Lloyd Hoffman
President and
Chief Executive Officer
TO OUR SHAREHOLDERS
Alpha Pro Tech began 2021 with a material transformation from the record setting pandemic driven sales in 2020. This shift returned the Company to our historical product mix, where building supply and disposable protective garments drive the majority of revenue. Over the past two years, our team has done a remarkable job of rapidly re‑positioning resources to enable the Company to execute in real time to execute on opportunities that drove shareholder value. Our talented and resilient team came together time and time again to position Alpha Pro Tech for future growth opportunities, optimizing the leverage in our operations through these material shifts.
Despite the overall reduction in revenue compared to 2020, our Building Supply segment sales were a record for the year ended December 31, 2021, with continued significant growth due to strong demand for both our synthetic roof underlayment and housewrap products. Sales increased 20.6% for the year to $36.9 million and we are encouraged by the current demand for our Building Supply products and anticipate strong continued growth in 2022.
The Company has committed to increasing production capacity in our Building Supply segment by investing approximately $4.0 million in new equipment, a part of which became operational in the latter part of the third quarter of 2021. The remaining equipment is expected in the latter part of the second quarter of 2022 and is expected to be operational in the third quarter of 2022, driving further capacity. Our marketing efforts to broaden acceptance of the Company’s bundled system of selling housewrap, with associated accessories, is becoming increasingly accepted in the market and driving incremental sales. In addition, our growth has been augmented by utilizing a strategic approach to adding additional dealers through aggressive sales strategies, vertical
2 ANNUAL REPORT 2021