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ANNUAL REPORT 2018
SHIELDING
OUR
FINANCIAL
SUCCESS
BY . . .
BUILDING
ON OUR
SUSTAINABLE
GROWTH
CORPORATE PROFILE
BUILDING
ON OUR
SUSTAINABLE
GROWTH
AlphaProTech, Ltd. is in the business of protecting people, products and environments. The Company accomplishes this by being a leading designer, developer, manufacturer and marketer of high-value disposable protective apparel, building supply, infection control and other products for the medical, dental, cleanroom, pharmaceutical, industrial safety, construction supply and consumer markets.

The Company’s growth strategy is to provide innovative solutions to its customers and create meaningful value for its shareholders. AlphaProTech has a reputation of combining extensive research and development with the highest levels of responsiveness, quality, safety and reliability.

AlphaProTech’s manufacturing facilities and offices are located in Arizona, Georgia and Utah in the United States, as well as in Canada and India.

FINANCIAL
HIGHLIGHTS

1 ANNUAL REPORT 2018



Lloyd Hoffman
President and
Chief Executive Officer
BUILDING
ON OUR
SUSTAINABLE
GROWTH
Fiscal 2018 was a year of improvements on a number of fronts for our company. Our financial results demonstrated significant operating leverage, driving a 38% increase in net income
year over year, with top line sales growth in our two largest product lines. New product developments have positioned the company for additional sales through 2019 and beyond. Our balance sheet remains strong, which allows us to pursue our ongoing commitment to deliver shareholder value through our repurchase program, which, in combination with this year’s strong operational performance, delivered a 48% increase in earnings per share. We anticipate another year of gains for our product segments in 2019, as well as continued strong operational execution.
Our consolidated sales increased 6% for 2018 due to gains in both our Building Supply and Disposable Protective Apparel segments. The Building Supply segment benefited from new products and a strong
building market, which drove a 6% year over year increase. Sales of housewrap, including our REX™ Wrap Fortis product that was introduced in the latter part of 2017, enjoyed a record year in 2018. Synthetic roof underlayment sales were lower in 2018 than in 2017, but with the introduction of two new products in 2019, discussed below, synthetic roof underlayment sales should significantly improve. The Disposable Protective Apparel segment grew by 10% as a result of a strong year with our major international supply chain partner,
as well as solid demand from our national distributors.
Our product development team has worked both internally and collaboratively with our joint venture partner to create new materials, which has improved our competitive position in the markets that we serve. We maintain a long-term commitment to continue advancing our products to drive our market share.
2 ANNUAL REPORT 2018
Income from Operations grew 32% in 2018 as a result of slightly higher gross profit and lower selling, general and administrative expenses. The improvement in operating income shows the leverage in our business, in which single digit revenue improvement can deliver significant operating leverage. The gains in operating income fueled growth in net income, which increased by 38% to $3.6 million for the year. Earnings per diluted share of $0.26 in 2018
has only been exceeded one time in our history, in 2009, which resulted from a global H1N1 Influenza A pandemic.
Our balance sheet remained strong as of December 31 2018, with cash on hand of $7.0 million, generation of cash from operations, a current ratio of 14:1 and zero debt. Our financial health combined with operational performance allowed us to repurchase 1.0 million shares of our common stock at a cost of $3.6 million in 2018. We believe that, through strong operational performance and our share repurchase program, we can deliver ongoing shareholder value.
Our mission to protect people, products and environments through the development of differentiated, innovative, high-value products continues to resonate with both our customers and the investment community. To date, we have 15 United States patents on products that we have developed. The improved financial results that we delivered in 2018 underscore our strategy to evolve our products where our underlying skills and knowledge in material development are most relevant and can improve our competitive position.

For 2019, we have a very positive outlook in the Building Supply segment with the announcement of three new products launching in the second quarter. We are launching two new synthetic roof underlayment products, TECHNO SB® 25 and TECHNO SB® Ultra. These are multi-layered, non-woven products offering increased strength, durability, rigidity and walkability that will allow us to capitalize on large market opportunities. We are also launching REXTREME, a premium window and door flashing product. REXTREME is a complementary
add-on to our housewrap products. In addition, the outlook for our REX™ Wrap Fortis housewrap line remains positive, and we anticipate that we could see another year of substantial sales increases from this product line and overall continued sales gains in our housewrap product line.

We are also optimistic about the outlook for our Disposable Protective Apparel segment. We believe that we are well positioned for continued success with our supply chain partners. We recently achieved an upper tier status with one of our major supply chain partners, which will result in broader exposure of our products and an expected increase in sales. We believe that we have strong product and channel opportunities as we continue through 2019, with a team that is innovative and responsive to our markets’ needs.

