to authorize such tariffs. On the same date, the U.S. Government announced plans to implement a new 15% tariff under Section 122 of the Trade Act of 1974. Although announced at 15%, the tariff as of June 30, 2026 was at 10%. In addition, beginning in the latter part of the first quarter of 2026, the Company has experienced increased costs associated with global geopolitical instability, including related to the ongoing U.S.-Iran conflict. These conditions have contributed to higher energy, transportation and supply chain costs, as well as volatility in raw material costs, particularly petroleum-based inputs. Many of our products are made from petroleum-based resin, which has seen significant price increases since the start of the conflict. In response to these increased costs, we are implementing a price increase in the third quarter of 2026. Management expects gross profit margin to be positively affected in the coming quarters.
Current wording
Beginning in the second quarter of 2026, the Company also experienced increased costs associated with global geopolitical instability, including the ongoing U.S.-Iran conflict. These conditions have contributed to higher energy, transportation and supply chain costs, as well as volatility in raw material prices, particularly petroleum-based inputs. Many of the Company's products are manufactured using petroleum-based resin, which has experienced significant price increases since the conflict began. In response to these higher costs, the Company implemented a price increase in the third quarter of 2026. The combination of lower tariff rates and the Company's pricing actions contributed to the improvement in gross profit margin during the third quarter.
Previous wording
We will continue to monitor developments in U.S. trade policy and global geopolitical conditions. Changes in tariffs, energy markets, or international conflicts, including developments related to the U.S.-Iran conflict, may impact our supply chain, cost structure and profitability.
Current wording
The Company will continue to monitor developments in U.S. trade policy and global geopolitical conditions. Ocean freight rates have also increased substantially over the past several months, partly as a result of the U.S.-Iran conflict and are expected to put additional pressure on gross profit margin in future periods. Changes in tariffs, energy markets, freight rates and international conflicts may continue to affect the Company's supply chain, cost structure and profitability.
Previous wording
The net change in gross profit for the second quarter of 2026 due to the IEEPA tariff refund was $294,000, which comprised of lower cost of goods sold.
Current wording
The net change in gross profit for the three months September 30, 2026 due to the IEEPA tariff refund was $70,000, which was due to lower cost of goods sold. Excluding the IEEPA tariff refund, gross profit increased by $999,000, or 17.0%, to $6,867,000* for the three months ended September 30, 2026, from $5,868,000 for the three months ended September 30, 2025. Excluding the tariff refund, gross profit margin was 41.4%* for the three months ended September 30, 2026, compared to 39.7% for the three months ended September 30, 2025.
Previous wording
Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $142,000, or 3.1%, to $4,698,000 for the three months ended June 30, 2026, from $4,556,000 for the three months ended June 30, 2025. As a percentage of net sales, selling, general and administrative expenses decreased to 25.2% for the three months ended June 30, 2026, from 27.3% for the same period of 2025. Excluding the IEEPA tariff refund, selling, general and administrative expenses would have been $15,000 lower. The change in expenses by segment for the three months ended June 30, 2026, was as follows: Building Supply expenses were down by $10,000, or 0.6%; Disposable Protective Apparel expenses were up by $50,000, or 3.8%; and corporate unallocated expenses were up by $103,000, or 9.4%.
Current wording
Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $173,000, or 3.8%, to $4,741,000 for the three months ended September 30, 2026, from $4,568,000 for the three months ended September 30, 2025. As a percentage of net sales, selling, general and administrative expenses decreased to 28.6% for the three months ended September 30, 2026, from 30.9% for the same period of 2025. The change in expenses by segment for the three months ended September 30, 2026, was as follows: Building Supply expenses were down by $25,000, or 1.4%; Disposable Protective Apparel expenses were down by $47,000, or 3.4%; and corporate unallocated expenses were up by $245,000, or 17.4%. The IEEPA refund effect did not have a material effect on selling, general and administrative expenses.
Previous wording
The decrease in the Building Supply segment expenses was primarily related to decreased employee compensation and marketing expenses, partially offset by increased sales-related travel expenses and general office expenses. The increase in the Disposable Protective Apparel segment expenses was primarily related to increased insurance expenses. The increase in corporate unallocated expenses was primarily due to increased employee compensation and general office expenses, partially offset by decreased legal fees.
