Core Insights - Perma-Pipe International Holdings, Inc. (PPIH) shares have increased by 13% since the earnings report for the quarter ended October 31, 2024, outperforming the S&P 500 index, which grew by 1.1% during the same period [1] Financial Performance - Net sales for the quarter were $41.6 million, a decrease of 9% from $45.7 million in the same quarter last year, attributed to the timing of project execution [2] - Net income attributable to common stockholders rose to $2.5 million, up from $1.9 million in the prior year [3] - Earnings per share for the third quarter of fiscal 2024 were reported at 31 cents, compared to 24 cents in the previous year [7] Cost Management and Expenses - General and administrative expenses increased by 28% year over year to $7.3 million due to higher payroll and professional fees, while selling expenses decreased by 20% to $1.2 million, reflecting lower payroll costs [4] - Net interest expense remained stable, and other expenses fell by $0.4 million due to favorable foreign currency exchange rates [4] Strategic Outlook - CEO David Mansfield emphasized the robust growth in backlog, which stood at $114.2 million as of October 31, 2024, significantly up from $68.5 million as of January 31, 2024, indicating strong future revenue potential [5][10] - The backlog level is the highest since the company transitioned to Perma-Pipe from MFRI in 2017, equating to approximately nine months of revenue based on historical figures [10] Operational Efficiency - The company's results benefited from a favorable product mix, which improved gross margins to 34% from 29%, despite a decline in sales [6][8] - Increased activity in the Middle East and operational efficiencies contributed to improved financial performance, with the company effectively managing costs [6]

Sales Performance - The Company generated net sales of $41.6 million for the quarter, a decrease of $4.1 million, or 9%, compared to the same quarter last year[20] - Year-to-date net sales reached $113.4 million, representing an increase of $2.9 million, or 3%, compared to the same period last year[24] Net Income - Net income attributable to common stock for the quarter was $2.5 million, an increase of $0.6 million, or 29%, compared to $1.9 million in the third quarter of 2023[5] - Year-to-date net income attributable to common stock was $7.2 million, an increase of $5.4 million, or 294%, compared to $1.8 million in the same period last year[13] Gross Profit - Gross profit for the quarter was $14.1 million, or 34% of net sales, compared to $13.2 million, or 29% of net sales, in the same quarter last year[7] Backlog - The backlog as of October 31, 2024, was $114.2 million, compared to $68.5 million at January 31, 2024, indicating significant growth[1] Expenses - Selling expenses decreased to $1.2 million for the quarter, down from $1.5 million in the same quarter last year, due to lower payroll expenses[3] - General and administrative expenses for the quarter increased to $7.3 million, up from $5.7 million in the same quarter last year, primarily due to higher payroll expenses and professional fees[21] Tax Rate - The Company's effective tax rate (ETR) was 32% for the quarter, compared to 31% in the same quarter last year, reflecting changes in tax benefits recognition[9] Total Assets - Total assets increased to $160.7 million as of October 31, 2024, from $155.7 million at January 31, 2024[17]

Core Insights - Perma-Pipe International Holdings, Inc. (PPIH) reported a significant improvement in financial performance for Q2 2024, with net income of $3.3 million and earnings per share of 40 cents, compared to $1 million and 13 cents per share in Q2 2023 [1][3] Financial Performance - Revenue for the quarter reached $37.5 million, a 7% increase from $35.1 million in the same period last year, driven by increased demand in the MENA region [2][3] - Gross profit was $13.5 million, representing 36% of net sales, up from $9.5 million or 27% of net sales year-over-year, attributed to higher sales volumes and improved margins [4] - General and administrative expenses rose slightly to $6 million from $5.3 million, while selling expenses remained stable at approximately $1.4 million, indicating effective expense management [5] Backlog and Future Growth - The backlog increased to $75.5 million as of July 31, 2024, up from $68.5 million as of January 31, 2024, reflecting sustained demand and future revenue potential [6] - PPIH secured two major project awards in the MENA region during Q2 2024, valued at over $46 million, positioning the company for continued growth in the latter half of fiscal 2024 [9] Balance Sheet Position - As of July 31, 2024, PPIH had $9.5 million in cash and cash equivalents, an increase from $5.8 million as of January 31, 2024, with total assets rising to $159.2 million from $155.7 million [7] - Current liabilities decreased slightly to $56.5 million from $57.7 million, while total stockholders' equity increased to $68.6 million from $65.7 million [7] Cash Flow - Net cash generated from operations for the six months ended July 31, 2024, was $3.8 million, up from $3.5 million in the prior-year comparable period [8]

