Perma-Fix Environmental Services, Inc. (NASDAQ:
PESI) (the “Company”) today announced financial results
and provided a business update for the first quarter ended March
31, 2023.
Mark Duff, President and Chief Executive Officer
(CEO) of the Company, commented, “I am pleased to report we
achieved a 26.3% increase in revenue and an 83.9% increase in gross
profit for the first quarter of 2023, compared to the same period
last year. Revenue increased within both our Treatment and Services
Segments. We also achieved sequential revenue growth of 20.0%
compared to the fourth quarter of 2022, which is significant
because the first quarter tends to be a seasonally weaker period.
The first quarter progressively improved and we expect the momentum
to continue heading into the second quarter of 2023.”
“We have made further progress in our strategy
to provide critical services to the U.S. Department of Energy’s
(DOE) Hanford tank remediation mission. Specifically, the amendment
of the Record of Decision (ROD) for the Direct Feed Law Activity
Waste (DFLAW) facility and the approval of the Waste Incidental to
Reprocessing (WIR) report represent opportunities to provide
large-scale waste treatment services. The Test Bed Initiative (TBI)
program also continues to progress, and we expect to receive the
next 2,000 gallons of tank waste within the next few quarters. As
previously announced, we were recently awarded eight new contracts
totaling $15 million primarily supporting backlog in 2023, which
come with additional expansion opportunities into 2024. We are also
pursuing additional projects within the US government, as well as
commercial and international waste opportunities that will provide
sustainable revenue in the latter half of this year in both the
Services and Treatment Segments. Overall, we remain highly
encouraged by the outlook for the business based on the growing
project backlog and sales pipeline.”
Financial Results
Revenue was $20.1 million for the first quarter
of 2023 as compared to $15.9 million for the corresponding period
of 2022. Services Segment increased by approximately $2.1 million
to $10.5 million for the first quarter of 2023 as compared to $8.4
million for the corresponding period of 2022. The increase in
revenue in the Services Segment was due to achievement of full
operational status on certain projects which had been
curtailed/delayed primarily in the early part of 2022 due in part,
from the lingering effects of the COVID-19 pandemic. Treatment
Segment revenue increased by approximately $2.1 million to $9.6
million for the first quarter of 2023 as compared to approximately
$7.5 million for the corresponding period of 2022 primarily due to
overall higher waste volume which was offset by lower averaged
price due to revenue mix. As previously disclosed, the Treatment
Segment began to see steady improvements in waste receipts starting
in the first half of 2022 as the lingering effects of the COVID-19
continued to subside.
Gross profit for the first quarter of 2023 was
$3.0 million versus $1.6 million for the first quarter of 2022
primarily due to higher revenue generated from both segments as
discussed above.
Operating loss for the first quarter of 2023 was
$576,000 versus operating loss of $1.9 million for the
corresponding period of 2022. Net loss for the first quarter of
2023 was $411,000 versus net loss of $1.3 million for the
corresponding period of 2022. Net loss per share (both basic and
diluted) for the first quarter of 2023 was $0.03 per share versus
net loss per share (both basic and diluted) of $0.10 for the same
period in 2022.
The Company reported EBITDA of $171,000 from
continuing operations at March 31, 2023, as compared to EBITDA of
($1.4) million from continuing operations for the corresponding
period of 2022. The Company defines EBITDA as earnings before
interest, taxes, depreciation and amortization. EBITDA is not a
measure of performance calculated in accordance with Generally
Accepted Accounting Principles in the United States of America
(“GAAP”), and should not be considered in isolation of, or as a
substitute for, earnings as an indicator of operating performance
or cash flows from operating activities as a measure of liquidity.
The Company believes the presentation of EBITDA is relevant and
useful by enhancing the readers’ ability to understand the
Company’s operating performance. The Company’s management utilizes
EBITDA as a mean to measure performance. The Company’s measurement
of EBITDA may not be comparable to similar titled measures reported
by other companies. The table below reconciles EBITDA, a non-GAAP
measure, to GAAP numbers for loss from continuing operations for
the three months ended March 31, 2023 and 2022.
|
|
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|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
March 31, |
|
|
(Unaudited) |
|
(Unaudited) |
(In thousands) |
|
|
2023 |
|
|
|
2022 |
|
Loss from continuing operations |
|
$ |
(318 |
) |
|
$ |
(1,249 |
) |
|
|
|
|
|
Adjustments: |
|
|
|
|
Depreciation & amortization |
|
|
747 |
|
|
|
456 |
|
Interest income |
|
|
(127 |
) |
|
|
(11 |
) |
Interest expense |
|
|
53 |
|
|
|
35 |
|
Interest expense - financing fees |
|
|
20 |
|
|
|
13 |
|
Income tax benefit |
|
|
(204 |
) |
|
|
(673 |
) |
|
|
|
|
|
EBITDA |
|
$ |
171 |
|
|
$ |
(1,429 |
) |
|
|
|
|
|
The tables below present certain unaudited
financial information for the business segments, which excludes
allocation of corporate expenses.
