Perma-Pipe International Holdings (PPIH) News
Market Cap: $98.27M
Avg Volume: 27.18K
Industry: Construction
Sector: Industrials
Perma-Pipe International Holdings, Inc., announces new project awards in the Americas and MENA region
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has been awarded several projects in the Americas and MENA region with an aggregate value in excess of USD $27 million. These projects will utilize Perma-Pipe's anti-corrosion coating capabilities, and the XTRU-THERM® insulation system, a spray-applied polyurethane foam jacketed with a high-density polyethylene casing. Multiple awards for the provision of anticorrosion coating services for.
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Perma-Pipe International Holdings, Inc., Announces CEO Retirement and the Appointment of Saleh Sagr as President
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced the notification of Chief Executive Officer David Mansfield to retire and the appointment of Saleh Sagr as President. Mr. Mansfield's decision to retire follows a highly successful tenure as CEO, during which the Company experienced significant prosperity, with notable improvements in both profitability and share price. Under Mr. Mansfield's leadership, the Company significantly increased its.
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Perma-Pipe International Holdings, Inc. Announces the Appointment of Jon C. Biro to its Board of Directors
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH), today announced changes to its Board of Directors, including the appointment to the Board of Mr. Jon C. Biro, effective March 4, 2025. Mr. Biro, age 58, has extensive business leadership, financial, board, and C-Suite executive experience, serving as an Operating Advisor to Snow Peak Capital, LLC since 2022, as well as serving on the board for one of its portfolio companies, Sandy Alexander, Inc., a commerci.
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Perma-Pipe International Holdings, Inc. Announces $43 Million Contract Award in the Middle East Region
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has received a formal letter of award for a development project located in the GCC region. Perma-Pipe will provide thermal insulation, anti-corrosion coatings, and other services from its Abu Dhabi facility. Project commencement is expected to begin in the third quarter of 2025. The value of this project is estimated to exceed $43 million. This project will utilize Perma-Pipe's anti-corrosi.
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Perma-Pipe International Holdings, Inc. Announces the Appointment of Ibrahim Jaham Al Kuwari to its Board of Directors
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH), today announced changes to its Board of Directors, including the appointment to the Board of Mr. Ibrahim Jaham Al Kuwari, effective January 6, 2025. Concurrent with this announcement, Independent Director Cynthia Boiter has announced her resignation, effective May 1, 2025, and current Chairman of the Board, Jerome Walker, has announced he will not be standing for re-election at Perma-Pipe's upcoming 2025 Ann.
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Perma-Pipe Stock Up 13% Since Q3 Earnings Rise Y/Y Amid Backlog Growth
PPIH reports strong Q3 earnings with growing backlog and improved profitability, overcoming a 9% decline in net sales.
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Perma-Pipe International Holdings, Inc. Announces Third Quarter Financial Results
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the second quarter and fiscal year-to-date period ended October 31, 2024. "Net sales for the third quarter were $41.6 million, a decrease of $4.1 million, as compared to the same quarter last year. Net income attributable to common stock of $2.5 million was an increase of $0.5 million, or 29%, compared to $1.9 million in the third quarter of 2023. For the nine months ende.
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Perma-Pipe International Holdings, Inc. Announces $15 Million in Contract Awards in the Americas and Middle East Regions
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced $6 million in new project awards in the MENA region. Additionally, the company announced $9 million in new project awards in the Americas, demonstrating continual improvement in the region. These new project awards will utilize Perma-Pipe's anti-corrosion coatings capabilities and the XTRU-THERM® insulation system, a spray-applied polyurethane foam jacketed with a high-density polyethylene cas.
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The Zacks Analyst Blog JPMorgan, Medtronic, Shopify and Perma-Pipe International
JPMorgan, Medtronic, Shopify and Perma-Pipe International are included in this Analyst Blog.
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Perma-Pipe International Holdings, Inc., announces $4 million in Contract Awards in the Americas Region
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has been awarded three projects in the Americas region. The aggregate amount of these three projects is more than 4 million USD. These project awards will be executed in Perma-Pipe's facilities in Canada and the U.S. Two awards for the provision of anticorrosion coating services for the oil and gas market in western Canada. One award for the provision of double-containment, pre-insulated pi.
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Perma-Pipe's Q2 Earnings Soar Y/Y on Strong MENA Demand
PPIH reports a robust Q2 with earnings per share jumping to 40 cents, and a 7% rise in sales driven by a growing backlog.
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Perma-Pipe International Holdings, Inc. Announces Second Quarter Financial Results
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the second quarter and fiscal year-to-date period ended July 31, 2024. "Net sales for the second quarter were $37.5 million, an increase of $2.4 million, as compared to the same quarter last year. Net income attributable to common stock of $3.3 million, was an increase of $2.3 million, or 222%, compared to $1.0 million in the second quarter of 2023. For the six months end.
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Perma-Pipe International Holdings, Inc. Announces $10 Million in Contract Awards in Saudi Arabia
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has recently been awarded new contracts worth $10 million in Saudi Arabia. Most of these awards will be executed and delivered during the next quarter. The newly awarded projects are part of major infrastructure developments in Riyadh, Madinah, and Mekkah in Saudi Arabia. These projects will utilize Perma-Pipe's fabrication and coating capabilities, and the XTRU-THERM® insulation system, a.
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Perma-Pipe's (PPIH) Q1 Earnings Surge Y/Y on Strong Sales
Perma-Pipe (PPIH) reports Q1 EPS of 18 cents, reversing last year's loss. Strong backlog and market expansion bolster future outlook despite higher operating expenses.
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Perma-Pipe International Holdings, Inc. Announces First Quarter Fiscal 2024 Financial Results
SPRING, Texas--(BUSINESS WIRE)--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 dem.
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How to Invest in Microcaps with Lumpy Revenue
Evaluating microcaps with lumpy revenue requires more valuation effort. Here we highlight two companies which demonstrates this more rigorous process.
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Zacks Initiates Coverage of PERMA-PIPE With Outperform Recommendation
Discover why Zacks rates "Outperform" for PERMA-PIPE, being the first on Wall Street to initiate coverage on the stock. Explore PPIH's strategic role in Qatar's LNG expansion and robust financial growth, amid the thriving global steel pipes market.
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Perma-Pipe International Holdings, Inc. Announces Fourth Quarter and Fiscal 2023 Financial Results
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. Announces Fourth Quarter and Fiscal 2023 Financial Results.
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Perma-Pipe International Holdings announces acceptance into QatarEnergy's Tawteen Program
SPRING, Texas--(BUSINESS WIRE)--PERMA-PIPE International Holdings, Inc (Nasdaq: PPIH) today announces its acceptance into QatarEnergy's Tawteen program. Tawteen is the Supply Chain Localization Program for the energy sector in Qatar led by QatarEnergy. PERMA-PIPE will aim to provide pre-insulated piping systems, custom fabrication and 3-layer polyethylene coatings for QatarEnergy projects. Saleh Sagr, Senior Vice President for PERMA-PIPE's MENA region commented, “We are pleased to announce and.
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Perma-Pipe International Holdings, Inc. Announces its Third Quarter Fiscal 2023 Financial Results
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the third quarter ended October 31, 2023. “Revenues for the third quarter were $45.7 million, an increase of $7.8 million versus the same quarter last year, and an increase of 30% over those arising in the previous quarter this year. The resulting income from operations of $4.9 million exceeded the $2.9 million earned in the same quarter of 2022 and represents over 70% of.
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Perma-Pipe International Holdings Announces the Appointment of Matthew Lewicki as Vice President and Chief Financial Officer, Secretary and Treasurer
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced the appointment of Matthew Lewicki to Vice President and Chief Financial Officer, Secretary and Treasurer (“CFO”) replacing long time financial executive D. Bryan Norwood who informed the Board of his intention to retire effective October 2, 2023. As CFO, Matthew is charged with leadership, oversight and execution of all PPIH financial matters and will serve as a key business advisor to the se.
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Perma-Pipe International Holdings, Inc., announces opening of a new state-of-the-art insulation facility in Canada
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) is pleased to announce the opening of its second pipe insulating facility in Canada. Strategically located outside of Ottawa, Ontario the new plant will focus primarily on serving the Ontario, Quebec, and Atlantic Canada markets. With the support of our existing plant in Camrose, Alberta, Perma-Pipe is well positioned to provide our valued customers across Canada with top-quality insulation systems. The new 3.
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Perma-Pipe International Holdings Appoints Chuck Heaton as Vice President of Human Resources
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced the appointment of Chuck Heaton to Vice President of Human Resources replacing Jill Curry. Chuck is charged with providing Human Resources strategy and leadership in developing and shaping key core competencies within PPIH that support the continuing growth of the company's business globally. These key core competencies include organizational design, talent management, succession planning, wor.
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Perma-Pipe International Holdings, Inc. Announces its Second Quarter Fiscal 2023 Financial Results
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the second quarter ended July 31, 2023. “Revenues for the second quarter were $35.1 million, a decrease of $1.9 million versus the same quarter last year. The resulting income from operations of $2.7 million was below the $3.3 million earned in the same quarter of 2022. Note that the results for this quarter however included a non-operating one-time tax expense of $0.5 mi.
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Perma-Pipe International Holdings, Inc. announces $8.5 million in contract awards in India and Saudi Arabia
SPRING, Texas--(BUSINESS WIRE)--PERMA-PIPE International Holdings, Inc. (Nasdaq: PPIH) today announces the award of contracts with a combined value of $8.5 million in India and the Kingdom of Saudi Arabia. The contracts are for the XTRU-THERM® product. Both projects are scheduled to be delivered by the end of Q4 2023. Saleh Sagr, Senior Vice President for PERMA-PIPE's MENA region, commented: ”We are thrilled to maintain our market position as the leading provider of preinsulated piping technolo.
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Perma-Pipe International Holdings Announces Contract Awards in Excess of $23 Million
SPRING, Texas--(BUSINESS WIRE)--PERMA-PIPE International Holdings, Inc., (Nasdaq: PPIH) today announces the award of contracts with a combined value of $23.5 million in the United Arab Emirates and Egypt. The contracts are for custom coatings in the oil & gas sector as well as the XTRU-THERM® product in the district heating and cooling sector. Saleh Sagr, Senior Vice President for PERMA-PIPE's MENA region, comments, “I am delighted to announce these project awards. In Egypt, it is further c.
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Perma-Pipe International Holdings, Inc. Announces its First Quarter Fiscal 2023 Financial Results
SPRING, Texas--(BUSINESS WIRE)--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 quart.
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Perma-Pipe International Holdings, Inc. Announces Fourth Quarter and Fiscal 2022 Financial Results
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the fourth quarter and 2022 fiscal year ended January 31, 2023. "Revenues for the fourth quarter were $36.4 million, $2.7 million below the same quarter last year, and net income of $3.2 million was an increase of $0.2 million compared to the same quarter of 2021. For the year ended January 31, 2023, revenues of $142.6 million were $4.0 million higher than the prior year. The resulting net income of $5.9 million was $0.1 million lower than the prior year. This decrease occurs after a non-cash charge of $0.9 million for the termination of a pension plan in 2022," noted President and CEO David Mansfield. “While revenue for the year increased only 3%, pre-tax income before the pension plan charge increased by 25% after improved margins were achieved,” Mr. Mansfield continued. "We continued to see growth in business activity in our markets during 2022. A buoyant oil and gas market in Canada that began in 2021 continued through last year as did increased infrastructure spending in Saudi Arabia. We expect these markets to continue to remain strong. In addition, our new product offerings in Egypt and the U.A.E. resulted in improved margins during 2022, and we will continue to pursue more opportunities in these markets,” noted Mr. Mansfield. "We have been executing our strategic plans, as demonstrated by the recent approval of our joint venture with Gulf Insulation Group (GIG) and the relocation of our U.A.E. operations to a new plant in Abu Dhabi. The joint venture with GIG will better position us to participate in the Saudi Arabian development plans, and the relocation to Abu Dhabi brings us closer to our customers in the oil and gas industry and provides us with a more efficient, state of the art facility,” Mr. Mansfield concluded. Fourth Quarter Fiscal 2022 Results Net sales were $36.4 million and $39.1 million in the three months ended January 31, 2023 and 2022, respectively. The decrease of $2.7 million was primarily a result of the timing of execution of certain large projects. Gross profit was $10.2 million, or 28% of net sales and $9.7 million, or 25% of net sales, in the three months ended January 31, 2023 and 2022, respectively. The increase of $0.5 million was driven by improved gross margins as a result of the mix of projects globally. General and administrative expenses were $5.8 million and $5.3 million in the three months ended January 31, 2023 and 2022, respectively. The increase of $0.5 million was primarily related to higher compensation costs. Selling expenses were $1.3 million and $1.1 million in the three months ended January 31, 2023 and 2022, respectively. The increase of $0.2 million was due to the expansion of the Company's sales force in the current period. Net interest expense was $0.5 million and $0.1 million in the three months ended January 31, 2023 and 2022, respectively. The increase of $0.4 million was related to increased borrowings and higher interest rates. Net other income was $1.5 million in the three months ended January 31, 2023 and less than $0.1 million in the three months ended January 31, 2022. The increase of $1.5 million was due to the release of the Company's liability for a past project as well as insurance recovery income. The Company's worldwide effective tax rates ("ETR") were 20.8% and 6.7% in the three months ended January 31, 2023 and 2022, respectively. The change in the ETR was primarily due to additional United State tax expense due to the inclusion of income from foreign jurisdictions with low effective tax rates, 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 the various tax jurisdictions. Net income was $3.2 million and $3.0 million in the three months ended January 31, 2023 and 2022, respectively. The increase in net income was a result of the changes discussed above. 2022 Results Net sales were $142.6 million and $138.6 million in the years ended January 31, 2023 and 2022, respectively. The increase of $4.0 million was primarily a result of higher sales volumes in North America and Saudi Arabia. Gross profit was $38.3 million, or 27% of net sales and $32.5 million, or 23% of net sales, in the years ended January 31, 2023 and 2022, respectively. The increase of $5.8 million was driven by higher sales volumes and improved gross margins as a result of the mix of projects globally. General and administrative expenses were $22.0 million and $19.9 million in the years ended January 31, 2023 and 2022, respectively. The increase of $2.1 million was primarily related to higher compensation costs. Selling expenses were $5.2 million and $4.5 million in the years ended January 31, 2023 and 2022, respectively. The increase of $0.7 million was due to the expansion of the Company's sales force in the current period. Net interest expense was $2.1 million and $0.8 million in the years ended January 31, 2023 and 2022, respectively. The increase of $1.3 million was related to increased borrowings and higher interest rates. Net other income was $0.5 million and $1.0 million in the years ended January 31, 2023 and 2022, respectively. The current year amount includes income from the release of the Company's liability for a past project and insurance recovery income, partially offset by a non-cash pre-tax settlement charge resulting from the termination of the Company's pension plan. The prior year amount includes the receipt of grants from the Canadian government in response to the COVID-19 pandemic. Grants to the Company under these programs ended in the second quarter of 2021. The Company's worldwide ETR's were 37.8% and 27.2% in the years ended January 31, 2023 and 2022, respectively. The change in the ETR was primarily due to additional United State tax expense due to the inclusion of income from foreign jurisdictions with low effective tax rates, 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 the various tax jurisdictions. Net income was $5.9 million and $6.1 million in the years ended January 31, 2023 and 2022, respectively. The decrease in net income was a result of the changes discussed above. Percentages set forth above in this press release have been rounded to the nearest percentage point, and may not correspond exactly to the comparative data presented. Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings 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, Perma-Pipe 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.) Perma-Pipe’s Form 10-K for the 2022 fiscal year ended January 31, 2023 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) Three Months Ended January 31, Year Ended January 31, 2023 2022 2023 2022 Net sales $ 36,441 $ 39,126 $ 142,569 $ 138,552 Gross profit 10,236 9,654 38,301 32,530 Total operating expenses 7,115 6,381 27,157 24,419 Income from operations 3,121 3,273 11,144 8,111 Interest expense, net 534 112 2,119 828 Other income 1,498 47 533 1,044 Income before income taxes 4,085 3,208 9,558 8,327 Income tax expense 851 216 3,613 2,265 Net income $ 3,234 $ 2,992 $ 5,945 $ 6,062 Weighted average common shares outstanding Basic 8,004 7,999 7,976 8,110 Diluted 8,214 8,284 8,116 8,395 Earnings per share Basic $ 0.40 $ 0.37 $ 0.75 $ 0.75 Diluted $ 0.39 $ 0.36 $ 0.73 $ 0.72 Note: Earnings per share calculations could be impacted by rounding. PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) January 31, 2023 2022 ASSETS Current assets $ 85,658 $ 78,389 Long-term assets 37,308 45,012 Total assets $ 122,966 $ 123,401 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 43,790 $ 38,397 Long-term liabilities 21,392 30,547 Total liabilities 65,182 68,944 Stockholders' equity 57,784 54,457 Total liabilities and stockholders' equity $ 122,966 $ 123,401
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Perma-Pipe International Holdings announces contract awards in excess of $8 million
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has been awarded two contracts with a combined value in excess of US$8 million. The first is to provide insulated piping for a thermal distribution system on the campus of Fanshawe College in London, Ontario, Canada. The contract is to supply Perma-Pipe’s XTRU-THERM® thermally insulated piping system. Grant Dewbre, COO and Senior Vice President for Perma-Pipe’s Americas region stated, “We are excited to be working for Fanshawe College and EllisDon and we thank them for placing their trust in us, and we expect to exceed their expectations.” In addition, today Perma-Pipe International Holdings, Inc. announced its subsidiary, Perma-Pipe Middle East LLC, has been awarded contracts by China Petroleum & Chemical Corporation (Sinopec) for the provision of thermally insulated pipe and field joints for a project in Uganda. This project will feed the East African Crude Oil Pipeline (EACOP) transporting oil to the coast in Tanzania. The project will utilize Perma-Pipe’s XTRU-THERM® insulation system, a spray-applied polyurethane foam jacketed with a high-density polyethylene casing. The projects will begin execution in Perma-Pipe’s new facility in Abu Dhabi, UAE in Q3 2023. Saleh Sagr, Senior Vice President for Perma-Pipe’s MENA region commented, “I am glad to announce that this important project has been assigned to Perma-Pipe. We have recently announced the opening of the new plant in Abu Dhabi and obtaining this award is an excellent start. It demonstrates the need for a plant that is well positioned to serve export markets as well as oil and gas projects locally in the UAE and neighboring countries.” David Mansfield, President and CEO commented, “We are pleased to be chosen by EllisDon and Fanshawe College to be a part of this infrastructure project and to provide our district cooling and heating piping system to the Canadian market.” "We are also delighted with the Uganda project, and the opportunity to participate in this significant investment program. We are proud to be partnering with Sinopec so that we can demonstrate our expertise and our industry-leading products and services from our new, high-capacity state-of-the-art facility.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) is a global leader in pre-insulated piping and leak detection systems for oil and gas, 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, Perma-Pipe 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (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 profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) 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; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related 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 Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) 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).
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Perma-Pipe International Holdings Inc. Announces $6.5 Million in Project Awards in India
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced its subsidiary Perma-Pipe India Pvt. Ltd. (Perma-Pipe India) has been awarded approximately $6.5 million in contracts during the first quarter of 2023. Two major projects will begin execution in Perma-Pipe’s Gandhidham, Gujarat, India facility in the first and second quarter of 2023. Reliance New Solar Energy Limited awarded Perma-Pipe India for the provision of thermally insulated pipe and field joints for a chilled water network on the 10 GW solar cell and module factory in Jamnagar, Gujarat. The project will utilize Perma-Pipe’s XTRU-THERM® insulation system, a spray-applied polyurethane foam jacketed with a high-density polyethylene casing. Prior to application of the insulation system, an anti-corrosion liquid epoxy coating system will be applied to the pipes as well as installing Perma-Pipe’s own PermAlert® leak detection system. In addition, Megha Engineering & Infrastructures Ltd. awarded Perma-Pipe India for the provision of thermally insulated pipe and field joints for a heat-traced application on the ABNP - Cairn Project, Rajasthan. The project will utilize Perma-Pipe’s TRACE-THERM™ insulation system which is designed to ensure optimum heat management during the life of the pipeline. The system will have welded tracer tubes for heat tracing and spray-applied polyurethane foam jacketed with a high-density polyethylene casing. Prior to application of the insulation system, an anti-corrosion fusion bonded epoxy coating will be applied internally and externally using Perma-Pipe’s custom coating facility. Saleh Sagr, Sr. Vice President for Perma-Pipe’s MENA region states, “We are pleased to see customers repeating business with us and look forward to serving Reliance New Solar Energy and Megha Engineering on these projects. It is encouraging to see continued opportunities in the Indian market.” David Mansfield, President and CEO commented, “We are delighted with both of these awards, and that customers return to place their trust in Perma-Pipe to deliver their projects. It is also satisfying to see that the strategic decision to install a custom coating plant in India was the right one.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (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 profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) 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; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related 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 Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) 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).
