- \n
- The Company generated net sales of $45.0 million for the quarter and $158.4 million for the year<\/i><\/b><\/li>\n
- Income before income taxes of $5.3 million for the quarter and $18.5 million for the year<\/i><\/b><\/li>\n
- B<\/b><\/i>acklog of $138.1 million at January 31, 2025, compared to $68.5 million at January 31, 2024<\/i><\/b><\/li>\n<\/ul>\n
SPRING, Texas–(BUSINESS WIRE<\/a>)–
\nPerma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the fourth quarter and 2024 fiscal year ended January 31, 2025.\n<\/p>\n\n\u201cSales for the fourth quarter and full year 2024 show moderate growth and were $45.0 million and $158.4 million, resulting in increases of $4.8 million and $7.7 million, compared to the prior year.\n<\/p>\n
\nIncome before taxes was $5.3 million and $18.5 million in the fourth quarter and for the full year 2024, which increased by $2.1 million and $8.6 million, compared to the prior year. This significant increase was a result of our focus on higher margin products and services that contributed to improved margin performance.\n<\/p>\n
\nNet income after taxes and minority interest was $1.5 million and $9.0 million in the fourth quarter and for the full year 2024. Although 2024 net income was a decrease of $1.5 million, compared to $10.5 million last year, the reduction was due to a one-time non-cash tax benefit of $5.9 million in the prior year after being allowed to recognize the benefit of past tax losses. Excluding the impact of the tax benefit, net income after taxes and minority interest was an increase of $4.4 million,\u201d noted CEO David Mansfield.\n<\/p>\n
\n\u201cBacklog has exhibited significant growth throughout the year and now stands at $138.1 million, resulting in a 102% increase, as compared to the prior year. The increase in backlog enables us to be well-positioned to begin fiscal 2025,\u201d Mr. Mansfield commented.\n<\/p>\n
\n\u201cWe have achieved considerable milestones throughout the year, demonstrated by income before taxes, improved margins, and significant growth in backlog. The joint venture in Saudi Arabia that was formed in 2023 continues to exceed expectations, and we are beginning to see increased activity at the new Vars, Ontario facility in Canada,\u201d Mr. Mansfield continued.\n<\/p>\n
\n\u201c2024 was a strong year for the Company. Our ability to secure several large-scale project awards provides good momentum in 2025, as well as positioning Perma-Pipe as a viable supplier for future mega-projects. This includes the opportunities in Qatar. The success of the joint venture has enabled us to establish a greater presence in Saudi Arabia, and we are encouraged by the recent positive developments occurring in North America,\u201d Mr. Mansfield concluded.\n<\/p>\n
Fiscal 2024 Results<\/b><\/p>\n
\nNet sales were $158.4 million and $150.7 million in the years ended January 31, 2025 and 2024, respectively. The increase of $7.7 million was primarily a result of higher sales volumes in the Middle East and Canada.\n<\/p>\n
\nGross profit was $53.2 million, or 34% of net sales and $41.5 million, or 28% of net sales, in the years ended January 31, 2025 and 2024, respectively. The increase of $11.7 million was driven by higher sales volumes and improved gross margins in the Middle East and Canada.\n<\/p>\n
\nGeneral and administrative expenses were $28.0 million and $22.6 million in the years ended January 31, 2025 and 2024, respectively. The increase of $5.4 million was primarily related to higher compensation costs and professional fees.\n<\/p>\n
\nSelling expenses were $4.9 million and $5.5 million in the years ended January 31, 2025 and 2024, respectively. The decrease of $0.6 million was driven by lower payroll expenses during the year.\n<\/p>\n
\nInterest expense was $1.9 million and $2.3 million in the years ended January 31, 2025 and 2024, respectively. The decrease of $0.4 million was related to decreased borrowings and, to a lesser extent, lower interest rates.\n<\/p>\n
\nOther income was $0.1 million, as compared to other expense of $1.2 million in the years ended January 31, 2025 and 2024, respectively. The change relates mainly to a one-time non-recurring charge in connection with a non-cash pre-tax settlement resulting from the termination of the Company’s pension plan.\n<\/p>\n
\nThe Company’s worldwide effective tax rates (“ETR”) were 29.1% and (33.6%) in the years ended January 31, 2025 and 2024, respectively. The change in ETR was largely due to changes in the mix of income and loss in various tax jurisdictions and the release of the partial domestic valuation allowance in the prior year. For further information, see Note 7 – Income taxes, in the Notes to Consolidated Financial Statements.\n<\/p>\n
\nNet income attributable to common stock was $9.0 million and $10.5 million in the years ended January 31, 2025 and 2024, respectively. The decrease in net income was a result of the changes discussed above, less amounts attributable to non-controlling interest.\n<\/p>\n
Perma-Pipe International Holdings, Inc.<\/b><\/p>\n
\nPerma-Pipe International Holdings, Inc. (the \u201cCompany\u201d) is a global leader in pre-insulated piping and leak detection systems for oil and gas gathering, district heating and cooling, and other applications. It uses its extensive engineering and fabrication expertise to develop piping solutions that solve complex challenges regarding the safe and efficient transportation of many types of liquids. In total, the Company has operations at fourteen locations in six countries.\n<\/p>\n
Forward-Looking Statements<\/b><\/p>\n
