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Perma-Fix Reports Financial Results and Provides Business Update for the Third Quarter of 2024

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Perma-Fix Environmental Services reported Q3 2024 financial results with revenue of $16.8 million, down from $21.9 million in Q3 2023. The company experienced a net loss of $9.0 million, including a $6.4 million non-cash tax expense. Treatment Segment revenue decreased to $9.1 million from $10.8 million, while Services Segment revenue fell to $7.7 million from $11.1 million. The decline was attributed to Hurricane Helene impacts, waste shipment delays, and equipment issues. The company announced successful startup of its first commercial Perma-FAS system for PFAS destruction and secured approximately 6,000 gallons of AFFF liquids.

Perma-Fix Environmental Services ha riportato i risultati finanziari del terzo trimestre 2024 con ricavi di 16,8 milioni di dollari, in calo rispetto ai 21,9 milioni di dollari nel terzo trimestre 2023. L'azienda ha registrato una perdita netta di 9,0 milioni di dollari, includendo una spesa fiscale non monetaria di 6,4 milioni di dollari. I ricavi del segmento Trattamento sono diminuiti a 9,1 milioni di dollari rispetto ai 10,8 milioni di dollari, mentre i ricavi del segmento Servizi sono scesi a 7,7 milioni di dollari rispetto agli 11,1 milioni di dollari. Il calo è stato attribuito agli impatti dell'uragano Helene, ai ritardi nelle spedizioni dei rifiuti e ai problemi con le attrezzature. L'azienda ha annunciato l'avvio con successo del suo primo sistema commerciale Perma-FAS per la distruzione dei PFAS e ha assicurato circa 6.000 galloni di liquidi AFFF.

Perma-Fix Environmental Services informó los resultados financieros del tercer trimestre de 2024 con ingresos de 16,8 millones de dólares, un descenso desde los 21,9 millones de dólares en el tercer trimestre de 2023. La compañía experimentó una pérdida neta de 9,0 millones de dólares, incluyendo un gasto fiscal no monetario de 6,4 millones de dólares. Los ingresos del segmento de Tratamiento disminuyeron a 9,1 millones de dólares desde 10,8 millones de dólares, mientras que los ingresos del segmento de Servicios cayeron a 7,7 millones de dólares desde 11,1 millones de dólares. La disminución se atribuyó a los impactos del huracán Helene, retrasos en el envío de desechos y problemas de equipo. La compañía anunció el exitoso inicio de su primer sistema comercial Perma-FAS para la destrucción de PFAS y aseguró aproximadamente 6,000 galones de líquidos AFFF.

Perma-Fix Environmental Services는 2024년 3분기 재무 결과를 보고했으며, 수익은 1,680만 달러로, 2023년 3분기의 2,190만 달러에서 감소했습니다. 회사는 900만 달러의 순손실을 기록했으며, 여기에는 640만 달러의 비현금 세금 비용이 포함됩니다. 처리 부문의 수익은 1,080만 달러에서 910만 달러로 감소했으며, 서비스 부문의 수익은 1,110만 달러에서 770만 달러로 떨어졌습니다. 이러한 감소는 허리케인 헬렌의 영향, 폐기물 운송 지연 및 장비 문제 때문입니다. 회사는 PFAS 파괴를 위한 첫 상업용 Perma-FAS 시스템의 성공적인 가동을 발표했으며, 약 6,000갤런의 AFFF 액체를 확보했습니다.

Perma-Fix Environmental Services a rapporté les résultats financiers du troisième trimestre 2024 avec des revenus de 16,8 millions de dollars, en baisse par rapport à 21,9 millions de dollars au troisième trimestre 2023. La société a enregistré une perte nette de 9,0 millions de dollars, incluant une charge fiscale non monétaire de 6,4 millions de dollars. Les revenus du segment de traitement ont diminué à 9,1 millions de dollars contre 10,8 millions de dollars, tandis que les revenus du segment de services sont passés de 11,1 millions de dollars à 7,7 millions de dollars. Ce déclin a été attribué aux impacts de l'ouragan Helene, aux retards d'expédition de déchets et aux problèmes d'équipement. La société a annoncé le démarrage réussi de son premier système commercial Perma-FAS pour la destruction des PFAS et a sécurisé environ 6 000 gallons de liquides AFFF.