|
|
Quarter Ended |
|
Quarter Ended |
|
|
March 31, 2023 |
|
March 31, 2022 |
|
|
(Unaudited) |
|
(Unaudited) |
(In thousands) |
|
Treatment |
|
Services |
|
|
Treatment |
|
Services |
|
Revenues |
|
$ |
9,594 |
|
$ |
10,513 |
|
|
$ |
7,479 |
|
$ |
8,436 |
|
Gross profit |
|
|
1,252 |
|
|
1,757 |
|
|
|
638 |
|
|
998 |
|
Segment Profit |
|
|
331 |
|
|
973 |
|
|
|
78 |
|
|
399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call
Perma-Fix will host a conference call at 11:00
a.m. ET on Wednesday, May 10, 2023. The conference call will be
available via telephone by dialing toll free 877-545-0320 for U.S.
callers, or +1 973-528-0002 for international callers and by
entering access code: 587821. The conference call will be led by
Mark J. Duff, Chief Executive Officer, Dr. Louis F. Centofanti,
Executive Vice President of Strategic Initiatives, and Ben
Naccarato, Executive Vice President and Chief Financial Officer of
Perma-Fix Environmental Services, Inc.
A webcast of the call may be accessed at
https://www.webcaster4.com/Webcast/Page/2243/48370 or on the
Company’s website at https://ir.perma-fix.com/conference-calls. A
webcast will also be archived on the Company’s website and a
telephone replay of the call will be available approximately one
hour following the call, through Wednesday, May 17, 2023, and can
be accessed by calling: 877-481-4010 for U.S. callers, or
919-882-2331 for international callers and entering conference ID:
48370.
About Perma-Fix Environmental
Services
Perma-Fix Environmental Services, Inc. is a
nuclear services company and leading provider of nuclear and mixed
waste management services. The Company's nuclear waste services
include management and treatment of radioactive and mixed waste for
hospitals, research labs and institutions, federal agencies,
including the U.S Department of Energy (“DOE”), the U.S Department
of Defense (“DOD”), and the commercial nuclear industry. The
Company’s nuclear services group provides project management, waste
management, environmental restoration, decontamination and
decommissioning, new build construction, and radiological
protection, safety and industrial hygiene capability to our
clients. The Company operates four nuclear waste treatment
facilities and provides nuclear services at DOE, DOD, and
commercial facilities, nationwide.
Please visit us at http://www.perma-fix.com.
This press release contains “forward-looking
statements” which are based largely on the Company's expectations
and are subject to various business risks and uncertainties,
certain of which are beyond the Company's control. Forward-looking
statements generally are identifiable by use of the words such as
“believe”, “expects”, “intends”, “anticipate”, “plan to”,
“estimates”, “projects”, and similar expressions. Forward-looking
statements include, but are not limited to: momentum to continue
heading into the second quarter of 2023; expect receipt of 2,000
gallons of tank waste within the next few quarters; the amendment
of the ROD for DFLAW and the approval of the WIR report represent
opportunities for large-scale waste treatment services; recently
awarded eight new contracts come with additional expansion
opportunities into 2024; pursuing additional projects; and outlook
for business. While the Company believes the expectations reflected
in this news release are reasonable, it can give no assurance such
expectations will prove to be correct. There are a variety of
factors which could cause future outcomes to differ materially from
those described in this release, including, without limitation,
future economic conditions; industry conditions; competitive
pressures; our ability to apply and market our new technologies;
the government or such other party to a contract granted to us
fails to abide by or comply with the contract or to deliver waste
as anticipated under the contract or terminates existing contracts;
Congress fails to provides funding for the DOD’s and DOE’s
remediation projects; inability to obtain new foreign and domestic
remediation contracts; inability to meet financial covenants; and
the additional factors referred to under “Risk Factors” and
"Special Note Regarding Forward-Looking Statements" of our 2022
Form 10-K and Form 10-Q for quarter ended March 31, 2023. The
Company makes no commitment to disclose any revisions to
forward-looking statements, or any facts, events or circumstances
after the date hereof that bear upon forward-looking
statements.