\nCertain statements and other information contained in this press release that can be identified by the use of forward-looking terminology constitute \u201cforward-looking statements\u201d 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\u2019s 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\u2019s products, and challenges to the Company\u2019s non-government customers\u2019 liquidity and access to capital funds; (iv) the Company\u2019s ability to repay its debt and renew expiring international credit facilities; (v) the Company\u2019s 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\u2019s 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\u2019s “over-time” revenue recognition; (x) the Company\u2019s failure to establish and maintain effective internal control over financial reporting; (xi) the timing of order receipt, execution, delivery and acceptance for the Company\u2019s products; (xii) the Company\u2019s 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\u2019s 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\u2019s backlog; (xvi) risks and uncertainties specific to the Company’s international business operations; (xvii) the Company\u2019s ability to attract and retain senior management and key personnel; (xviii) the Company\u2019s 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\u2019s 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<\/a> and under the Investor Center section of our website (http:\/\/investors.permapipe.com<\/a>.)\n<\/p>\n
\nThe Company’s fiscal year ends on January 31. Years, results, and balances described as 2024, 2023, and 2022 are for the fiscal year ended January 31, 2025, 2024, and 2023, respectively.\n<\/p>\n
\nAdditional information regarding the Company’s financial results for the fiscal year ended January 31, 2025, including management’s discussion and analysis of the Company’s financial condition and results of operations, is contained in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2025, which will be filed with the Securities and Exchange Commission on or about the date hereof and will be accessible at www.sec.gov<\/a><\/span> and www.permapipe.com<\/a><\/span>. For more information, visit the Company’s website.\n<\/p>\n
PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
\n
<\/b>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
\n
<\/b>(In thousands, except per share data)
\n
<\/i><\/b>(Unaudited)<\/b><\/p>\n\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n Year Ended January 31,<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n 2025<\/b><\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n
\n 2024<\/b><\/p>\n<\/td>\n<\/tr>\n
\n Net sales<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n158,384\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n150,668\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n Gross profit<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n53,248\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n41,458\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Total operating expenses<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n32,947\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n28,099\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Income from operations<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n20,301\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n13,359\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Interest expense, net<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n1,940\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n2,266\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n Other income (expense)<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n107\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(1,202\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n Income before income taxes<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n18,468\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n9,891\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Income tax expense (benefit)<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n5,377\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n(3,320\n<\/p>\n<\/td>\n
\n \n)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net income<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n13,091\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n13,211\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n Less: Net income attributable to non-controlling interest<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n4,108\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n2,740\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n Net income attributable to common stock<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n8,983\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n10,471\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Weighted average common shares outstanding<\/td>\n \n \n \n <\/tr>\n \n Basic<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n7,956\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n7,977\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n Diluted<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n8,015\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n8,073\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Earnings per share<\/td>\n \n \n \n <\/tr>\n \n Basic<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n1.13\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n1.31\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n Diluted<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n1.12\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n1.30\n<\/p>\n<\/td>\n
