Business
Perma-Pipe International Holdings, Inc. Announces Fourth Quarter and Fiscal 2019 Financial Results
Net sales of $32.3 million for the quarter and $127.7 million for the 2019 fiscal year ended January 31, 2020 Income from operations before income tax at
About this update from Perma-pipe International Holdings, Inc.
[{"type":"text","content":"\n\nNet sales of $32.3 million for the quarter and $127.7 million for the 2019 fiscal year ended January 31, 2020\n\n\nIncome from operations before income tax at $5.0 million in fiscal 2019 compared to $1.6 million in fiscal 2018 \n\n\nBacklog was $46.8 million as of January 31, 2020 and $61.0 million as of January 31, 2019 \n\n\n NILES, Ill.--(BUSINESS WIRE)--\nPerma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the fourth quarter and 2019 fiscal year ended January 31, 2020.\n\n\n“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.\n\n\n“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.\n\n\n“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.\n\n\nFourth Quarter Fiscal 2019 Results\n\n\nNet 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.\n\n\nGross 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.\n\n\nGeneral 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 imp...