Perma-Fix Environmental Services, Inc. (NASDAQ:
PESI) (the “Company”) today announced financial results
and provided a business update for the second quarter ended June
30, 2023.
Mark Duff, President and CEO of the Company,
commented, “We are on a solid growth trajectory and have returned
to profitability following the impact of the COVID-19 pandemic.
Specifically, revenue increased 28.7% to $25.0 million and we
achieved a 56.6% increase in gross profit over the same period last
year. Revenue increased year-over-year and sequentially within both
our Treatment and Services segments. Importantly, we achieved net
income of $474,000 and EBITDA (as defined below) of more than $1.5
million for the second quarter of 2023.”
“Within our Treatment Segment, we witnessed an
increase in volume with strong waste receipts during the second
quarter, which provides us a solid backlog and improved visibility
for the balance of 2023. Within the Services Segment, we realized
several new awards, including a project in support of the U.S. Army
Corps of Engineers, and were on a winning team for a project at Los
Alamos National Laboratory, both of which will contribute revenue
in 2023. We also commenced work on awards granted earlier this
year, that have now begun to generate revenue. Importantly, we
continue to develop new proposals and position ourselves for large
strategic bids in both segments, including initiatives within the
U.S. Department of Energy (DOE) and the U.S. Department of Defense
(DOD), as well as international and commercial clients. Overall, we
are encouraged by the market outlook given our strong sales
pipeline, with many of these contracts expected to be awarded in
the coming quarters.”
Financial Results
Revenue for the second quarter of 2023 was
approximately $25.0 million versus approximately $19.5 million for
the same period last year. Revenue for the Treatment Segment was
approximately $12.8 million for the second quarter of 2023 as
compared to $8.4 million for the second quarter 2022. The increase
was primarily due to overall higher waste volume which was offset
by lower averaged price due to revenue mix. The Treatment Segment
has seen steady improvements in waste receipts since the latter
part of the second quarter of 2022 as the lingering effects of the
COVID-19 continued to subside. Services Segment revenue increased
to approximately $12.2 million for the three months ended June 30,
2023 from $11.1 million for the corresponding period of 2022 due to
continuing full operational status of certain projects which had
been delayed/curtailed in the early part of 2022 due, in part, from
the lingering effects of COVID-19. Revenue within both segments was
also positively impacted from new contracts won in early part of
2023.
Gross profit for the second quarter of 2023 was
$4.5 million versus $2.9 million for the second quarter of 2022
primarily due to higher revenue generated in both segments. Gross
margin for the second quarter of 2023 was approximately 18.0%
versus 14.8% for the second quarter of 2022 primarily due to
increases in revenue from higher waste volume in the Treatment
Segment and higher margin projects in the Services Segment.
Operating income for the second quarter of 2023
was approximately $844,000 versus operating loss of $880,000 for
the second quarter of 2022. Net income for the second quarter of
2023 was approximately $474,000 or $.04 per basic share as compared
to net loss of approximately $1.4 million for the second quarter of
2022 or ($0.11) per basic share.
On July 31, 2023, the Company entered into an
amendment to its Loan Agreement, as amended, with its lender which
extended the maturity date of its credit facility to May 15, 2027
and provided a new term loan to the Company in the amount of
$2,500,000, among other things.
The Company reported EBITDA of $1.5 million from
continuing operations for the quarter ended June 30, 2023, as
compared to EBITDA of ($403,000) from continuing operations for the
same 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
measures, to GAAP numbers for income (loss) from continuing
operations for the three and six months ended June 30, 2023 and
2022.
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
(In thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Income (loss) from continuing operations |
|
$ |
519 |
|
|
$ |
(1,257 |
) |
|
$ |
202 |
|
|
$ |
(2,506 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Depreciation & amortization |
|
|
692 |
|
|
|
480 |
|
|
|
1,439 |
|
|
|
936 |
|
|
Interest income |
|
|
(172 |
) |
|
|
(29 |
) |
|
|
(298 |
) |
|
|
(40 |
) |
|
Interest expense |
|
|
47 |
|
|
|
41 |
|
|
|
100 |
|
|
|
76 |
|
|
Interest expense - financing fees |
|
|
24 |
|
|
|
15 |
|
|
|
44 |
|
|
|
28 |
|
|
Income tax expense (benefit) |
|
|
432 |
|
|
|
347 |
|
|
|
228 |
|
|
|
(326 |
) |
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
1,542 |
|
|
$ |
(403 |
) |
|
$ |
1,715 |
|
|
$ |
(1,832 |
) |
|
|
|
|
|
|
|
|
|
|
|
The tables below present certain unaudited
financial information for the business segments, which excludes
allocation of corporate expenses.
