Business
Perma-Pipe International Holdings, Inc. Announces its Second Quarter and Year-to-Date Financial Results
• The Company generated net sales of $36.7 million for the second quarter, a 13.4% improvement over the prior year quarter, and net sales of $60.9 million
About this update from Perma-pipe International Holdings, Inc.
[{"type":"text","content":"\n• The Company generated net sales of $36.7 million for the second quarter, a 13.4% improvement over the prior year quarter, and net sales of $60.9 million year-to-date \n\n\n• Income from operations before income taxes of $3.5 million in the second quarter and $2.3 million year-to-date \n\n\n• Backlog stood at $63.9 million on July 31, 2019 compared to $63.2 million on April 31, 2019.\n\n NILES, Ill.--(BUSINESS WIRE)--\nPerma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the second quarter and six months ended July 31, 2019.\n\n\nPresident and CEO David Mansfield commented, \"The second quarter rebounded from the seasonally weak first quarter. Revenue was $12.4 million better than the first quarter of 2019 and income from operations before income taxes improved $4.7 million to $3.5 million.\"\n\n\n\"Despite flat revenues for the first six months of 2019 compared to the same period last year, notable improvements in our margins led to an increase of $3.1 million in income from operations before income taxes, from a loss of $0.8 million last year to $2.3 million for the year to date.\"\n\n\n\"Our backlog stands at $63.9 million, continuing at the strong levels previously achieved at the end of the same period in the prior year\", continued Mr. Mansfield.\n\n\n“It is encouraging to see the improving trend continuing to confirm our progress in returning the company to profitability” concluded Mr. Mansfield.\n\n\nSecond Quarter Fiscal 2019 Results \n\n\nNet sales increased $4.3 million to $36.7 million in the current quarter, from $32.3 million in the prior year quarter. Higher revenues resulted from our North American region for both traditional insulation and leak detection products partially offset by lower revenue in the Middle East.\n\n\nGross profit increased to $9.7 million or 26.3% of net sales in the current quarter from $5.9 million, or 18.2% of net sales, in the prior year quarter. This 64% 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.\n\n\nGeneral and administrative expenses increased to $4.6 million in the current quarter, compared to $3.9 million in the prior year quarter. This was due primarily to ...