Perma-Fix Reports Financial Results and Provides Business Update for the First Quarter of 2024
Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) reported financial results for Q1 2024, with a revenue of $13.6 million, down from $20.1 million in Q1 2023. The Services Segment revenue decreased due to project delays from Continuing Resolution impacts. Treatment Segment revenue also declined because of lower waste volume and prices. The company reported a gross loss of $620,000, operating loss of $4.5 million, and a net loss of $3.6 million. Despite challenges, the company is optimistic about strategic wins and investments in new technology.
- None.
Revenue declined from $20.1 million in Q1 2023 to $13.6 million in Q1 2024.
Services Segment revenue decreased to $4.9 million due to project delays from Continuing Resolution impacts.
Treatment Segment revenue fell to $8.7 million due to lower waste volume and prices.
The company reported a gross loss of $620,000 and an operating loss of $4.5 million in Q1 2024.
Net loss increased to $3.6 million in Q1 2024 compared to $411,000 in Q1 2023.
ATLANTA, May 09, 2024 (GLOBE NEWSWIRE) -- 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, 2024.
Mark Duff, President and CEO of the Company, commented, “As previously disclosed, our financial performance in the first quarter of 2024 was impacted by a few temporary headwinds. However, we have seen steady improvement heading into the second quarter and anticipate a strong second half of 2024. The weakness we experienced was due in part to delayed project starts and waste shipments, as well as challenging weather conditions during the first quarter of 2024. However, we used this period for equipment replacement and repairs, program enhancements, and testing to support permit expansion and broader market penetration. Additionally, we accelerated investments in research and development on our new technology to treat PFAS (Per- and Polyfluorinated Substances) contamination, which resulted in the completion of pilot plant testing with PFAS destruction levels exceeding anticipated regulatory requirements. We are now in the process of final designs and fabrication for the first operational unit and plan to begin accepting commercial waste for destruction before the end of the year.”
“We believe we are in a good position based on new strategic wins, growing project opportunities, and increased bidding activities. Importantly, we are pursuing several large procurements within the U.S. government, as well as commercial and international waste opportunities. Moreover, 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, including the treatment of effluent from the DFLAW (Direct-Feed Low-Activity Waste) facility once it commences vitrification operations, which is expected in 2025.”
"Lastly, I would like to commend the DOE, U.S. Environmental Protection Agency (EPA), and the Washington State Department of Ecology on their recent landmark agreement, widely referred to as the “Settlement Agreement,” for treating a significant portion of the Hanford site tank waste through grouting, as a supplement to vitrification. Under the agreement, DOE has committed to grout waste it empties from 22 of the tanks on the west side of the site by 2040. We believe that our Perma-Fix Northwest facility in Richland, Washington, adjacent to the Hanford site, is ideally suited to treat a large portion of this waste given its proximity, permits and our proven track record. Moreover, we believe we can provide a highly cost-effective solution for these wastes that could potentially save taxpayers billions of dollars. At the same time, per the Settlement Agreement, DOE has reaffirmed its timeline to complete “hot commissioning” and commence vitrification at the DFLAW facility by August 1, 2025, and we look forward to the opportunity to treat the effluent resulting from this process. Overall, we look forward to working closely with DOE to advance its mission of remediating this and other critical sites around the country,” concluded Duff.
Financial Results
Revenue was
Gross loss for the first quarter of 2024 was
Operating loss for the first quarter of 2024 was
The Company reported EBITDA of (
| Quarter Ended | ||||||||
| March 31, | ||||||||
| (Unaudited) | (Unaudited) | |||||||
| (In thousands) | 2024 | 2023 | ||||||
| Loss from continuing operations | $ | (3,458 | ) | $ | (318 | ) | ||
| Adjustments: | ||||||||
| Depreciation & amortization | 431 | 747 | ||||||
| Interest income | (174 | ) | (127 | ) | ||||
| Interest expense | 116 | 53 | ||||||
| Interest expense - financing fees | 13 | 20 | ||||||
| Income tax benefit | (956 | ) | (204 | ) | ||||
| EBITDA | $ | (4,028 | ) | $ | 171 | |||
The tables below present certain unaudited financial information for the business segments, which excludes allocation of corporate expenses.
| Quarter Ended | Quarter Ended | ||||||||||||||||
| March 31, 2024 | March 31, 2023 | ||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| (In thousands) | Treatment | Services | Treatment | Services | |||||||||||||
| Revenues | $ | 8,709 | $ | 4,908 | $ | 9,594 | $ | 10,513 | |||||||||
| Gross (loss) profit | (52 | ) | (568 | ) | 1,252 | 1,757 | |||||||||||
| Segment (loss) profit | (846 | ) | (957 | ) | 331 | 973 | |||||||||||
Conference Call
Perma-Fix will host a conference call at 11:00 a.m. EDT on Thursday, May 9, 2024. The conference call will be available via telephone by dialing toll free 888-506-0062 for U.S. callers, or +1 973-528-0011 for international callers and by entering access code: 429091. 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/2243/50534 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 Thursday, May 16, 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: 50534.