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Perma-Pipe International Holdings Inc. Announces Plans to Expand to Qatar
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) has taken preliminary steps to expand operations to Qatar and mobilization is expected to commence during the current year. In addition to the local district heating and cooling market, there are numerous significant future developments in the oil and gas industry which the Company will position itself for. David Mansfield, President and CEO commented, “This expansion is another step in the execution of our strategic plans. Our expansion into Egypt, relocation of our U.A.E. plant to Abu Dhabi and the recently announced joint venture in Saudi Arabia demonstrate our commitment to service the region’s infrastructure growth.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (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 profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) 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; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related 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 Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) 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).
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Perma-Pipe International Holdings Inc. announces new plant in Abu Dhabi
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has recently opened its largest production facility outside North America in the Emirate of Abu Dhabi in the U.A.E. The facility was inaugurated by H.E. Sheikh Saeed Bin Tahnoon Al Nahyan on March 16, 2023, in an opening ceremony attended by dignitaries from Abu Dhabi, Saudi Arabia, and Qatar in addition to the group’s President and CEO David Mansfield and Chairman Jerry Walker. To meet the growing demand for the district cooling and oil and gas industries in the Middle East, Perma-Pipe has opened the new 6 hectare factory, fully equipped with technologies to provide the latest environmentally-friendly products. The new facility will offer fabrication and Fusion Bonded Epoxy coating capabilities, and the XTRU-THERM® insulation system, a spray-applied polyurethane foam jacketed with a high-density recycled polyethylene casing, and the PolyTherm® insulation system, a spray-applied polyurethane foam jacketed with fiberglass reinforced plastic. Saleh Sagr, Sr. Vice President for Perma-Pipe’s MENA region commented, “This new production site opens up many perspectives for Perma-Pipe, the world leader in pre-engineered pre-insulated piping systems. To meet the growing demand in Middle East and North Africa, and also a logistical position to better serve the oil and gas industry in the UAE through its large capacity and an irreproachable product quality.” David Mansfield, President and CEO commented, "This new development is not specific to the U.A.E. only. It is an export hub to serve projects all over the world. We now have a factory that is unique with its wide product offerings with the capacity to respond to the growing demand. We have every reason to believe that the demand for clean energy, such as LNG and hydrogen, will continue to grow in the years to come.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (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 profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) 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; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related 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 Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) 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).
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Perma-Pipe International Holdings Inc. announces Approval of Joint Venture by The Kingdom of Saudi Arabia General Authority for Competition
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) has received approval of The Kingdom of Saudi Arabia General Authority for Competition to enter into the previously announced joint venture with Gulf Insulation Group in The Kingdom of Saudi Arabia to provide pre-insulated piping systems, piping fabrication, internal and external fusion bonded epoxy, three-layer coating services and leak detection systems for customers in The Kingdom of Saudi Arabia, Kuwait and Bahrain. Formation and commencement of the joint venture will take place over the next few weeks. Gulf Insulation Group is a subsidiary of the Zamil Industrial Investment Company a Saudi Arabian public company and one of the largest industrial groups in the Middle East. The joint venture will be 60% controlled by Perma-Pipe International Holdings, Inc. and 40% by Gulf Insulation Group through their subsidiaries, respectively. Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries. Gulf Insulation Group Gulf Insulation Group “GIG” is a regional leader in the insulation business. GIG operates as a manufacturer and supplier of a complete range of insulation materials based in Riyadh, Saudi Arabia, with manufacturing plants located in Riyadh, Dammam and Al Kharj. GIG was established in 2009 as a closed joint stock company. GIG provides engineering, manufacturing and technology to supply environmentally efficient solutions to projects across the region and beyond. In 2011, Zamil Industrial Investment Company (Zamil Industrial) merged its insulation sector with GIG and became managing partner of GIG. 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (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 profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) 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; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related 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 Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) 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).
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Perma-Pipe International Holdings Announces US Gulf of Mexico Project Award
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has been awarded a contract in excess of $9 million. The contract is for the Winterfell Project in the US Gulf of Mexico for Beacon Offshore Energy LLC (Beacon). The project will be executed at Perma-Pipe’s facility in the Port of Iberia, Louisiana in the latter part of 2023 and will be completed before the end of the year. The newly awarded project involves the application of Perma-Pipe’s FLOW-THERM® subsea wet insulation to the flowline that forms a part of Beacon’s Winterfell Project, located in the US Gulf of Mexico at a water depth of approximately 5,800 feet (1,600 meters). FLOW-THERM® has an extensive track record and has been used on projects having a water depth up to 10,000 feet (3,000 meters). FLOW-THERM® is a recognized and trusted insulation solution in the oil & gas industry which has been in use for almost 20 years. Alan Morrison, General Manager for Perma-Pipe’s offshore business unit commented, “We would like to thank Beacon for the trust they have placed in us and will exceed Beacon’s expectations during the execution of the project.” Grant Dewbre, COO and Senior Vice President for Perma-Pipe’s Americas region stated, “We are excited to be working for Beacon, a new customer for us, who we very much hope will be a repeat customer in the near future. We will ensure that Beacon’s schedule is met while delivering our products with the highest standards of quality and safety being adhered to at all times.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) is a global leader in pre-insulated piping and leak detection systems for oil and gas, 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings Inc. announces the formation of a Joint Venture in The Kingdom of Saudi Arabia
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) has entered into a joint venture with Gulf Insulation Group in The Kingdom of Saudi Arabia to provide pre-insulated piping systems, piping fabrication, internal and external fusion bonded epoxy, three-layer coating services and leak detection systems for customers in the Kingdom of Saudi Arabia, Kuwait and Bahrain. This joint venture will be positioned to participate in Saudi Vision 2030, a strategic framework to diversify the Saudi Arabian economy through development of the public services sectors such as health, education, infrastructure, recreation and tourism. Gulf Insulation Group is a subsidiary of the Zamil Industrial Investment Company a Saudi Arabian public company and one of the largest industrial groups in the Middle East. The joint venture will be 60% controlled by Perma-Pipe International Holdings, Inc. and 40% by Gulf Insulation Group through their subsidiaries, respectively. Formation of the joint venture is subject to approval of the Kingdom of Saudi Arabia General Authority for Competition. Saleh Sagr, Senior Vice President for Perma-Pipe’s MENA region commented, “I am pleased to partner with Gulf Insulation Group to combine our strengths and better serve our customers through new products and expanded services and capabilities.” Dave Mansfield, President and CEO commented, “The Zamil Group is a trusted name in the Middle East. We are fortunate to partner with a quality organization that serves both coatings and construction markets.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries. Gulf Insulation Group Gulf Insulation Group “GIG” is a regional leader in the insulation business. GIG operates as a manufacturer and supplier of a complete range of insulation materials based in Riyadh, Saudi Arabia, with manufacturing plants located in Riyadh, Dammam and Al Kharj. GIG was established in 2009 as a closed joint stock company. GIG provides engineering, manufacturing and technology to supply environmentally efficient solutions to projects across the region and beyond. In 2011, Zamil Industrial Investment Company (Zamil Industrial) merged its insulation sector with GIG and became managing partner of GIG. 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (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 profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) 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; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related 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 Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) 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).
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Perma-Pipe International Holdings, Inc. Announces Share Repurchase Program
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) (the "Company") announced today that its Board of Directors has authorized the use of $965 thousand remaining under the share repurchase program previously approved on October 4, 2021 that expired on October 3, 2022. Share repurchases may be executed through open market or in privately negotiated transactions over the course of the next 12 months. The specific number of shares that the Company will ultimately repurchase, and the actual timing, per share price and amount of share repurchases, will be dependent on then current market conditions and other factors. 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 thirteen 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the impact of global economic weakness and volatility; (iv) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (v) 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; (vi) the Company’s ability to repay its debt and renew expiring international credit facilities; (vii) the Company’s ability to effectively execute its strategic plan and achieve sustained profitability and positive cash flows; (viii) the Company's ability to collect a long-term account receivable related to a project in the Middle East; (ix) the Company’s ability to interpret changes in tax regulations and legislation; (x) the Company's ability to use its net operating loss carryforwards; (xi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s over-time revenue recognition; (xii) the Company’s failure to establish and maintain effective internal control over financial reporting; (xiii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (xiv) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xv) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xvi) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xvii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xviii) reductions or cancellations of orders included in the Company’s backlog; (xix) risks and uncertainties specific to the Company's international business operations; (xx) the Company’s ability to attract and retain senior management and key personnel; (xxi) the Company’s ability to achieve the expected benefits of its growth initiatives; and (xxii) 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.)
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Perma-Pipe International Holdings, Inc. Announces its Third Quarter and Year-to-Date Fiscal 2022 Financial Results
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the third quarter ended October 31, 2022. “Revenues for the third quarter were $37.9 million, an increase of $2.7 million versus the same quarter last year. The resulting income from operations of $2.9 million was also an increase from the $1.5 million earned in the same quarter of 2021, despite a $0.9 million non-cash pre-tax charge in the current quarter resulting from a pension plan termination," noted President and CEO David Mansfield. “While maintaining overhead cost management, pre-tax earnings for the year to date increased versus last year with revenues remaining stable throughout the year. We continue to see strong oil and gas demand in Canada and our other North American operations also improved substantially due to increased activity in the district heating and cooling market. Despite revenues at similar levels, the returns from our operations in Egypt have improved as we venture into new products and services. "Backlog has grown $7.7 million largely because of contracts in Saudi Arabia, where activity levels there and elsewhere in the Middle East have increased. “Year to date versus prior year both revenue and income from operations increased despite recognizing a non-cash pre-tax charge of $0.9 million for the termination of a pension plan, and after the cessation of government subsidies for COVID-19 received in the prior year. Excluding these non-recurring items year over year, pre-tax earnings increased by 45%,” concluded Mr. Mansfield. 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 thirteen 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the impact of global economic weakness and volatility; (iv) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (v) 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; (vi) the Company’s ability to repay its debt and renew expiring international credit facilities; (vii) the Company’s ability to effectively execute its strategic plan and achieve sustained profitability and positive cash flows; (viii) the Company's ability to collect a long-term account receivable related to a project in the Middle East; (ix) the Company’s ability to interpret changes in tax regulations and legislation; (x) the Company's ability to use its net operating loss carryforwards; (xi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s over-time revenue recognition; (xii) the Company’s failure to establish and maintain effective internal control over financial reporting; (xiii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (xiv) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xv) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xvi) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xvii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xviii) reductions or cancellations of orders included in the Company’s backlog; (xix) risks and uncertainties specific to the Company's international business operations; (xx) the Company’s ability to attract and retain senior management and key personnel; (xxi) the Company’s ability to achieve the expected benefits of its growth initiatives; and (xxii) 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 and nine months ended October 31, 2022, 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 October 31, 2022, 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 October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Net sales $ 37,903 $ 35,199 $ 106,128 $ 99,426 Gross profit 11,130 7,629 28,065 22,877 Total operating expenses 6,594 5,938 20,043 18,040 Income from operations 4,536 1,691 8,022 4,837 Interest expense, net 717 270 1,585 717 Other (expense)/income (948 ) 98 (963 ) 997 Income before income taxes 2,871 1,519 5,474 5,117 Income tax expense 1,143 1,024 2,763 2,049 Net income $ 1,728 $ 495 $ 2,711 $ 3,068 Earnings per share Basic $ 0.22 $ 0.06 $ 0.33 $ 0.38 Diluted $ 0.21 $ 0.06 $ 0.33 $ 0.36 Note: Earnings per share calculations could be impacted by rounding. PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) October 31, 2022 January 31, 2022 (Unaudited) ASSETS Current assets $ 89,392 $ 78,389 Long-term assets 36,417 45,012 Total assets $ 125,809 $ 123,401 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 47,456 $ 38,397 Long-term liabilities 23,562 30,547 Total liabilities 71,018 68,944 Stockholders' equity 54,791 54,457 Total liabilities and stockholders' equity $ 125,809 $ 123,401
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Perma-Pipe International Holdings announces contract award of $14 million in Saudi Arabia
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced its Saudi Arabian subsidiary has recently been awarded a contract for $14.0 million for the King Salman Park Project - Vision 2030. The project is expected to be executed in the fourth quarter of 2022. The project is part of major infrastructure developments planned in Saudi Arabia’s Vision 2030. The project will utilize Perma-Pipe’s pre-insulated pipes and fittings and the XTRU-THERM® insulation system, a spray-applied polyurethane foam jacketed with a high-density polyethylene. Raed Al Saleh, General Manager for Perma-Pipe Saudi Arabia states, “We are pleased to be part of the King Salman Park project, and we are delighted that Al Haif Contracting have placed their trust in Perma-Pipe. It is exciting to be part of this project that will assert Riyadh as one of the most livable cities in the world.” Saleh Sagr, Senior Vice President for Perma-Pipe’s MENA region commented, “I am glad to announce that this important project has been assigned to Perma-Pipe. The King Salman Park project attests to our leading market position in Saudi Arabia and gives us the opportunity to demonstrate our expertise and our industry-leading products and services to another new, strategically valuable customer.” David Mansfield, President and CEO commented, "The Saudi Arabian market is becoming increasingly more active and important to us. We are delighted with this award, and the opportunity to participate in Saudi Arabia’s pursuit of its Vision 2030.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings, Inc. Announces its Second Quarter and Year-to-Date Fiscal 2022 Financial Results
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the second quarter ended July 31, 2022. “Revenues for the second quarter were $37.0 million, a decrease from the $39.8 million for the same quarter last year. The resulting income from operations of $2.8 million was also less than the $4.3 million earned in the same quarter of 2021,” noted President and CEO David Mansfield. “These comparisons need to be considered in the context of the cyclical nature of our business. From a consolidated perspective, lower revenues versus the same quarter of 2021 were largely due to quarter to quarter variances in timing related to project schedules. Our backlog remains strong at $58.0 million compared to $39.3 million at January 31, 2022, much of which is scheduled to be executed in the second half of the year. Hence, we remain positive on our full year revenue outlook. Of note, our Canadian operations continue to benefit from a better than expected resurgence of the local oil and gas market, which we began to witness earlier in the year and expect to continue through the balance of the year and into 2023. “On a year to date basis, revenues and gross profit marginally increased versus the prior year. However, current quarter performance reflects increased interest costs, due partly to the sale and lease-back of our operating facility in Lebanon, Tennessee in April 2021, and prior year quarter includes the benefit of government subsidies for COVID-19. Excluding these two items, year over year income from operations increased 7%. “Finally, despite a reduction in pre-tax earnings in the quarter, tax expense has increased versus 2021 due to the differing incidence of taxation in the countries where we operate. This increases the effective tax rate to 62% for the current year-to-date and leads to a reduction in net income when compared to the prior year earnings,” concluded Mr. Mansfield. 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 thirteen 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the impact of global economic weakness and volatility; (iv) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (v) 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; (vi) the Company’s ability to repay its debt and renew expiring international credit facilities; (vii) the Company’s ability to effectively execute its strategic plan and achieve sustained profitability and positive cash flows; (viii) the Company's ability to collect a long-term account receivable related to a project in the Middle East; (ix) the Company’s ability to interpret changes in tax regulations and legislation; (x) the Company's ability to use its net operating loss carryforwards; (xi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s over-time revenue recognition; (xii) the Company’s failure to establish and maintain effective internal control over financial reporting; (xiii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (xiv) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xv) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xvi) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xvii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xviii) reductions or cancellations of orders included in the Company’s backlog; (xix) risks and uncertainties specific to the Company's international business operations; (xx) the Company’s ability to attract and retain senior management and key personnel; (xxi) the Company’s ability to achieve the expected benefits of its growth initiatives; and (xxii) 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 and six months ended July 31, 2022, 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, 2022, 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 July 31, Six Months Ended July 31, 2022 2021 2022 2021 Net sales $ 37,003 $ 39,804 $ 68,225 $ 64,227 Gross profit 9,886 10,743 16,935 15,248 Operating expenses 6,561 6,655 13,451 12,102 Income from operations 3,325 4,088 3,484 3,146 Interest expense, net 500 268 867 446 Other (expense)/income (64 ) 457 (14 ) 899 Income from operations before income taxes 2,761 4,277 2,603 3,599 Income tax expense 893 861 1,620 1,026 Net income $ 1,868 $ 3,416 $ 983 $ 2,573 Earnings per share Basic 0.23 0.42 0.12 0.32 Diluted 0.23 0.41 0.12 0.31 Note: Per share calculations could be impacted by rounding. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) July 31, 2022 January 31, 2022 (Unaudited) ASSETS Current assets $ 91,560 $ 78,389 Long-term assets 39,022 45,012 Total assets $ 130,582 $ 123,401 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities 50,283 38,397 Long-term liabilities 26,000 30,547 Total liabilities $ 76,283 $ 68,944 Stockholders' equity 54,299 54,457 Total liabilities and stockholders' equity $ 130,582 $ 123,401
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Perma-Pipe International Holdings, Inc. Announces the Cancellation of Treasury Stock
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today that on July 26, 2022, it cancelled 239,168 shares of treasury stock representing all the treasury shares held by the Company on that date. On October 4, 2021, the Board of Directors authorized a $3.0 million, 12-month stock repurchase program. Currently, $965 thousand of the initial $3.0 million remains available for future purchases.
