Perma-Pipe(US:PPIH) ZACKS·2024-09-12 18:56Core 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]