Perma-Fix Environmental Services hat die finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben, mit Einnahmen von 16,8 Millionen Dollar, was einen Rückgang von 21,9 Millionen Dollar im dritten Quartal 2023 darstellt. Das Unternehmen verzeichnete einen Nettoverlust von 9,0 Millionen Dollar, einschließlich einer nicht zahlungswirksamen Steueraufwand von 6,4 Millionen Dollar. Die Einnahmen im Behandlungssegment gingen auf 9,1 Millionen Dollar zurück, verglichen mit 10,8 Millionen Dollar, während die Einnahmen im Dienstleistungssegment auf 7,7 Millionen Dollar von 11,1 Millionen Dollar zurückgingen. Der Rückgang wurde den Auswirkungen des Hurrikans Helene, Verzögerungen beim Abfalltransport und Problemen mit der Ausrüstung zugeschrieben. Das Unternehmen gab den erfolgreichen Start seines ersten kommerziellen Perma-FAS-Systems zur Zerstörung von PFAS bekannt und sicherte sich etwa 6.000 Gallonen AFFF-Flüssigkeiten.

Positive
  • Successful launch of first commercial Perma-FAS system for PFAS destruction
  • Secured 6,000 gallons of AFFF liquids with additional 20,000 gallons expected
  • Part of winning team for 10-year federal government service project
  • Implemented cost reduction and operational streamlining measures
Negative
  • Revenue declined 23.3% to $16.8M in Q3 2024 from $21.9M in Q3 2023
  • Net loss of $9.0M in Q3 2024 compared to net income of $341K in Q3 2023
  • Gross margin decreased to 7.9% from 20.8% year-over-year
  • Operating loss of $2.6M versus operating income of $496K in prior year
  • $6.4M non-cash tax expense for valuation allowance against U.S. deferred tax assets
  • Negative EBITDA of $2.1M compared to positive $1.2M in Q3 2023

Insights

The Q3 2024 results reveal significant operational challenges for Perma-Fix, with revenue declining 23.3% to $16.8 million from $21.9 million year-over-year. The company's performance was severely impacted by multiple headwinds, including Hurricane Helene disruptions, project delays and equipment issues. Most concerning is the dramatic shift from a profitable Q3 2023 to a substantial loss, with margins deteriorating from 20.8% to 7.9%.

The $6.4 million valuation allowance against deferred tax assets signals management's concerns about future profitability. While the PFAS destruction system launch and new federal contract win offer potential growth catalysts, the immediate financial outlook remains challenging with operational inefficiencies and project timing uncertainties persisting.

The successful deployment of Perma-Fix's first commercial Perma-FAS system marks a strategic entry into the growing PFAS remediation market. The secured pipeline of 6,000 gallons of AFFF liquids with an additional 20,000 gallons expected demonstrates immediate market validation. The planned expansion into GAC, biosolids and soil applications could significantly broaden the technology's commercial potential.

The upcoming DOE Hanford tank remediation project, particularly the DFLAW facility commissioning in 2025, represents a substantial long-term opportunity in nuclear waste management. However, the current resource allocation to PFAS technology development is temporarily impacting core operations, requiring careful balance in the transition period.

ATLANTA, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) (the “Company”) today announced financial results for the third quarter ended September 30, 2024, and provided a business update.

Mark Duff, President and CEO of the Company, commented, “During the third quarter, we continued to experience temporary weakness, partly due to ongoing delays in service starts and waste shipments. Additionally, our Florida facility was impacted by Hurricane Helene, resulting in extended power outages and required repairs, which have since been completed. In light of the headwinds we faced in 2024, we reduced expenses and streamlined operations outside of R&D, which should result in improved profitability going forward. Moreover, performance within our Services Segment and across our treatment plants has steadily improved in the latter part of the quarter, which we anticipate should continue into Q4. In addition, an agency of the federal government recently announced that we were part of a winning team awarded a service project over a 10-year period. While we cannot provide specifics at this time, we plan to provide specifics about this award as soon as practical.”

“Last week, we announced the successful startup of our first commercial Perma-FAS system for PFAS (Per- and Polyfluoroalkyl Substances) destruction at our Florida facility. We are extremely pleased with the performance of this unit, and feedback from existing and prospective customers has been highly encouraging. We have already secured approximately 6,000 gallons of AFFF (Aqueous Film Forming Foam) liquids and anticipate receiving an additional 20,000 gallons in the coming months. We are also working to expand this technology into additional applications, including Granular Activated Carbon (GAC), biosolids, and soils.”

“Finally, we look forward to providing critical services to the U.S. Department of Energy’s (DOE) Hanford tank remediation mission, including the treatment of effluent following the commissioning of the Direct Feed Low-Activity Waste (DFLAW) facility, which is currently anticipated to begin in the summer of 2025. We believe these programs will represent opportunities for Perma-Fix over the coming years.”