The new opportunities that lie ahead for the future growth of our company are very encouraging to me and our team. 2019 should be a year of exciting operational execution and continued operating leverage. I would like to thank the employees of our company who work hard year after year to deliver on our commitments for their contribution to 2018’s results.
We look forward to a productive 2019 in which we intend to continue delivering on our commitment to shareholder value. On behalf of our management team and the Board of Directors, I want to thank you for your continued support.
Sincerely,
Lloyd Hoffman
President and Chief Executive Officer
3 ANNUAL REPORT 2018
AlphaProTech’s singular goal for the Disposable Protective Apparel Segment is to provide our customers with high quality garments that protect both the wearer and their environment. In the pharmaceutical, life sciences and manufacturing space, it is just as critical to protect the person from the product as to protect the product from the person. There is a delicate balance of comfort vs. performance – the integrity of the product must be maintained, and the worker must be protected. To meet this challenge, the AlphaProTech Critical Cover® portfolio of products includes a comprehensive selection of garment materials and designs to meet a wide range of applications
and environments.

Tantamount to our manufacturing goals is our commitment to our customer base – our channel partners and end-user customers. In an effort to protect the AlphaProTech Critical Cover® brand and deliver a high level
of service and support, we are very selective in choosing our channel partners. Once vetted, we work together with our channel partners to build a lasting rapport and strong sales and marketing collaboration in an effort to achieve mutual goals. By working in concert with our channel partners, we are able to understand their business models and exceed all of their logistical requirements.

Similarly, AlphaProTech’s field selling organization engages directly, and in concert with our channel partners, at the end-user customer level. Many of the products in the AlphaProTech Critical Cover® portfolio today are a result of interacting with end‑user customers and providing a garment solution for their specific manufacturing needs. We take great pride in our manufacturing flexibility to meet a specific garment need. This provides a competitive advantage that is accretive to end-user customer retention and loyalty.

AlphaProTech's UltraGrip Boot Covers provide outstanding anti-skid and contamination control. (top picture)

GenPro® Isolation Gowns provide basic protection in non-hazardous environments.
(second picture from top)

The ultimate shoe cover for dry environments across many industries, our SureGrip®
is a step ahead of the rest. (third picture from top)

Our new NuTech® apparel line is suitable in both cleanroom and general industrial environments. (bottom picture)

4 ANNUAL REPORT 2018
AlphaProTech is committed to providing quality, innovative products and solutions to our trusted partners in the disposable protective apparel marketplace.
PROTECTING
OUR
SUCCESS

Coverall Materials
NuTech® - Industrial Environments
ComforTech® - Controlled Environments
AlphaGuard® - Versatile Protection
GenPro® - Light Duty Protection 

Shoe & Boot Covers 
AquaTrak® Shoe & Boot Covers
SureGrip®  Shoe Covers
MaxGrip® Shoe & Boot Covers
SafeStep® Shoe & Boot Covers
UltraGrip™ Shoe & Boot Covers
GenPro® Shoe Covers
CPE (Film) Shoe Covers

Lab Coats & Frocks
NuTech® Lab Coats
ComforTech® Lab Coats
AlphaGuard® Lab Coats
GenPro® Lab Coats
NuTech® Frocks
ComforTech® Frocks
AlphaGuard® Frocks
GenPro® Frocks

Head & Face Protection
GenPro® Bouffants
GenPro® Beard Covers
GenPro® Hoods
Comfort™ Veil

Gowns
BarrierTech® Gowns
GenPro® Gowns

Sleeve Protectors
NuTech® Sleeves
ComforTech® Sleeves for Sterile Suites
ComforTech® Sleeves

Scrub Shirts & Pants
AlphaGuard® Scrub Shirts & Pants

5 ANNUAL REPORT 2018
Can you think of any products more important to a healthcare worker and the patients they treat than Infection Control devices? Neither can we!

The AlphaProTech Infection Control segment manufactures a variety of protective face masks, face shields and other ancillary infection control products for the express purpose of protecting the healthcare worker and their patients. We work closely with medical and dental distributors worldwide, along with other healthcare consortiums, to demonstrate the unique protective properties of our products. To that end, many of our face masks made in the United States feature an innovative and patented design called the Positive Facial Lock, or PFL®. The PFL® advantage utilizes our exclusive Twist-Seal technology that allows the wearer to create a custom fit to their own facial features. The seal that the PFL® technology creates to the individual’s facial features can prevent many airborne contaminants from entering the wearer's breathing
chamber and ultimately infecting them with a contagious disease. Additionally, to facilitate comfort and breathability, our PFL® face masks contain a second patented feature called the Magic Arch®. The Magic Arch® upholds the structure and design of the face mask and prevents the face mask from coming in contact with the wearer’s nose and mouth.