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Perma-Pipe International Holdings Appoints Jill Curry as Vice President of Human Resources
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced Wayne Bosch has retired on July 3, 2022, after eight years of service to PERMA-PIPE and its subsidiaries. “Wayne joined the company in 2013 when we were known as MFRI, playing an instrumental role in many of the changes impacting MFRI and PERMA-PIPE over the years. As the Vice President and Chief Human Resources Officer, Wayne was a key executive team member. He also served as Chief Compliance Officer. He provided valuable leadership and contributed to our strategy development globally. Wayne was a dependable and helpful resource to us throughout his tenure. Not only in his core function of HR but also in other important areas where the size of our organization has limited us in the ability to have a specific role devoted to it. It has been a pleasure for me to work alongside Wayne, and he will be missed,” said David Mansfield, President and CEO. Wayne is succeeded by Jill Curry. Jill is accountable for providing human resources leadership, strategies, policies, and actions. She will play a vital role in the ongoing growth, development, and transformation of the PPIH business globally. Throughout her career, Jill has helped stand up two completely new businesses and integrate over 20 major acquisitions, creating and leading global human resources and building multi-disciplined teams within world-class organizations. Before joining PERMA-PIPE, Jill was an executive at Baker Hughes Company, focusing on strategic human resources and mergers and acquisitions. Prior to Baker Hughes, she was a founding member of Wellbore Integrity Solutions and spent five years as Vice President of Human Resources and Administration of another private equity-backed firm focused on the offshore oil and gas space. She has also held various roles in Oil States Energy Services and Schlumberger, where she was the global Human Resources executive for an entire integration center, which stretched across Europe, North America, and Asia. Jill attended the Advanced Human Resource Executive Program at the Stephen M. Ross School of Business at the University of Michigan and has a Bachelor of Arts Degree from Stephen F. Austin State University. Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings, Inc. Announces its First Quarter and Year-to-Date Fiscal 2022 Financial Results
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the first quarter ended April 30, 2022. “Revenues for the first quarter of $31.2 million increased 28% from the $24.4 million for the same quarter last year. The resulting income from operations of $0.2 million was also above the $0.9 million loss incurred in the same quarter of 2021," noted President and CEO David Mansfield. "While both revenues and margins improved, there was a corresponding increase to operating expenses, which was partly due to personnel costs and driven by the increased levels of activity." "During the first quarter of 2022, the oil and gas market in Canada has been returning to increased levels of investment, and the industry outlooks are positive. There has also been a notable improvement to our results in Saudi Arabia, where investments in construction projects are expected to return to pre-pandemic levels. "Our current backlog of $59.2 million is 50% higher than our January 31, 2022 backlog. After a significant amount of new awards during the quarter, including in Saudi Arabia and the United States, our backlog is at approximately the same level as it was this time last year, and it is distributed very similarly between our different business units. "The net income from our results does not reflect the same period improvement as is described above, since there is inconsistency in the rates of taxation in the different countries where we operate, and also because we are not recognizing the full tax benefit of past losses. This makes the calculation of effective tax rates extremely inconsistent from period to period, and this is highlighted in the tax charge for this quarter,” concluded Mr. Mansfield. First Quarter Fiscal 2022 Results Net sales were $31.2 million in the current quarter, an increase of $6.8 million, or 28%, from $24.4 million in the prior year quarter. The increase was a result of increased sales volumes, partly due to recovery from the effects of the COVID-19 pandemic. Gross profit increased to $7.0 million, or 23% of net sales, in the current quarter from $4.5 million, or 18% of net sales, in the prior year quarter. This increase was driven by higher sales volumes and project and product mix. General and administrative expenses increased $1.2 million, or 28%, from $4.4 million in the prior year quarter to $5.7 million in the current quarter. Approximately $0.9 million of this increase was the result of increased incentive compensation. This amount was based on 2021 actual payouts as compared to estimated amounts previously accrued in addition to accruals made for 2022 forecasted results as compared to the prior year quarter, where no incentive compensation was recorded. The remainder of the increase was due to additions to headcount in support of the Company's business growth. Selling expenses were relatively consistent, increasing slightly to $1.2 million in the current quarter, compared to $1.0 million in the prior year quarter. Net interest expense increased to $0.4 million in the current quarter from $0.2 million in the prior year quarter. This increase was related primarily to the sale leaseback transaction for our operating facility in Tennessee entered into in April 2021. Other income, net decreased to an income of less than $0.1 million in the current quarter, compared to approximately $0.4 million in the prior year quarter. In the prior year quarter, the Company received grants from the Canadian government under the Canadian Emergency Wage Subsidy ("CEWS") and Canadian Emergency Rent Subsidy ("CERS") programs. The Company was approved for and received approximately $0.3 million and $0.1 million in grants under the CEWS and CERS programs, respectively, during the prior year quarter. Grants to the Company under both programs ended in the second quarter of 2021. Loss from operations before income taxes decreased by $0.5 million to a loss of $(0.2) million in the current quarter from a loss of $(0.7) million in the prior year quarter. The improvement was a result of increased sales volumes and margins as described above. The Company's worldwide effective tax rates ("ETR") were (455.9%) and (24.3%) in the current quarter and the prior year quarter, respectively. The change in the ETR from the prior year quarter to the current year quarter is largely due to changes in the mix of income and loss in various jurisdictions. The resulting net loss of $(0.9) million in the current quarter was relatively consistent with the net loss of $(0.8) million in the prior year quarter. Percentages set forth above in this press release have been rounded to the nearest percentage point and may not exactly correspond to the comparative data presented. 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 thirteen 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the impact of global economic weakness and volatility; (iv) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (v) 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; (vi) the Company’s ability to repay its debt and renew expiring international credit facilities; (vii) the Company’s ability to effectively execute its strategic plan and achieve sustained profitability and positive cash flows; (viii) the Company's ability to collect a long-term account receivable related to a project in the Middle East; (ix) the Company’s ability to interpret changes in tax regulations and legislation; (x) the Company's ability to use its net operating loss carryforwards; (xi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s over-time revenue recognition; (xii) the Company’s failure to establish and maintain effective internal control over financial reporting; (xiii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (xiv) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xv) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xvi) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xvii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xviii) reductions or cancellations of orders included in the Company’s backlog; (xix) risks and uncertainties specific to the Company's international business operations; (xx) the Company’s ability to attract and retain senior management and key personnel; (xxi) the Company’s ability to achieve the expected benefits of its growth initiatives; and (xxii) 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.) The Company's Form 10-Q for the quarter ended April 30, 2022 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended April 30, 2022 2021 Net sales $ 31,222 $ 24,423 Cost of sales 24,173 19,918 Gross profit 7,049 4,505 Operating expenses General and administrative expenses 5,650 4,404 Selling expenses 1,239 1,042 Total operating expenses 6,889 5,446 Income/(loss) from operations 160 (941 ) Interest expense, net 368 178 Other income, net 49 441 Loss from operations before income taxes (159 ) (678 ) Income tax expense 726 165 Net loss $ (885 ) $ (843 ) Weighted average common shares outstanding Basic 7,919 8,165 Diluted 7,919 8,165 Loss per share Basic (0.11 ) (0.10 ) Diluted (0.11 ) (0.10 ) Note: Per share calculations could be impacted by rounding. PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) April 30, 2022 January 31, 2022 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 6,375 $ 8,214 Restricted cash 1,524 1,557 Trade accounts receivable, less allowance for doubtful accounts of $461 at April 30, 2022 and $486 at January 31, 2022 38,816 44,449 Inventories, net 15,401 13,760 Prepaid expenses and other current assets 6,609 5,444 Unbilled accounts receivable 6,730 2,656 Costs and estimated earnings in excess of billings on uncompleted contracts 6,004 2,309 Total current assets 81,459 78,389 Property, plant and equipment, net of accumulated depreciation 23,754 24,756 Other assets Operating lease right-of-use asset 7,712 11,213 Deferred tax assets 823 811 Goodwill 2,318 2,342 Other assets 5,853 5,890 Total other assets 16,706 20,256 Total assets $ 121,919 $ 123,401 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade accounts payable $ 15,631 $ 13,618 Accrued compensation and payroll taxes 1,768 1,612 Commissions and management incentives payable 1,408 2,047 Revolving line - North America 5,246 634 Current maturities of long-term debt 6,778 6,750 Customers' deposits 2,826 3,072 Outside commission liability 1,856 1,255 Operating lease liability short-term 1,527 1,496 Other accrued liabilities 3,238 4,616 Billings in excess of costs and estimated earnings on uncompleted contracts 1,173 1,277 Income taxes payable 1,310 2,020 Total current liabilities 42,761 38,397 Long-term liabilities Long-term debt, less current maturities 4,837 5,059 Long-term finance obligation 9,301 9,327 Deferred compensation liabilities 3,374 3,379 Deferred tax liabilities 865 712 Operating lease liability long-term 7,042 11,270 Other long-term liabilities 847 800 Total long-term liabilities $ 26,266 $ 30,547 Stockholders' equity Common stock, $.01 par value, authorized 50,000 shares; 8,154 issued and outstanding at April 30, 2022 and 8,152 issued and outstanding at January 31, 2022 82 82 Additional paid-in capital 62,018 61,766 Treasury Stock, 234 shares at April 30, 2022 and January 31, 2022 (1,992 ) (1,992 ) Accumulated deficit (3,180 ) (2,295 ) Accumulated other comprehensive loss (4,036 ) (3,104 ) Total stockholders' equity 52,892 54,457 Total liabilities and stockholders' equity $ 121,919 $ 123,401
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3 Cheap Infrastructure Stocks to Build Into Your Portfolio
These infrastructure stocks are currently trading for chump change and offer spectacular long-term value for investors. The post 3 Cheap Infrastructure Stocks to Build Into Your Portfolio appeared first on InvestorPlace.
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Perma-Pipe International Holdings, Inc. Announces Fourth Quarter and Fiscal 2021 Financial Results
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the fourth quarter and 2021 fiscal year ended January 31, 2022. "Revenue for the fourth quarter was $39.1 million, $17.8 million above the same quarter last year, and net income of $3.0 million was an increase of $5.5 million compared to the same quarter of 2020. For the year ended January 31, 2022, revenues of $138.6 million were $53.9 million higher than the prior year. The resulting net income of $6.1 million was $13.7 million higher than the prior year," noted President and CEO David Mansfield. "The adverse impact of the COVID-19 pandemic began to recede in the first quarter of fiscal 2021, resulting in an improvement in business activity and profitability. With rebounding oil prices and the recommencement of paused projects, we experienced profitability improvements in all of our business units. This year's results also benefitted from the Company's ability to continue to operate with a lower overhead cost base that was implemented in response to the downturn during the pandemic. In addition, the business recovery we experienced this year allowed us to resume our focus on implementing the growth plans that were paused in 2020. These initiatives recommenced during 2021 and will be impactful to our future results. "In the past year we also enhanced our liquidity by entering into a sale and leaseback agreement for our land and buildings in Lebanon, Tennessee and by extending our $18 million North American credit agreement for an additional five years. With liquidity provided by these measures, we commenced a share repurchase program in October of last year,” Mr. Mansfield continued. “I am proud of how our employees and Board of Directors responded to the challenges of the last two years. Their dedication and resilience not only helped us weather the pandemic, but also positioned us to respond quickly to the subsequent recovery,” concluded Mr. Mansfield. Fourth Quarter Fiscal 2021 Results Net sales increased 84% to $39.1 million in the fourth quarter from $21.3 million in the prior year quarter. This was a result of increased sales volumes in all business units due largely to recovery from the effects of the COVID-19 pandemic. Gross profit increased to 25% of net sales, or $9.7 million in the fourth quarter, from 11% of net sales, or $2.4 million, in the prior year quarter. This increase was primarily driven by higher sales volumes without a corresponding increase in fixed plant costs. General and administrative expenses increased to $5.3 million in the fourth quarter, compared to $3.9 million in the prior year quarter. This 35% increase was driven primarily by the increase in headcount as well as incentive compensation associated with the improved financial results in 2021. Selling expenses were relatively consistent from the prior year quarter to the fourth quarter. Net interest expense increased to expense of $0.1 million in the fourth quarter, compared to income of less than $0.1 million in the prior year quarter. This increase is primarily related to the sale and leaseback of the Company's land and buildings in Lebanon, Tennessee in April 2021, whereby a portion of the Company's monthly rent payments are recorded to interest expense. Other income decreased to less than $0.1 million in the fourth quarter from $0.3 million in the prior year quarter. This decrease was primarily the result of income recorded in 2020 for funds received under the Canadian Emergency Wage Subsidy ("CEWS") and Canadian Emergency Rent Subsidy ("CERS") programs in Canada. The CEWS and CERS grants ceased in the second quarter of 2021. Net income/(loss) increased to income of $3.0 million in the fourth quarter from a loss of ($2.5) million in the prior year quarter. The increase was a result of increased sales volumes in all business units due to recovery from the effects of the COVID-19 pandemic. 2021 Results Net sales were $138.6 million in fiscal 2021, an increase of $53.9 million, or 64%, from $84.7 million in fiscal 2020. The increase was a result of increased sales volumes in all business units due largely to recovery from the effects of the COVID-19 pandemic. Gross profit increased to $32.5 million, or 24% of net sales, in fiscal 2021. This was an increase of $21.4 million, or 191%, from $11.2 million, or 13% of net sales, in fiscal 2020. This increase was primarily driven by higher sales volumes without a corresponding increase in fixed plant costs. In addition, the Company's U.A.E. business benefitted for a full year from the introduction of a high margin new product line in late 2020. General and administrative expenses were $19.9 million in fiscal 2021 compared to $17.2 million in fiscal 2020, an increase of $2.7 million, or 16%. This increase was driven primarily by the increase in headcount as well as incentive compensation associated with the improved financial results in 2021. Selling expenses decreased by $0.8 million, or 15%, from $5.3 million in 2020 to $4.5 million in 2021. This decrease was primarily due to organizational changes during the year. Interest expense increased to $0.8 million in fiscal 2021 from $0.4 million in fiscal 2020. This increase is primarily related to the sale and leaseback of the Company's land and buildings in Lebanon, Tennessee in April 2021, whereby a portion of the Company's monthly rent payments are recorded to interest expense. Other income was $1.1 million in 2021 compared to $4.0 million in 2020, a decrease of $2.9 million. This decrease was primarily the result of income recorded in 2020 for funds received under the Paycheck Protection Program of $3.2 million. Funds received under the CEWS and CERS programs in Canada during 2021 were also less than in 2020, as CEWS and CERS grants ceased in the second quarter of 2021. Income tax expense increased to $2.3 million in fiscal 2021 compared to a benefit of $0.1 million in fiscal 2020. The increase of $2.4 million was largely due to changes in the mix of income and losses in various jurisdictions. The resulting net income of $6.1 million in 2021 was a $13.7 million increase from the net loss of ($7.6) million in 2020. The increase was a result of increased sales volumes in all business units due to recovery from the effects of the COVID-19 pandemic. In addition, the Company's U.A.E. business benefitted from the introduction of a new product line in late 2020. Percentages set forth above in this press release have been rounded to the nearest percentage point, and may not exactly correspond to the comparative data presented. Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings 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, Perma-Pipe has operations at thirteen 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the impact of global economic weakness and volatility; (iv) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (v) 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; (vi) the Company’s ability to repay its debt and renew expiring international credit facilities; (vii) the Company’s ability to effectively execute its strategic plan and achieve sustained profitability and positive cash flows; (viii) the Company's ability to collect a long-term account receivable related to a project in the Middle East; (ix) the Company’s ability to interpret changes in tax regulations and legislation; (x) the Company's ability to use its net operating loss carryforwards; (xi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s over-time revenue recognition; (xii) the Company’s failure to establish and maintain effective internal control over financial reporting; (xiii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (xiv) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xv) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xvi) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xvii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xviii) reductions or cancellations of orders included in the Company’s backlog; (xix) risks and uncertainties specific to the Company's international business operations; (xx) the Company’s ability to attract and retain senior management and key personnel; (xxi) the Company’s ability to achieve the expected benefits of its growth initiatives; and (xxii) 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.) Perma-Pipe’s Form 10-K for the 2021 fiscal year ended January 31, 2022 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended January 31, Twelve months ended January 31, (In thousands, except per share data) 2022 2021 2022 2021 Net sales $ 39,126 $ 21,295 $ 138,552 $ 84,694 Cost of sales 29,472 18,885 106,022 73,515 Gross profit 9,654 2,410 32,530 11,179 Operating expenses: General and administrative expense 5,250 3,902 19,893 17,222 Selling expense 1,131 1,182 4,526 5,334 Total operating expenses 6,381 5,084 24,419 22,556 Income/(loss) from operations 3,273 (2,674 ) 8,111 (11,377 ) Interest expense, net 112 (30 ) 828 381 Other income, net 47 311 1,044 3,983 Income/(loss) from operations before income taxes 3,208 (2,333 ) 8,327 (7,775 ) Income tax expense/(benefit) 216 206 2,265 (133 ) Net income/(loss) $ 2,992 $ (2,539 ) $ 6,062 $ (7,642 ) Weighted average common shares outstanding Basic 8,091 8,165 8,133 8,126 Diluted 8,375 8,165 8,418 8,126 Income/(loss) per share Basic $ 0.37 $ (0.31 ) $ 0.75 $ (0.94 ) Diluted $ 0.36 $ (0.31 ) $ 0.72 $ (0.94 ) Note: Earnings per share calculations could be impacted by rounding. PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) January 31, (In thousands, except per share data) 2022 2021 ASSETS Current assets Cash and cash equivalents $ 8,214 $ 7,174 Restricted cash 1,557 1,201 Trade accounts receivable, less allowance for doubtful accounts of $486 on January 31, 2022 and $474 on January 31, 2021 44,449 25,226 Inventories, net 13,760 12,157 Prepaid expenses and other current assets 5,444 3,863 Unbilled accounts receivable 2,656 247 Costs and estimated earnings in excess of billings on uncompleted contracts 2,309 4,007 Total current assets 78,389 53,875 Property, plant and equipment, net of accumulated depreciation 24,756 26,897 Other assets Operating lease right-of-use assets 11,213 13,384 Deferred tax assets 811 823 Goodwill 2,342 2,332 Other assets 5,890 5,380 Total other assets 20,256 21,919 Total assets $ 123,401 $ 102,691 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade accounts payable $ 13,618 $ 10,365 Commissions and management incentives payable 2,047 218 Accrued compensation and payroll taxes 1,612 1,448 Revolving line - North America 634 2,826 Current maturities of long-term debt 6,750 3,941 Customers' deposits 3,072 2,088 Outside commission liability 1,255 1,431 Operating lease liabilities short-term 1,496 1,402 Other accrued liabilities 4,616 2,616 Billings in excess of costs and estimated earnings on uncompleted contracts 1,277 762 Income tax payable 2,020 1,155 Total current liabilities 38,397 28,252 Long-term liabilities Long-term debt, less current maturities 5,059 6,268 Long-term finance obligation 9,327 - Deferred compensation liabilities 3,379 4,120 Deferred tax liabilities 712 914 Operating lease liabilities long-term 11,270 13,174 Other long-term liabilities 800 650 Total long-term liabilities 30,547 25,126 Stockholders' equity Common stock, $.01 par value, authorized 50,000 shares; 8,152 issued and outstanding January 31, 2022 and 8,165 issued and outstanding January 31, 2021 82 82 Additional paid-in capital 61,766 60,875 Treasury Stock, 234 shares at January 31, 2022 and no shares at January 31, 2021 (1,992 ) - Accumulated deficit (2,295 ) (8,357 ) Accumulated other comprehensive loss (3,104 ) (3,287 ) Total stockholders' equity 54,457 49,313 Total liabilities and stockholders' equity $ 123,401 $ 102,691
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Perma-Pipe International Holdings Announces Further Contract Awards of $15 Million in Egypt and Saudi Arabia
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has recently been awarded contracts totaling in excess of $15.5 million in Saudi Arabia and Egypt. Projects will be executed in Perma-Pipe’s facilities during Q1 2022. The newly awarded projects are part of major infrastructure developments in King Salman Park, Security Forces Medical City – Riyadh, King Abdullah International Gardens, Saudi Arabia, and Ain Shams University in the New Capital City, Egypt. The projects will utilize Perma-Pipe’s XTRU-THERM® insulation system, a spray-applied polyurethane foam jacketed with a high-density polyethylene casing, fabrication and coating capabilities. The PermAlert® leak detection system will also be supplied with the insulated pipelines. Raed Al Saleh, General Manager for Perma-Pipe Saudi Arabia states, “We are delighted with these contract awards at the start of 2022, which is shaping up to be another successful year.” Adham Sharkawy, General Manager for Perma-Pipe Egypt stated, “This is another significant award from EGEMECH following on from our success with a similar project in Al-Alamin, Egypt in 2021. This product diversification strengthens our position in the market and we thank EGEMECH for continuing to place their trust and confidence in Perma-Pipe.” Saleh Sagr, Sr., Vice President for Perma-Pipe’s MENA region commented, “We are very appreciative for all these customers that placed their trust in Perma-Pipe to execute these projects. We value our existing relationships as well as our new ones and look forward to providing our services to these customers.” David Mansfield, President and CEO commented, "We are pleased to have won the confidence of new customers, and to have the opportunity to continue to demonstrate our capabilities to our existing customers. It is also encouraging to see the continuing opportunities in these markets after the disruptions caused by the events of the past two years. This is a good start to the current year and it provides us with a solid foundation to continue our success into 2022.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings Announces the Appointment of Robert McNally to its Board of Directors