The Company also notes that its net loss for the third quarter of 2024 included a non-cash tax expense recorded in the amount of approximately $6.4 million as the Company provided for a full valuation allowance against its U.S deferred tax assets.

Financial Results
Revenue for the third quarter of 2024 was $16.8 million versus $21.9 million for the same period last year. Revenue for the Treatment Segment decreased to approximately $9.1 million for the three months ended September 30, 2024, from $10.8 million for the corresponding period of 2023. The decrease was attributed to a number of factors which included: waste shipments that were expected in the third quarter of 2024 were unexpectedly pushed into the fourth quarter of 2024 by certain customers; waste shipment delays by certain customers and reduced revenue production due to temporary shutdown of our Florida facility from the impact of Hurricane Helene; and delay in revenue projection due to equipment breakdowns in certain of our facilities which required replacement or repair. All the equipment is now back in service. The acceleration in investment of our PFAS technology, which included the installation of our first full scale commercial system, continues to require significant management and operation support which contributed to revenue production delays. Revenue for the Services Segment decreased to approximately $7.7 million for the three months ended September 30, 2024, from $11.1 million for the corresponding period of 2023. The decrease in revenue in the Services Segment was attributed partly to the temporary demobilization of a project that was mandated by the customer due to Hurricane Helene. Additionally, the decrease in revenue in the Services Segment was due, in part to the completion of two large projects in late 2023 which were not replaced by new projects with similar value. These two completed projects together generated significant amount of revenue in the third quarter of 2023 when they were in full operational status.

Gross profit for the third quarter of 2024 was $1.3 million versus $4.5 million for the third quarter of 2023. The overall decrease in gross profit was primarily attributed to lower revenue generated in both segments as discussed above. Overall gross margin for the third quarter of 2024 was approximately 7.9% versus 20.8% for the third quarter of 2023 primarily due to decreases in revenue in both segments, overall lower margin projects and the impact of our fixed cost structure.

Operating loss was approximately $2.6 million in the third quarter of 2024 versus operating income of $496,000 for the third quarter of 2023. Net loss for the third quarter of 2024 was approximately $9.0 million or ($0.57) per basic share as compared to net income of approximately $341,000 for the third quarter of 2023 or $0.03 per basic share. As noted above, net loss for the third quarter of 2024 included a non-cash tax expense recorded in the amount of approximately $6.4 million as the Company provided for a full valuation allowance against its U.S deferred tax assets.

The Company reported EBITDA of ($2.1) million from continuing operations for the quarter ended September 30, 2024, as compared to EBITDA of $1.2 million from continuing operations for the same period of 2023. 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 (loss) income from continuing operations for the three and nine months ended September 30, 2024, and 2023.

 (Unaudited) (Unaudited)
 Three Months Ended Nine Months Ended
 September 30, September 30,
(In thousands) 2024   2023   2024   2023 
(Loss) income from continuing operations$(8,806) $246  $(16,049) $448 
        
Adjustments:       
Depreciation & amortization 433   686   1,295   2,124 
Interest income (292)  (146)  (679)  (445)
Interest expense 121   89   346   189 
Interest expense - financing fees 18   36   47   80 
Income tax expense 6,417   254   4,300   482 
        
EBITDA$(2,109) $1,165  $(10,740) $2,878 
        

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

  Three Months Ended Nine Months Ended
  September 30, 2024 September 30, 2024
  (Unaudited) (Unaudited)
(In thousands) Treatment Services  Treatment Services 
Net revenues $9,064  $7,748   $26,116  $18,299  
Gross profit (loss)  410   924    (839)  247  
Segment loss  (4,902)  (2,294)   (7,416)  (3,713) 


  Three Months Ended Nine Months Ended
  September 30, 2023 September 30, 2023
  (Unaudited) (Unaudited)
(In thousands) Treatment Services  Treatment Services 
Net revenues $10,795  $11,082   $33,223  $33,793  
Gross profit  1,494   3,055    5,237   6,837  
Segment profit  1,014   1,120    2,619   2,933  
           

Conference Call

Perma-Fix will host a conference call at 11:00 a.m. ET on Wednesday, November 13, 2024. The call will be available on 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: 271776. 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, November 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: 51652.