Contacts:David K. Waldman-US
Investor RelationsCrescendo Communications, LLC (212) 671-1021
Herbert Strauss-European Investor Relationsherbert@eu-ir.com+43
316 296 316
FINANCIAL TABLES FOLLOW
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED)
|
|
Three Months Ended March 31, |
(Amounts in Thousands, Except for Per Share Amounts) |
|
2023 |
|
|
|
|
2022 |
|
|
|
|
|
|
|
|
Revenues |
$ |
20,107 |
|
|
|
$ |
15,915 |
|
Cost of goods sold |
|
17,098 |
|
|
|
|
14,279 |
|
Gross profit |
|
3,009 |
|
|
|
|
1,636 |
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
3,486 |
|
|
|
|
3,422 |
|
Research and development |
|
99 |
|
|
|
|
96 |
|
Loss on disposal of property and equipment |
|
— |
|
|
|
|
1 |
|
Loss from operations |
|
(576 |
) |
|
|
|
(1,883 |
) |
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
Interest income |
|
127 |
|
|
|
|
11 |
|
Interest expense |
|
(53 |
) |
|
|
|
(35 |
) |
Interest expense-financing fees |
|
(20 |
) |
|
|
|
(13 |
) |
Other |
|
— |
|
|
|
|
(2 |
) |
Loss from continuing operations before taxes |
|
(522 |
) |
|
|
|
(1,922 |
) |
Income tax benefit |
|
(204 |
) |
|
|
|
(673 |
) |
Loss from continuing operations, net of taxes |
|
(318 |
) |
|
|
|
(1,249 |
) |
|
|
|
|
|
|
|
Loss from discontinued operations (net of taxes) |
|
(93 |
) |
|
|
|
(94 |
) |
Net loss |
$ |
(411 |
) |
|
|
$ |
(1,343 |
) |
|
|
|
|
|
|
|
Net loss per common share - basic and diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
(.02 |
) |
|
|
$ |
(.09 |
) |
Discontinued operations |
|
(.01 |
) |
|
|
|
(.01 |
) |
Net loss per common share |
$ |
(.03 |
) |
|
|
$ |
(.10 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of common shares used in computing net loss per share: |
|
|
|
|
|
|
Basic |
|
13,358 |
|
|
|
|
13,234 |
|
Diluted |
|
13,358 |
|
|
|
|
13,234 |
|
PERMA-FIX ENVIRONMENTAL SERVICES,
INC.CONDENSED CONSOLIDATED BALANCE
SHEET
|
|
March 31, |
|
December 31, |
|
|
|
2023 |
|
|
|
2023 |
|
(Amounts in Thousands, Except for Share and Per Share Amounts) |
|
(Unaudited) |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash |
|
$ |
2,411 |
|
|
$ |
1,866 |
|
Account receivable, net of allowance for credit losses of $7 and
$57, respectively |
|
|
10,881 |
|
|
|
9,364 |
|
Unbilled receivables |
|
|
6,701 |
|
|
|
6,062 |
|
Other current assets |
|
|
4,904 |
|
|
|
6,219 |
|
Assets of discontinued operations included in current assets |
|
|
19 |
|
|
|
15 |
|
Total current assets |
|
|
24,916 |
|
|
|
23,526 |
|
|
|
|
|
|
Net property and equipment |
|
|
19,064 |
|
|
|
18,957 |
|
Property and equipment of discontinued operations |
|
|
81 |
|
|
|
81 |
|
|
|
|
|
|
Operating lease right-of-use assets |
|
|
1,852 |
|
|
|
1,971 |
|
|
|
|
|
|
Intangibles and other assets |
|
|
26,590 |
|
|
|
26,363 |
|
Total assets |
|
$ |
72,503 |
|
|
$ |
70,898 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities |
|
$ |
24,288 |
|
|
$ |
22,346 |
|
Current liabilities related to discontinued operations |
|
|
289 |
|
|
|
362 |
|
Total current liabilities |
|
|
24,577 |
|
|
|
22,708 |
|
|
|
|
|
|
Long-term liabilities |
|
|
9,643 |
|
|
|
9,749 |
|
Long-term liabilities related to discontinued operations |
|
|
911 |
|
|
|
908 |
|
Total liabilities |
|
|
35,131 |
|
|
|
33,365 |
|
Commitments and Contingencies |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Preferred Stock, $.001 par value; 2,000,000 shares authorized, |
|
|
|
|
no shares issued and outstanding |
|
|
— |
|
|
|
— |
|
Common Stock, $.001 par value; 30,000,000 shares authorized, |
|
|
|
|
13,397,436 and 13,332,398 shares issued, respectively; |
|
|
|
|
13,389,794 and 13,324,756 shares outstanding, respectively |
|
|
13 |
|
|
|
13 |
|
Additional paid-in capital |
|
|
115,452 |
|
|
|
115,209 |
|
Accumulated deficit |
|
|
(77,847 |
) |
|
|
(77,436 |
) |
Accumulated other comprehensive loss |
|
|
(158 |
) |
|
|
(165 |
) |
Less Common Stock held in treasury, at cost: 7,642 shares |
|
|
(88 |
) |
|
|
(88 |
) |
Total stockholders' equity |
|
|
37,372 |
|
|
|
37,533 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
72,503 |
|
|
$ |
70,898 |
|
|
|
|
|
|
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