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH), a global engineered piping services company, today announced changes to its Board of Directors, including the appointment to the Board of Mr. Robert McNally effective February 14, 2022. Robert McNally will replace Perma-Pipe Director, Mr. David Barrie, who has announced he will not stand for re-election to the Perma-Pipe Board during Perma-Pipe’s upcoming June 23, 2022 annual stockholders meeting. President and CEO, Mr. David Mansfield commented, “Mr. Barrie has been a valued member of our Board since 2012 and as Chairman since 2015, guiding the company through significant strategic transition which has repositioned us as a strong global company today. We thank him for his extensive service and contributions, his unwavering commitment to the company, and his sincere care and attention for our stockholders. I wish him the very best.” He continued, “We regularly evaluate our Board composition to ensure it includes the appropriate skills, experience and perspectives necessary to drive growth for our stockholders. The addition of Mr. McNally will bring a fresh set of eyes to leverage and accelerate our performance for our stockholders.” Mr. Barrie will be transitioning the role of Chairman of the Board to Mr. Jerome Walker, currently Compensation Committee Chairman and Board member since 2014. Mr. Walker commented, “Mr. Barrie’s contributions over the years are countless and his tenure on the Board will not be forgotten. On behalf of the Board of Directors, we thank him for his dedication to serving the stockholders and employees.” Mr. Barrie commented, “My decision to not stand for re-election comes with mixed emotions. I am pleased that over the past 10 years at Perma-Pipe I have met and worked with many people who have made significant contributions in transforming Perma-Pipe into a global industry leader. It has been a privilege and honor to have witnessed the positive changes in the company during this time. I couldn’t be more proud to have been a part of that journey.” Mr. McNally, age 51, currently is an Independent Director for both Oasis Petroleum, Inc. and Summit Midstream Partners, LP where he serves on the Audit Committees and Compensation Committees. He has served on several public and private boards in a variety of industries since 2006. With over 28 years of global business experience, Mr. McNally is a seasoned leader. Mr. McNally was previously President, Chief Executive Officer and Board Member for EQT Corporation. EQT Corporation, headquartered in Pittsburgh, Pennsylvania, was the largest gas producer in North America. Prior to joining EQT, Mr. McNally was Executive Vice President and Chief Financial Officer at Precision Drilling Corporation. He has a B.A. in Mathematics from Knox College, a B.S. in Mechanical Engineering from the University of Illinois and an M.B.A. from Tulane University Freeman School of Business, New Orleans. Mr. Jerome Walker added, “We are extremely pleased to have Robert join our Board and look forward to drawing from his extensive experience and business expertise as we continue to grow and transform Perma-Pipe’s global business.” Mr. McNally commented, “I am honored to join the Perma-Pipe Board of Directors and am very much looking forward to working with Perma-Pipe’s talented management team and Board to deliver excellent results for all of the company’s stakeholders.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings Announces Contract Awards of $6.0 Million in Egypt and Saudi Arabia
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has recently been awarded $6.0 million in contracts in Egypt and Saudi Arabia. Projects will be executed in Perma-Pipe’s facilities in the current quarter. The newly awarded projects are part of major infrastructure developments both in Al-Alamin, Egypt and Misk City, Saudi Arabia. The projects will utilize Perma-Pipe’s fabrication and coating capabilities, and the XTRU-THERM® insulation system, a spray-applied polyurethane foam jacketed with a high-density polyethylene casing. Adham Sharkawy, General Manager for Perma-Pipe Egypt stated, “This is a significant award from EGEMECH which reinforces our partnership together. Growth in the fabrication market has been part our strategic plan and we are proud to we have achieved this goal in 2021.” Raed Al Saleh, General Manager for Perma-Pipe Saudi Arabia states, “This is our first project with Future Horizons Contracting and we are pleased they placed their trust in Perma-Pipe. Misk City is designed to be sustainable, pedestrian-friendly and to have green open spaces to promote sustainable development. It is exciting to be part of this master plan, providing a cost-effective, energy efficient system that reduces greenhouse emissions to enhance sustainability.” Saleh Sagr, Sr. Vice President for Perma-Pipe’s MENA region commented, “I am excited to announce these project awards. In Egypt, it is further confirmation of the success of our strategy to establish a position in a growing local market. In Saudi Arabia, the project award confirms our leading market position and provides us the opportunity to demonstrate our industry-leading products and services to another new customer.” David Mansfield, President and CEO commented, "We are delighted with both of these awards. It has been encouraging to see the development of strong leadership and a passion for high levels of customer service that has resulted in these accomplishments.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings, Inc. Announces its Third Quarter and Year-to-Date Fiscal 2021 Financial Results
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the third quarter ended October 31, 2021. “Revenues for the third quarter of $35.2 million were well above the $20.3 million for the same quarter last year. The resulting pre-tax income from operations of $1.5 million was also substantially above the $2.9 million loss incurred in the same quarter of 2020," noted President and CEO David Mansfield. "As we continue to recover from the effects of the pandemic and business conditions continue to improve, we remain focused on implementing the growth plans that were delayed by COVID-19. Initiatives that were started in the second quarter are now well underway and will better position the Company to take advantage of more opportunities in the future. "During the quarter we renewed our $18.0 million North American credit agreement for an extended term of five years. In addition, the Board authorized, and the Company commenced a $3.0 million share buyback program. This program does not materially affect the liquidity needed for investments in our growth plans. "Our current backlog of $54.4 million continues to remain higher than our January 31, 2021 backlog, as new awards have continued to keep pace with the increasing revenues arising each quarter this year. "As is the case across almost all industries, there continues to be increased challenges with supply chain issues and logistics. We are however taking active steps to minimize any adverse impacts to our business, including increasing our sources of supply and expanding our options for obtaining suitable materials,” Mr. Mansfield concluded. Third Quarter Fiscal 2021 Results Net sales were $35.2 million in the current quarter, an increase of $14.9 million, or 73%, from $20.3 million in the prior year quarter. The increase was a result of increased sales volumes in both North America and in the Middle East, North Africa and India region ("MENA") due to recovery from the effects of the COVID-19 pandemic. In addition, the Company's United Arab Emirates ("U.A.E.") business benefitted from the introduction of a new product line subsequent to the third quarter of 2020. Gross profit increased to $7.6 million, or 22% of net sales, in the current quarter from $2.9 million, or 14% of net sales, in the prior year quarter. This increase was driven by higher sales volumes and project and product mix. General and administrative expenses were relatively consistent, increasing $0.1 million, or 2%, from the prior year quarter. Selling expenses increased slightly to $1.3 million in the current quarter, compared to $1.2 million in the prior year quarter. Net interest expense increased to $0.3 million in the current quarter from $0.1 million in the prior year quarter. This increase was primarily related to the sale leaseback transaction for our operating facility in Tennessee entered into in April 2021. Other income, net remained relatively consistent, increasing to an income of $0.1 million in the current quarter, compared to approximately zero in the prior year quarter. Income/(loss) from operations before income taxes increased by $4.4 million to income of $1.5 million in the current quarter from a loss of $(2.9) million in the prior year quarter. The increase was a result of increased sales volumes in both North America and MENA due to recovery from the effects of the COVID-19 pandemic. In addition, the Company's U.A.E. business benefitted from the introduction of a new product line subsequent to the third quarter of 2020. The Company's worldwide effective tax rates ("ETR") were 67.6% and 0.8% in the current quarter and the prior year quarter, respectively. The change in the ETR from the prior year quarter to the current year quarter is largely due to changes in the mix of income and loss in various jurisdictions and the absence of recognizing tax benefits on losses in the United States due to a full valuation allowance applied against its deferred tax assets. The resulting net income of $0.5 million in the current quarter was an improvement of $3.4 million over the net loss of $(2.9) million in the prior year quarter. The increase was a result of increased sales volumes in both North America and MENA due to recovery from the effects of the COVID-19 pandemic. In addition, the Company's U.A.E. business benefitted from the introduction of a new product line subsequent to the third quarter of 2020. Year-to-Date October 31, 2021 Results Net sales were $99.4 million in the current year-to-date, an increase of $36.0 million, or 57%, from $63.4 million in the prior year year-to-date. The increase was a result of increased sales volumes in both North America and MENA due to recovery from the effects of the COVID-19 pandemic. In addition, the Company's U.A.E. business benefitted from the introduction of a new product line subsequent to the third quarter of 2020. Gross profit increased to $22.9 million, or 23% of net sales, in the current year-to-date from $8.8 million, or 14% of net sales, in the prior year year-to-date. This increase was driven by higher sales volumes and project and product mix. General and administrative expenses were $14.6 million in the current year-to-date, an increase of $1.3 million, or 10%, from $13.3 million in the prior year year-to-date. This increase was driven by an increase in personnel-related expenses corresponding to the increased business activity during the period. Selling expenses decreased to $3.4 million in the current year-to-date, compared to $4.2 million in the prior year year-to-date due to organizational changes. Net interest expense increased from $0.4 million in the prior year year-to-date to $0.7 million in the current year-to-date. This increase is primarily related to the sale leaseback transaction for our operating facility in Tennessee entered into in April 2021. Other income, net decreased to $1.0 million in the current year-to-date, compared to $3.7 million in the prior year year-to-date. This decrease was primarily the result of income recorded in the prior year for funds received under the Small Business Administration's Paycheck Protection Program of $3.2 million. Funds received under the Canadian Emergency Wage Subsidy and Canadian Emergency Rent Subsidy programs in Canada during the current year were also less than in the prior year. These decreases were offset by individually immaterial increases in our North American businesses. Income/(loss) from operations before income taxes increased by $10.5 million to an income of $5.1 million in the current year-to-date from a loss of ($5.4 million) in the prior year year-to-date. The increase was a result of increased sales volumes in both North America and MENA due to recovery from the effects of the COVID-19 pandemic. In addition, the Company's U.A.E. business benefitted from the introduction of a new product line subsequent to the third quarter of 2020. The Company's worldwide ETR's were 40.0% and 6.2% in the current year-to-date and the prior year year-to-date, respectively. The change in the ETR from the prior year to the current year was largely due to changes in the mix of income and loss in various jurisdictions and the absence of recognizing tax benefits on losses in the United States due to a full valuation allowance applied against its deferred tax assets. The resulting net income of $3.1 million in the current year-to-date was an improvement of approximately $8.2 million over the net loss of ($5.1 million) in the prior year year-to-date. The increase was a result of increased sales volumes in both North America and the MENA due to recovery from the effects of the COVID-19 pandemic. In addition, the Company's U.A.E. business benefitted from the introduction of a new product line. Percentages set forth above in this press release have been rounded to the nearest percentage point and may not exactly correspond to the comparative data presented. 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 thirteen 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (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 profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) 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; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related 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 Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s over-time revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) 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.) The Company's Form 10-Q for the quarter ended October 31, 2021 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended October 31, Nine Months Ended October 31, 2021 2020 2021 2020 Net sales $ 35,199 $ 20,294 $ 99,426 $ 63,399 Cost of sales 27,570 17,356 76,549 54,630 Gross profit 7,629 2,938 22,877 8,769 Operating expenses General and administrative expenses 4,635 4,528 14,643 13,320 Selling expenses 1,303 1,174 3,397 4,153 Total operating expenses 5,938 5,702 18,040 17,473 Income/(loss) from operations 1,691 (2,764 ) 4,837 (8,704 ) Interest expense, net 270 107 717 411 Other income, net 98 (2 ) 997 3,672 Income/(loss) from operations before income taxes 1,519 (2,873 ) 5,117 (5,443 ) Income tax expense/(benefit) 1,024 (23 ) 2,049 (339 ) Net income/(loss) $ 495 $ (2,850 ) $ 3,068 $ (5,104 ) Weighted average common shares outstanding Basic 8,126 8,165 8,148 8,113 Diluted 8,393 8,165 8,408 8,113 Earnings/(loss) per share Basic 0.06 (0.35 ) 0.38 (0.63 ) Diluted 0.06 (0.35 ) 0.36 (0.63 ) Note: Earnings per share calculations could be impacted by rounding. PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) October 31, 2021 January 31, 2021 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 10,018 $ 7,174 Restricted cash 1,746 1,201 Trade accounts receivable, less allowance for doubtful accounts of $478 at October 31, 2021 and $474 at January 31, 2021 37,741 25,226 Inventories, net 15,431 12,157 Prepaid expenses and other current assets 4,996 3,863 Unbilled accounts receivable 3,415 247 Costs and estimated earnings in excess of billings on uncompleted contracts 2,322 4,007 Total current assets 75,669 53,875 Property, plant and equipment, net of accumulated depreciation 25,599 26,897 Other assets Operating lease right-of-use asset 11,515 13,384 Deferred tax assets 858 823 Goodwill 2,406 2,332 Other assets 6,449 5,380 Total other assets 21,228 21,919 Total assets $ 122,496 $ 102,691 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade accounts payable $ 16,216 $ 10,365 Accrued compensation and payroll taxes 1,862 1,448 Commissions and management incentives payable 1,500 218 Revolving line - North America - 2,826 Current maturities of long-term debt 4,822 3,941 Customers' deposits 3,493 2,088 Outside commission liability 1,647 1,431 Operating lease liability short-term 1,427 1,402 Other accrued liabilities 3,793 2,616 Billings in excess of costs and estimated earnings on uncompleted contracts 871 762 Income taxes payable 1,802 1,155 Total current liabilities 37,433 28,252 Long-term liabilities Long-term debt, less current maturities 5,342 6,268 Long-term finance obligation 9,349 - Deferred compensation liabilities 4,224 4,120 Deferred tax liabilities 1,328 914 Operating lease liability long-term 11,586 13,174 Other long-term liabilities 852 650 Total long-term liabilities $ 32,681 $ 25,126 Stockholders' equity Common stock, $.01 par value, authorized 50,000 shares; 8,089 issued and outstanding at October 31, 2021 and 8,165 issued and outstanding at January 31, 2021 81 82 Additional paid-in capital 61,461 60,875 Treasury Stock, 58 shares at October 31, 2021 and no shares at January 31, 2021 (496 ) - Accumulated deficit (5,289 ) (8,357 ) Accumulated other comprehensive loss (3,375 ) (3,287 ) Total stockholders' equity 52,382 49,313 Total liabilities and stockholders' equity $ 122,496 $ 102,691
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Perma-Pipe International Holdings, Inc. Announces $3.0 Million Share Repurchase Program
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) (the "Company") announced today that its board of directors has authorized a $3.0 million share repurchase program. Share repurchases may be executed through open market or in privately negotiated transactions over the course of the next 12 months. The specific number of shares that the Company will ultimately repurchase, and the actual timing, per share price and amount of share repurchases, will be dependent on then current market conditions and other factors. 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 thirteen 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (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 profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) 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; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related 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 Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) 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).
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Perma-Pipe International Holdings Announces Contract Awards of $5.0 Million in Egypt
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings Announces Contract Awards of $5.0 Million in Egypt
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Perma-Pipe International Clocks 95% Sales Growth In Q2
Perma-Pipe International Holdings Inc (NASDAQ: PPIH) reported second-quarter sales growth of 95.5% year-over-year to $39.8 million, reflecting increased sales volumes in North America and the Middle East. Net income increased to $3.4 million, compared to $0.3 million last year.
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Perma-Pipe International Holdings, Inc. Announces its Second Quarter and Year-to-Date Fiscal 2021 Financial Results
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the second quarter ended July 31, 2021. “Second quarter revenues of $39.8 million represent a significant increase above the revenues of $20.4 million achieved in the same quarter last year. Similarly, pre-tax income from operations of $4.3 million is significantly greater than the $0.2 million earned in the same quarter of 2020. If we exclude the impact of COVID-19 related government assistance, pre-tax income from operations improved $7.5 million over the same quarter of 2020 and $9.2 million for the year-to-date versus the same period last year," noted President and CEO David Mansfield. "As I stated in our last Earnings Release, the adverse business conditions arising as a result of the pandemic began to ease during the latter part of the first quarter. This continued through the second quarter, and we were able to begin the execution of some delayed projects. Further confirming the commencement of a recovery from the previously depressed conditions, almost all business units showed quarter over quarter growth. Overall, revenues increased 63%, or $15.4 million, over those achieved in the first quarter, and pre-tax income increased by almost $5 million. "Steps taken earlier this year to enhance liquidity included the sale and lease back of our property in Lebanon, Tennessee. This provided capital to allow us to continue to move forward with investment plans that we had delayed as an act of prudence over any risk to working capital available to us in the future. With the recent recovery in our earnings, we are now in a much more secure position in this regard and we will continue to move forward with our growth plans. "Our backlog currently stands at $53.2 million, which reflects a small increase from the backlog at January 31, 2021. In addition to the growth in revenue during the quarter and year-to-date, new awards have also continued at higher levels, allowing us to maintain our backlog at a similar level to that at the beginning of the year. "While we continue to be faced with dealing with the adverse impact of the pandemic, including the challenges it has presented within the supply chains, it is nevertheless encouraging to have more confidence that we are emerging from the worst of its impact on our business,” Mr. Mansfield concluded. Second Quarter Fiscal 2021 Results Net sales were $39.8 million in the current quarter, an increase of $19.4 million, or 95%, from $20.4 million in the prior year quarter. The increase was a result of increased sales volumes in both North America and the Middle East due to recovery from the effects of the COVID-19 pandemic. In addition, the Company's U.A.E. business benefitted from the introduction of a new product line. Gross profit increased to $10.7 million, or 27% of net sales, in the current quarter from $2.4 million, or 12% of net sales, in the prior year quarter. This increase was driven by higher sales volumes and project mix. General and administrative expenses increased $1.1 million, or 25%, from the prior year quarter. This increase was driven by personnel related expense increases corresponding to the business activity increases during the period. Selling expenses decreased to $1.1 million in the current quarter, compared to $1.3 million in the prior year quarter due primarily to organizational changes in the roles of certain corporate employees. Net interest expense increased to $0.3 million in the current quarter from $0.1 million in the prior year quarter. This increase was primarily related to the sale leaseback transaction for our operating facility in Tennessee entered into in April 2021. Other income, net decreased to an income of $0.5 million in the current quarter, compared to income of $3.7 million in the prior year quarter. This decrease was a result of income recorded in the prior year quarter for funds received under the PPP program of $3.2 million. Income from operations before income taxes increased by $4.1 million to $4.3 million in the current quarter from $0.2 million in the prior year quarter. The increase was a result of increased sales volumes in both North America and the Middle East due to recovery from the effects of the COVID-19 pandemic. In addition, the Company's U.A.E. business benefitted from the introduction of a new product line. The Company's worldwide effective tax rates ("ETR") were 20.1% and (56.8%) in the current quarter and the prior year quarter, respectively. The change in the ETR from the prior year quarter to the current year quarter is largely due to changes in the mix of income and loss in various jurisdictions. The resulting net income of $3.4 million in the current quarter was an improvement of $3.1 million over the $0.3 million in the prior year quarter. The increase was a result of increased sales volumes in both North America and the Middle East due to recovery from the effects of the COVID-19 pandemic. In addition, the Company's U.A.E. business benefitted from the introduction of a new product line. Year-to-Date July 31, 2021 Results Net sales were $64.2 million in the current year-to-date, an increase of $21.1 million, or 49%%, from $43.1 million in the prior year year-to-date. The increase was a result of increased sales volumes in both North America and the Middle East due to recovery from the effects of the COVID-19 pandemic. In addition, the Company's U.A.E. business benefitted from the introduction of a new product line. Gross profit increased to $15.2 million, or 24% of net sales, in the current year-to-date from $5.8 million, or 14% of net sales, in the prior year year-to-date. This increase was driven by higher sales volumes and project mix. General and administrative expenses were $10.0 million in the current year-to-date, an increase of $1.2 million, or 14%, from $8.8 million in the prior year year-to-date. This increase was driven by personnel related expense increases corresponding to the business activity increases during the period. Selling expenses decreased to $2.1 million in the current year-to-date, compared to $3.0 million in the prior year year-to-date due to organizational changes in the roles of certain corporate employees as well as the continued effects of cost reduction strategies implemented during the COVID-19 pandemic. Net interest expense remained relatively consistent, increasing slightly from $0.3 million in the prior year year-to-date to $0.4 million in the current year-to-date. This increase is primarily related to the sale leaseback transaction for our operating facility in Tennessee entered into in April 2021. Other income, net decreased to $0.9 million in the current year-to-date, compared to $3.7 million in the prior year year-to-date. This decrease was a result of income recorded in the prior year for funds received under the PPP program of $3.2 million, offset by funds received under the CEWS and CERS programs in Canada. Income/(loss) from operations before income taxes increased by $6.2 million to income of $3.6 million in the current year-to-date from a loss of ($2.6 million) in the prior year year-to-date. The increase was a result of increased sales volumes in both North America and the Middle East due to recovery from the effects of the COVID-19 pandemic. In addition, the Company's U.A.E. business benefitted from the introduction of a new product line. The Company's worldwide ETR's were 28.5% and 12.3% in the current year-to-date and the prior year year-to-date, respectively. The change in the ETR from the prior year to the current year was largely due to changes in the mix of income and loss in various jurisdictions. The resulting net income of $2.6 million in the current year-to-date was an improvement of approximately $4.9 million over the net loss of ($2.3 million) in the prior year year-to-date. The increase was a result of increased sales volumes in both North America and the Middle East due to recovery from the effects of the COVID-19 pandemic. In addition, the Company's U.A.E. business benefitted from the introduction of a new product line. Percentages set forth above in this press release have been rounded to the nearest percentage point and may not exactly correspond to the comparative data presented. 