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 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”, “plans to”, “estimates”, “projects”, and similar expressions. Forward-looking statements include, but are not limited to: improved financial results going forward; improved performance continue into Q4; receipt of additional 20,000 gallons AFFF; providing critical services to the U.S. DOE’s Hanford tank remediation mission, including treatment of effluent anticipated to start summer of 2025; and U.S. DOE programs represent opportunities. 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; acceptance of our PFAS technology by the public; 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 2023 Form 10-K and Form 10-Qs for quarters ended March 31, 2024, June 30, 2024 and September 30, 2024. 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
      
  Three Months Ended  Nine Months Ended
  September 30,  September 30,
(Amounts in Thousands, Except for Per Share Amounts) 2024  2023  2024  2023
            
Net revenues$16,812  $21,877  $44,415  $67,016 
Cost of goods sold 15,478   17,328   45,007   54,942 
Gross profit 1,334   4,549   (592)  12,074 
            
Selling, general and administrative expenses 3,632   3,933   10,631   10,969 
Research and development 303   120   872   340 
Loss on disposal of property and equipment       1    
(Loss) income from operations (2,601)  496   (12,096)  765 
            
Other income (expense):           
Interest income 292   146   679   445 
Interest expense (121)  (89)  (346)  (189)
Interest expense-financing fees (18)  (36)  (47)  (80)
Other 59   (17)  61   (11)
(Loss) income from continuing operations before taxes (2,389)  500   (11,749)  930 
Income tax expense 6,417   254   4,300   482 
(Loss) income from continuing operations, net of taxes (8,806)  246   (16,049)  448 
            
(Loss) income from discontinued operations, net of taxes (173)  95   (441)  (44)
Net (loss) income$(8,979) $341  $(16,490) $404 
            
Net (loss) income per common share - basic:           
Continuing operations$(.56) $.02  $(1.09) $.03 
Discontinued operations (.01)  .01   (.03)   
Net (loss) income per common share$(.57) $.03  $(1.12) $.03 
            
Net (loss) income per common share - diluted:           
Continuing operations$(.56) $.02  $(1.09) $.03 
Discontinued operations (.01)     (.03)   
Net (loss) income per common share$(.57) $.02  $(1.12) $.03 
            
Number of common shares used in computing net (loss) income per share:           
Basic 15,803   13,568   14,695   13,468 
Diluted 15,803   13,979   14,695   13,749 


PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
    
  September 30, December 31,
  2024 2023
(Amounts in Thousands, Except for Share and Per Share Amounts) (Unaudited)  
     
ASSETS    
Current assets:    
Cash $10,567  $7,500 
Account receivable, net of allowance for credit losses of $21 and $30, respectively  8,741   9,722 
Unbilled receivables  7,277   8,432 
Other current assets  5,481   4,893 
Assets of discontinued operations included in current assets  12   13 
Total current assets  32,078   30,560 
     
Net property and equipment  20,393   19,009 
Property and equipment of discontinued operations  130   81 
     
Operating lease right-of-use assets  1,778   1,990 
     
Intangibles and other assets  23,779   27,109 
Total assets $78,158  $78,749 
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities $22,403  $25,678 
Current liabilities related to discontinued operations  251   269 
Total current liabilities  22,654   25,947 
     
Long-term liabilities  12,196   12,472 
Long-term liabilities related to discontinued operations  942   953 
Total liabilities  35,792   39,372 
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, 15,817,046 and 13,654,201 shares issued, respectively; 15,809,404 and 13,646,559 shares outstanding, respectively  16   14 
Additional paid-in capital  136,047   116,502 
Accumulated deficit  (93,441)  (76,951)
Accumulated other comprehensive loss  (168)  (100)
Less Common Stock held in treasury, at cost: 7,642 shares  (88)  (88)
 Total stockholders' equity  42,366   39,377 
     
Total liabilities and stockholders' equity $78,158  $78,749 

FAQ

What was Perma-Fix's (PESI) revenue in Q3 2024?

Perma-Fix reported revenue of $16.8 million in Q3 2024, compared to $21.9 million in Q3 2023.

How did Hurricane Helene impact Perma-Fix's (PESI) operations in Q3 2024?

Hurricane Helene caused extended power outages and required repairs at the Florida facility, leading to temporary shutdown and reduced revenue production.

What progress did Perma-Fix (PESI) make with its PFAS technology in Q3 2024?

Perma-Fix successfully launched its first commercial Perma-FAS system for PFAS destruction at its Florida facility and secured approximately 6,000 gallons of AFFF liquids.

What caused Perma-Fix's (PESI) net loss in Q3 2024?

Perma-Fix reported a $9.0 million net loss, primarily due to lower revenue, reduced margins, and a $6.4 million non-cash tax expense for valuation allowance against U.S. deferred tax assets.

Perma-Fix Environmental Services, Inc.

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