Current wording
The decrease in the Building Supply segment expenses was primarily related to decreased employee compensation, marketing expenses and commission expenses, partially offset by increased sales-related travel expenses, insurance expenses and general office expenses. The decrease in the Disposable Protective Apparel segment expenses was primarily related to decreased general office expenses, partially offset by increased employee compensation, commission expenses, insurance expenses and rent and utilities expenses. The increase in corporate unallocated expenses was primarily due to increased employee bonuses and professional fees, partially offset by decreased general office expenses.
Previous wording
Selling, general and administrative expenses increased by $134,000, or 1.4%, to $9,384,000 for the six months ended June 30, 2026, from $9,250,000 for the six months ended June 30, 2025. As a percentage of net sales, selling, general and administrative expenses decreased to 28.2% for the six months ended June 30, 2026, from 30.3% for the same period of 2025.
Current wording
Selling, general and administrative expenses increased by $307,000, or 2.2%, to $14,125,000 for the nine months ended September 30, 2026, from $13,818,000 for the nine months ended September 30, 2025. As a percentage of net sales, selling, general and administrative expenses decreased to 28.3% for the nine months ended September 30, 2026, from 30.5% for the same period of 2025. Excluding the IEEPA tariff refund, selling, general and administrative expenses would have been $15,000 lower for the nine months ended September 30, 2026.
Previous wording
The change in expenses by segment for the six months ended June 30, 2025, was as follows: Building Supply expenses were down by $178,000, or 4.9%; Disposable Protective Apparel expenses were up by $63,000, or 2.3%; and corporate unallocated expenses were up by $250,000, or 8.7%. The decrease in the Building Supply segment expenses was primarily related to decreased employee compensation and trade show expenses, partially offset by increased sales-related travel expenses and general office expenses. The increase in the Disposable Protective Apparel segment expenses was primarily related to increased insurance expenses. The increase in corporate unallocated expenses was primarily due to increased employee bonuses, general office expenses partially offset by lower legal fees in the six months ended June 30, 2026 compared to the same period of 2025.
Current wording
The change in expenses by segment for the nine months ended September 30, 2026, was as follows: Building Supply expenses were down by $204,000, or 3.8%; Disposable Protective Apparel expenses were up by $15,000, or 0.4%; and corporate unallocated expenses were up by $496,000, or 11.6%. The decrease in the Building Supply segment expenses was primarily related to decreased employee compensation, trade show expenses and commission expenses, partially offset by increased sales-related travel expenses, insurance expenses and general office expenses. The increase in the Disposable Protective Apparel segment expenses was primarily related to increased employee compensation, commission expenses and insurance expenses, partially offset by decreased sales-related travel expenses and general office and factory expenses. The increase in corporate unallocated expenses was primarily due to increased employee bonuses, professional fees, public company expenses and general office expenses in the nine months ended September 30, 2026 compared to the same period of 2025.
Previous wording
In accordance with the terms of his employment agreement, the Company’s current President and Chief Executive Officer is entitled to an annual bonus equal to 5% of the pre-tax profits of the Company, excluding bonus expense, up to a maximum of $1.0 million. A bonus amount of $125,000 was accrued for the three months ended June 30, 2026, compared to $84,000 for the three months ended June 30, 2025. A bonus amount of $172,000 was accrued for the six months ended June 30, 2026, compared to $125,000 for the same period of 2025.
Current wording
In accordance with the terms of his employment agreement, the Company’s current President and Chief Executive Officer is entitled to an annual bonus equal to 5% of the pre-tax profits of the Company, excluding bonus expense, up to a maximum of $1.0 million. A bonus amount of $133,000 was accrued for the three months ended September 30, 2026, compared to $69,000 for the three months ended September 30, 2025. A bonus amount of $305,000 was accrued for the nine months ended September 30, 2026, compared to $194,000 for the same period of 2025.