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 thirteen 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (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 profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (ix) 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; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) the Company's ability to collect an account receivable related to a project in the Middle East; (xvi) risks and uncertainties related 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 Company’s ability to interpret changes in tax regulations and legislation; (xx) the Company's ability to use its net operating loss carryforwards; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxiii) 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.) The Company's Form 10-Q for the quarter ended July 31, 2021 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended July 31, Six Months Ended July 31, 2021 2020 2021 2020 Net sales $ 39,804 $ 20,364 $ 64,227 $ 43,106 Cost of sales 29,061 18,000 48,979 37,275 Gross profit 10,743 2,364 15,248 5,831 Operating expenses General and administrative expenses 5,602 4,488 10,008 8,792 Selling expenses 1,053 1,331 2,094 2,978 Total operating expenses 6,655 5,819 12,102 11,770 Income/(loss) from operations 4,088 (3,455 ) 3,146 (5,939 ) Interest expense, net 268 118 446 304 Other income, net 457 3,739 899 3,674 Income/(loss) from operations before income taxes 4,277 166 3,599 (2,569 ) Income tax expense/(benefit) 861 (101 ) 1,026 (315 ) Net income/(loss) $ 3,416 $ 267 $ 2,573 $ (2,254 ) Weighted average common shares outstanding Basic 8,151 8,126 8,158 8,087 Diluted 8,321 8,278 8,290 8,087 Earnings/(loss) per share Basic 0.42 0.03 0.32 (0.28 ) Diluted 0.41 0.03 0.31 (0.28 ) Note: Earnings per share calculations could be impacted by rounding. PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) July 31, 2021 January 31, 2021 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 5,509 $ 7,174 Restricted cash 1,217 1,201 Trade accounts receivable, less allowance for doubtful accounts of $497 at July 31, 2021 and $474 at January 31, 2021 43,699 25,226 Inventories, net 14,603 12,157 Prepaid expenses and other current assets 9,125 4,110 Costs and estimated earnings in excess of billings on uncompleted contracts 1,713 4,007 Total current assets 75,866 53,875 Property, plant and equipment, net of accumulated depreciation 25,626 26,897 Other assets Operating lease right-of-use asset 11,848 13,384 Deferred tax assets 879 823 Goodwill 2,388 2,332 Other assets 5,078 5,380 Total other assets 20,193 21,919 Total assets $ 121,685 $ 102,691 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade accounts payable $ 16,735 $ 10,365 Accrued compensation and payroll taxes 1,875 1,448 Commissions and management incentives payable 1,116 218 Revolving line - North America 3 2,826 Current maturities of long-term debt 3,177 3,941 Customers' deposits 2,774 2,088 Outside commission liability 2,357 1,431 Operating lease liability short-term 1,367 1,402 Other accrued liabilities 4,279 2,616 Billings in excess of costs and estimated earnings on uncompleted contracts 1,781 762 Income taxes payable 1,470 1,155 Total current liabilities 36,934 28,252 Long-term liabilities Long-term debt, less current maturities 5,444 6,268 Long-term finance obligation 9,371 - Deferred compensation liabilities 4,167 4,120 Deferred tax liabilities 1,057 914 Operating lease liability long-term 11,890 13,174 Other long-term liabilities 753 650 Total long-term liabilities $ 32,682 $ 25,126 Stockholders' equity Common stock, $.01 par value, authorized 50,000 shares; 8,144 issued and outstanding at July 31, 2021 and 8,165 issued and outstanding at January 31, 2021 81 82 Additional paid-in capital 61,169 60,875 Accumulated deficit (5,784 ) (8,357 ) Accumulated other comprehensive loss (3,397 ) (3,287 ) Total stockholders' equity 52,069 49,313 Total liabilities and stockholders' equity $ 121,685 $ 102,691
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Perma-Pipe International Holdings Appoints Grant Dewbre to Chief Operating Officer, Saleh Sagr to Senior Vice President, Middle East North Africa
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced the appointment of Grant Dewbre to Chief Operating Officer and Saleh Sagr to Senior Vice President, Middle East and North Africa (MENA). Grant joined Perma-Pipe in 2017 as Senior Vice President, MENA, and has been successful in having a positive impact on our work culture, in identifying new opportunities, and in achieving growth in new and existing markets. Returning to Houston from Dubai, Grant will assume full operational, managerial and administrative responsibility for Perma-Pipe’s businesses globally. Grant has over 30 years of experience in the management of projects and business units worldwide including sales and business development roles, the management of commercial activities, and the management of operations and construction activities for major oil and gas industry companies. Mr. Dewbre commented, “I am excited about the opportunity to return to the US to lead Operations for Perma-Pipe International. I look forward to working more closely with our team of employees in the Americas and to leveraging our business practices globally in support of customers and stakeholders.” Saleh joined Perma-Pipe in 2019 as Vice President, Operations MENA and has successfully led the development of operational and business improvements and expansion of Perma-Pipe’s capabilities throughout the Middle East. In his new role, Saleh will have full operating and financial responsibility for Perma-Pipe’s business in the MENA region including pursuing geographical expansion and entering new markets. Saleh has over 15 years of experience leading businesses through transformational change in the Middle East and the United Kingdom. Mr. Sagr commented, “Over the past few years at Perma-Pipe, it is clear the Company has a solid reputation as a leader in the industry. I am looking forward to building on that reputation by expanding and strengthening market share while constantly delivering quality products and services to our customers and solid returns to our stakeholders.” President and CEO David Mansfield commented, “Grant has had a significant contribution to the MENA business and as he assumes his new global role, he will be able to apply his learnings and experiences to help us accelerate best practice globally. Immediately after joining the Company in 2019, Saleh has had a notable impact and I know he will continue to be instrumental in building and successfully managing the MENA business while having a positive influence in the Middle East. I have every confidence that both Grant and Saleh will be successful in their new roles, and I look forward to seeing the continued contributions they will bring.” Mr. Mansfield concluded, “The Perma-Pipe organization is driven to provide industry-leading products and services in meeting the demands of our customers, shareholders and employees. In pursuing the goals of Perma-Pipe through our values, people and strategies, we will continue to pursue growth and improved financial performance.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings, Inc. Announces its First Quarter and Year-to-Date Fiscal 2021 Financial Results
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the first quarter ended April 30, 2021. “First quarter revenue was $24.4 million, $1.7 million above the same quarter last year, and pre-tax loss was $0.7 million compared to a pre-tax loss of $2.7 million in the same quarter of 2020, which was mostly prior to the impact of the pandemic,” noted President and CEO David Mansfield. "For the early part of our first quarter, our results continued to reflect the adverse business conditions arising as a result of the COVID-19 pandemic. In the latter half though, some of the restrictions began to ease and we were able to commence previously delayed projects. The cost reductions implemented last year also continued to have a favorable impact. The successful roll outs of the COVID-19 vaccines are beginning to allow a relaxation of restrictions and this appears to be having an encouraging effect on project schedules and on our backlog. While we are still in the early stages, the positive sentiment of a strengthening recovery is reflected in the increase in project activities. In addition, oil prices have reached a level that should begin to attract investment. "The obstacles brought about by the pandemic through 2020 have not deterred us from our strategic plans and we continue to pursue the initiatives and strategies that had us on the path to acceptable profitability,” Mr. Mansfield continued. "Our backlog currently stands at $58.9 million, which reflects an increase of $6.3 million from the backlog at January 31. Since these increases arise in the majority of our business units, it provides further confidence that we are entering a period of general recovery in conditions,” Mr. Mansfield concluded. First Quarter Fiscal 2021 Results Net sales were $24.4 million in the current quarter, an increase of $1.7 million, or 7%, from $22.7 million in the prior year quarter. The increase was largely a result of increased sales volumes in the Company's U.A.E. business driven by the introduction of a new product line and project timing in its Saudi Arabian business. Gross profit increased to $4.5 million, or 18% of net sales, in the current quarter from $3.5 million, or 15% of net sales, in the prior year quarter. This increase was driven by higher sales volumes and the impact of cost reduction strategies implemented in 2020. General and administrative expenses were approximately the same in the current quarter and the prior year quarter. Selling expenses decreased to $1.0 million in the current quarter, compared to $1.6 million in the prior year quarter due primarily to cost reduction strategies implemented in 2020. Net interest expense remained consistent at $0.2 million in both the current quarter and the prior year quarter. Other income, net increased to income of $0.4 million in the current quarter, compared to expense of $0.1 million in the prior year quarter. This increase was a result of income recorded for funds received under the Canadian Emergency Wage Subsidy and Canadian Emergency Rent Subsidy programs in Canada. Loss from operations before income taxes decreased by $2.1 million to a loss of ($0.7 million) in the current quarter from a loss of ($2.8 million) in the prior year quarter. The reduced loss was a result of increased sales volumes in the Company's U.A.E. business driven by the introduction of a new product line and project timing in its Saudi Arabian business. The Company's worldwide effective tax rates ("ETR") were (24.3%) and 7.8% in the current quarter and the prior year quarter, respectively. The change in the ETR from the prior year quarter to the current year quarter is largely due to changes in the mix of income and loss in various jurisdictions. The resulting net loss of ($0.9 million) in the current quarter was an improvement of $1.6 million over the net loss of ($2.5 million) in the prior year quarter. The reduced net loss was a result of increased sales volumes in the Company's U.A.E. business driven by the introduction of a new product line and project timing in its Saudi Arabian business. Percentages set forth above in this press release have been rounded to the nearest percentage point and may not exactly correspond to the comparative data presented. 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 thirteen 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (iv) the Company’s ability to repay its debt and renew expiring international credit facilities; (v) the Company's ability to obtain forgiveness of its loan under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"); (vi) the Company’s ability to effectively execute its strategic plan and achieve profitability and positive cash flows; (vii) the impact of global economic weakness and volatility; (viii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (ix) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (x) 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; (xi) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xii) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xiii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (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) the Company's ability to collect an account receivable related to a project in the Middle East; (xvii) risks and uncertainties related to the Company's international business operations; (xviii) the Company’s ability to attract and retain senior management and key personnel; (xix) the Company’s ability to achieve the expected benefits of its growth initiatives; (xx) the Company’s ability to interpret changes in tax regulations and legislation; (xxi) the Company's ability to use its net operating loss carryforwards; (xxii) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxiii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xiv) 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). The Company's Form 10-Q for the quarter ended April 30, 2021 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended April 30, 2021 2020 Net sales $ 24,423 $ 22,741 Cost of sales 19,918 19,275 Gross profit 4,505 3,466 Operating expenses General and administrative expenses 4,404 4,304 Selling expenses 1,042 1,647 Total operating expenses 5,446 5,951 Loss from operations (941 ) (2,485 ) Interest expense, net 178 186 Other income, net 441 (65 ) Loss from operations before income taxes (678 ) (2,736 ) Income tax expense/(benefit) 165 (215 ) Net loss $ (843 ) $ (2,521 ) Weighted average common shares outstanding Basic 8,165 8,048 Diluted 8,165 8,048 Loss per share Basic (0.10 ) (0.31 ) Diluted (0.10 ) (0.31 ) Note: Earnings per share calculations could be impacted by rounding. PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) April 30, 2021 January 31, 2021 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 8,483 $ 7,174 Restricted cash 1,164 1,201 Trade accounts receivable, less allowance for doubtful accounts of $497 at April 30, 2021 and $474 at January 31, 2021 27,305 25,226 Inventories, net 15,069 12,157 Prepaid expenses and other current assets 9,078 4,110 Costs and estimated earnings in excess of billings on uncompleted contracts 3,473 4,007 Total current assets 64,572 53,875 Property, plant and equipment, net of accumulated depreciation 26,223 26,897 Other assets Operating lease right-of-use asset 12,178 13,384 Deferred tax assets 911 823 Goodwill 2,427 2,332 Other assets 5,305 5,380 Total other assets 20,821 21,919 Total assets $ 111,616 $ 102,691 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade accounts payable $ 13,644 $ 10,365 Accrued compensation and payroll taxes 1,660 1,448 Commissions and management incentives payable 231 218 Revolving line - North America - 2,826 Current maturities of long-term debt 2,723 3,941 Customers' deposits 2,206 2,088 Outside commission liability 1,980 1,431 Operating lease liability short-term 1,311 1,402 Other accrued liabilities 3,287 2,616 Billings in excess of costs and estimated earnings on uncompleted contracts 2,034 762 Income taxes payable 1,409 1,155 Total current liabilities 30,485 28,252 Long-term liabilities Long-term debt, less current maturities 5,585 6,268 Long-term finance obligation 8,905 - Deferred compensation liabilities 4,116 4,120 Deferred tax liabilities 868 914 Operating lease liability long-term 12,185 13,174 Other long-term liabilities 690 650 Total long-term liabilities 32,349 25,126 Stockholders' equity Common stock, $.01 par value, authorized 50,000 shares; 8,165 issued and outstanding at April 30, 2021 and 8,165 issued and outstanding at January 31, 2021 82 82 Additional paid-in capital 61,147 60,875 Accumulated deficit (9,200 ) (8,357 ) Accumulated other comprehensive loss (3,247 ) (3,287 ) Total stockholders' equity 48,782 49,313 Total liabilities and stockholders' equity $ 111,616 $ 102,691
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Perma-Pipe International Holdings Announces Contract Award in Excess of $4.5 Million in Canada
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced it has been awarded a contract for a district heating and cooling network for a healthcare infrastructure project in Eastern Canada valued at over $4.5 million. The project will utilize Perma-Pipe’s premier engineered Multi-Therm® high temperature pre-insulated pipe system. The Multi-Therm® system consists of a galvanized and insulated steel carrier pipe enclosed by an outer insulated steel pipe protected by a fiberglass reinforced outer jacket. The project will begin execution in Perma-Pipe’s facility in Lebanon, Tennessee in Q2 2021. Brad Schultz, General Manager for Perma-Pipe United States commented, “Perma-Pipe looks forward to participating in such a strategic redevelopment of the healthcare infrastructure in Eastern Canada. The Multi-Therm® pre-insulated pipe system has been supplied to many customers and projects throughout the United States and Canada and this project demonstrates our leadership position in this market.” David Mansfield, President and CEO commented, "Our diverse group of premier engineered products have broad applications that are proven to address customer needs. We are confident in our ability to continue to provide these quality products and in serving our customers’ expectations. We thank our customer for this award which reinforces our commitment to establishing ‘Partners in Excellence.’” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings, Inc. Announces Sale and Leaseback Transaction Generating $8.7 Million in Net Proceeds
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today that it has completed a sale and leaseback transaction with Nash88, LLC, generating $8.7 million in net proceeds. The property sold consisted of land and buildings in Lebanon, Tennessee related to the coating and fabrication of district heating and cooling piping systems. Perma-Pipe will continue to occupy the facility under an initial fifteen-year lease term, with an option to renew up to an additional twenty years. At closing $0.4 million was placed in a short term escrow account to cover certain post-closing contingencies that may arise. “Our objective in the transaction was to raise capital and to reinvest this into the business which will allow us to continue to pursue our planned programs for growth at a time when the future market recovery and operational cash flows are uncertain,” noted President and CEO David Mansfield. “We have a number of very compelling opportunities to pursue, and the additional funds generated from the transaction will allow us to proceed unhindered by the severe restrictions we have operated under since the start of the pandemic a year ago. We believe that these opportunities will provide a significantly better return on our investment than our previous investment in the Lebanon property,” concluded Mr. Mansfield. Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings, Inc. Announces Fourth Quarter and Fiscal 2020 Financial Results
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the fourth quarter and 2020 fiscal year ended January 31, 2021. "Revenue for the fourth quarter was $21.3 million, $11.0 million below the same quarter last year, and net loss was $2.5 million compared to a net income of $1.5 million in the same quarter of 2019. For the year ended January 31, 2021, revenues of $84.7 million were $42.9 million below the prior year. The resulting net loss of $7.6 million compares to a prior year net income of $3.6 million,” noted President and CEO David Mansfield. "The negative impact on the Company’s results due to the impact of the COVID-19 pandemic and the reduction in capital spending in the oil and gas industry continued into the fourth quarter. This past year has been an extremely challenging one, presenting many obstacles that were never anticipated. Most of the adverse conditions for the Company arose as a result of delays to clients’ construction schedules, which has resulted in the postponement of project executions into 2021. The effect of the pandemic on our markets has continued longer than we had hoped and it has been significant. Our revenues reduced by over 30% versus 2019. This required us to reconfigure our fixed cost base, which we did successfully, allowing us to retain our capabilities to be available for the expected recovery. "The development and rapid distribution of vaccines is considered to indicate a major step in a ‘return to normal’. Indeed, the indications of a recovery appear to be reflected recently in an increased level of business development activity and an increase in our backlog. Numerous projects that have been delayed are now moving forward, and it is our expectation that we are commencing a period when we can finally resume execution on projects and begin recovering the position that has been lost. Our backlog currently stands at $52.6 million, which reflects an increase of $5.8 million from the backlog at January 31, 2020. The fourth quarter saw an increase in backlog of almost $8 million, including some large project awards in the UAE, India and Saudi Arabia,” Mr. Mansfield continued. “Until our levels of activity fully resumes, we will continue to carefully manage costs and capital expenditures, while balancing the ability to be able to take advantage of the market opportunities we foresee,” concluded Mr. Mansfield. Fourth Quarter Fiscal 2020 Results Net sales decreased 34% to $21.3 million in the fourth quarter from $32.3 million in the prior year quarter. This decrease was a result of lower sales volumes driven by the impact of lower oil prices, combined with project delays arising as a result of the COVID-19 pandemic. The Company expects these delayed projects to commence in 2021. Gross profit decreased to 11% of net sales, or $2.4 million in the fourth quarter, from 22% of net sales, or $7.0 million, in the prior year quarter. This decrease was driven primarily by lower sales volumes. General and administrative expenses decreased to $3.9 million in the fourth quarter, compared to $5.0 million in the prior year quarter. This 22% decrease was due primarily to cost cutting measures enacted as a result of the COVID-19 pandemic. Selling expenses were flat at $1.2 million in both the fourth quarter and prior year's quarter. Net interest expense decreased to income of less than $0.1 million in the fourth quarter, compared to expense of $0.3 million in the prior year quarter. This decrease was primarily the result of lower interest rates and income recognized for gains on our pension plan assets. Net income/(loss) decreased to a loss of $2.5 million in the fourth quarter from income of $1.5 million in the prior year quarter. This decrease was a result of lower sales volumes driven by the impact of lower oil prices, combined with project delays arising as a result of the COVID-19 pandemic. The Company expects these delayed projects to commence in 2021. 