The PFL® and Magic Arch® features work in concert to provide the healthcare worker with a comfortable and effective device and an intangible sense of confidence in their safety while they work.

Other Infection Control products that AlphaProTech manufactures and markets are protective face shields, combination face mask and shield (combo devices protect against both airborne and splash hazards), isolation gowns and disposable apparel and shoe covers. These additional products are designed for use in a variety of healthcare environments to add to the protection of healthcare workers and their patients.

AlphaProTech’s ShieldMate® is latex free and provides ASTM Level 3 protection with
low-glare and distortion-free vision. (top picture)

Reduce your SKU’s while providing contamination control with our GenPro® All-In-One Bouffant / Beard Cover. (second picture from top)

AlphaProTech's flat-fold, NIOSH Approved N95 Respirator is made in the USA with patented Positive Facial Lock® and Magic Arch® technology. (third picture from top)

Preferred by dentists and hygienists, the AlphaProTech 608 Face Mask provides Level 3 ASTM along with comfort and breathability. (bottom picture)

6 ANNUAL REPORT 2018
AlphaProTech manufactures high-value infection control products for the safety of healthcare workers in the medical, dental and general healthcare marketplace.
CONTROLLING
ACHIEVABLE
GROWTH

Face Masks
PFL® Face Masks
PFL® Face Masks With Magic Arch
PFL® Laser Face Masks
PFL® N-95 Particulate Respirator
AlphaAir® Face Masks
AlphaGuard® Cleanroom Face Masks

MVT Highly Breathable Face Masks CoolOne™ Face Masks
CoolOne™ Sensitive Skin Face Masks Microbreathe™ Cleanroom Face Masks

Face Shields/Combo Mask Shield
Coverall® Full & Half Face Shields
ShieldMate® Mask with Eye Shield
ShieldMate® Mask with Extended Shield Combo® Mask with Shield

7 ANNUAL REPORT 2018
AlphaProTech has a full line of synthetic roof underlayments to fit the needs of any "steep slope" roof. Our specialty is in the manufacturing process, having full control over every aspect of the production. Because of the uniqueness of our products and production, we are seen as a leader in the crowded field of synthetic roof underlayments. Our strength lies in the fact that we have multiple products to fit any steep slope roof as well as any budget. As a manufacturer of these products, we are consistently evaluating the market, adjusting our products with the changes and developing new leading edge technologies in the synthetic roof underlayment product arena. Our products are used in new home construction as well as re‑roof/remodel jobs. With our nationwide distribution outlets, we are able to touch every aspect of the entire roof build and/or replacement process. Our products are currently available at many of the
leading home building centers and specialty roofing centers across the United States and into Canada, as well as parts of the Caribbean. AlphaProTech currently offers three distinct products, each filling the needs of the industry, starting with our flagship product, REX™ SynFelt. REX™ SynFelt has been a market leader for the past 8 years and is considered one of the premium products on the market. As the industry developed and changed, we added two additional underlayments to the family with our TECHNO SB™ product as a mid-level underlayment and our TECHNOply™ product as our price point economy product. Regardless of the size of the roof or budget, AlphaProTech has a product to offer. As we continue to follow the industry, we are constantly introducing product refinements and evaluating new product offerings to round out our portfolio of synthetic roof underlayments.

AlphaProTech synthetic underlayments are used on many different "steep slope" projects, from new home construction to re-roofing jobs.

REX™ SynFelt being used in a new home roofing application is seen as one of the premium products in today’s market. (top picture)

Our TECHNO SB™ being installed on a re-roofing project and showing its great slip resistant surface. (middle picture)

Rounding out the portfolio is our TECHNOply™, shown here being used on an entry level new home. (bottom picture)

8 ANNUAL REPORT 2018
AlphaProTech is quickly becoming a market leader in the weatherization of roofs and walls in today’s building environment.
WE HAVE
YOU
COVERED

Synthetic Roof Underlayments
REX™ SynFelt
REX TECHNO SB™
REX TECHNOply™

House Wraps
Fortis Low-P
Fortis High-P
Fortis Commercial
REX™ Wrap PLUS
REX™ Wrap

