Perma-Pipe International Holdings, Inc. Files 2024 10-K

TL;DR

<b>Perma-Pipe International Holdings, Inc. filed its 2024 10-K, reporting on its fiscal year ending January 31, 2024, with total assets of $62,926.</b>

AI Summary

Perma-Pipe International Holdings, Inc. (PPIH) filed a Annual Report (10-K) with the SEC on April 26, 2024. The company's fiscal year ended January 31, 2024. Total assets reported were $62,926. The filing mentions the release of valuation allowances related to deferred tax assets. Uncollectible accounts were written off. Domestic loss from continuing operations before income taxes includes corporate overhead costs.

Why It Matters

For investors and stakeholders tracking Perma-Pipe International Holdings, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Perma-Pipe's financial performance and position for the fiscal year 2024, crucial for investors to assess the company's health and future prospects. Key disclosures regarding deferred tax assets and uncollectible accounts offer insights into the company's financial management and potential risks.

Risk Assessment

Risk Level: medium — Perma-Pipe International Holdings, Inc. shows moderate risk based on this filing. The filing details specific financial items like deferred tax asset valuation allowances and uncollectible accounts, indicating potential areas of financial sensitivity or management adjustments.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand the company's operational performance and financial health.

Key Numbers

• 2024-01-31 — Fiscal Year End (The end date of the reporting fiscal year.)
• $62,926 — Total Assets (Reported total assets for the fiscal year.)

Key Players & Entities

• Perma-Pipe International Holdings, Inc. (company) — Filer name
• 2024 (date) — Fiscal year
• 2024-01-31 (date) — Fiscal year end
• $62,926 (dollar_amount) — Total assets

FAQ

Risk Factors

• Valuation Allowances and Uncollectible Accounts [medium — financial]: The company discusses the release of valuation allowances related to deferred tax assets and the write-off of uncollectible accounts.

Industry Context

Perma-Pipe International Holdings, Inc. operates in the industrial and commercial fans, blowers, and air purifying equipment sector. This 10-K provides insights into its financial standing within this industry.

Regulatory Implications

The filing is a standard 10-K report under the Securities Exchange Act of 1934, requiring public companies to disclose detailed financial and operational information.

What Investors Should Do

1. Analyze the detailed financial statements for revenue, net income, and cash flow.
2. Review the risk factors section for potential operational and financial challenges.
3. Assess the impact of deferred tax asset valuation allowance changes on the company's financial position.

Key Dates

• 2024-01-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-04-26: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

Deferred Tax Assets

Assets that result from temporary differences between the tax bases of assets and liabilities and their reported amounts in financial statements. (The release or establishment of valuation allowances against these assets can significantly impact reported income.)

Valuation Allowance

A contra-asset account used to reduce the carrying value of deferred tax assets to the amount that is more likely than not to be realized. (Changes in valuation allowances indicate management's assessment of future profitability and tax positions.)

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available.

Key Financial Figures

• $68.4 m — mpany's backlog on January 31, 2024 was $68.4 million, compared to $38.5 million on Jan
• $38.5 million — 31, 2024 was $68.4 million, compared to $38.5 million on January 31, 2023 , most of which is
• $100 million — he company grew from annual revenues of $100 million to over $900 million . He is a Fellow m
• $900 million — annual revenues of $100 million to over $900 million . He is a Fellow member of the Associat

Filing Documents

• ppih20240131_10k.htm (10-K) — 1663KB
• ex_601601.htm (EX-21) — 7KB
• ex_601602.htm (EX-23) — 3KB
• ex_601603.htm (EX-24) — 7KB
• ex_601604.htm (EX-31.1) — 11KB
• ex_601605.htm (EX-31.2) — 12KB
• ex_601606.htm (EX-32) — 7KB
• ex_644913.htm (EX-97) — 45KB
• logo10q.jpg (GRAPHIC) — 7KB
• 0001437749-24-013321.txt (&nbsp;) — 9921KB
• ppih-20240131.xsd (EX-101.SCH) — 76KB
• ppih-20240131_cal.xml (EX-101.CAL) — 92KB
• ppih-20240131_def.xml (EX-101.DEF) — 570KB
• ppih-20240131_lab.xml (EX-101.LAB) — 541KB
• ppih-20240131_pre.xml (EX-101.PRE) — 620KB
• ppih20240131_10k_htm.xml (XML) — 1730KB

Business

Business 2 Products and Services 2 Employees 3 Information about our Executive Officers 4 Available information 4 1A.

Risk Factors

Risk Factors 5 1B. Unresolved Staff Comments 9 1C. Cybersecurity 9 2.

Legal Proceedings

Legal Proceedings 9 4. Mine Safety Disclosures 9 Part II 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 10 6. [Reserved] 11 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 11 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 18 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 18 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 18 9A.