2020 Results Net sales were $84.7 million in fiscal 2020, a decrease of $42.9 million, or 33.7%, from $127.7 million in fiscal 2019. This decrease was a result of lower sales volumes driven by the impact of lower oil prices, combined with project delays arising as a result of the COVID-19 pandemic. The Company expects these delayed projects to commence in 2021. Gross profit decreased to $11.2 million, or 13.2% of net sales, in fiscal 2020, a decrease of $17.8 million, or 61.5%, from $29.0 million, or 22.8% of net sales, in fiscal 2019. This decrease was primarily driven by lower sales volumes. General and administrative expenses were $17.2 million in fiscal 2020 compared to $18.9 million in fiscal 2019, a decrease of $1.7 million, or 9.0%. This decrease was driven primarily by cost cutting measures enacted as a result of the COVID-19 pandemic. Selling expenses increased by $0.1 million, from $5.2 million in 2019 to $5.3 million in 2020. This increase was primarily due the addition of new sales employees and severance for terminated employees in the current year, partially offset by lower overall personnel costs. Interest expense decreased to $0.4 million in fiscal 2020 from $0.9 million in fiscal 2019 due to lower net borrowings during 2020. Income tax expense decreased to a benefit of $0.1 million in fiscal 2020 compared to expense of $1.5 million in fiscal 2019. The decrease of $1.6 million was due primarily to changes to the mix of income in various jurisdictions. The resulting net loss of $7.6 million in 2020 was an $11.2 million decrease from the net income of $3.6 million in 2019. This decrease was a result of lower sales volumes driven by the impact of lower oil prices, combined with project delays arising as a result of the COVID-19 pandemic. The Company expects these delayed projects to commence in 2021. Percentages set forth above in this press release have been rounded to the nearest percentage point, and may not exactly correspond to the comparative data presented. Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings 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, Perma-Pipe has operations at seven locations in five 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) the impact of the coronavirus ("COVID-19") on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (iv) the Company’s ability to repay its debt and renew expiring international credit facilities; (v) the Company's ability to obtain forgiveness of its loan under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"); (vi) the Company’s ability to effectively execute its strategic plan and achieve profitability and positive cash flows; (vii) the impact of global economic weakness and volatility; (viii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (ix) the timing of order receipt, execution, delivery and acceptance for the Company’s products; (x) 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; (xi) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xii) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xiii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (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) the Company's ability to collect an account receivable related to a project in the Middle East; (xvii) risks and uncertainties related to the Company's international business operations; (xviii) the Company’s ability to attract and retain senior management and key personnel; (xix) the Company’s ability to achieve the expected benefits of its growth initiatives; (xx) the Company’s ability to interpret changes in tax regulations and legislation; (xxi) the Company's ability to use its net operating loss carryforwards; (xxii) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xxiii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xiv) 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.) Perma-Pipe’s Form 10-K for the 2020 fiscal year ended January 31, 2021 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended January 31, Twelve months ended January 31, (In thousands, except per share data) 2021 2020 2021 2020 Net sales $ 21,295 $ 32,262 $ 84,694 $ 127,663 Cost of sales 18,885 25,235 73,515 98,617 Gross profit 2,410 7,027 11,179 29,046 Operating expenses: General and administrative expense 3,902 5,026 17,222 18,934 Selling expense 1,182 1,203 5,334 5,231 Total operating expenses 5,084 6,229 22,556 24,165 Income from operations (2,674 ) 798 (11,377 ) 4,881 Interest expense, net (30 ) 292 381 905 Other income, net 311 708 3,983 1,059 Income from operations before income taxes (2,333 ) 1,214 (7,775 ) 5,035 Income tax (benefit)/expense 206 (288 ) (133 ) 1,459 Net income/(loss) $ (2,539 ) $ 1,502 $ (7,642 ) $ 3,576 Weighted average common shares outstanding Basic 8,165 8,046 8,126 7,989 Diluted 8,165 8,340 8,126 8,420 Income/(loss) per share Basic $ (0.31 ) $ 0.19 $ (0.94 ) $ 0.45 Diluted $ (0.31 ) $ 0.18 $ (0.94 ) $ 0.42 Note: Earnings per share calculations could be impacted by rounding. PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) January 31, (In thousands, except per share data) 2021 2020 ASSETS Current assets Cash and cash equivalents $ 7,174 $ 13,371 Restricted cash 1,201 1,287 Trade accounts receivable, less allowance for doubtful accounts of $474 on January 31, 2021 and $407 on January 31, 2020 25,226 29,402 Inventories, net 12,157 14,498 Prepaid expenses and other current assets 4,110 3,531 Costs and estimated earnings in excess of billings on uncompleted contracts 4,007 2,166 Total current assets 53,875 64,255 Property, plant and equipment, net of accumulated depreciation 26,897 28,629 Other assets Operating lease right-of-use assets 13,384 11,475 Deferred tax assets 823 293 Goodwill 2,332 2,254 Other assets 5,380 5,319 Total other assets 21,919 19,341 Total assets $ 102,691 $ 112,225 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade accounts payable $ 10,365 $ 9,577 Commissions and management incentives payable 218 1,759 Accrued compensation and payroll taxes 1,448 1,190 Revolving line - North America 2,826 8,577 Current maturities of long-term debt 3,941 1,458 Customers' deposits 2,088 2,202 Outside commission liability 1,431 1,755 Operating lease liabilities short-term 1,402 1,040 Other accrued liabilities 2,616 3,444 Billings in excess of costs and estimated earnings on uncompleted contracts 762 1,173 Income tax payable 1,155 664 Total current liabilities 28,252 32,839 Long-term liabilities Long-term debt, less current maturities 6,268 6,717 Deferred compensation liabilities 4,120 4,199 Deferred tax liabilities 914 1,052 Operating lease liabilities long-term 13,174 11,214 Other long-term liabilities 650 575 Total long-term liabilities 25,126 23,757 Stockholders' equity Common stock, $.01 par value, authorized 50,000 shares; 8,165 issued and outstanding January 31, 2021 and 8,048 issued and outstanding January 31, 2020 82 80 Additional paid-in capital 60,875 60,024 Accumulated deficit (8,357 ) (715 ) Accumulated other comprehensive loss (3,287 ) (3,760 ) Total stockholders' equity 49,313 55,629 Total liabilities and stockholders' equity $ 102,691 $ 112,225
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Perma-Pipe International Holdings Announces Contract Award in Excess of $5.0 Million
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced its subsidiary Perma-Pipe Middle East FZC has been awarded a substantial contract by the Italian contractor, Saipem S.p.A. (Saipem), for the provision of double joint welding, coating and thermal insulation for a 36 inch pipeline as part of a major ongoing project in the Middle East. The project will utilize Perma-Pipe’s premier engineered POLY-THERM® insulation system, a spray-applied polyisocyanurate (PIR) foam jacketed with a robust glass reinforced plastic (GRP) outer jacket that prevents corrosion under insulation (CUI) and the associated high costs of inspection, repair, replacement and downtime caused by pipe corrosion. The project will begin execution in Perma-Pipe’s Fujairah facility in the United Arab Emirates in Q1 2021. The contract value is in excess of $5.0 million. Saleh Sagr, Vice President for Perma-Pipe’s MENA region states, “Perma-Pipe is currently working with Saipem in Kuwait, providing a thermal insulation system, field joints, and a leak detection system for a 30 inch diameter pipeline. This new award demonstrates the trust Saipem places in Perma-Pipe and reinforces our working relationship.” Grant Dewbre, Sr. Vice President for Perma-Pipe’s MENA region states, "We believe that our technical ability to deliver a turnkey solution by double jointing, coating and pre-insulating a piping system provided us with the competitive edge for this project. Saipem was seeking a cost-effective, safe and efficient installation method, and our solution was chosen over previously utilized insulation systems.” David Mansfield, President and CEO commented, "We would like to thank Saipem for advocating Perma-Pipe’s technical solution and look forward to working closely together on future projects.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings Announces Contract to Supply Five Miles of Subsea Insulated Pipe
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced that it has been awarded a contract from LLOG Exploration Offshore to supply over five miles of subsea insulation for tiebacks in the Dome Patrol Field in the Gulf of Mexico. The contract scope awarded to Perma-Pipe covers overseeing engineering support, pipe coating, and supplying insulation for the pipelines. The project will utilize FLOW–THERM™ (formerly Auto-Therm®), a glass syntactic polyurethane (GSPU) that is Perma-Pipe's most popular thermal insulation product suitable for deepwater and temperatures up to 226 °F (108 °C). FLOW-THERM™ is highly efficient, cost-effective, and has excellent compressive resistance when used on subsea flowlines, risers, field joints, and equipment, including jumpers, pipeline end terminations (PLETs), pipeline end manifolds (PLEMs), inline structures shrouds, and doghouses for deep and ultra-deepwater requirements. Scott James, Sr. Vice President for Perma-Pipe’s Americas region states, "Perma-Pipe has been a long-term and valued supplier of FLOW-THERM™ to many customers and projects in the Gulf of Mexico. This latest project demonstrates our continued commitment to our customers in this market.” David Mansfield, President and CEO commented, "Our diverse group of products have broad applications that have proven to address customer needs. We are confident in our ability to continue to provide these quality products and in serving our customers’ expectations during these challenging times.” The project will be executed at our New Iberia, Louisiana facility with delivery expected in June 2021. Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings Announces $6.7 Million Contract Awarded in India
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced its subsidiary Perma-Pipe India Pvt. Ltd. (PPIL) has been awarded a $6.7 million contract by JSIW Infrastructure Pvt. Ltd. (JSIW) for application of a thermal insulation system on pipe to be used for the construction of the 12” diameter, 74 km long Mangla crude oil pipeline. The skin effect heat traced and insulated crude oil pipeline is being developed by HPCL Rajasthan Refinery Ltd (HRRL) (a joint venture company between HPCL and the Government of Rajasthan). The pipeline is established for the purpose of constructing a new refinery and petrochemical complex in Pachpadra Tehsil of District Barmer in the state of Rajasthan. Engineers India Limited (EIL) is the project management consultant for the pipeline project. The project will utilize Perma-Pipe’s TRACE-THERM™ insulation system which is designed to ensure optimum heat management during the life of the pipeline. The system will have welded tracer tubes for heat tracing and spray-applied polyurethane foam jacketed with a high-density polyethylene casing. Prior to application of the insulation system, an anti-corrosion coating will be applied on tracer tubes and bends in Perma-Pipe’s newly commissioned custom coating facility. The project will begin execution in Perma-Pipe’s Gandhidham, Gujarat, India facility in the first quarter of 2021. Rakesh Thakur, General Manager for Perma-Pipe India, states, “Perma-Pipe is excited to begin a new association with HRRL and EIL through this project by JSIW and is looking forward to working with them more in the future. PPIL always endeavors to give high quality insulation solutions to the various sectors it serves and is proud of being part of India’s developmental journey.” Grant Dewbre, Sr. Vice President for Perma-Pipe’s region including the Middle East, Africa, and India, states, “We are grateful for the trust placed in us by JSIW, HRRL, and EIL and I am fully confident that we will exceed their expectations during the execution of the project.” David Mansfield, President and CEO, commented, “This is a significant award for PPIL and the Perma-Pipe group. We are pleased to see projects in India and elsewhere moving forward during these challenging times.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings, Inc. Announces its Third Quarter and Year-to-Date Fiscal 2020 Financial Results
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the third quarter ended October 31, 2020. “Third quarter revenue was $20.3 million, $14.2 million below the same quarter last year, and net loss was $2.9 million compared to a net loss of $0.1 million in the same quarter of 2019,” noted President and CEO David Mansfield. "During the quarter the impact of the COVID-19 pandemic has continued to negatively impact our revenues. In the current environment, capital spending in the oil and gas industry remains low, and project schedules in the construction industry continue to be delayed. These are important drivers of Perma-Pipe’s markets. The medium term view however remains the same, and many delayed projects are awaiting the recovery and the easing of restrictions brought about by the pandemic. In recent weeks, we have seen an increase in the level of bidding activity and project awards, and major projects that were stalled appear to now be reinvigorated. While there is news that an effective COVID-19 vaccine might be on the near horizon, it is difficult to determine the timing of any recovery of the global economy.” Mr. Mansfield continued. "In response to these changing conditions, we have implemented and continue to maintain cost control measures which have helped partially offset the negative impact of the significant reductions in revenue. Our focus on cost control efforts will continue while market conditions remain depressed, and we will manage our business to the current activity level with a goal to be positioned to take advantage of the recovery.” Mr. Mansfield continued. “Some positive news to report is that we continue with our longer term plans that are focused on future growth. We recently commissioned a new custom coating plant at our UAE facility that will serve the oil and gas and water industries with products and services not previously provided by Perma-Pipe. We have already secured our first contract, which should be executed during the forthcoming quarter, and which serves as confirmation that we are filling a needed gap in capabilities to serve those markets. We are also currently in the process of installing a similar plant at our facility in India.” added Mr. Mansfield "Our backlog currently stands at $47.7 million, which reflects an increase of $1.0 million from the backlog at January 31. After a quarter of increased bidding activity, there has been a meaningful increase to the backlog for our MENA region, particularly at our recently established plant in Egypt.” Mr. Mansfield concluded. Third Quarter Fiscal 2020 Results Net sales were $20.3 million in the current quarter, a decrease of $14.2 million, or 41%, from $34.5 million in the prior year quarter. The decrease was a result of lower sales volumes in the Company's Canadian and offshore Gulf of Mexico businesses driven by the impact of lower oil prices, combined with a reduction in sales in the Company's U.S. and Middle East district heating and cooling businesses caused by project delays arising as a result of the COVID-19 pandemic. Gross profit decreased to $2.9 million, or 14% of net sales, in the current quarter from $7.6 million, or 22% of net sales, in the prior year quarter. This decrease was driven primarily by lower sales volumes. General and administrative expenses decreased to $4.5 million in the current quarter from $4.6 million in the prior year quarter. This decrease was driven primarily by cost cutting measures enacted as a result of the COVID-19 pandemic. Selling expenses decreased to $1.2 million in the current quarter, compared to $1.4 million in the prior year quarter due primarily to lower personnel costs. Net interest expense decreased to $0.1 million in the current quarter, compared to $0.2 million in the prior year quarter. This decrease was due to lower borrowings during the period. Other income/(expense) decreased to an expense of less than $0.1 million in the current quarter, compared to income of $0.1 million in the prior year quarter. This decrease was driven by the encashment of a $0.6 million performance bond securing one of the Company's contracts with a customer in Qatar. The Company believes the customer's claims of non-performance under the contract are invalid and that the customer's actions were themselves a breach of the contract. The Company has engaged local counsel to seek reimbursement as well as additional compensation for lost profits suffered as a result of cancellation of certain work orders under the contract. This expense was partially offset by funds received under the CEWS program in Canada. Income/(loss) from operations before income taxes decreased by $4.4 million to a loss of $2.9 million in the current quarter from income of $1.5 million in the prior year quarter. The decrease was a result of lower sales volumes in the Company's Canadian and offshore Gulf of Mexico businesses driven by the impact of lower oil prices, combined with a reduction in sales in the Company's U.S. and Middle East district heating and cooling businesses caused by project delays arising as a result of the COVID-19 pandemic. The Company's worldwide effective tax rates ("ETR") were 0.8% and 127.8% in the current quarter and the prior year quarter, respectively. The change in the ETR from the prior year quarter to the current year quarter is due to the impact of tax rates in various jurisdictions and the changing mix of taxable income and loss in those jurisdictions, as well as the impact of the lower current quarter pre-tax income as compared to the prior year quarter. The resulting net loss of $2.8 million in the current quarter was a decline of $2.7 million over the net loss of $0.1 million in the prior year quarter. The decrease was a result of lower sales volumes in the Company's Canadian and offshore Gulf of Mexico businesses driven by the impact of lower oil prices, combined with a reduction in sales in the Company's U.S. and Middle East district heating and cooling businesses caused by project delays arising as a result of the COVID-19 pandemic. Year-to-Date October 31, 2020 Results Net sales were $63.4 million in the current year-to-date, a decrease of $32.0 million, or 34%, from $95.4 million in the prior year year-to-date. The decrease was a result of lower sales volumes in the Company's Canadian and offshore Gulf of Mexico businesses driven by the impact of lower oil prices combined with project delays in the Company's U.S. and Middle East district heating and cooling businesses arising as a result of the COVID-19 pandemic. Gross profit decreased to $8.8 million, or 14% of net sales, in the current year-to-date from $22.0 million, or 23% of net sales, in the prior year year-to-date. This decrease was driven primarily by lower sales volumes. General and administrative expenses decreased to $13.3 million in the current year-to-date from $13.9 million in the prior year year-to-date. This decrease was driven primarily by cost cutting measures enacted as a result of the COVID-19 pandemic. Selling expenses increased to $4.2 million in the current year-to-date, compared to $4.0 million in the prior year year-to-date, an increase of $0.2 million, or 3%. This increase was primarily due to the addition of new sales employees and severance payments for terminated employees. Net interest expense decreased to $0.4 million in the current year-to-date, compared to $0.6 million in the prior year year-to-date. This decrease was due to lower borrowings during the period. Other income/(expense) increased to income of $3.7 million in the current year-to-date, compared to income of $0.4 million in the prior year year-to-date, an increase of $3.3 million. This increase was primarily the result of recognition of the Company's reasonable expectation of forgiveness of its PPP loan proceeds during the period of $3.2 million, as well as funds received under the CEWS program in Canada. These amounts were offset partially by the encashment of a performance bond securing one of the Company's contracts with a customer in Qatar. The Company believes the customer's claims of non-performance under the contract are invalid and that the customer's actions were themselves a breach of the contract. The Company has engaged local counsel to seek reimbursement as well as additional compensation for lost profits suffered as a result of cancellation of certain work orders under the contract. Income/(loss) from operations before income taxes decreased by $9.2 million to a loss of $5.4 million in the current year-to-date from income of $3.8 million in the prior year year-to-date. The decrease was a result of lower sales volumes in the Company's Canadian and offshore Gulf of Mexico businesses driven by the impact of lower oil prices, combined with a reduction in sales in the Company's U.S. and Middle East district heating and cooling businesses caused by project delays arising as a result of the COVID-19 pandemic. The Company's worldwide ETRs were 6.2% and 48.6% in the current year-to-date and the prior year year-to-date, respectively. The change in the ETR from the prior year year-to-date to the current year year-to-date is due to the impact of tax rates in various jurisdictions and the changing mix of taxable income and loss in those jurisdictions. The resulting net loss of $5.1 million in the current year-to-date was a decline of $7.2 million over the net income of $2.1 million in the prior year year-to-date. The decrease was a result of lower sales volumes in the Company's Canadian and offshore Gulf of Mexico businesses driven by the impact of lower oil prices, combined with a reduction in sales in the Company's U.S. and Middle East district heating and cooling businesses caused by project delays arising as a result of the COVID-19 pandemic. Percentages set forth above in this press release have been rounded to the nearest percentage point and may not exactly correspond to the comparative data presented. 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 eight 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) the impact of the coronavirus (COVID-19) on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (iv) the Company’s ability to repay its debt and renew expiring international credit facilities; (v) risks and uncertainties related to the Company's newly reported material weakness in its internal control over financial reporting; (vi) risks and uncertainties related to the Company's receipt of funding under the Paycheck Protection Program; (vii) the Company’s ability to effectively execute its strategic plan and achieve profitability and positive cash flows; (viii) the impact of global economic weakness and volatility; (ix) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (x) the timing of orders for the Company’s products; (xi) 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; (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 purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xv) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xvi) reductions or cancellations of orders included in the Company’s backlog; (xvii) risks and uncertainties related to the Company's international business operations; (xviii) the Company’s ability to attract and retain senior management and key personnel; (xiv) the Company’s ability to achieve the expected benefits of its growth initiatives; (xx) the Company’s ability to interpret changes in tax regulations and legislation; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; and (xxii) 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.) The Company's Form 10-Q for the quarter ended October 31, 2020 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended October 31, Nine Months Ended October 31, 2020 2019 2020 2019 Net sales $ 20,294 $ 34,457 $ 63,399 $ 95,400 Cost of sales 17,356 26,814 54,630 73,382 Gross profit 2,938 7,643 8,769 22,018 Operating expenses General and administrative expenses 4,528 4,636 13,320 13,907 Selling expenses 1,174 1,354 4,153 4,030 Total operating expenses 5,702 5,990 17,473 17,937 Income/(loss) from operations (2,764 ) 1,653 (8,704 ) 4,081 Interest expense, net 107 194 411 612 Other income/(expense) (2 ) 95 3,672 351 Income/(loss) from operations before income taxes (2,873 ) 1,554 (5,443 ) 3,820 Income tax (benefit)/expense (23 ) 1,699 (339 ) 1,747 Net income/(loss) $ (2,850 ) $ (145 ) $ (5,104 ) $ 2,073 Weighted average common shares outstanding Basic 8,165 8,037 8,113 7,970 Diluted 8,165 8,037 8,113 8,272 Income/(loss) per share Basic (0.35 ) (0.02 ) (0.63 ) 0.26 Diluted (0.35 ) (0.02 ) (0.63 ) 0.25 Note: Earnings per share calculations could be impacted by rounding. PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) October 31, 2020 January 31, 2020 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 6,593 $ 13,371 Restricted cash 1,154 1,287 Trade accounts receivable, less allowance for doubtful accounts of $411 at October 31, 2020 and $407 at January 31, 2020 26,441 29,402 Inventories, net 12,094 14,498 Prepaid expenses and other current assets 5,022 3,531 Costs and estimated earnings in excess of billings on uncompleted contracts 1,362 2,166 Total current assets 52,666 64,255 Property, plant and equipment, net of accumulated depreciation 26,958 28,629 Other assets Operating lease right-of-use asset 13,762 11,475 Deferred tax assets 604 293 Goodwill 2,237 2,254 Other assets 3,532 5,319 Total other assets 20,135 19,341 Total assets $ 99,759 $ 112,225 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade accounts payable $ 7,905 $ 9,577 Accrued compensation and payroll taxes 1,760 1,190 Commissions and management incentives payable 322 1,759 Revolving line - North America 1,803 8,577 Current maturities of long-term debt 1,732 1,458 Customers' deposits 2,098 2,202 Outside commission liability 1,661 1,755 Operating lease liability short-term 1,408 1,040 Other accrued liabilities 3,002 3,444 Billings in excess of costs and estimated earnings on uncompleted contracts 672 1,173 Income taxes payable 1,000 664 Total current liabilities 23,363 32,839 Long-term liabilities Long-term debt, less current maturities 6,194 6,717 Deferred compensation liabilities 4,487 4,199 Deferred tax liabilities 583 1,052 Operating lease liability long-term 13,477 11,214 Other long-term liabilities 661 575 Total long-term liabilities 25,402 23,757 Stockholders' equity Common stock, $.01 par value, authorized 50,000 shares; 8,165 issued and outstanding at October 31, 2020 and 8,048 issued and outstanding at January 31, 2020 82 80 Additional paid-in capital 60,595 60,024 Accumulated deficit (5,819 ) (715 ) Accumulated other comprehensive loss (3,864 ) (3,760 ) Total stockholders' equity 50,994 55,629 Total liabilities and stockholders' equity $ 99,759 $ 112,225