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2023 |
|
June 30, 2023 |
|
|
(Unaudited) |
|
|
(Unaudited) |
(In thousands) |
|
Treatment |
|
Services |
|
|
Treatment |
|
Services |
|
Net revenues |
|
$ |
12,834 |
|
$ |
12,198 |
|
|
$ |
22,428 |
|
$ |
22,711 |
|
Gross profit |
|
|
2,491 |
|
|
2,025 |
|
|
|
3,743 |
|
|
3,782 |
|
Segment profit |
|
|
1,273 |
|
|
840 |
|
|
|
1,605 |
|
|
1,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2022 |
|
June 30, 2022 |
|
|
(Unaudited) |
|
|
(Unaudited) |
(In thousands) |
|
Treatment |
|
Services |
|
|
Treatment |
|
Services |
|
Net revenues |
|
$ |
8,393 |
|
$ |
11,062 |
|
|
$ |
15,872 |
|
$ |
19,498 |
|
Gross profit |
|
|
1,563 |
|
|
1,321 |
|
|
|
2,201 |
|
|
2,319 |
|
Segment profit |
|
|
60 |
|
|
472 |
|
|
|
137 |
|
|
871 |
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call
Perma-Fix will host a conference call at 11:00
a.m. ET on Thursday, August 3, 2023. The call will be available on
the Company’s website at https://ir.perma-fix.com/conference-calls,
or by calling toll-free: 888-506-0062 for U.S. callers, or +1
973-528-0011 for international callers, and by entering access
code: 789286. 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 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, Thursday, August 10, 2023, and can be
accessed by dialing 877-481-4010 for U.S. callers or +1
919-882-2331 for international callers and entering access code:
48811.
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 DOE, the 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”, “plans to”,
“estimates”, “projects”, and similar expressions. Forward-looking
statements include, but are not limited to: contracts that will
contribute revenue in 2023; market outlook; contracts to be awarded
in the coming quarters; and improved visibility for the balance of
2023. These forward-looking statements are intended to qualify for
the safe harbors from liability established by the Private
Securities Litigation Reform Act of 1995. 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; 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-Qs for quarters ended March 31, 2023 and June 30, 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.
FINANCIAL TABLES FOLLOW
Contacts:David K. Waldman-US
Investor RelationsCrescendo Communications, LLC (212) 671-1021
Herbert Strauss-European Investor Relationsherbert@eu-ir.com+43
316 296 316
PERMA-FIX ENVIRONMENTAL SERVICES, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(UNAUDITED) |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
(Amounts in Thousands, Except for Per Share Amounts) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
Net revenues |
$ |
25,032 |
|
$ |
19,455 |
|
$ |
45,139 |
|
$ |
35,370 |
|
Cost of goods sold |
|
20,516 |
|
|
16,571 |
|
|
37,614 |
|
|
30,850 |
|
Gross profit |
|
4,516 |
|
|
2,884 |
|
|
7,525 |
|
|
4,520 |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
3,551 |
|
|
3,684 |
|
|
7,036 |
|
|
7,106 |
|
Research and development |
|
121 |
|
|
80 |
|
|
220 |
|
|
176 |
|
Loss on disposal of property and equipment |
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
Income (loss) from operations |
|
844 |
|
|
(880 |
) |
|
269 |
|
|
(2,763 |
) |
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest income |
|
172 |
|
|
29 |
|
|
298 |
|
|
40 |
|
Interest expense |
|
(47 |
) |
|
(41 |
) |
|
(100 |
) |
|
(76 |
) |
Interest expense-financing fees |
|
(24 |
) |
|
(15 |
) |
|
(44 |
) |
|
(28 |
) |
Other |
|
6 |
|
|
(3 |
) |
|
7 |
|
|
(5 |
) |
Income (loss) from continuing operations before taxes |