Controls and Procedures

Controls and Procedures 19 9B. Other Information 19 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 19 Part III 10. Directors, Executive Officers and Corporate Governance 20 11.

Executive Compensation

Executive Compensation 20 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 20 13. Certain Relationships and Related Transactions, and Director Independence 20 14. Principal Accounting Fees and Services 20 Part IV 15. Exhibits and Financial Statement Schedules 20 Report of Independent Registered Public Accounting Firm (PCAOB Auditor ID Number 248) 21 16. Form 10-K Summary 53

Signatures

Signatures 54 Table of Contents PART I Cautionary Statements Regarding Forward Looking Information Certain statements contained in this Annual Report on Form 10-K, which can be identified by the use of forward-looking terminology such as "may," "will," "expect," "continue," "remains," "intend," "aim," "should," "prospects," "could," "future," "potential," "believes," "plans," "likely," and "probable," or the negative thereof or other variations thereon or comparable 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 ("Exchange Act"), and are subject to the safe harbors created thereby. 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 could cause actual results to differ materially from those projected as a result of many factors, including, but not limited to, the following: Market Condition Risks fluctuations in the price of oil and natural gas and its impact on customer order volume for the Company's products; the Company's ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers; decreases in government spending on projects using the Company's products, and challenges to the Company's customers' liquidity and access to capital funds; Financial Risks the Company's ability to repay its debt and renew expiring international credit facilities; the Company's ability to effectively execute its strategic plan and achieve sustained profitability and positive cash flows; the Company's ability to collect a long-term account receivable related to a project in the Middle East; the Company's ability to interpret and adapt to changes in tax regulations and legislation; the Company's ability to use its net operating loss

BUSINESS

Item 1. BUSINESS Perma-Pipe International Holdings, Inc., collectively with its subsidiaries ("PPIH", the "Company" or the "Registrant"), is engaged in the manufacture and sale of products in one reportable segment: Piping Systems. The Company was incorporated in Delaware on October 12, 1993. The Company's common stock is traded on the Nasdaq Global Market and reported under the ticker symbol "PPIH". The Company's fiscal year ends on January 31. Years, results and balances described as 2024 , 2023 and 2022 are for the fiscal year ending January 31, 2025 and the fiscal years ended January 31, 2024 and 2023 , respectively. PRODUCTS AND SERVICES The Company engineers, designs, manufactures and sells specialty piping systems and leak detection systems. Specialty piping systems include: (i) insulated and jacketed district heating and cooling piping systems for efficient energy distribution from central energy plants to multiple locations, (ii) primary and secondary containment piping systems for transporting chemicals, hazardous fluids and petroleum products, (iii) the coating and/or insulation of oil and gas gathering and transmission pipelines, and (iv) liquid and powder based anti-corrosion coatings applied both to the external and internal surfaces of steel pipe, including shapes such as bends, reducers, tees, and other spools/fittings used in pipelines for the transportation of oil and gas products and potable water. The Company's leak detection systems are sold with its piping systems or on a stand-alone basis to monitor areas where fluid intrusion may contaminate the environment, endanger personal safety, cause a fire hazard, impair essential services or damage equipment or property. The Company frequently engineers and custom fabricates to job site dimensions and incorporates provisions for thermal expansion due to cycling temperatures. Most of the Company's piping systems are produced for underground installations and, therefore, require trenching, which

RISK FACTORS

Item 1A. RISK FACTORS The Company's business, financial condition, results of operations and cash flows are subject to various risks, including, but not limited to, those set forth below, which could cause actual results to vary materially from recent results or from anticipated future results. These risk factors should be considered together with information included elsewhere in this Annual Report on Form 10-K. Market Condition Risks The Company's operations and earnings may be significantly affected by changes in oil and gas prices . Oil and gas prices depend on local, regional, and global events or conditions that affect supply and demand. Any material decline in oil or gas prices could have a material adverse effect on the demand for the Company's products, its operations and financial condition. The Company may be unable to purchase raw materials at favorable prices, or maintain beneficial relationships with its suppliers, which could result in a shortage of supply, or increased pricing . There can be no assurance regarding the availability of supply for key components of the Company's products. The lack of supply of these components could result in an adverse effect on the financial condition of the Company. The steel industry in particular is highly cyclical in nature, and at times, pricing can be highly volatile due to a number of factors beyond the Company's control. The Company utilizes escalation clauses and bid expiration dates to mitigate the impact of this volatility on its earnings. This volatility may negatively impact market conditions thus reducing project activity and the Company's results of operations. If the United States or other countries in which the Company operates impose tariffs on imports of raw materials, including steel, used in the Company's operations, could have an adverse impact on the business. The Company regularly updates its quoting system for the movements in raw material prices and seeks to recover price different

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View this 10-K filing on SEC EDGAR