Perma-Pipe announces 2Q22 financial results

“These comparisons need to be considered in the context of the cyclical nature of our business. From a consolidated perspective, lower revenues vs the same quarter of 2021 were largely due to quarter to quarter variances in timing related to project schedules. Our backlog remains strong at US$58.0 million compared to US$39.3 million at 31 January 2022, much of which is scheduled to be executed in the second half of the year. Hence, we remain positive on our full year revenue outlook. Of note, our Canadian operations continue to benefit from a better than expected resurgence of the local oil and gas market, which we began to witness earlier in the year and expect to continue through the balance of the year and into 2023.

“On a year to date basis, revenues and gross profit marginally increased vs the prior year. However, current quarter performance reflects increased interest costs, due partly to the sale and lease-back of our operating facility in Lebanon, Tennessee in April 2021, and prior year quarter includes the benefit of government subsidies for COVID-19. Excluding these two items, year over year income from operations increased 7%.

“Finally, despite a reduction in pre-tax earnings in the quarter, tax expense has increased vs 2021 due to the differing incidence of taxation in the countries where we operate. This increases the effective tax rate to 62% for the current year-to-date and leads to a reduction in net income when compared to the prior year earnings,” concluded Mr. Mansfield.

Read the article online at: https://www.worldpipelines.com/business-news/08092022/perma-pipe-announces-2q22-financial-results/