• Perma-Fix Achieves 36% Year-Over-Year Increase in Revenue to $22.7 Million for the Fourth Quarter of 2023

    Source: Nasdaq GlobeNewswire / 13 Mar 2024 08:00:01   America/New_York

    ATLANTA, March 13, 2024 (GLOBE NEWSWIRE) -- Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) (the “Company”) today announced financial results and provided a business update for the fourth quarter and full year ended December 31, 2023.

    Mark Duff, President and CEO of the Company, commented, “I am pleased to report solid financial results for the fourth quarter and 2023. Specifically, we achieved a 35.6% and 27.1% increase in revenue, as well as a 112.7% and 70.4% increase in gross profit, for the fourth quarter and full year, respectively. Most notably, we have been preparing for several key initiatives that are progressing and we believe would be impactful to our business later in 2024 and throughout 2025. Despite related investments in both our internal bidding organization, as well as research and development (R&D), we achieved positive EBITDA (as defined and reconciled to GAAP below) and positive net income in 2023.”  

    “Within our Treatment Segment, we benefitted from an improvement in waste volume receipts early in the quarter. Within the Services Segment, we realized several new awards from the Buffalo Corp of Engineers, U.S. Geological Survey (USGS), the U.S. Navy and several commercial clients. At the same time, we developed teaming relationships for several large procurements. In addition, a joint venture in which we have a 50% interest, received formal award of the Joint Research Council project through the European Union at the Ispra, Italy facility, which we believe could generate up to 50 million Euros over the next 7 years. Work under this JV is beginning in Q1 2024, and the scope of work for the Company is expected to ramp up in late 2025. Overall, we feel that we finished the year strong with several strategic wins and accomplishments that we believe will support our long-term growth.”

    “It is important to note, we are actively bidding on large future contracts within the U.S. Department of Energy (DOE) and U.S. Navy, as well as other mid-size procurement initiatives at DOE, the U.S. Department of Defense (DOD) and the U.S. Environmental Protection Agency (EPA) facilities. In addition, we have made important advances on a new technology to treat PFAS (Per-and Polyfluorinated Substances) contamination, which we look forward to unveiling in the near future. Moreover, we believe we are positioned to provide extensive waste treatment services in support of DOE’s Hanford closure strategy, including the treatment of effluent from the DFLAW (Direct-Feed Low-Activity Waste) facility once it commences vitrification operations, which is expected in early 2025. Finally, we are expanding our waste treatment offering within the commercial and international markets, including central Europe, Mexico and Canada. Although there may be some lumpiness in performance resulting from delays in procurements, project starts and waste shipments due, in part, to the Continuing Resolution for the 2024 federal budget, we remain encouraged by the long-term outlook for the business based on what we expect are the growing project opportunities, sales pipeline, and potentially company-changing projects in 2025.”

    Financial Results

    Fourth-Quarter 2023 Results
    Revenue for the fourth quarter of 2023 was $22.7 million versus $16.8 million for the same period last year. Revenue from the Services Segment increased approximately $4.3 million to $12.5 million in the fourth quarter of 2023 from $8.2 million for the corresponding of 2022 primarily due to continuing operation and improved productivity on certain projects which had been delayed/curtailed in 2022 due, in part, from the lingering effect of the COVID-19 pandemic. Revenue from the Treatment Segment increased by approximately $1.6 million to $10.2 million in the fourth quarter of 2023 from $8.6 million for the corresponding period of 2022. The increase was primarily due to overall higher waste volume which was offset by lower averaged price from waste mix. As previously disclosed, starting in the latter part of the second quarter of 2022, our Treatment Segment began to see steady improvements in waste receipts from certain customers who had previously delayed waste shipments due, in part, from the lingering effects of COVID-19. Revenue from both Segments were also positively impacted by new contracts awarded to us in 2023 as procurement and planning on behalf of our government clients continued to progress as the lingering effect of the COVID-19 pandemic subsided.

