Perma-Pipe International Holdings, Inc. Announces its Second Quarter Fiscal 2023 Financial Results
- Backlog of $63.9 million indicates strong future demand.
- Decrease in net sales by $1.9 million in Q2 2023 compared to Q2 2022.
-
The Company generated net sales of
as compared to$35.1 million in the first quarter of 2022$37.0 million -
Income before income taxes of
versus$2.1 million in the second quarter of 2022$2.8 million -
Backlog of
at July 31, 2023$63.9 million
“Revenues for the second quarter were
"Backlog has continued to grow and now stands at
Notable recent events include the commencement of operations on June 1, 2023 at our previously announced joint venture in
“Net income shows the impact of taxation rates in the different countries we operate, and our inability to recognize the benefit of tax losses in
Second Quarter Fiscal 2023 Results
Net sales were
Gross profit was
General and administrative expenses were
Selling expenses were
Net interest expense remained consistent and was
Other income was consistent and less than
The Company's worldwide effective tax rates ("ETR") were
Net income attributable to common stock was
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
Additional information regarding the Company's financial results for the three months ended July 31, 2023, 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 July 31, 2023, 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) |
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|
|
Three Months Ended July 31, |
|
|
Six Months Ended July 31, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
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Net sales |
|
$ |
35,141 |
|
|
$ |
37,003 |
|
|
$ |
64,798 |
|
|
$ |
68,225 |
|
Gross profit |
|
|
9,464 |
|
|
|
9,886 |
|
|
|
16,239 |
|
|
|
16,935 |
|
Total operating expenses |
|
|
6,773 |
|
|
|
6,561 |
|
|
|
13,472 |
|
|
|
13,450 |
|
Income from operations |
|
|
2,691 |
|
|
|
3,325 |
|
|
|
2,767 |
|
|
|
3,485 |
|
Interest expense |
|
|
636 |
|
|
|
500 |
|
|
|
1,148 |
|
|
|
867 |
|
Other income (expense) |
|
|
81 |
|
|
|
(62 |
) |
|
|
154 |
|
|
|
(15 |
) |
Income before income taxes |
|
|
2,136 |
|
|
|
2,763 |
|
|
|
1,773 |
|
|
|
2,603 |
|
Income tax expense |
|
|
966 |
|
|
|
893 |
|
|
|
1,725 |
|
|
|
1,620 |
|
Net income |
|
$ |
1,170 |
|
|
$ |
1,870 |
|
|
$ |
48 |
|
|
$ |
983 |
|
Less: Net income attributable to non-controlling interests |
|
|
148 |
|
|
|
0 |
|
|
|
148 |
|
|
|
0 |
|
Net income (loss) attributable to common stock |
|
$ |
1,022 |
|
|
$ |
1,870 |
|
|
$ |
(100 |
) |
|
$ |
983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share attributable to common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.13 |
|
|
$ |
0.23 |
|
|
$ |
(0.01 |
) |
|
$ |
0.12 |
|
Diluted |
|
$ |
0.13 |
|
|
$ |
0.23 |
|
|
$ |
(0.01 |
) |
|
$ |
0.12 |
|
PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) |
||||||||
|
|
July 31, 2023 |
|
|
January 31, 2023 |
|
||
|
|
(Unaudited) |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
$ |
93,596 |
|
|
$ |
85,658 |
|
Long-term assets |
|
|
49,711 |
|
|
|
37,308 |
|
Total assets |
|
$ |
143,307 |
|
|
$ |
122,966 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
$ |
57,768 |
|
|
$ |
43,790 |
|
Long-term liabilities |
|
|
26,330 |
|
|
|
21,392 |
|
Total liabilities |
|
|
84,098 |
|
|
|
65,182 |
|
Non-controlling interests |
|
|
1,735 |
|
|
|
0 |
|
Stockholders' equity |
|
|
57,474 |
|
|
|
57,784 |
|
Total liabilities and equity |
|
$ |
143,307 |
|
|
$ |
122,966 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230914637302/en/
Perma-Pipe International Holdings, Inc.
David
Perma-Pipe Investor Relations
(847) 929-1200
investor@permapipe.com
Source: Perma-Pipe International Holdings, Inc.