Financial Performance - Revenues for Q1 2024 were $34.3 million, an increase of $4.6 million or 15% compared to Q1 2023[2] - Net income attributable to common stock was $1.4 million, an increase of $2.5 million or 227% compared to a net loss of $(1.1) million in Q1 2023[2] - Gross profit for Q1 2024 was $10.5 million, or 31% of net sales, compared to $6.8 million, or 23% of net sales in Q1 2023[8] - Income (loss) before income taxes was $2.6 million in Q1 2024 compared to a loss of $(0.4) million in Q1 2023[6] - The effective tax rate for Q1 2024 was 30%, a significant improvement from (208%) in Q1 2023[11] - Earnings per share attributable to common stock for Q1 2024 were $0.18, compared to $(0.14) in Q1 2023[17] Backlog and Assets - Backlog as of April 30, 2024, was $63.1 million, a decrease of $5.3 million from $68.4 million at January 31, 2024, but an increase of $3.7 million compared to Q1 2023[3] - Total assets as of April 30, 2024, were $157.2 million, compared to $155.7 million at January 31, 2024[19] Expenses - General and administrative expenses increased by $0.6 million or 11% to $6.1 million in Q1 2024 due to higher professional service fees[8] Expansion Plans - The company plans to expand into Qatar during the fiscal year and participate in significant development plans in the MENA region[5]

Financial Performance - Net sales for the three months ended April 30, 2024, increased to $34,321,000, up 15% from $29,657,000 in the same period of 2023[8] - Gross profit rose to $10,517,000, representing a 55% increase compared to $6,774,000 in the prior year[8] - Net income attributable to common stock was $1,443,000, a significant recovery from a net loss of $1,123,000 in the same quarter of 2023[8] - Earnings per share attributable to common stock improved to $0.18, compared to a loss of $0.14 per share in the previous year[8] - For the three months ended April 30, 2024, total revenue was $34.321 million, a 15% increase from $29.657 million in the same period of 2023[33] - Net income attributable to common stock increased to $1.4 million in Q2 2024 from a loss of $(1.1) million in Q2 2023, representing a $2.5 million improvement due to increased sales activity and better project execution[124] Assets and Liabilities - Total current assets as of April 30, 2024, were $98,991,000, slightly up from $98,818,000 at January 31, 2024[13] - Total assets reached $157,163,000, compared to $155,711,000 at the end of January 2024[13] - As of April 30, 2024, total debt increased to $27.3 million from $25.7 million on January 31, 2024[62] - The Company had total operating lease liabilities of $6.9 million and operating ROU assets of $6.2 million as of April 30, 2024[90] - The current portion of the finance obligation related to the leaseback of the sold property is $0.2 million, with a long-term portion of $9.0 million recognized on the balance sheet as of April 30, 2024[150] Cash Flow - Net cash provided by operating activities was $1,350,000, down from $3,811,000 in the prior year[19] - Cash and cash equivalents increased to $7,674,000 from $5,845,000 at the end of January 2024[13] - Net cash from operating activities decreased to $1.4 million in Q2 2024 from $3.8 million in Q2 2023, a decline of $2.5 million primarily due to increases in prepaid expenses and inventory[127] - Net cash from investing activities was $2.0 million in Q2 2024, down from $3.2 million in Q2 2023, reflecting fewer investments in the U.S. and Canada[128] Taxation - The worldwide effective tax rate for the three months ended April 30, 2024, was 30%, a significant change from (208%) in the same period of 2023[48] - The effective tax rate improved to 30% in Q2 2024 from (208%) in Q2 2023, attributed to changes in the mix of income and loss across jurisdictions[122] Customer and Revenue Concentration - As of April 30, 2024, one customer accounted for 11% of the company's accounts receivable, highlighting customer concentration risk[29] - The company recorded $15.7 million in unbilled accounts receivable as of April 30, 2024, indicating strong revenue generation from ongoing contracts[42] Expenses - General and administrative expenses increased by $0.6 million, or 11%, to $6.1 million for the three months ended April 30, 2024, attributed to higher professional service fees[118] - Interest expense remained stable at $0.5 million for both the three months ended April 30, 2024, and 2023[120] Credit Arrangements - The Company had borrowed an aggregate of $5.3 million under the Renewed Senior Credit Facility at a rate of 10.0% as of April 30, 2024[69] - The Company has a revolving line of credit in the U.A.E. for 8.0 million Dirhams (approximately $2.2 million) with an interest rate of approximately 8.8%[73] - The Company has a second revolving line of credit in the U.A.E. for 20.5 million Dirhams (approximately $5.6 million) with an interest rate of approximately 8.7%[74] - The Company had $5.0 million of borrowing capacity under the Renewed Senior Credit Facility and $13.0 million under foreign revolving credit agreements as of April 30, 2024[126] - The Company had unused borrowing availability of approximately $1.9 million under its U.A.E. credit arrangements as of April 30, 2024[141] Internal Controls - The Company reported material weaknesses in internal control over financial reporting, particularly in IT general controls and financial reporting processes[157] - A remediation plan is being implemented to address identified weaknesses, including engaging outside consultants and enhancing internal controls[159] - The Company anticipates improvements in controls will strengthen processes and address material weaknesses, but full remediation will take time[161]