\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
\n
<\/b>CONDENSED CONSOLIDATED BALANCE SHEETS
\n
<\/b>(In thousands)
\n
<\/i><\/b>(Unaudited)<\/b><\/p>\n\n
\n \n \n \n January 31,<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n 2025<\/b><\/p>\n<\/td>\n
\n \n 2024<\/b><\/p>\n<\/td>\n<\/tr>\n
\n ASSETS<\/b><\/td>\n \n \n \n <\/tr>\n \n Current assets<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n108,802\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n98,818\n<\/p>\n<\/td>\n<\/tr>\n
\n Long-term assets<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n56,439\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n56,893\n<\/p>\n<\/td>\n<\/tr>\n
\n Total assets<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n165,241\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n155,711\n<\/p>\n<\/td>\n<\/tr>\n
\n LIABILITIES AND STOCKHOLDERS’ EQUITY<\/b><\/td>\n \n \n \n <\/tr>\n \n Current liabilities<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n54,063\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n57,742\n<\/p>\n<\/td>\n<\/tr>\n
\n Long-term liabilities<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n28,073\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n25,991\n<\/p>\n<\/td>\n<\/tr>\n
\n Total liabilities<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n82,136\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n83,733\n<\/p>\n<\/td>\n<\/tr>\n
\n Non-controlling interests<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n10,967\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n6,266\n<\/p>\n<\/td>\n<\/tr>\n
\n Stockholders’ equity<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n72,138\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n65,712\n<\/p>\n<\/td>\n<\/tr>\n
\n Total liabilities and stockholders’ equity<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n165,241\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n155,711\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n PERMA-PIPE INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
\n
<\/b>RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
\n
<\/b>ADJUSTED INCOME BEFORE TAX
\n
<\/b>(In thousands<\/i>)
\n
<\/b>(Unaudited)<\/b><\/p>\n\nThe following information contains a reconciliation of the non-GAAP financial measure of adjusted income before income tax and income before tax prepared in accordance with generally accepted accounting principles (“GAAP”) for the twelve months ended January 31, 2025, and 2024, respectively. This reconciliation is intended to provide investors with useful information in evaluating the Company’s performance. Adjusted income before tax includes certain adjustments as identified below. This measure is not considered an alternative to income before tax or other financial measures of performance that are prepared in accordance with GAAP. The Company believes that the exclusion of certain items from income before tax allows investors to more effectively evaluate the Company’s operating performance and identify trends that might not be apparent due to the variability and infrequent nature of these items. In addition, the Company believes this measure provides meaningful information to investors when comparing results between periods and performance with respect to the Company’s peers.\n<\/p>\n
\nAdjustments made for certain items are further described as follows: (i) one-time charge to terminate the Company’s pension plan; (ii) one-time charges relating to a litigation settlement that arose from regulatory compliance and projects executed between 2007 and 2011; (iii) one-time adjustment from the release of the Company’s liability for a past project; (iv) other non-recurring charges. As a result of these adjustments, some items that affect income before tax may not be comparable to similar measures of other companies.\n<\/p>\n
\nThe following table provides a reconciliation of the GAAP and non-GAAP financial measure:\n<\/p>\n
\n
\n \n \n For the twelve months ended<\/td>\n<\/tr>\n \n \n \n January 31, 2025<\/td>\n \n January 31, 2024<\/td>\n<\/tr>\n \n Income before income tax (GAAP as reported)<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n18,468\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n9,891\n<\/p>\n<\/td>\n<\/tr>\n
\n Pension plan termination<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n479\n<\/p>\n<\/td>\n<\/tr>\n
\n Litigation settlement<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n35\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n709\n<\/p>\n<\/td>\n<\/tr>\n
\n Other one-time charges<\/td>\n \n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n517\n<\/p>\n<\/td>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n<\/tr>\n
\n Adjusted income before tax<\/td>\n \n \n \n$\n<\/p>\n<\/td>\n
\n \n19,020\n<\/p>\n<\/td>\n
\n \n \n$\n<\/p>\n<\/td>\n
\n \n11,079\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\n\u00a0\n<\/p>\n
<\/p>\n
View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20250501029914\/en\/<\/a><\/span><\/p>\n
Perma-Pipe International Holdings, Inc.
\n<\/b>
David Mansfield, CEO
\n<\/b>
Perma-Pipe Investor Relations
\n<\/b>
(847) 929-1200
\n<\/b>
investor@permapipe.com<\/a><\/b><\/p>\nKEYWORDS:<\/b> United States North America Texas<\/p>\n
INDUSTRY KEYWORDS:<\/b> Engineering Chemicals\/Plastics Other Energy HVAC Oil\/Gas Manufacturing Energy<\/p>\n
- Income before income taxes of $5.3 million for the quarter and $18.5 million for the year<\/i><\/b><\/li>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20250501029914\/en\/761552\/3\/PP_LOGO_2.5_INCH_For_Docs.jpg\"){kind=logo}
<\/td>\n<\/tr>\n