|
951 |
|
|
(910 |
) |
|
430 |
|
|
(2,832 |
) |
Income tax expense (benefit) |
|
432 |
|
|
347 |
|
|
228 |
|
|
(326 |
) |
Income (loss) from continuing operations, net of taxes |
|
519 |
|
|
(1,257 |
) |
|
202 |
|
|
(2,506 |
) |
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of taxes |
|
(45 |
) |
|
(188 |
) |
|
(139 |
) |
|
(282 |
) |
Net income (loss) |
$ |
474 |
|
$ |
(1,445 |
) |
$ |
63 |
|
$ |
(2,788 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share - basic: |
|
|
|
|
|
|
|
|
Continuing operations |
$ |
.04 |
|
$ |
(.10 |
) |
$ |
.01 |
|
$ |
(.19 |
) |
Discontinued operations |
|
— |
|
|
(.01 |
) |
|
(.01 |
) |
|
(.02 |
) |
Net income (loss) per common share |
$ |
.04 |
|
$ |
(.11 |
) |
$ |
— |
|
$ |
(.21 |
) |
|
|
|
|
|
|
|
|
|
Net income (loss) per common share - diluted: |
|
|
|
|
|
|
|
|
Continuing operations |
$ |
.03 |
|
$ |
(.10 |
) |
$ |
.01 |
|
$ |
(.19 |
) |
Discontinued operations |
|
— |
|
|
(.01 |
) |
|
(.01 |
) |
|
(.02 |
) |
Net income (loss) per common share |
$ |
.03 |
|
$ |
(.11 |
) |
$ |
— |
|
$ |
(.21 |
) |
|
|
|
|
|
|
|
|
|
Number of common shares used in computing |
|
|
|
|
|
|
|
|
net income (loss) per share: |
|
|
|
|
|
|
|
|
Basic |
|
13,474 |
|
|
13,264 |
|
|
13,417 |
|
|
13,249 |
|
Diluted |
|
13,848 |
|
|
13,264 |
|
|
13,657 |
|
|
13,249 |
|
|
|
|
|
|
|
|
|
|
PERMA-FIX ENVIRONMENTAL SERVICES, INC. |
CONDENSED CONSOLIDATED BALANCE SHEET |
|
|
|
June 30, |
|
December 31, |
|
|
|
2023 |
|
|
|
2023 |
|
(Amounts in Thousands, Except for Share and Per Share Amounts) |
|
(Unaudited) |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash |
|
$ |
4,750 |
|
|
$ |
1,866 |
|
Account receivable, net of allowance for credit losses of $13 and
$57, respectively |
|
|
11,930 |
|
|
|
9,364 |
|
Unbilled receivables |
|
|
7,121 |
|
|
|
6,062 |
|
Other current assets |
|
|
3,767 |
|
|
|
6,219 |
|
Assets of discontinued operations included in current assets |
|
|
17 |
|
|
|
15 |
|
Total current assets |
|
|
27,585 |
|
|
|
23,526 |
|
|
|
|
|
|
Net property and equipment |
|
|
18,832 |
|
|
|
18,957 |
|
Property and equipment of discontinued operations |
|
|
81 |
|
|
|
81 |
|
|
|
|
|
|
Operating lease right-of-use assets |
|
|
1,732 |
|
|
|
1,971 |
|
|
|
|
|
|
Intangibles and other assets |
|
|
26,350 |
|
|
|
26,363 |
|
Total assets |
|
$ |
74,580 |
|
|
$ |
70,898 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities |
|
$ |
25,601 |
|
|
$ |
22,346 |
|
Current liabilities related to discontinued operations |
|
|
280 |
|
|
|
362 |
|
Total current liabilities |
|
|
25,881 |
|
|
|
22,708 |
|
|
|
|
|
|
Long-term liabilities |
|
|
9,556 |
|
|
|
9,749 |
|
Long-term liabilities related to discontinued operations |
|
|
913 |
|
|
|
908 |
|
Total liabilities |
|
|
36,350 |
|
|
|
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, |
|
|
|
|
13,562,743 and 13,332,398 shares issued, respectively; |
|
|
|
|
13,555,101 and 13,324,756 shares outstanding, respectively |
|
|
14 |
|
|
|
13 |
|
Additional paid-in capital |
|
|
115,789 |
|
|
|
115,209 |
|
Accumulated deficit |
|
|
(77,373 |
) |
|
|
(77,436 |
) |
Accumulated other comprehensive loss |
|
|
(112 |
) |
|
|
(165 |
) |
Less Common Stock held in treasury, at cost: 7,642 shares |
|
|
(88 |
) |
|
|
(88 |
) |
Total stockholders' equity |
|
|
38,230 |
|
|
|
37,533 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
74,580 |
|
|
$ |
70,898 |
|
|
|
|
|
|
PermaFix Environmental S... (NASDAQ:PESI)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
PermaFix Environmental S... (NASDAQ:PESI)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024