- The Company generated net sales of $29.7 million as compared
to $31.2 million in the first quarter of 2022
- Loss before income taxes of $0.4 million versus $0.2 million
in the first quarter of 2022
- Backlog of $59.4 million at April 30, 2023 compared to $38.5
million at January 31, 2023
Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced
today financial results for the first quarter ended April 30,
2023.
“Revenues for the first quarter were $29.7 million, a decrease
of $1.5 million versus the same quarter last year. The resulting
income from operations of $0.1 million was comparable to the $0.2
million earned in the same quarter of 2022," noted President and
CEO David Mansfield.
"After a significant amount of new awards in the quarter
however, backlog has grown $20.9 million, or 54%, from January 31,
2023. The backlog is almost equally distributed between our North
America and MENA regions. We are particularly encouraged that our
recently announced initiatives in the MENA region continue to show
promise and we expect to more fully realize the benefits of these
in the future.
"As has been reflected in previous years, the first fiscal
quarter is typically the trough of our business seasonality. This
year is no exception to that, and the results were in line with our
expectations. It is during these times that we are particularly
mindful of our overhead costs,” noted Mr. Mansfield.
“Net income is after the impact of taxation in the different
countries in which we operate, and our inability to recognize the
benefit of past tax losses in the United States. The reported tax
charge therefore continues to be disproportionate to the
consolidated earnings,” concluded Mr. Mansfield.
First Quarter Fiscal 2023 Results
Net sales were $29.7 million and $31.2 million in the three
months ended April 30, 2023 and 2022, respectively. The decrease of
$1.5 million, or 5%, was a result of lower sales volumes in North
America.
Gross profit was $6.8 million, or 23% of net sales, and $7.0
million, or 23% of net sales, in the three months ended April 30,
2023 and 2022, respectively. The decrease of $0.2 million was
driven by lower sales volumes.
General and administrative expenses were $5.5 million and $5.7
million in the three months ended April 30, 2023 and 2022,
respectively. The decrease of $0.2 million, or 4%, was due to lower
payroll costs, primarily related to timing.
Selling expenses were consistent at $1.2 million in the three
months ended April 30, 2023 and 2022.
Net interest expense remained consistent and was $0.5 million
and $0.4 million in the three months ended April 30, 2023 and 2022,
respectively.
Other income was consistent and less than $0.1 million for the
three months ended April 30, 2023 and 2022, respectively.
The Company's worldwide effective tax rates ("ETR") were
(207.7%) and (455.9%) in the three months ended April 30, 2023 and
2022, respectively. The change in the ETR is due to the inability
to recognize tax benefits on losses in the United States due to a
full valuation allowance and changes in the mix of income and loss
in various jurisdictions.
Net loss was consistent at $(1.1) million and $(0.9) million in
the three months ended April 30, 2023 and 2022, respectively.
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, 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 April 30, 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 (Unaudited)
(In thousands, except per share
data)
Three Months Ended April
30,
2023
2022
Net sales
$
29,657
$
31,222
Gross profit
6,774
7,049
Total operating expenses
6,699
6,889
Income from operations
75
160
Interest expense, net
512
368
Other income
72
49
Loss before income taxes
(365
)
(159
)
Income tax expense
758
726
Net loss
$
(1,123
)
$
(885
)
Loss per share
Basic
$
(0.14
)
$
(0.11
)
Diluted
$
(0.14
)
$
(0.11
)
Note: Per share calculations could be
impacted by rounding.
PERMA-PIPE INTERNATIONAL
HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
April 30, 2023
January 31, 2023
(Unaudited)
ASSETS
Current assets
$
85,540
$
85,658
Long-term assets
39,253
37,308
Total assets
$
124,793
$
122,966
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
$
46,999
$
43,790
Long-term liabilities
21,341
21,392
Total liabilities
68,340
65,182
Stockholders' equity
56,453
57,784
Total liabilities and stockholders'
equity
$
124,793
$
122,966
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230614260400/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)
Historical Stock Chart
From May 2024 to Jun 2024
Perma Pipe (NASDAQ:PPIH)
Historical Stock Chart
From Jun 2023 to Jun 2024