Perma-Pipe International Holdings, Inc. Announces Fourth Quarter and Fiscal 2023 Financial Results
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The Company generated net sales of
$40.2 million for the quarter and$150.7 million for the year -
Income before income taxes of
$3.2 million for the quarter and$9.9 million for the year -
Net income of
$8.6 million for the quarter and$10.5 million for the year -
Backlog of
$68.4 million atJanuary 31, 2024 , compared to$38.5 million atJanuary 31,2023
"Net sales for the fourth quarter were
"Backlog has shown considerable growth and now stands at
"We continue to experience growth in business activity in various markets during the year, exemplified by the overall growth in net sales. This was driven by increases in infrastructure spending in
"We also continue to execute on our strategic initiatives, such as our plans to expand into
Fourth Quarter Fiscal 2023 Results
Net sales were
Gross profit was
General and administrative expenses were
Selling expenses remained consistent with the prior year expenses of
Interest expense remained consistent and was
Other expense was
The Company's worldwide effective tax rates ("ETR") were (204%) and 21% in the three months ended
Net income was
2023 Results
Net sales were
Gross profit was
General and administrative expenses were
Selling expenses were
Interest expense remained consistent and was
Other expense was
The Company's worldwide ETR's were (34%) and 38% in the years ended
Net income attributable to common stock was
Percentages set forth above in this press release have been rounded to the nearest percentage point, and may not correspond exactly to the comparative data presented.
Forward-Looking Statements
Certain statements and other information contained in this press release that can be identified by the use of forward-looking terminology constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby, including, without limitation, statements regarding the expected future performance and operations of the Company. These statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties include, but are not limited to, the following: (i) fluctuations in the price of oil and natural gas and its impact on customer order volume for the Company's products; (ii) the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; (iii) decreases in government spending on projects using the Company’s products, and challenges to the Company’s non-government customers’ liquidity and access to capital funds; (iv) the Company’s ability to repay its debt and renew expiring international credit facilities; (v) the Company’s ability to effectively execute its strategic plan and achieve sustained profitability and positive cash flows; (vi) the Company's ability to collect a long-term account receivable related to a project in the
The Company's fiscal year ends on
Perma-Pipe’s Form 10-Kfor the 2023 fiscal year ended
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(In thousands, except per share data) |
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(Unaudited) |
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Three Months Ended |
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Year Ended |
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2024 |
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2023 |
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|
2024 |
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|
2023 |
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Net sales |
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$ |
40,179 |
|
|
$ |
36,441 |
|
|
$ |
150,668 |
|
|
$ |
142,569 |
|
Gross profit |
|
|
12,035 |
|
|
|
10,236 |
|
|
|
41,458 |
|
|
|
38,301 |
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|
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|
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|
|
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Total operating expenses |
|
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7,482 |
|
|
|
7,115 |
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|
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28,099 |
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|
|
27,157 |
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|
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Income from operations |
|
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4,553 |
|
|
|
3,121 |
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|
|
13,359 |
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|
|
11,144 |
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|
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Interest expense, net |
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478 |
|
|
|
534 |
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|
|
2,266 |
|
|
|
2,119 |
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Other (expense)/income |
|
|
(852 |
) |
|
|
1,498 |
|
|
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(1,202 |
) |
|
|
533 |
|
Income before income taxes |
|
|
3,223 |
|
|
|
4,085 |
|
|
|
9,891 |
|
|
|
9,558 |
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
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Income tax (benefit)/expense |
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|
(6,578 |
) |
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|
851 |
|
|
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(3,320 |
) |
|
|
3,613 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income |
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$ |
9,801 |
|
|
$ |
3,234 |
|
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$ |
13,211 |
|
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$ |
5,945 |
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Less: Net income attributable to non-controlling interest |
|
|
1,163 |
|
|
|
- |
|
|
|
2,740 |
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|
- |
|
Net income attributable to common stock |
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$ |
8,638 |
|
|
$ |
3,234 |
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|
$ |
10,471 |
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$ |
5,945 |
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|
|
|
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|
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|
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Weighted average common shares outstanding |
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|
|
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|
|
|
|
|
|
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Basic |
|
|
7,920 |
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|
|
8,004 |
|
|
|
7,977 |
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|
|
7,976 |
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Diluted |
|
|
7,986 |
|
|
|
8,214 |
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|
|
8,073 |
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|
|
8,116 |
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Earnings per share |
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|
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|
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|
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|
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Basic |
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$ |
1.09 |
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|
$ |
0.40 |
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$ |
1.31 |
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$ |
0.75 |
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Diluted |
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$ |
1.08 |
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$ |
0.39 |
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$ |
1.30 |
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|
$ |
0.73 |
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Note: Earnings per share calculations could be impacted by rounding. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(In thousands) |
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(Unaudited) |
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2024 |
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2023 |
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ASSETS |
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Current assets |
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$ |
98,818 |
|
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$ |
85,658 |
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Long-term assets |
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|
56,893 |
|
|
|
37,308 |
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Total assets |
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$ |
155,711 |
|
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$ |
122,966 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities |
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$ |
57,742 |
|
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$ |
43,790 |
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Long-term liabilities |
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|
25,991 |
|
|
|
21,392 |
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Total liabilities |
|
|
83,733 |
|
|
|
65,182 |
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Non-controlling interests |
|
|
6,266 |
|
|
|
- |
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Stockholders' equity |
|
|
65,712 |
|
|
|
57,784 |
|
Total liabilities and stockholders' equity |
|
$ |
155,711 |
|
|
$ |
122,966 |
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
ADJUSTED INCOME BEFORE TAX
(In thousands)
(Unaudited)
The following information contains a reconciliation of the non-GAAP financial measure of adjusted income before income tax and income before tax prepared in accordance with generally accepted accounting principles ("GAAP") for the twelve months ended
Adjustments made for certain items are further described as follows: (i) one-time charge to terminate the Company's pension plan; (ii) one-time charge relating to a litigation settlement that arose from projects executed between 2007 and 2011; (iii) one-time adjustment from the release of the Company's liability for a past project. As a result of these adjustments, some items that affect income before tax, may not be comparable to similar measures of other companies.
The following table provides a reconciliation of the GAAP and non-GAAP financial measure:
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For the twelve months ended |
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Income before income tax (GAAP as reported) |
|
$ |
9,891 |
|
|
$ |
9,558 |
|
Pension plan termination |
|
|
479 |
|
|
|
1,133 |
|
Litigation settlement |
|
|
709 |
|
|
|
74 |
|
Project release adjustment |
|
|
- |
|
|
|
(930 |
) |
Adjusted income before tax |
|
$ |
11,079 |
|
|
$ |
9,835 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240426849864/en/
Perma-Pipe Investor Relations
(847) 929-1200
investor@permapipe.com
Source: