|NICE GUIDANCE could rip hard.....Hoffman continued “Our gross margins were negatively affected in 2019, primarily due to a change in product mix in the Building Supply segment and as a result of the mid-year termination of the Generalized System of Preferences, which had provided tariff-free status for sales of many of our Disposable Protective Apparel segment products and, to a lesser extent, some of our Building Supply segment products. We expect gross profit margin to stabilize and be in the mid-to-high thirty percent range for 2020. However, as a result of a surge in customer demand resulting from the outbreak of Covid-19, our overall gross margin is expected to be higher than normal in the first quarter of 2020 and potentially for the rest of the year, as gross margin on the N-95 face mask is significantly higher than our overall gross margin.”|
Consolidated net sales for the fourth quarter of 2019 were $10.9 million, compared to $11.0 million for the fourth quarter of 2018, representing a slight decrease of 0.4%. Building Supply segment sales for the fourth quarter ended December 31, 2019 increased by 5.8% to $6.2 million, compared to $5.8 million for the same period of 2018. Sales for the Disposable Protective Apparel segment for the fourth quarter ended December 31, 2019 decreased 7.5% to $4.8 million, compared to $5.2 million for the same period of 2018.
Consolidated sales for the year ended December 31, 2019 increased to $46.7 million, up from $46.6 million for the year ended December 31, 2018, representing an increase of 0.1%. Revenue growth in 2019 was driven by increased sales in the Building Supply segment of $541,000, partially offset by a decline in sales in the Disposable Protective Apparel segment of $500,000.