Business
Perma-Pipe International Holdings, Inc. Announces its Second Quarter and Year-to-Date Fiscal 2020 Financial Results
The Company generated net sales of $20.4 million for the second quarter Net income was $0.3 million in the second quarter Backlog stood at $41.3 million on
About this update from Perma-pipe International Holdings, Inc.
[{"type":"text","content":"\n\nThe Company generated net sales of $20.4 million for the second quarter\n\n\nNet income was $0.3 million in the second quarter \n\n\nBacklog stood at $41.3 million on July 31, 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 second quarter ended July 31, 2020.\n\n\n“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.\n\n\n“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.\n\n\n“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.\n\n\n“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.\n\n\n“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.\n\n\n“Our backlog currently stands at $41.3 million, which reflects a decline of...