Perma-Pipe reports $1.7 million sales increase

NILES - Perma-Pipe International Holdings Inc. announced its financial results for the first quarter ended April 30, including net sales of $24.4 million, an increase of $1.7 million, or 7%, from $22.7 million in the prior year quarter.

"For the early part of our first quarter, our results continued to reflect the adverse business conditions arising as a result of the COVID-19 pandemic. In the latter half though, some of the restrictions began to ease and we were able to commence previously delayed projects," said President and CEO David Mansfield.

Gross profit increased to $4.5 million, or 18% of net sales, in the current quarter from $3.5 million, or 15% of net sales, in the prior year quarter. This increase was driven by higher sales volumes and the impact of cost reduction strategies implemented in 2020, the company said.

"Our backlog currently stands at $58.9 million, which reflects an increase of $6.3 million from the backlog at Jan. 31. Since these increases arise in the majority of our business units, it provides further confidence that we are entering a period of general recovery in conditions," Mansfield said.

Perma-Pipe makes pre-insulated piping and leak detection systems for oil and gas gathering, district heating and cooling, and other applications.