    Gross profit for the fourth quarter of 2023 was $4.3 million versus $2.0 million for the fourth quarter of 2022. The increase in gross profit in the Services Segment of approximately $1.7 million or 181.4% was primarily due to higher revenue. The improvement in gross margin to 21.3% in the fourth quarter of 2023 as compared to 11.6% for the corresponding period of 2022 was primarily due to improved margin projects. The increase in gross profit in the Treatment Segment of approximately $564,000 or 52.5% and the improvement in gross margin to approximately 16.0% in the fourth quarter of 2023 as compared to gross margin of approximately 12.5% in the corresponding period of 2022 was primarily due to overall higher revenue as discussed above and overall lower fixed costs.

    Operating loss for the fourth quarter of 2023 was approximately $9,000 versus operating loss of $1.7 million for the fourth quarter of 2022. Income from continuing operations for the fourth quarter of 2023 was approximately $470,000 as compared to a loss from continuing operations of $1.5 million for the corresponding period of 2022.

    Net income for the fourth quarter of 2023 was approximately $81,000 as compared to net loss of $1.7 million for the fourth quarter of 2022. Income per share (both basic and diluted) was $0.01 for the fourth quarter of 2023 as compared to a loss per share (both basic and diluted) of $0.13 for the corresponding period of 2022.

    2023 Financial Results
    Revenue in 2023 was $89.7 million versus $70.6 million in 2022. Revenue from the Services Segment increased by approximately $9.0 million to $46.2 million for the year ended December 31, 2023, from $37.2 million for the corresponding period of 2022. The increase was primarily due to achievement of full operational status and improved productivity on certain projects which had been delayed/curtailed in the early part of 2022 due, in part, from the lingering effects of the COVID-19 pandemic. Revenue from the Treatment Segment increased by approximately $10.1 million to $43.5 million in 2023 from $33.4 million in 2022. The increase was primarily due to overall higher waste volume which was offset by lower averaged price from waste mix. Similar to the fourth quarter of 2023 as discussed above, the increase in waste volume was primarily due to steady improvements in waste receipts from certain customers who had previously delayed waste shipments due, in part, from the lingering effects of COVID-19. Revenue from both Segments were also positively impacted by new contracts awarded to us in 2023 as procurement and planning on behalf of our government clients continued to progress as the lingering effect of COVID-19 pandemic subsided.

    Gross profit in 2023 was $16.4 million as compared to $9.6 million in 2022. Gross profit increased in both Segments. The increase in gross profit in the Services Segment of approximately $5.1 million or 117.4% was primarily due to higher revenue and the increase in gross margin to approximately 20.5% from 11.7% was primarily due to improved margin projects. The increase in gross profit in the Treatment Segment of approximately $1.6 million or 31.1% was primarily due to higher revenue from overall higher waste volume which was offset by lower averaged price waste from waste mix. Treatment Segment gross margin increased slightly to 15.8% for the year ended 2023 as compared to approximately 15.7% in the prior year. Despite the slight increase in gross margin, Treatment Segment gross margin was negatively impacted by higher variable costs from waste mix and the impact of overall increase in fixed costs.

    Operating income in 2023 was $756,000 versus operating loss of $5.4 million in 2022. Income from continuing operations in 2023 was approximately $918,000 as compared to a loss from continuing operations of $3.2 million in 2022. Loss from continuing operations for 2022 included an income recorded in the amount of approximately $2.0 million (within other income and current other receivables), representing a refundable tax credit against the Company’s shares of certain payroll taxes as permitted by the Employee Retention Credit (“ERC”) program under the Coronavirus Aid, Relief and Economic Securities Act (“CARES Act”), as amended. The ERC program was provided to qualifying businesses that kept employee on their payroll during the COVID-19 pandemic.

    Net income in 2023 was approximately $485,000 compared to net loss of $3.8 million in 2022. Income per share (both basic and diluted) was $0.04 in 2023 as compared to loss per share (both basic and diluted) of $0.29 in 2022.