Previous wording
Depreciation and Amortization. Depreciation and amortization expense increased by $28,000, or 11.7%, to $268,000 for the three months ended June 30, 2026, from $240,000 for the three months ended June 30, 2025. Depreciation and amortization expense increased by $35,000, or 7.2%, to $518,000 for the six months ended June 30, 2026, from $483,000 for the six months ended June 30, 2025. The increase was primarily due to an increase in depreciation in the Disposable Protective Apparel segment.
Current wording
Depreciation and Amortization. Depreciation and amortization expense increased by $23,000, or 11.3%, to $226,000 for the three months ended September 30, 2026, from $203,000 for the three months ended September 30, 2025. Depreciation and amortization expense increased by $58,000, or 8.5%, to $744,000 for the nine months ended September 30, 2026, from $686,000 for the nine months ended September 30, 2025. The increase was primarily due to an increase in depreciation in the Disposable Protective Apparel segment.
Previous wording
The net change in income from operations for the second quarter of 2026 due to the IEEPA tariff refund was $279,000.
Current wording
The net change in income from operations for the third quarter of 2026 due to the IEEPA tariff refund was $70,000. Excluding the impact of the IEEPA tariff refund, income from operations increased by $803,000, or 73.2%, to $1,900,000* for the three months ended September 30, 2026, compared to $1,097,000 for the three months ended September 30, 2025.The increased income from operations was primarily due to an increase in gross profit of $999,000, partially offset by an increase in selling, general and administrative expenses of $173,000 and an increase in depreciation and amortization expenses of $23,000. Income from operations as a percentage of net sales for the third quarter of 2026, was 11.4%, compared to 7.4% for the three months ended September 30, 2025.
Previous wording
Other Income. Other income increased by $96,000 to income of $372,000 for the three months ended June 30, 2026, compared to $276,000 for the same period of 2025. The increase was primarily due to an increase in equity in income of unconsolidated affiliate of $72,000 and an increase in interest income of $24,000. The increase in interest income was primarily due to interest earned in investments and interest paid by the federal government on our IEEPA tariff refund.
Current wording
Other Income. Other income increased by $364,000 to income of $560,000 for the three months ended September 30, 2026, compared to $196,000 for the same period of 2025. The increase was primarily due to an increase in equity in income of unconsolidated affiliate of $227,000 and an increase in interest income of $137,000. The increase in interest income was primarily due to interest paid by the federal government on our IEEPA tariff refund of $97,000 and to interest earned in investments.
Previous wording
Other income increased by $84,000 to income of $677,000 for the six months ended June 30, 2026, compared to $593,000 for the same period of 2025. The increase was primarily due to an increase in equity in income of unconsolidated affiliate of $86,000 and interest paid by the federal government on our IEEPA tariff refund partially offset by a decrease in interest earned on investments.
Current wording
Other income increased by $448,000 to income of $1,237,000 for the nine months ended September 30, 2026, compared to $789,000 for the same period of 2025. The increase was primarily due to an increase in equity in income of unconsolidated affiliates of $313,000 and an increase in interest income of $135,000, of which $112,000 was interest paid by the federal government on our IEEPA tariff refund.
Previous wording
The net change in net income for the second quarter of 2026 due to the IEEPA tariff refund was $219,000.
Current wording
The net change in net income for the third quarter of 2026 due to the IEEPA tariff refund was $124,000. Excluding the impact of the IEEPA tariff refund, net income for the three months ended September 30, 2026, was $1,801,000*, compared to net income of $976,000 for the same period of 2025, representing an increase of $825,000, or 84.5%. Excluding the impact of the IEEPA refund, the net income increase between the three months ended September 30, 2026 and the same period of 2025 was due to an increase in income before provision for income taxes of $1,070,000, partially offset by an increase in provision for income taxes of $245,000. Net income as a percentage of net sales was 10.8% for the three months ended September 30, 2026, compared to 6.6% for the same period of 2025. Basic and diluted earnings per common share for the three months ended September 30, 2026 and 2025, were $0.18* and $0.09, respectively. This comparison reflects the Company’s underlying operating performance before the effect of the IEEPA tariff refund.