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Perma-Pipe International Holdings Announces Additional Production Lines & Increased Capacity in Middle East
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced its subsidiaries Perma-Pipe Middle East FZC and Perma-Pipe India PVT. LTD. have procured and installed large capacity production lines for surface preparation, heating and coating for a wide range of piping materials and specialty shapes to serve the oil and gas, and water transmission industries at our existing facilities in Fujairah, UAE, and Gandhidham, India. Adding to our existing custom coating capabilities, our new capabilities are referred to as “FAB-COAT” custom coatings. Each facility has two new, large capacity production lines with hot air circulation ovens for heating blast-cleaned pieces, and both dry powder and liquid coating application lines. Perma-Pipe now offers high quality internal and external custom coatings to meet our customers’ project-specific needs and for many different shapes and sizes such as line pipe, vessels, prefabricated pipe spools, bends, tees, flanges, valves, skids, reducers, fittings, aluminum panels and a number of other shaped and sized steel pieces for a wide range of industry applications. Grant Dewbre, Sr. Vice President for Perma-Pipe’s MENA region states, “We can apply anti-corrosion coatings including Fusion Bonded Epoxy (FBE), Three-Layer Polyethylene and Polypropylene (3LPE / 3LPP), Liquid Epoxies, Polyurethanes, Zinc-Rich and Polysiloxanes on an impressive range of lengths, diameters and spool piece sizes. “In a further exciting development, Perma-Pipe Middle East FZC has been successful in securing our first sizable orders for the recently commissioned facility to apply internal and external fusion bonded epoxy anti-corrosion coatings for customers in both the oil and gas, and water transmission industries. We look forward to providing high quality FAB-COAT custom coating services to a wide range of customers in the Middle East, India, and beyond,” Mr. Dewbre added. David Mansfield, President and CEO commented, "Our plans include a focus on new growth opportunities, including growth into new market segments such as this one. We believe that becoming a provider in this segment in the MENA region offers attractive growth for us, and it is very satisfying to see immediate returns from our investment.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings Announces $5.7 Million in Contracts Awarded in Saudi Arabia
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced its subsidiary Perma-Pipe Saudi Arabia has been awarded a $5.1 million contract by Nesma & Partners Contracting Co. Ltd. for the provision of thermally insulated pipe and field joints for a district cooling network for Umm Al Qura for Development & Construction Company (UAQ), in the King Abdul Aziz Road Development (KAAR). The combined value of contracts awarded to Perma-Pipe Saudi Arabia in Q3 2020 was $5.7 million. The project will utilize Perma-Pipe’s premier engineered POLY-THERM® insulation system, a spray-applied polyisocyanurate foam jacketed with a tough fiberglass reinforced outer jacket. POLY-THERM® complies with the stringent flame-spread index and smoke development index requirements of ASTM E84 Class-1 making the product suitable for applications where fire protection is paramount. The project will begin execution in Perma-Pipe’s facilities in Dammam Industrial City, Saudi Arabia in Q4 2020. Raed Al Saleh, General Manager for Perma-Pipe Saudi Arabia states, “Perma-Pipe looks forward to continuing our partnership with Nesma & Partners and UAQ. We are proud to be a part of such a strategic and significant project which will alleviate pressure in the city, improve transport efficiencies and provide superior services for citizens, visitors and pilgrims to the Holy City of Makkah.” Grant Dewbre, Sr. Vice President for Perma-Pipe’s MENA region continues, "We believe that our technical ability to have truly delivered an ASTM E84 Class 1 material differentiates us from others. We value our well-established relationship with Nesma & Partners and look forward to supporting them on this project by ensuring that we meet the delivery requirements.” David Mansfield, President and CEO commented, "We thank our customer for this award which reinforces our commitment to establishing 'Partners in Excellence.' We are pleased to see that Saudi Arabia continues to progress with major projects during these challenging times and look forward to being part of the upcoming mega-projects that are currently planned.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings Announces $6.0 Million Contract Awards in Egypt
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced its subsidiary Perma-Pipe Egypt has been awarded approximately $6.0 million in contracts by China State Construction Engineering Company (CSCEC) for the provision of thermally insulated pipe, field joints, and leak detection system for a district cooling network for the New Urban Communities Authority (NUCA), in the Central Business District of the New Administrative Capital of Egypt. The project will utilize Perma-Pipe’s XTRU-THERM® insulation system, a spray-applied polyurethane foam jacketed with a high-density polyethylene casing. Prior to application of the insulation system, an anti-corrosion polyamide epoxy coating will be applied to the steel pipe in Perma-Pipe’s newly commissioned blasting and coating facility. Perma-Pipe will also be responsible for the supply, installation, and commissioning of Perma-Pipe’s own “PermAlert®” leak detection system for the insulated pipelines. The project will begin execution in Perma-Pipe’s facilities in Beni Suef, Egypt in Q4 2020. Adham Sharkawy, General Manager for Perma-Pipe Egypt states, “Perma-Pipe looks forward to serving CSCEC and NUCA under Dar Al-Handasah’s supervision on this project and to continuing our role in providing infrastructure for construction of the New Administration Capital City project. We are pleased to see an increase in project opportunities in Egypt, and excited about the country’s potential and serving our customers moving forward.” Grant Dewbre, Sr. Vice President for Perma-Pipe’s MENA region states, "We are very appreciative that CSCEC placed their trust in Perma-Pipe to execute this project. We value our relationships with CSCEC, NUCA, and Dar Al-Handasah and look forward to starting our successful journey to providing our services to these companies.” David Mansfield, President and CEO commented, "We thank our customer for this award and we are pleased to see that the market in Egypt continues to develop, and that our decision to invest in that country was the right choice.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings, Inc. Announces its Second Quarter and Year-to-Date Fiscal 2020 Financial Results
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the second quarter ended July 31, 2020. “Second quarter revenue was $20.4 million, $16.3 million below the same quarter last year, and net income was $0.3 million compared to $3.7 million in the same quarter of 2019,” noted President and CEO David Mansfield. “During the quarter the global economy endured an unprecedented decline as a result of the response to the COVID-19 pandemic. The impact of the pandemic on our industries has continued to endure and it remains unpredictable when a full recovery can be anticipated. The negative effect on our operations was greater in the second quarter than we experienced in the first quarter of the year. Governmental actions that included lock downs and stay at home orders had a significant impact on the construction industry and caused delays to many of the projects we expected to perform this year. “Oil and gas price declines also had a significant negative impact on the oil and gas industry, as E&P companies curtailed their capital budgets leading to the postponement of many projects. “Although we have seen significant delays to projects, to date there have been few cancellations and the delayed projects are expected to resume. We therefore currently see the same encouraging future prospects that existed before the pandemic began, but we must continue to remain cautious until the market drivers return to normal. “The cost reduction activities that were implemented earlier this year in response to the pandemic and reduced oil and gas prices enabled us to mitigate the impact of substantially reduced levels of activity for the quarter. We will continue with these cost containment efforts and cash expenditure controls until market conditions improve. We have been fortunate that few employees have contracted COVID-19 and most have recovered and returned to work. As a result, our plants have been operational during most of the quarter. “Our backlog currently stands at $41.3 million, which reflects a decline of $5.4 million from the backlog at January 31, as a consequence of reduced levels of bidding activity in the Canadian oil and gas industry, and backlog execution in our Middle East operations and PermAlert,” Mr. Mansfield concluded. Second Quarter Fiscal 2020 Results Net sales were $20.4 million in the current quarter, a decrease of $16.3 million, or 44%, from $36.7 million in the prior year quarter. The decrease in the Company's Canadian and offshore Gulf of Mexico businesses resulted from the impact of lower oil prices combined with project delays in the Company's U.S. and Middle East district heating and cooling businesses arising as a result of the COVID-19 pandemic. Gross profit decreased to $2.4 million, or 12% of net sales, in the current quarter from $9.7 million, or 26% of net sales, in the prior year quarter. This decrease was primarily driven by lower sales volumes. General and administrative expenses decreased to $4.5 million in the current quarter from $4.8 million in the prior year quarter. This decrease was primarily driven by cost cutting measures enacted as a result of the COVID-19 pandemic. Selling expenses decreased to $1.3 million in the current quarter, compared to $1.4 million in the prior year quarter due primarily to lower personnel costs. Net interest expense decreased to $0.1 million in the current quarter, compared to $0.2 million in the prior year quarter. This decrease was driven by lower interest rates on borrowings during the period. Other income increased to $3.7 million in the current quarter, compared to $0.2 million in the prior year quarter, an increase of $3.5 million. This increase was primarily the result of recognition of the Company's reasonable expectation of forgiveness of its Paycheck Protection Program ("PPP") loan proceeds during the period of $3.2 million. Income from operations before income taxes decreased by $3.3 million to $0.2 million in the current quarter from $3.5 million in the prior year quarter. The decrease resulted from lower revenues in North America due to declines in oil prices and certain of the Company's Middle East and U.S. district heating and cooling operations due to project delays as a result of the COVID-19 pandemic. The negative impact of these lower revenues was offset by increased income from the Company's new operations in Egypt and by reduced overhead as a consequence of cost reduction initiatives. The Company's worldwide effective tax rates ("ETR") were (56.8%) and (7.6%) in the current quarter and the prior year quarter, respectively. The change in the ETR from the prior year quarter to the current year quarter was largely due to changes in the mix of income and loss in various jurisdictions, as well as the impact of the lower current quarter pre-tax income as compared to the prior year quarter. The resulting net income of $0.3 million in the current quarter was a decline of $3.4 million over the net income of $3.7 million in the prior year quarter. The decrease resulted from lower revenues in North America due to declines in oil prices and certain of the Company's Middle East and U.S. district heating and cooling operations due to project delays as a result of the COVID-19 pandemic. The negative impact of these lower revenues was offset by increased income from the Company's new operations in Egypt and by reduced overhead as a consequence of cost reduction initiatives. Year-to-Date July 31, 2020 Results Net sales were $43.1 million in the current year-to-date, a decrease of $17.8 million, or 29%, from $60.9 million in the prior year year-to-date. The decrease resulted from lower revenues in North America due to declines in oil prices and certain of the Company's Middle East and U.S. district heating and cooling operations due to project delays as a result of the COVID-19 pandemic. Gross profit decreased to $5.8 million, or 14% of net sales, in the current year-to-date from $14.4 million, or 24% of net sales, in the prior year year-to-date. This decrease was primarily driven by lower sales volumes. General and administrative expenses decreased to $8.8 million in the current year-to-date from $9.3 million in the prior year year-to-date. This decrease was primarily driven by cost cutting measures enacted as a result of the COVID-19 pandemic. Selling expenses increased to $3.0 million in the current year-to-date, compared to $2.7 million in the prior year year-to-date, an increase of $0.3 million, or 11%. This increase was primarily due to payroll expenses for additional sales employees added in 2019. Net interest expense decreased to $0.3 million in the current year-to-date, compared to $0.4 million in the prior year year-to-date. This decrease was driven by lower interest rates on borrowings during the period. Other income increased to $3.7 million in the current year-to-date, compared to $0.3 million in the prior year year-to-date, an increase of $3.4 million. This increase was primarily the result of recognition of the Company's reasonable expectation of forgiveness of the PPP loan proceeds during the period of $3.2 million. Income/(loss) from operations before income taxes decreased by $4.8 million to a loss of $2.6 million in the current year-to-date from income of $2.2 million in the prior year year-to-date. The decrease resulted from lower revenues in North America due to declines in oil prices and certain of the Company's Middle East and U.S. district heating and cooling operations due to project delays as a result of the COVID-19 pandemic. The negative impact of these lower revenues was offset by increased income from the Company's new operations in Egypt and by reduced overhead as a consequence of cost reduction initiatives. The Company's worldwide ETRs were 12.3% and 2.1% in the current year-to-date and the prior year year-to-date, respectively. The change in the ETR from the prior year year-to-date to the current year year-to-date was largely due to changes in the mix of income and loss in various jurisdictions. The resulting net loss of $2.3 million in the current year-to-date was a decline of $4.5 million over the net income of $2.2 million in the prior year year-to-date. The decrease resulted from lower revenues in North America due to declines in oil prices and certain of the Company's Middle East and U.S. district heating and cooling operations due to project delays as a result of the COVID-19 pandemic. The negative impact of these lower revenues was offset by increased income from the Company's new operations in Egypt and by reduced overhead as a consequence of cost reduction initiatives. Percentages set forth above in this press release have been rounded to the nearest percentage point and may not exactly correspond to the comparative data presented. 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 eight 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) the impact of the coronavirus (COVID-19) on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (iv) the Company’s ability to repay its debt and renew expiring international credit facilities; (v) risks and uncertainties related to the Company's newly reported material weakness in its internal control over financial reporting; (vi) risks and uncertainties related to the Company's receipt of funding under the Paycheck Protection Program; (vii) the Company’s ability to effectively execute its strategic plan and achieve profitability and positive cash flows; (viii) the impact of global economic weakness and volatility; (ix) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (x) the timing of orders for the Company’s products; (xi) 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; (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 purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xv) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xvi) reductions or cancellations of orders included in the Company’s backlog; (xvii) risks and uncertainties related to the Company's international business operations; (xviii) the Company’s ability to attract and retain senior management and key personnel; (xiv) the Company’s ability to achieve the expected benefits of its growth initiatives; (xx) the Company’s ability to interpret changes in tax regulations and legislation; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; and (xxii) 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.) The Company's Form 10-Q for the quarter ended July 31, 2020 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended July 31, Six Months Ended July 31, 2020 2019 2020 2019 Net sales $ 20,364 $ 36,667 $ 43,106 $ 60,943 Cost of sales 18,000 27,014 37,275 46,568 Gross profit 2,364 9,653 5,831 14,375 Operating expenses General and administrative expenses 4,488 4,814 8,792 9,271 Selling expenses 1,331 1,416 2,978 2,676 Total operating expenses 5,819 6,230 11,770 11,947 Income/(loss) from operations (3,455 ) 3,423 (5,939 ) 2,428 Interest expense, net 118 209 304 419 Other income 3,739 241 3,674 256 Income/(loss) from operations before income taxes 166 3,455 (2,569 ) 2,265 Income tax (benefit)/expense (101 ) (265 ) (315 ) 47 Net income/(loss) $ 267 $ 3,720 $ (2,254 ) $ 2,218 Weighted average common shares outstanding Basic 8,126 7,887 8,087 7,937 Diluted 8,278 8,202 8,087 8,122 Income/(loss) per share Basic 0.03 0.47 (0.28 ) 0.28 Diluted 0.03 0.45 (0.28 ) 0.27 Note: Earnings per share calculations could be impacted by rounding. PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) July 31, 2020 January 31, 2020 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 9,106 $ 13,371 Restricted cash 1,150 1,287 Trade accounts receivable, less allowance for doubtful accounts of $300 at July 31, 2020 and $407 at January 31, 2020 23,884 29,402 Inventories, net 12,137 14,498 Prepaid expenses and other current assets 7,033 3,531 Costs and estimated earnings in excess of billings on uncompleted contracts 1,750 2,166 Total current assets 55,060 64,255 Property, plant and equipment, net of accumulated depreciation 27,306 28,629 Other assets Operating lease right-of-use asset 10,889 11,475 Deferred tax assets 566 293 Goodwill 2,222 2,254 Other assets 3,955 5,319 Total other assets 17,632 19,341 Total assets $ 99,998 $ 112,225 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade accounts payable $ 7,943 $ 9,577 Accrued compensation and payroll taxes 1,496 1,190 Commissions and management incentives payable 1,107 1,759 Revolving line - North America 2,470 8,577 Current maturities of long-term debt 1,715 1,458 Customers' deposits 1,844 2,202 Outside commission liability 1,712 1,755 Operating lease liability short-term 1,338 1,040 Other accrued liabilities 2,836 3,444 Billings in excess of costs and estimated earnings on uncompleted contracts 767 1,173 Income taxes payable 750 664 Total current liabilities 23,978 32,839 Long-term liabilities Long-term debt, less current maturities 6,293 6,717 Deferred compensation liabilities 4,415 4,199 Deferred tax liabilities 672 1,052 Operating lease liability long-term 10,563 11,214 Other long-term liabilities 628 575 Total long-term liabilities 22,571 23,757 Stockholders' equity Common stock, $.01 par value, authorized 50,000 shares; 8,165 issued and outstanding at July 31, 2020 and 8,048 issued and outstanding at January 31, 2020 82 80 Additional paid-in capital 60,310 60,024 Accumulated deficit (2,969 ) (715 ) Accumulated other comprehensive loss (3,974 ) (3,760 ) Total stockholders' equity 53,449 55,629 Total liabilities and stockholders' equity $ 99,998 $ 112,225
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Perma-Pipe International Holdings, Inc. Announces its First Quarter Fiscal 2020 Financial Results