    The Company achieved EBITDA of $3.3 million from continuing operations for the twelve-months ended December 31, 2023, and Adjusted EBITDA of approximately ($3.3) million for the same period of 2022. There was no adjustment to EBITDA for the twelve-months ended December 31, 2023. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before income from ERC refund claim (net of costs incurred). Neither EBITDA nor Adjusted EBITDA are measures of performance calculated in accordance with Accounting Principles Generally Accepted 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 and Adjusted EBITDA is relevant and useful by enhancing the readers’ ability to understand the Company’s operating performance. The Company’s management utilizes EBITDA and Adjusted EBITDA as a means to measure performance. The Company’s measurements of EBITDA and Adjusted EBITDA may not be comparable to similar titled measures reported by other companies. The table below reconciles EBITDA and Adjusted EBITDA, both non-GAAP measures, to GAAP numbers for income (loss) from continuing operations for the three and twelve-months ended December 31, 2023, and 2022.


      Quarter Ended Twelve Months Ended 
      December 31, December 31, 
      (Unaudited) (Unaudited) 
    (In thousands)  2023   2022   2023   2022  
    Income (loss) from continuing operations $470  $(1,529) $918  $(3,211) 
              
              
    Adjustments:         
    Depreciation & amortization  443   676   2,568   2,109  
    Interest income  (161)  (30)  (606)  (99) 
    Interest expense  134   52   323   175  
    Interest expense - financing fees  13   17   93   61  
    Income tax (benefit) expense  (465)  (231)  17   (378) 
              
    EBITDA  434   (1,045)  3,313   (1,343) 
              
    Income from ERC refund claim, net (1) - - -  (1,908) 
              
    Adjusted EBITDA $434  $(1,045) $3,313  $(3,251) 
              
    (1) net of costs incurred in connection with the ERC program in the amount of approximately $67.   


    The tables below present certain financial information for the business segments, which exclude allocation of corporate expenses.

    * Any references to "Audited" in the headings as noted in the table below and within the financial statements as follows are derived from a previously filed Form 10-K.


      Three Months Ended Twelve Months Ended
      December 31, 2023 December 31, 2023
      (Unaudited) (Unaudited)
    (In thousands) Treatment Services  Treatment Services
    Net revenues $10,255  $12,464  $43,477 $46,258
    Gross profit  1,639   2,656   6,876  9,493
    Segment (loss) profit  (390)  2,782   2,228  5,716
              


      Three Months Ended Twelve Months Ended
      December 31, 2022 December 31, 2022
      (Unaudited) (Audited)
    (In thousands) Treatment Services  Treatment Services
    Net revenues $8,609 $8,148  $33,358 $37,241
    Gross profit  1,075  944   5,243  4,366
    Segment profit  2  117   1,767  1,698
              


    Conference Call
    Perma-Fix will host a conference call at 11:00 AM Eastern Time on Wednesday, March 13, 2024. The call will be available in the investors section of the Company’s website at https://ir.perma-fix.com/conference-calls, or by calling 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers, and by entering access code: 514355. 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, through Wednesday, March 20, 2024, 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: 50109.

    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: long-term growth; key initiatives impactful to our business in 2024 and throughout 2025; revenue up to 50 million Euros generated under JV over the next 7 years; scope of work for the Company to ramp up in later phases of JV contract; treatment of effluent from DFLAW facility in early 2025; and long-term outlook based on growing project opportunities, sales pipeline, and potentially company-changing projects in 2025. 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; inability to win bid projects; Congress fails to provides continuing funding for the DOD’s and DOE’s remediation projects; inability to obtain new foreign and domestic remediation contracts; inability to meet financial covenants; full or partial government shutdown; and the “Risk Factors” discussed in, and the additional factors referred to under "Special Note Regarding Forward-Looking Statements" of, our 2023 Form 10-K. 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 Relations
    Crescendo Communications, LLC
    (212) 671-1021

