Business
Perma-Pipe International Holdings, Inc. Announces its First Quarter Fiscal 2020 Financial Results
The Company generated net sales of $22.7 million for the first quarter Loss from operations before income taxes of $2.7 million in the first quarter Backlog
About this update from Perma-pipe International Holdings, Inc.
[{"type":"text","content":"\n\nThe Company generated net sales of $22.7 million for the first quarter\n\n\nLoss from operations before income taxes of $2.7 million in the first quarter \n\n\nBacklog stood at $43.1 million on April 30, 2020 compared to $46.7 million on January 31, 2020\n\n\n NILES, Ill.--(BUSINESS WIRE)--\nPerma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the first quarter ended April 30, 2020.\n\n\n“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.\n\n\n“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.\n\n\n“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.\n\n\n“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.\n\n\n“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.\n\n\nFirst Quarter Fiscal 2020 Results \n\n\nNet sales were $22.7 million in the current quarter, a decrease of $1.5 million, or ...