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the first quarter ended April 30, 2020. “Revenue for the first quarter was $22.7 million, $1.6 million below the same quarter last year, and loss from operations before income taxes was $2.7 million compared to a loss of $1.2 million in the same quarter of 2019,” commented President and CEO David Mansfield. “Shortly after the beginning of our fiscal year the world began to experience the impact of the COVID-19 pandemic. This caused significant disruption to our business and to our customers’ businesses around the world, as lock-downs and stay-at-home orders were mandated. After the quarter end we began to emerge from these restrictions, although the pace of the return to ‘normal’ is varying by country. “Simultaneous with the developing pandemic, worldwide oil prices suffered a significant downturn as battles over oil supplies began. As a consequence of this decline in oil price, E&P companies quickly cut capital expenditure budgets significantly, which had the effect of postponing or cancelling some of their pipeline construction projects and drilling activities. This had a negative impact on our own activities on oil and gas related projects during the quarter, causing numerous delays in project schedules. “Immediately after the potential impact of COVID-19 became apparent, and after the decline in oil prices, we assessed and implemented action plans to contain costs and unessential cash outflows until more favorable economic conditions return. At this time, all of our plants are operational and we are prepared to execute the delayed projects as they recommence. “Our backlog currently stands at $43.1 million, which reflects a decline of $3.7 million from the backlog at January 31, mostly a consequence of reduced levels of activity in the Canadian oil and gas industry,” concluded Mr. Mansfield. First Quarter Fiscal 2020 Results Net sales were $22.7 million in the current quarter, a decrease of $1.5 million, or 6%, from $24.3 million in the prior year quarter. The decrease resulted from lower revenues in North America due to declines in oil prices and certain of our Middle East operations due to project delays as a result of the COVID-19 pandemic. These decreases were partially offset by increases from the new operations in Egypt. Gross profit decreased to $3.5 million, or 15% of net sales, in the current quarter from $4.7 million, or 19% of net sales, in the prior year quarter. This decrease in gross profit was primarily driven by lower project margins in the Company's Middle East operations, particularly in Saudi Arabia and India. General and administrative expenses remained consistent at $4.4 million in the current and prior year quarters. Selling expenses increased to $1.6 million in the current quarter, compared to $1.3 million in the prior year quarter, an increase of $0.3 million, or 31%. This increase was primarily due to payroll expenses for additional sales employees added in 2019. Interest expense remained consistent at $0.2 million in the current and prior year quarters. Income tax (benefit)/expense decreased to a benefit of $0.2 million in the current quarter, compared to an expense of $0.3 million in the prior year quarter, a change of $0.5 million, or 169%. The decrease in the expense in the current year quarter was largely due to changes in the mix of income and loss in various jurisdictions. The net loss of $2.5 million in the current quarter was a decline of $1.0 million over the net loss of $1.5 million in the prior year quarter. The increased loss resulted from lower revenues in North America due to declines in oil prices and certain of our Middle East operations due to project delays as a result of the COVID-19 pandemic. The negative impact of these lower revenues was partially offset by increased income from the operations in Egypt. Percentages set forth above in this press release have been rounded to the nearest percentage point and may not exactly correspond to the comparative data presented. 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 eight 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) the impact of the coronavirus (COVID-19) on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (iv) the Company’s ability to repay its debt and renew expiring international credit facilities; (v) risks and uncertainties related to the Company's newly reported material weakness in its internal control over financial reporting; (vi) risks and uncertainties related to the Company's receipt of funding under the Paycheck Protection Program; (vii) the Company’s ability to effectively execute its strategic plan and achieve profitability and positive cash flows; (viii) the impact of global economic weakness and volatility; (ix) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (x) the timing of orders for the Company’s products; (xi) 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; (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 purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xv) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xvi) reductions or cancellations of orders included in the Company’s backlog; (xvii) risks and uncertainties related to the Company's international business operations; (xviii) the Company’s ability to attract and retain senior management and key personnel; (xiv) the Company’s ability to achieve the expected benefits of its growth initiatives; (xx) the Company’s ability to interpret changes in tax regulations and legislation; (xxi) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; and (xxii) 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.) The Company's Form 10-Q for the quarter ended April 30, 2020 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended April 30, 2020 2019 Net sales $ 22,741 $ 24,276 Cost of sales 19,275 19,554 Gross profit 3,466 4,722 Operating expenses General and administrative expenses 4,369 4,442 Selling expenses 1,647 1,260 Total operating expenses 6,016 5,702 Loss from operations (2,550 ) (980 ) Interest expense, net 186 210 Loss from operations before income taxes (2,736 ) (1,190 ) Income tax (benefit)/expense (215 ) 312 Net loss $ (2,521 ) $ (1,502 ) Weighted average common shares outstanding Basic 8,048 7,887 Diluted 8,048 7,887 Loss per share Basic (0.31 ) (0.19 ) Diluted (0.31 ) (0.19 ) Note: Earnings per share calculations could be impacted by rounding. PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) April 30, 2020 January 31, 2020 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 12,450 $ 13,371 Restricted cash 1,105 1,287 Trade accounts receivable, less allowance for doubtful accounts of $342 at April 30, 2020 and $407 at January 31, 2020 25,284 29,402 Inventories, net 13,912 14,498 Prepaid expenses and other current assets 4,314 3,531 Costs and estimated earnings in excess of billings on uncompleted contracts 2,900 2,166 Total current assets 59,965 64,255 Property, plant and equipment, net of accumulated depreciation 27,553 28,629 Other assets Operating lease right-of-use asset 11,165 11,475 Deferred tax assets 402 293 Goodwill 2,144 2,254 Other assets 5,564 5,319 Total other assets 19,275 19,341 Total assets $ 106,793 $ 112,225 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade accounts payable $ 8,557 $ 9,577 Accrued compensation and payroll taxes 1,601 1,190 Commissions and management incentives payable 2,155 1,759 Revolving line - North America 7,211 8,577 Current maturities of long-term debt 1,521 1,458 Customers' deposits 1,452 2,202 Outside commission liability 1,845 1,755 Operating lease liability short-term 1,254 1,040 Other accrued liabilities 3,403 3,444 Billings in excess of costs and estimated earnings on uncompleted contracts 1,061 1,173 Income taxes payable 765 664 Total current liabilities 30,825 32,839 Long-term liabilities Long-term debt, less current maturities 6,244 6,717 Deferred compensation liabilities 4,241 4,199 Deferred tax liabilities 751 1,052 Operating lease liability long-term 10,851 11,214 Other long-term liabilities 921 575 Total long-term liabilities 23,008 23,757 Stockholders' equity Common stock, $.01 par value, authorized 50,000 shares; 8,048 issued and outstanding at April 30, 2020 and 8,048 issued and outstanding at January 31, 2020 80 80 Additional paid-in capital 60,243 60,024 Accumulated deficit (3,236 ) (715 ) Accumulated other comprehensive loss (4,127 ) (3,760 ) Total stockholders' equity 52,960 55,629 Total liabilities and stockholders' equity $ 106,793 $ 112,225
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Perma-Pipe International Holdings, Inc. Announces Fourth Quarter and Fiscal 2019 Financial Results
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the fourth quarter and 2019 fiscal year ended January 31, 2020. “While fourth quarter revenues and income from operations before taxes were both lower than last year (by $2.7 million and $0.4 million, respectively), net income improved by $0.5 million (50%). For the year ended January 31, 2020, revenues of $127.7 million were $1.3 million below the prior year, but improved margins resulted in an increase of $5.7 million to gross profit. This translated to an improvement in net income of more than $4.1 million,” President and CEO David Mansfield commented. “Compared to the prior year end, backlog has contracted by 23% to $47 million, and this reflects primarily the completion during the year of a large project at our Saudi Arabian facility,” continued Mr. Mansfield. “The past year’s results continue to confirm the positive impact of our strategies and efforts to return the business to acceptable levels of profitability,” concluded Mr. Mansfield. Fourth Quarter Fiscal 2019 Results Net sales decreased 8% to $32.3 million in the fourth quarter from $34.9 million in the prior year quarter. The decrease was driven by lower revenue in Canada due to decreased project activity and lower data center leak protection product demand, partially offset by increased activity in the Middle East. Gross profit increased to 22% of net sales, or $7.0 million in the fourth quarter, from 18% of net sales, or $6.3 million, in the prior year quarter. This improvement was primarily due to higher project margins in the Middle East. General and administrative expenses increased to $4.3 million in the fourth quarter, compared to $3.2 million in the prior year quarter. This 34.4% increase was due primarily to the establishment of our plant in Egypt, relocation of certain corporate personnel to our offices in Spring, Texas and additional incentive compensation related to improved earnings. Selling expenses were flat at $1.2 million in both the fourth quarter and prior year's quarter. Net interest expense remained consistent at $0.3 million in both the fourth quarter and prior year's quarter. Net income increased to $1.5 million in the fourth quarter from $1.0 million in the prior year quarter. This increase was primarily the result of improved margins in the Middle East, including the commencement of operations in Egypt during fiscal 2019, as well as a reduction of the tax charge, offset by decreased activity in Canada. 2019 Results Net sales were $127.7 million in fiscal 2019, a decrease of $1.3 million, or 1%, from $129.0 million in fiscal 2018. Increased revenue in the U.S., Middle East and the expansion into Egypt along with higher demand for leak detection products were offset by lower project revenue in Canada. Gross profit increased to $29.0 million, or 22.8% of net sales, in fiscal 2019, an increase of $5.7 million, or 24.6%, from $23.3 million, or 18.1% of net sales, in fiscal 2018. This increase was primarily driven by higher project margins in the Middle East. General and administrative expenses were $17.9 million in fiscal 2019 compared to $15.4 million in fiscal 2018, an increase of $2.5 million, or 16.4%. This increase was primarily the result of the establishment of our plant in Egypt, relocation of certain corporate personnel to our offices in Spring, Texas and additional incentive compensation related to improved earnings. Selling expenses remained consistent at $5.2 million in fiscal 2019 and fiscal 2018. Interest expense decreased to $0.9 million in fiscal 2019 from $1.1 million in fiscal 2018 due to lower net borrowings and decreased interest rates during fiscal 2019. Income tax expense was $1.5 million in fiscal 2019 compared to $2.2 million in fiscal 2018. The decrease of $0.7 million was largely due to the fact that the Company earned more income in certain lower tax rate jurisdictions than in the prior year. Net income of $3.6 million in fiscal 2019 was a $4.2 million improvement over the net loss of $0.6 million in fiscal 2018. This increase was primarily the result of project margin improvements in the Middle East, increased demand for leak detection, expansion into Egypt and higher sales volume in the U.S. Percentages set forth above in this press release have been rounded to the nearest percentage point, and may not exactly correspond to the comparative data presented. Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings 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, Perma-Pipe has operations at seven locations in five 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) the impact of the coronavirus (COVID-19) on the Company's results of operations, financial condition and cash flows; (ii) fluctuations in the price of oil and natural gas and its impact on the customer order volume for the Company's products; (iii) the Company's ability to comply with all covenants in its credit facilities; (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 profitability and positive cash flows; (vi) the impact of global economic weakness and volatility; (vii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (viii) the timing of orders for the Company’s products; (ix) 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; (x) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (xi) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xiii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiv) reductions or cancellations of orders included in the Company’s backlog; (xv) risks and uncertainties related to the Company's international business operations; (xvi) the Company’s ability to attract and retain senior management and key personnel; (xvii) the Company’s ability to achieve the expected benefits of its growth initiatives; (xviii) the Company’s ability to interpret changes in tax regulations and legislation; (xix) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xx) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xxi) 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.) Perma-Pipe’s Form 10-K for the 2019 fiscal year ended January 31, 2020 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended January 31, Twelve months ended January 31, (In thousands, except per share data) 2020 2019 2020 2019 Net sales $ 32,262 $ 34,945 $ 127,663 $ 128,965 Cost of sales 25,235 28,628 98,617 105,647 Gross profit 7,027 6,317 29,046 23,318 Operating expenses: General and administrative expense 4,318 3,204 17,875 15,357 Selling expense 1,203 1,222 5,231 5,239 Total operating expenses 5,521 4,426 23,106 20,596 Income from operations 1,506 1,891 5,940 2,722 Interest expense, net 292 292 905 1,122 Income from operations before income taxes 1,214 1,599 5,035 1,600 Income tax (benefit)/expense (288 ) 625 1,459 2,150 Net income/(loss) $ 1,502 $ 974 $ 3,576 $ (550 ) Weighted average common shares outstanding Basic 8,046 7,812 7,989 7,812 Diluted 8,340 7,966 8,284 7,812 Income/(loss) per share Basic $ 0.19 $ 0.12 $ 0.45 $ (0.07 ) Diluted $ 0.18 $ 0.12 $ 0.43 $ (0.07 ) Note: Earnings per share calculations could be impacted by rounding. PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) January 31, (In thousands, except per share data) 2020 2019 ASSETS Current assets Cash and cash equivalents $ 13,371 $ 10,156 Restricted cash 1,287 2,581 Trade accounts receivable, less allowance for doubtful accounts of $407 on January 31, 2020 and $536 on January 31, 2019 29,402 32,508 Inventories 14,498 12,289 Prepaid expenses and other current assets 3,531 3,773 Costs and estimated earnings in excess of billings on uncompleted contracts 2,166 1,653 Total current assets 64,255 62,960 Property, plant and equipment, net of accumulated depreciation 28,629 30,398 Other assets Operating lease right-of-use asset 11,475 — Deferred tax assets 293 458 Goodwill 2,254 2,269 Other assets 5,319 6,120 Total other assets 19,341 8,847 Total assets $ 112,225 $ 102,205 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade accounts payable $ 9,577 $ 12,006 Commissions and management incentives payable 1,759 1,866 Accrued compensation and payroll taxes 1,190 1,544 Revolving line - North America 8,577 8,890 Current maturities of long-term debt 1,458 640 Customers' deposits 2,202 3,708 Outside commission liability 1,755 1,743 Operating lease liabilities short-term 1,040 — Other accrued liabilities 3,444 3,856 Billings in excess of costs and estimated earnings on uncompleted contracts 1,173 1,569 Income tax payable 664 1,266 Total current liabilities 32,839 37,088 Long-term liabilities Long-term debt, less current maturities 6,717 6,751 Deferred compensation liabilities 4,199 3,883 Deferred tax liabilities 1,052 1,435 Operating lease liabilities long-term 11,214 — Other long-term liabilities 575 1,347 Total long-term liabilities 23,757 13,416 Stockholders' equity Common stock, $.01 par value, authorized 50,000 shares; 8,048 issued and outstanding January 31, 2020 and 7,854 issued and outstanding January 31, 2019 80 79 Additional paid-in capital 60,024 58,793 Accumulated deficit (715 ) (4,291 ) Accumulated other comprehensive loss (3,760 ) (2,880 ) Total stockholders' equity 55,629 51,701 Total liabilities and stockholders' equity $ 112,225 $ 102,205
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Perma-Pipe International Holdings Announces Passing of Ex-Chairman and Co-Founder David Unger
SPRING, Texas--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) today announced that David Unger passed away on Tuesday January 7, 2020. The global PPIH team mourns the loss of its co-founder and friend. On behalf of our Board of Directors, management team and employees, we extend our deepest sympathies to the Unger family during this difficult time. The origin of the business dates back to 1931 as a small family business that spanned four generations. Mr. Unger served PPIH and predecessor companies for almost 60 years in a variety of roles including Chairman, CEO and as a Board Member. President and Chief Executive Officer David Mansfield commented: “David brought remarkable passion, experience and energy in building and shaping PPIH (previously known as MFRI, Inc.) into the successful global public company it is today. He was an inspirational leader who cared for the employees and the business equally.” Chairman of the Board Mr. David Barrie added, “David was a visionary who transformed the company into a global industry leader. He had the foresight to successfully navigate the business through decades of change. His contributions, perseverance and insights had invaluable impact on the board, our employees and the industry in general.” Perma-Pipe International Holdings, Inc. Perma-Pipe International Holdings, Inc. (Nasdaq: PPIH) 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, Perma-Pipe has operations at thirteen locations in six countries.
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Perma-Pipe International Holdings, Inc. Announces its Third Quarter and Year-to-Date Financial Results
NILES, Ill.--(BUSINESS WIRE)--Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the third quarter and nine months ended October 31, 2019. “Revenue for the third quarter was $34.5 million, $1.7 million above the same quarter last year, and income from operations before income taxes was $1.6 million compared to $0.8 million in the same quarter of 2018,” commented President and CEO David Mansfield. "For the first nine months of 2019 revenue was $95.4 million compared to $94.0 million for the same period last year. While our revenues are very similar to last year, continued improvements in margins have provided income from operations of $3.8 million, which is an improvement from the breakeven level achieved during the same period last year." "Our backlog stands at $52.7 million, after some previously delayed projects were executed during the quarter," continued Mr. Mansfield. “We also experienced what we anticipate was as temporary weakness in our Canadian operating results. In response, we have reduced our cost structure to a more appropriate level while we endure these lower levels of activity,” concluded Mr. Mansfield. Third Quarter Fiscal 2019 Results Net sales increased $1.7 million to $34.5 million in the current quarter, from $32.8 million in the prior year quarter. Higher revenues resulted from our Middle East region partially offset by lower revenue in North America, primarily driven by a temporary weakness in our Canadian operations. Gross profit increased to $7.6 million, or 22% of net sales, in the current quarter from $6.9 million, or 21% of net sales, in the prior year quarter. This 11% increase in gross profit was driven by improved pricing, product mix and cost reduction initiatives. The cost reduction initiatives include sourcing raw material at favorable prices and focusing efforts on quality improvements. General and administrative expenses increased to $4.5 million in the current quarter, compared to $4.2 million in the prior year quarter. This increase of $0.3 million was primarily due to costs related to realignment of head office functions. Selling expenses reduced to $1.4 million in the current quarter, compared to $1.6 million in the prior year quarter. This was due to a new sales compensation program. Net interest expense decreased to $0.2 million in the current quarter from $0.3 million in the prior year quarter due to lower borrowings. Income from operations before income taxes increased by $0.8 million to $1.6 million in the current quarter from $0.8 million in the prior year quarter. This increase was due to increased revenue and improved margins. Year-to-Date October 31, 2019 Results Net sales increased $1.4 million to $95.4 million in the current year-to-date, from $94.0 million in the prior year year-to-date. The overall revenue increase resulted from higher revenues in the Middle East region and our leak detection systems, partially offset by lower revenues of our traditional coating revenues in North America, primarily driven by a temporary weakness in our Canadian operations. Gross profit increased to $22.0 million, or 23% of net sales, in the current year-to-date from $17.0 million, or 18% of net sales, in the prior year year-to-date. This 30% increase in gross profit was driven by improved pricing, product mix and cost reduction initiatives. The cost reduction initiatives include sourcing raw material at favorable prices and focusing efforts on quality improvements. General and administrative expenses increased to $13.6 million in the current year-to-date, compared to $12.2 million in the prior year year-to-date.This was due to increased compensation expenses and loss on disposal of an asset, partially offset by collection of a previously reserved bad debt. Selling expenses remained relatively flat at $4.0 million in the current year-to-date, compared to $4.0 million in the prior year year-to-date. Net interest expense decreased to $0.6 million in the current year-to-date from $0.8 million in the prior year year-to-date due to lower borrowings. Income from operations before income taxes increased $3.8 million in the current year-to-date from less than $0.1 million in the prior year year-to-date. This increase was due to increased revenue and improved margins. 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 eight 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) the Company’s ability to effectively execute its strategic plan and achieve profitability and positive cash flows; (ii) the impact of global economic weakness and volatility; (iii) fluctuations in steel prices and the Company’s ability to offset increases in steel prices through price increases in its products; (iv) the timing of orders for the Company’s products; (v) decreases in United States government spending on projects using the Company’s products, and challenges to the Company’s non-government customers’ liquidity and access to capital funds; (vi) the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; (vii) fluctuations in crude oil and natural gas prices risks; (viii) risks and uncertainties related to the Company’s international business operations; (ix) the Company’s ability to repay its debt and renew expiring international credit facilities; (x) aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; (xi) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (xii) the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; (xiii) reductions or cancellations of orders included in the Company’s backlog; (xiv) the Company’s ability to attract and retain senior management and key personnel; (xv) the Company’s ability to achieve the expected benefits of its growth initiatives; (xvi) the Company’s ability to interpret changes in tax regulations and legislation; (xvii) reversals of previously recorded revenue and profits resulting from inaccurate estimates made in connection with the Company’s percentage-of-completion revenue recognition; (xviii) the Company’s failure to establish and maintain effective internal control over financial reporting; and (xix) 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.) The Company's Form 10-Q for the quarter ended October 31, 2019 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended October 31, Nine Months Ended October 31, 2019 2018 2019 2018 Net sales $ 34,457 $ 32,806 $ 95,400 $ 94,020 Cost of sales 26,814 25,923 73,382 77,019 Gross profit 7,643 6,883 22,018 17,001 Operating expenses General and administrative expenses 4,541 4,247 13,556 12,153 Selling expenses 1,354 1,554 4,030 4,017 Total operating expenses 5,895 5,801 17,586 16,170 Income from operations 1,748 1,082 4,432 831 Interest expense, net 194 280 612 830 Income from operations before income taxes 1,554 802 3,820 1 Income tax expense 1,699 934 1,747 1,525 Net (loss)/income $ (145 ) $ (132 ) $ 2,073 $ (1,524 ) Weighted average common shares outstanding Basic 8,037 7,877 7,970 7,806 Diluted 8,037 7,877 8,047 7,806 (Loss)/income per share Basic (0.02 ) (0.02 ) 0.26 (0.20 ) Diluted (0.02 ) (0.02 ) 0.26 (0.20 ) Note: Earnings per share calculations could be impacted by rounding. PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (unaudited) October 31, 2019 January 31, 2019 ASSETS Current assets Cash and cash equivalents $ 12,221 $ 10,156 Restricted cash 1,138 2,581 Trade accounts receivable, less allowance for doubtful accounts of $355 at October 31, 2019 and $536 at January 31, 2019 28,235 32,508 Inventories, net 16,270 12,289 Prepaid expenses and other current assets 3,620 3,773 Contract assets 4,363 1,653 Total current assets 65,847 62,960 Property, plant and equipment, net of accumulated depreciation 29,357 30,398 Other assets Operating lease right-of-use asset 11,717 - Deferred tax assets - long-term 747 458 Goodwill 2,264 2,269 Other assets 7,518 6,120 Total other assets 22,246 8,847 Total assets $ 117,450 $ 102,205 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade accounts payable $ 12,735 $ 12,006 Accrued compensation and payroll taxes 1,675 1,544 Commissions and management incentives payable 1,600 1,866 Revolving line North America 7,758 8,890 Current maturities of long-term debt 1,644 640 Customers' deposits 3,005 3,708 Outside commissions payable 2,185 1,743 Contract liability 1,351 1,569 Operating lease liability short-term 1,130 - Other accrued liabilities 3,234 3,856 Income taxes payable 1,352 1,266 Total current liabilities 37,669 37,088 Long-term liabilities Long-term debt, less current maturities 6,931 6,751 Deferred compensation liabilities 3,731 3,883 Deferred tax liabilities long-term 1,434 1,435 Operating lease liability long-term 10,617 - Other long-term liabilities 1,620 688 Total long-term liabilities 24,333 12,757 Stockholders' equity Common stock, $.01 par value, authorized 50,000 shares; 8,042 issued and outstanding at October 31, 2019 and 7,854 issued and outstanding at January 31, 2019 80 79 Additional paid-in capital 59,754 58,793 Accumulated deficit (1,559 ) (3,632 ) Accumulated other comprehensive loss (2,827 ) (2,880 ) Total stockholders' equity 55,448 52,360 Total liabilities and stockholders' equity $ 117,450 $ 102,205
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