Previous wording
Excluding the impact of the IEEPA tariff refund, net income for the six months ended June 30, 2026, was $2,309,000*, compared to net income of $1,857,000 for the same period of 2025, representing an increase of $452,000, or 24.3%. Excluding the impact of the IEEPA refund, the net income increase between the six months ended June 30, 2026 and the same period of 2025 was due to an increase in income before provision for income taxes of $592,000, partially offset by an increase in provision for income taxes of $140,000. Net income as a percentage of net sales was 6.9% for the six months ended June 30, 2026, compared to 6.1% for the same period of 2025. Basic earnings per common share for the six months ended June 30, 2026 and 2025, were $0.23* and $0.18, respectively. Diluted earnings per common share for the six months ended June 30, 2026 and 2025, were $0.22* and $0.18, respectively. This comparison reflects the Company’s underlying operating performance before the effect of the IEEPA tariff refund.
Current wording
The net change in net income for the nine months ended September 30, 2026 due to the IEEPA tariff refund was $343,000. Excluding the impact of the IEEPA tariff refund, net income for the nine months ended September 30, 2026, was $4,110,000*, compared to net income of $2,833,000 for the same period of 2025, representing an increase of $1,277,000, or 45.1%. Excluding the impact of the IEEPA refund, the net income increase between the nine months ended September 30, 2026 and the same period of 2025 was due to an increase in income before provision for income taxes of $1,662,000, partially offset by an increase in provision for income taxes of $385,000. Net income as a percentage of net sales was 8.2% for the nine months ended September 30, 2026, compared to 6.3% for the same period of 2025. Basic earnings per common share for the nine months ended September 30, 2026 and 2025, were $0.41* and $0.27, respectively. Diluted earnings per common share for the nine months ended September 30, 2026 and 2025, were $0.40* and $0.27, respectively. This comparison reflects the Company’s underlying operating performance before the effect of the IEEPA tariff refund.
Previous wording
As of June 30, 2026, the Company had cash and cash equivalents (“cash”) of $18,901,000 and working capital of $51,014,000. As of June 30, 2026, the Company’s current ratio (current assets/current liabilities) was 17:1, compared to a current ratio of 13:1 as of December 31, 2025. Cash increased by 11.3%, or $1,913,000, to $18,901,000 as of June 30, 2026, compared to $16,988,000 as of December 31, 2025, and working capital increased by $2,552,000, to $51,014,000 from $48,462,000 as of December 31, 2025. The increase in cash from December 31, 2025, was due to cash provided by operating activities of $2,225,000 partially offset by cash used in investing activities of $259,000 and used in financing activities of $53,000.
Current wording
As of September 30, 2026, the Company had cash and cash equivalents (“cash”) of $25,546,000 and working capital of $52,066,000. As of September 30, 2026, the Company’s current ratio (current assets/current liabilities) was 9:1, compared to a current ratio of 13:1 as of December 31, 2025. Cash increased by 50.4%, or $8,558,000, to $25,546,000 as of September 30, 2026, compared to $16,988,000 as of December 31, 2025, and working capital increased by $3,604,000, to $52,066,000 from $48,462,000 as of December 31, 2025. The increase in cash from December 31, 2025, was due to cash provided by operating activities of $9,337,000 partially offset by cash used in investing activities of $342,000 and cash used in financing activities of $437,000.
Previous wording
Net cash provided by operating activities of $2,225,000 for the six months ended June 30, 2026 was due to net income of $2,528,000, as adjusted primarily by the following: stock-based compensation expense of $259,000, depreciation and amortization expense of $518,000, equity in income of unconsolidated affiliate of $364,000, operating lease asset amortization of $494,000, an increase in accounts receivable of $2,997,000, an increase in prepaid expenses of $1,712,000, a decrease in inventory of $4,948,000, a decrease in accounts payable and accrued liabilities of $965,000, and a decrease in lease liabilities of $484,000, all compared to December 31, 2025.
Current wording
Net cash provided by operating activities of $9,337,000 for the nine months ended September 30, 2026 was due to net income of $4,453,000, as adjusted primarily by the following: stock-based compensation expense of $385,000, depreciation and amortization expense of $744,000, equity in income of unconsolidated affiliate of $618,000, operating lease asset amortization of $768,000, an increase in accounts receivable of $1,303,000, an increase in prepaid expenses of $2,179,000, a decrease in inventory of $5,744,000, an increase in accounts payable and accrued liabilities of $2,092,000 and a decrease in lease liabilities of $749,000, all compared to December 31, 2025.