Window & Door Flashing
REXtreme

Temporary Roof Protection
REX Storm Roof Wrap

Coatings & Laminates
Coatings
Laminating
Woven Fabrics
Non-Woven Fabrics

9 ANNUAL REPORT 2018
In late 2016, AlphaProTech took another leap forward in our portfolio of housewraps with the introduction of a revamped product offering of REX™ Fortis. This revamped product has been well received and continues to show much promise in our growth of the brand as well as in our market penetration. The REX™ Fortis lineup has been expanded to include three distinct products to fill the needs of residential home building and to put
us into the multifamily and commercial building space. By expanding our lineup of products, AlphaProTech is quickly becoming recognized as a market leader when it comes to the exterior wall weatherization space. The new lineup of water resistive and air barrier products now has something for every wall system that today’s leading architects and builders demand. One
of our most sought after strengths
in the distribution market is our ability to custom print all of our products to meet the demands of the dealer and the builder. We pride ourselves in our service levels as well as our quality of product and delivery. AlphaProTech has always built its strength on delivery quality, service and competitive prices, which has led to our nationwide distribution at many leading home building and specialty siding retailers. By offering a solution for every type of build and budget, we can continue with our sales growth and product line expansion for many years to come. Anyone can import products, but it takes a great company and great people to manufacture quality products. For that, AlphaProTech is seen as
the company that can fill the
needs of today’s demanding construction markets.

With the launch of the REX™ Fortis we are not only a new home product but also hitting the multifamily market as well. (top picture)

The REX™ Wrap Plus is seen as a mid-level go to for new home construction in many price platforms. (middle picture)

Finally, the REX™ Wrap offers not only a quality product but is seen as a great custom print product for our customers as well. (bottom picture)

10 ANNUAL REPORT 2018

MARKET FOR SHARES
The Company’s common shares are quoted on the NYSE American Exchange under the trading symbol “APT.”

SHARE PRICE INFORMATION
Set forth below are the ranges of daily high and low prices for the Company’s common shares on the NYSE American Exchange for the periods indicated.

Quarters Ended 2018 3/31 6/30 9/30 12/31
High $4.10 $3.80 $3.75 $4.13
Low $3.15 $3.15 $3.25 $3.25
Quarters Ended 2017 3/31 6/30 9/30 12/31
High $3.50 $3.30 $4.05 $4.25
Low $2.55 $2.60 $2.91 $3.65

As of April 15, 2019 there were 13,281,016 shares outstanding, 137 shareholders of record and approximately 4400 beneficial shareholders.

DIVIDEND POLICY
The holders of the Company’s common stock are entitled to receive such dividends as may be declared by the Board of Directors of the Company from time to time to the extent that funds are legally available for payment thereof. The Company has never declared or paid any dividends on any of its outstanding shares of common stock. It is the current policy of the Board of Directors to retain any earnings to provide for the development and growth of the Company. Consequently, the Company has no current intention to pay cash dividends in the foreseeable future.

TRANSFER AGENT AND REGISTRAR
Shareholders should refer specific questions concerning their stock certificates, in writing, directly to the Transfer Agent and Registrar at:
American Stock Transfer & Trust Company
6201 15th Avenue
Brooklyn, NY 11219

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Tanner LLC
Key Bank Tower at City Creek
36 South State Street, Suite 600
Salt Lake City, UT 84111-1400

LEGAL COUNSEL
Maynard Cooper & Gale, PC
1901 6th Avenue N, Suite 2400
Birmingham, AL 35203

FORM 10-K
A copy of the Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission for the fiscal year ended December 31, 2018 is available upon request without charge to persons who are beneficial shareholders as of the record date for the 2019 Annual Meeting. Such written requests should be directed to:
AlphaProTech, Ltd.
60 Centurian Drive, Suite 112
Markham, Ontario L3R 9R2 Canada

EXECUTIVE OFFICERS AND DIRECTORS

Lloyd Hoffman
President and Chief Executive Officer and Director

Colleen McDonald
Chief Financial Officer

Danny Montgomery
Sr. V.P. Manufacturing and Director

Donna Millar
Investor Relations and Director

David Garcia
Director
Retired Independent Businessman

Russ Manock
Director
Russ Manock Chartered Professional Accountant

Dr. John Ritota
Director
Dentist – Ritota & Ritota P.A.

James W.A. Buchan
Director
Management – BCE, Inc.

ANNUAL MEETING
The Annual Meeting of Shareholders will be held:
Tuesday, June 11, 2019 at 9:30 am
Edward Village Hotel
50 East Valhalla Drive
Markham, Ontario L3R 0A3 Canada
905-477-2010

Corporate Head Office
60 Centurian Drive
Suite 112
Markham, Ontario
L3R 9R2
Phone: 800 847-9725
Fax: 905 479-9732
Email: ir@alphaprotech.com