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 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: accepting commercial waste for destruction before the end of the year; well positioned; treatment of effluent from DFLAW facility; and cost-effective solution for Hanford site tank waste; . 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 2023 Form 10-K and Form 10-Q for quarter ended March 31, 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.
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
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) | 2024 | 2023 | |||||
| Revenues | $ | 13,617 | $ | 20,107 | |||
| Cost of goods sold | 14,237 | 17,098 | |||||
| Gross (loss) profit | (620 | ) | 3,009 | ||||
| Selling, general and administrative expenses | 3,544 | 3,486 | |||||
| Research and development | 296 | 99 | |||||
| Loss from operations | (4,460 | ) | (576 | ) | |||
| Other income (expense): | |||||||
| Interest income | 174 | 127 | |||||
| Interest expense | (116 | ) | (53 | ) | |||
| Interest expense-financing fees | (13 | ) | (20 | ) | |||
| Other | 1 | — | |||||
| Loss from continuing operations before taxes | (4,414 | ) | (522 | ) | |||
| Income tax benefit | (956 | ) | (204 | ) | |||
| Loss from continuing operations, net of taxes | (3,458 | ) | (318 | ) | |||
| Loss from discontinued operations (net of taxes) | (102 | ) | (93 | ) | |||
| Net loss | $ | (3,560 | ) | $ | (411 | ) | |
| Net loss per common share - basic and diluted: | |||||||
| Continuing operations | $ | (.25 | ) | $ | (.02 | ) | |
| Discontinued operations | (.01 | ) | (.01 | ) | |||
| Net loss per common share | $ | (.26 | ) | $ | (.03 | ) | |
| Number of common shares used in computing net loss per share: | |||||||
| Basic | 13,676 | 13,358 | |||||
| Diluted | 13,676 | 13,358 | |||||
| PERMA-FIX ENVIRONMENTAL SERVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||
| March 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (Amounts in Thousands, Except for Share and Per Share Amounts) | (Unaudited) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 2,374 | $ | 7,500 | ||||
| Account receivable, net of allowance for credit losses of | ||||||||
| 8,701 | 9,722 | |||||||
| Unbilled receivables | 8,797 | 8,432 | ||||||
| Other current assets | 5,026 | 4,893 | ||||||
| Assets of discontinued operations included in current assets | 13 | 13 | ||||||
| Total current assets | 24,911 | 30,560 | ||||||
| Net property and equipment | 18,890 | 19,009 | ||||||
| Property and equipment of discontinued operations | 81 | 81 | ||||||
| Operating lease right-of-use assets | 1,885 | 1,990 | ||||||
| Intangibles and other assets | 28,272 | 27,109 | ||||||
| Total assets | $ | 74,039 | $ | 78,749 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | $ | 24,418 | $ | 25,678 | ||||
| Current liabilities related to discontinued operations | 238 | 269 | ||||||
| Total current liabilities | 24,656 | 25,947 | ||||||
| Long-term liabilities | 12,188 | 12,472 | ||||||
| Long-term liabilities related to discontinued operations | 955 | 953 | ||||||
| Total liabilities | 37,799 | 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, | ||||||||
| 13,730,580 and 13,654,201 shares issued, respectively; | ||||||||
| 13,722,938 and 13,646,559 shares outstanding, respectively | 14 | 14 | ||||||
| Additional paid-in capital | 116,981 | 116,502 | ||||||
| Accumulated deficit | (80,511 | ) | (76,951 | ) | ||||
| Accumulated other comprehensive loss | (156 | ) | (100 | ) | ||||
| Less Common Stock held in treasury, at cost: 7,642 shares | (88 | ) | (88 | ) | ||||
| Total stockholders' equity | 36,240 | 39,377 | ||||||
| Total liabilities and stockholders' equity | $ | 74,039 | $ | 78,749 | ||||
FAQ
What was Perma-Fix Environmental Services, Inc.'s revenue for Q1 2024?
Why did the Services Segment revenue decrease in Q1 2024?
Why did the Treatment Segment revenue decline in Q1 2024?
What was the net loss for Perma-Fix in Q1 2024?