    Herbert Strauss-European Investor Relations
    herbert@eu-ir.com
    +43 316 296 316

                      
                     

    PERMA-FIX ENVIRONMENTAL SERVICES, INC.
      CONSOLIDATED STATEMENTS OF OPERATIONS
      Three Months Ended Twelve Months Ended
      December 31, December 31,
      2023  2022  2023  2022 
    (Amounts in Thousands, Except for Per Share Amounts) (Unaudited) (Unaudited)(Audited)
             
    Net revenues$22,719 $16,757 $89,735 $70,599 
    Cost of goods sold 18,424  14,738  73,366  60,990 
    Gross profit 4,295  2,019  16,369  9,609 
             
    Selling, general and administrative expenses 4,006  3,617  14,975  14,652 
    Research and development 221  90  561  336 
    Loss on disposal of property and equipment 77  17  77  18 
    Loss (income) from operations (9) (1,705) 756  (5,397)
             
    Other income (expense):        
    Interest income 161  30  606  99 
    Interest expense (134) (52) (323) (175)
    Interest expense-financing fees (13) (17) (93) (61)
    Other -  (16) (11) 1,945 
    Income (loss) from continuing operations before taxes 5  (1,760) 935  (3,589)
    Income tax benefit (expense) (465) (231) 17  (378)
    Income (loss) income from continuing operations, net of taxes 470  (1,529) 918  (3,211)
             
    Loss from discontinued operations, net of taxes (389) (164) (433) (605)
    Net income (loss) 81  (1,693) 485  (3,816)
             
             
    Net income (loss) per common share attributable to        
    Perma-Fix Environmental Services, Inc. stockholders - basic and diluted:       
    Continuing operations$.04$(.12)$.07$(.24)
    Discontinued operations (.03) (.01) (.03) (.05)
    Net income (loss) per common share$.01$(.13)$.04$(.29)
             
    Number of common shares used in computing        
    net income (loss) per share:        
    Basic 13,619  13,324  13,506  13,280 
    Diluted 13,838  13,324  13,739  13,280 
             

                 


    PERMA-FIX ENVIRONMENTAL SERVICES, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
      December 31,December 31,
       2023   2022 
    (Amounts in Thousands, Except for Share and Per Share Amounts) (Unaudited) (Audited)
         
    ASSETS    
    Current assets:    
    Cash $7,500  $1,866 
    Account receivable, net of allowance for credit losses of $30 and 57, respectively  9,722   9,364 
    Unbilled receivables  8,432   6,062 
    Other current assets  4,893   6,219 
    Assets of discontinued operations included in current assets  13   15 
    Total current assets  30,560   23,526 
         
    Net property and equipment  19,009   18,957 
    Property and equipment of discontinued operations  81   81 
         
    Operating lease right-of-use assets  1,990   1,971 
         
    Intangibles and other assets  27,109   26,363 
    Total assets $78,749  $70,898 
         
    LIABILITIES AND STOCKHOLDERS' EQUITY    
    Current liabilities $25,678  $22,346 
    Current liabilities related to discontinued operations  269   362 
    Total current liabilities  25,947   22,708 
         
    Long-term liabilities  12,472   9,749 
    Long-term liabilities related to discontinued operations  953   908 
    Total liabilities  39,372   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,    
    13,654,201 and 13,332,398 shares issued, respectively;    
    13,646,559 and 13,324,756 shares outstanding, respectively  14   13 
    Additional paid-in capital  116,502   115,209 
    Accumulated deficit  (76,951)  (77,436)
    Accumulated other comprehensive loss  (100)  (165)
    Less Common Stock held in treasury, at cost: 7,642 shares  (88)  (88)
    Total stockholders' equity  39,377   37,533 
         
    Total liabilities and stockholders' equity $78,749  $70,898 
         

     


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