Perma-Fix Reports Financial Results and Provides Business Update for the Third Quarter of 2024
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.
- 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
- 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
The
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
Financial Results
Revenue for the third quarter of 2024 was
Gross profit for the third quarter of 2024 was
Operating loss was approximately
The Company reported EBITDA of (
(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 | 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?
How did Hurricane Helene impact Perma-Fix's (PESI) operations in Q3 2024?
What progress did Perma-Fix (PESI) make with its PFAS technology in Q3 2024?