Texas-based PERMA-PIPE, a leader in pre-insulated piping and coatings, is set to leverage major global and regional trends. Accepted into Qatar's Tawteen program, the company stands to benefit from QatarEnergy's aggressive LNG capacity expansion. This initiative, part of Qatar's National Vision 2030, aims to boost annual LNG production from 77 million mtpa to 126 million mtpa by 2026, necessitating extensive infrastructure development. As a pivotal player in this expansion, PERMA-PIPE's involvement in const ...

Exhibit 99.1 COMPANY: Perma-Pipe International Holdings, Inc. CONTACT: David Mansfield, President and CEO Perma-Pipe Investor Relations (847) 929-1200 investor@permapipe.com Perma-Pipe International Holdings, Inc. Announces Fourth Quarter and Fiscal 2023 Financial Results SPRING, TX, April 26, 2024 - Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the fourth quarter and 2023 fiscal year ended January 31, 2024. "Net sales for the fourth quarter were $40.2 million, ...

PART I [Cautionary Statements Regarding Forward Looking Information](index=5&type=section&id=Cautionary%20Statements%20Regarding%20Forward%20Looking%20Information) This section disclaims forward-looking statements, highlighting that actual results may differ due to various outlined risks - Forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from projections[12](index=12&type=chunk) - Key risk categories include market conditions, financial stability, business operations, and general factors such as cybersecurity threats[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) [Item 1. BUSINESS](index=6&type=section&id=Item%201.%20BUSINESS) PPIH manufactures and sells specialty piping and leak detection systems globally, with a significant **FY2024 backlog increase** from new awards - PPIH engineers, designs, manufactures, and sells specialty piping systems (insulated, containment, coating for oil/gas, anti-corrosion) and leak detection systems[17](index=17&type=chunk) Backlog Comparison (as of January 31) | Year | Backlog (Millions USD) | | :--- | :--------------------- | | 2024 | $68.4 | | 2023 | $38.5 | - The increase in backlog was primarily due to new awards exceeding completed projects in North America and the Middle East[23](index=23&type=chunk) - No single customer accounted for greater than **10% of consolidated net sales or accounts receivable** in fiscal years 2024 and 2023, indicating a diverse customer base[21](index=21&type=chunk)[22](index=22&type=chunk) - The company faces challenges from inflationary environments, raw material shortages, and transportation delays, mitigating these through alternative suppliers, advance purchasing, and price adjustments[27](index=27&type=chunk) [Products and Services](index=6&type=section&id=PRODUCTS%20AND%20SERVICES) [Employees](index=8&type=section&id=EMPLOYEES) [Information about our Executive Officers](index=9&type=section&id=INFORMATION%20ABOUT%20OUR%20EXECUTIVE%20OFFICERS) [Available Information](index=9&type=section&id=AVAILABLE%20INFORMATION) [Item 1A. RISK FACTORS](index=10&type=section&id=Item%201A.%20RISK%20FACTORS) This section details various market, financial, business, and general risks that could materially impact PPIH's operations - Market condition risks include significant impacts from changes in oil and gas prices, inability to purchase raw materials at favorable prices, and decreases in government spending[38](index=38&type=chunk)[39](index=39&type=chunk)[42](index=42&type=chunk) - Financial risks involve potential non-compliance with debt covenants, challenges in renewing international credit facilities, and the risk of not collecting a **$2.2 million** long-term account receivable from a Middle East project[44](index=44&type=chunk)[47](index=47&type=chunk) - Business condition risks highlight potential negative impacts from delays in order execution, aggressive competition, claims for defective products, and the complexities of international operations, where foreign sales constituted **65.6% of total sales in FY2024**[55](index=55&type=chunk)[57](index=57&type=chunk)[61](index=61&type=chunk) - General risks include the inability to retain senior management and key personnel, challenges in achieving expected benefits from growth initiatives, and the potential for cybersecurity threats to disrupt operations[64](index=64&type=chunk)[65](index=65&type=chunk)[67](index=67&type=chunk) [Item 1B. UNRESOLVED STAFF COMMENTS](index=16&type=section&id=Item%201B.%20UNRESOLVED%20STAFF%20COMMENTS) No unresolved staff comments are reported - No unresolved staff comments were reported[68](index=68&type=chunk) [Item 1C. CYBERSECURITY](index=16&type=section&id=Item%201C.