Business
Perma-Pipe International Holdings, Inc. Announces its Third Quarter and Year-to-Date Financial Results
The Company generated net sales of $34.5 million for the third quarter, a 5% improvement over the prior year quarter, and net sales of $95.4 million
About this update from Perma-pipe International Holdings, Inc.
[{"type":"text","content":"\n\nThe Company generated net sales of $34.5 million for the third quarter, a 5% improvement over the prior year quarter, and net sales of $95.4 million year-to-date \n\n\nIncome from operations before income taxes of $1.6 million in the third quarter and $3.8 million year-to-date \n\n\nBacklog stood at $52.7 million on October 31, 2019 compared to $63.9 million on July 31, 2019.\n\n\n NILES, Ill.--(BUSINESS WIRE)--\nPerma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the third quarter and nine months ended October 31, 2019.\n\n\n“Revenue for the third quarter was $34.5 million, $1.7 million above the same quarter last year, and income from operations before income taxes was $1.6 million compared to $0.8 million in the same quarter of 2018,” commented President and CEO David Mansfield.\n\n\n\"For the first nine months of 2019 revenue was $95.4 million compared to $94.0 million for the same period last year. While our revenues are very similar to last year, continued improvements in margins have provided income from operations of $3.8 million, which is an improvement from the breakeven level achieved during the same period last year.\"\n\n\n\"Our backlog stands at $52.7 million, after some previously delayed projects were executed during the quarter,\" continued Mr. Mansfield.\n\n\n“We also experienced what we anticipate was as temporary weakness in our Canadian operating results. In response, we have reduced our cost structure to a more appropriate level while we endure these lower levels of activity,” concluded Mr. Mansfield.\n\n\nThird Quarter Fiscal 2019 Results \n\n\nNet sales increased $1.7 million to $34.5 million in the current quarter, from $32.8 million in the prior year quarter. Higher revenues resulted from our Middle East region partially offset by lower revenue in North America, primarily driven by a temporary weakness in our Canadian operations.\n\n\nGross profit increased to $7.6 million, or 22% of net sales, in the current quarter from $6.9 million, or 21% of net sales, in the prior year quarter. This 11% 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 inc...