Previous wording
Accounts receivable increased by $2,997,000, or 36.8%, to $11,135,000 as of June 30, 2026, from $8,138,000 as of December 31, 2025. The increase in accounts receivable was primarily related to increased sales in the second quarter of 2026 compared to the fourth quarter of 2025. The number of days that sales remained outstanding as of June 30, 2026, calculated by using an average of accounts receivable outstanding and annual revenue, was 47 days, compared to 40 days as of December 31, 2025. The increase in days outstanding was primarily due to increased sales.
Current wording
Accounts receivable increased by $1,303,000, or 16.0%, to $9,441,000 as of September 30, 2026, from $8,138,000 as of December 31, 2025. The increase in accounts receivable was primarily related to increased sales in the third quarter of 2026 compared to the fourth quarter of 2025. The number of days that sales remained outstanding as of September 30, 2026, calculated by using an average of accounts receivable outstanding and annual revenue, was 64 days, compared to 40 days as of December 31, 2025. The increase in days outstanding was primarily due to increased sales.
Previous wording
Inventory decreased by $4,948,000, or 21.0%, to $18,650,000 as of June 30, 2026, from $23,598,000 as of December 31, 2025. The decrease was due to a decrease in inventory for the Building Supply segment of $3,953,000, or 30.8%, to $8,876,000 and a decrease in inventory for the Disposable Protective Apparel segment of $995,000, or 9.2%, to $9,774,000. We purchased less inventory due to the high tariff rate.
Current wording
Inventory decreased by $5,744,000, or 24.3%, to $17,854,000 as of September 30, 2026, from $23,598,000 as of December 31, 2025. The decrease was due to a decrease in inventory for the Building Supply segment of $4,263,000, or 33.2%, to $8,566,000 and a decrease in inventory for the Disposable Protective Apparel segment of $1,481,000, or 13.8%, to $9,288,000. We purchased less inventory due to the high tariff rate.
Previous wording
Prepaid expenses increased by $1,712,000, or 45.1%, to $5,508,000 as of June 30, 2026, from $3,796,000 as of December 31, 2025. The increase was primarily due to increased prepayments for inventory.
Current wording
Prepaid expenses increased by $2,179,000, or 57.4%, to $5,975,000 as of September 30, 2026, from $3,796,000 as of December 31, 2025. The increase was primarily due to increased prepayments for inventory.
Previous wording
Right-of-use assets as of June 30, 2026, decreased by $271,000 to $7,504,000 from $7,775,000 as of December 31, 2025, as a result of amortization of the right-of-use assets partially offset by new Aurora Canada lease.
Current wording
Right-of-use assets as of September 30, 2026, decreased by $545,000 to $7,230,000 from $7,775,000 as of December 31, 2025, as a result of amortization of the right-of-use assets partially offset by renewed corporate office lease in Canada.
Previous wording
Lease liabilities as of June 30, 2026, decreased by $261,000 to $7,621,000 from $7,882,000 as of December 31, 2025. The decrease in the lease liabilities was the result of lease payments made during the period partially offset by lease for our Aurora location extended for three years.
Current wording
Lease liabilities as of September 30, 2026, decreased by $526,000 to $7,356,000 from $7,882,000 as of December 31, 2025. The decrease in the lease liabilities was the result of lease payments made during the period partially offset by the effect of the renewed lease for our corporate office being extended for three years.
Previous wording
Net cash used in investing activities was $259,000 for the six months ended June 30, 2026, compared to net cash used in investing activities of $273,000 for the six months ended June 30, 2025. Investing activities for the six months ended June 30, 2026 and 2025 consisted of the purchase of property and equipment.
Current wording
Net cash used in investing activities was $342,000 for the nine months ended September 30, 2026, compared to net cash used in investing activities of $372,000 for the nine months ended September 30, 2025. Investing activities for the nine months ended September 30, 2026 and 2025 consisted of the purchase of property and equipment.
Showing the first 40 of 42 pairs. Open the source sections for the rest.