%20CYBERSECURITY) PPIH employs a comprehensive cybersecurity program, overseen by the Audit Committee, with no material events reported - The company's cybersecurity program utilizes technological safeguards, third-party providers for network monitoring and control testing, and maintains an incident response plan[68](index=68&type=chunk)[69](index=69&type=chunk)[71](index=71&type=chunk) - The Audit Committee of the Board of Directors is responsible for overseeing cybersecurity risks, receiving periodic updates from the Director of Information Technology[72](index=72&type=chunk)[74](index=74&type=chunk) - As of the report date, the Company has not experienced any material cybersecurity events[72](index=72&type=chunk) [Item 2. PROPERTIES](index=17&type=section&id=Item%202.%20PROPERTIES) PPIH operates from various owned and leased facilities across the United States, Canada, India, and the Middle East Operating Facilities by Location | Location | Leased and/or Owned | | :------------------------ | :---------------------------------------------------- | | Illinois | Leased building and office space | | Louisiana | Owned building and leased land | | Tennessee | Leased building, office space, and land | | Texas | Leased office space | | Camrose, Alberta, Canada | Owned building with office space on owned land; leased land and leased office space | | Vars, Ontario, Canada | Leased building, office space, and land | | India | Leased building, office space, and land | | Dammam, Kingdom of Saudi Arabia | Owned building and office space on leased land | | Riyadh, Kingdom of Saudi Arabia | Leased building and office space | | United Arab Emirates | Leased office space and building on leased land; owned building with office space on leased land | | Egypt | Leased building and office space on leased land | [Item 3. LEGAL PROCEEDINGS](index=17&type=section&id=Item%203.%20LEGAL%20PROCEEDINGS) PPIH is involved in ordinary course legal proceedings; a 2018 customer dispute was resolved post-FY2024 for **$0.8 million** - The Company accrues liabilities for legal matters when probable and estimable[78](index=78&type=chunk) - A 2018 legal proceeding with a customer was resolved post-January 31, 2024, with an **$0.8 million** settlement expense recognized in the fiscal year ended January 31, 2024[78](index=78&type=chunk)[310](index=310&type=chunk) [Item 4. MINE SAFETY DISCLOSURES](index=17&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the Company - Mine Safety Disclosures are not applicable to Perma-Pipe International Holdings, Inc[78](index=78&type=chunk) PART II [Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](index=18&type=section&id=Item%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) PPIH common stock trades on Nasdaq, has never paid dividends, and completed a **$3.0 million** share repurchase in FY2024 - Common stock is traded on the Nasdaq Global Market under the symbol 'PPIH'[80](index=80&type=chunk) - The Company has never declared or paid a cash dividend and does not anticipate paying any in the foreseeable future, prioritizing funds for business development, working capital, and stock repurchases[81](index=81&type=chunk) - The Company completed its **$3.0 million** share repurchase program during the 12 months ended January 31, 2024, utilizing the remaining **$1.0 million** authorized[84](index=84&type=chunk)[299](index=299&type=chunk) Issuer Purchases of Equity Securities (2022-2023) | Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | | :----------------------------------- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------------------- | | January 1, 2022 - January 31, 2022 | 98 | $8.81 | 98 | | July 1, 2022 - July 31, 2022 | 5 | $8.85 | 5 | | December 1, 2022 - December 31, 2022 | 3 | $8.61 | 3 | | July 1, 2023 - July 31, 2023 | 37 | $8.51 | 37 | | August 1, 2023 - August 31, 2023 | 62 | $8.67 | 62 | | September 1, 2023 - September 30, 2023 | 10 | $8.95 | 10 | | **Total** | **215** | | **215** | [Item 6. [RESERVED]](index=19&type=section&id=Item%206.%20%5BRESERVED%5D) This item is reserved and contains no information [Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=19&type=section&id=Item%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) PPIH's MD&A reviews FY2024 financial performance, noting increased net sales and income, stable liquidity, and critical accounting policies [Results of Operations](index=20&type=section&id=Results%20

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File No. 001-32530 Perma-Pipe International Holdings, Inc. (Exact name of registrant as specified in its charter) Delawa ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File No. 001-32530 Perma-Pipe International Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware ...