- The Company generated net sales of $34.3 million as compared
to $29.7 million in the first quarter of 2023
- Income (loss) before income taxes of $2.6 million versus
$(0.4) million in the first quarter of 2023
- Backlog of $63.1 million at April 30, 2024
Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced
today financial results for the first quarter ended April 30,
2024.
“Revenues for the first quarter were $34.3 million, an increase
of $4.6 million or 15%, as compared to the same quarter last year,
and net income attributable to common stock of $1.4 million was an
increase of $2.5 million or 227%, as compared to a net loss of
$(1.1) million in the same quarter of 2023. Our first quarter
results demonstrate a strong start to the year. This is
particularly encouraging given that the first quarter has always
been the quietest period for the Company," noted President and CEO
David Mansfield.
"Backlog currently stands at $63.1 million, which reflects a
decrease of $5.3 million, as compared to $68.4 million at January
31, 2024. However, we have experienced an increase in backlog of
$3.7 million, when compared to the same quarter in 2023. We believe
the improvement over the first fiscal quarter of the prior year
reflects a strengthening in demand for our services," Mr. Mansfield
continued.
"We are pleased with the level of business activity we are
experiencing in various markets, which contributed to an overall
increase in revenues and margins during the first fiscal quarter.
This was driven by continual increases in infrastructure spending,
which was primarily attributable to Saudi Arabia, India, and the
U.A.E," noted Mr. Mansfield.
"Given the strength of our first fiscal quarter results, we feel
well-positioned to be able to capitalize on this momentum and
continue to execute on various strategic initiatives, such as the
Company's expansion into Qatar which is expected during this fiscal
year, and further participation in the significant development
plans in the MENA region," concluded Mr. Mansfield.
First Quarter Fiscal 2024 Results
Net sales were $34.3 million and $29.7 million in the three
months ended April 30, 2024 and 2023, respectively. The increase of
$4.6 million, or 15%, was a result of increased sales volumes in
the Middle East and India.
Gross profit was $10.5 million, or 31% of net sales, and $6.8
million, or 23% of net sales, in the three months ended April 30,
2024 and 2023, respectively. The increase of $3.7 million was
primarily driven by increased sales volumes in the Middle East and
India.
General and administrative expenses were $6.1 million and $5.5
million in the three months ended April 30, 2024 and 2023,
respectively. The increase of $0.6 million, or 11%, was due to
higher professional service fees in the quarter.
Selling expenses remained consistent and were $1.2 million in
the three months ended April 30, 2024 and 2023, respectively.
Net interest expense remained consistent and was $0.5 million in
the three months ended April 30, 2024 and 2023, respectively.
Other (expense) income was $(0.1) million and $0.1 million for
the three months ended April 30, 2024 and 2023, respectively. The
change was primarily due to exchange rate fluctuations in foreign
currency transactions.
The Company's worldwide effective tax rate ("ETR") was 30% and
(208%) in the three months ended April 30, 2024 and 2023,
respectively. The change in the ETR is due to the inability to
recognize tax benefits and losses in the United States due to a
partial valuation allowance in the prior period and changes in the
mix of income and loss in various jurisdictions.
Net income (loss) attributable to common stock was $1.4 million
and $(1.1) million in the three months ended April 30, 2024 and
2023, respectively. The increase of $2.5 million was mainly due to
increased sales activity in the quarter, and better project
execution.
Perma-Pipe International Holdings, Inc.
Perma-Pipe International Holdings, Inc. (the “Company”) is a
global leader in pre-insulated piping and leak detection systems
for oil and gas gathering, district heating and cooling, and other
applications. It uses its extensive engineering and fabrication
expertise to develop piping solutions that solve complex challenges
regarding the safe and efficient transportation of many types of
liquids. In total, the Company has operations at fourteen locations
in six countries.
Forward-Looking Statements
Certain statements and other information contained in this press
release that can be identified by the use of forward-looking
terminology constitute “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and are subject to the safe harbors created thereby, including,
without limitation, statements regarding the expected future
performance and operations of the Company. These statements should
be considered as subject to the many risks and uncertainties that
exist in the Company's operations and business environment. Such
risks and uncertainties include, but are not limited to, the
following: (i) fluctuations in the price of oil and natural gas and
its impact on customer order volume for the Company's products;
(ii) the Company’s ability to purchase raw materials at favorable
prices and to maintain beneficial relationships with its suppliers;
(iii) decreases in government spending on projects using the
Company’s products, and challenges to the Company’s non-government
customers’ liquidity and access to capital funds; (iv) the
Company’s ability to repay its debt and renew expiring
international credit facilities; (v) the Company’s ability to
effectively execute its strategic plan and achieve sustained
profitability and positive cash flows; (vi) the Company's ability
to collect a long-term account receivable related to a project in
the Middle East; (vii) the Company’s ability to interpret changes
in tax regulations and legislation; (viii) the Company's ability to
use its net operating loss carryforwards; (ix) reversals of
previously recorded revenue and profits resulting from inaccurate
estimates made in connection with the Company’s "over-time" revenue
recognition; (x) the Company’s failure to establish and maintain
effective internal control over financial reporting; (xi) the
timing of order receipt, execution, delivery and acceptance for the
Company’s products; (xii) the Company’s ability to successfully
negotiate progress-billing arrangements for its large contracts;
(xiii) aggressive pricing by existing competitors and the entrance
of new competitors in the markets in which the Company operates;
(xiv) the Company’s ability to manufacture products free of latent
defects and to recover from suppliers who may provide defective
materials to the Company; (xv) reductions or cancellations of
orders included in the Company’s backlog; (xvi) risks and
uncertainties specific to the Company's international business
operations; (xvii) the Company’s ability to attract and retain
senior management and key personnel; (xviii) the Company’s ability
to achieve the expected benefits of its growth initiatives; (xix)
the impact of pandemics and other public health crises on the
Company and its operations; and (xx) the impact of cybersecurity
threats on the Company’s information technology systems.
Shareholders, potential investors and other readers are urged to
consider these factors carefully in evaluating the forward-looking
statements and are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements made
herein are made only as of the date of this press release and we
undertake no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events
or otherwise. More detailed information about factors that may
affect our performance may be found in our filings with the
Securities and Exchange Commission, which are available at
https://www.sec.gov and under the Investor Center section of our
website (http://investors.permapipe.com.)
Additional information regarding the Company's financial results
for the three months ended April 30, 2024, including management's
discussion and analysis of the Company's financial condition and
results of operations, is contained in the Company's Quarterly
Report on Form 10-Q for the quarterly period ended April 30, 2024,
which will be filed with the Securities and Exchange Commission on
or about the date hereof and will be accessible at www.sec.gov and
www.permapipe.com. For more information, visit the Company's
website.
PERMA-PIPE INTERNATIONAL
HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share data)
(Unaudited)
Three Months Ended April
30,
2024
2023
Net sales
$
34,321
$
29,657
Gross profit
10,517
6,774
Total operating expenses
7,383
6,699
Income from operations
3,134
75
Interest expense
507
512
Other (expense) income
(67
)
72
Income (loss) before income taxes
2,560
(365
)
Income tax expense
770
758
Net income (loss)
$
1,790
$
(1,123
)
Less: Net income attributable to
non-controlling interest
347
0
Net income (loss) attributable to common
stock
$
1,443
$
(1,123
)
Earnings per share attributable to common
stock
Basic
$
0.18
$
(0.14
)
Diluted
$
0.18
$
(0.14
)
Note: Earnings per share
calculations could be impacted by rounding.
PERMA-PIPE INTERNATIONAL
HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
April 30,
2024
January 31,
2024
(Unaudited)
ASSETS
Current assets
$
98,991
$
98,818
Long-term assets
58,172
56,893
Total assets
$
157,163
$
155,711
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
$
59,410
$
57,742
Long-term liabilities
25,173
25,991
Total liabilities
84,583
83,733
Non-controlling interests
7,033
6,266
Stockholders' equity
65,547
65,712
Total liabilities and equity
$
157,163
$
155,711
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240613928548/en/
Perma-Pipe International Holdings, Inc. David
Mansfield, President and CEO
Perma-Pipe Investor Relations (847) 929-1200
investor@permapipe.com
Perma Pipe (NASDAQ:PPIH)
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