Perma-Fix Reports Financial Results for the First Quarter of 2021

Atlanta, Georgia, UNITED STATES


ATLANTA, May 06, 2021 (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, 2021.

Mark Duff, President and CEO of the Company, commented, “As anticipated, we experienced weakness in our Treatment Segment due to the ongoing effects of the COVID-19 pandemic, which resulted in delayed shipments. Partially offsetting this weakness, we achieved modest growth in our Services Segment revenue despite delays throughout the industry in awarding procurements, also due to the pandemic. Nevertheless, we remain optimistic, as we have begun to see a return to normalization. As a result, we anticipate a stronger second half of 2021, given our robust pipeline within the Services Segment and significant pent-up demand within the Treatment Segment. In terms of the Services Segment, we have an unprecedented number and combined value of bids currently submitted and awaiting awards. We also expect to benefit from the government’s fiscal 2020 carryover funds, in addition to 2021 allocations that have been delayed and should help fund an acceleration of projects within the Treatment Segment. Also, as previously disclosed, we are rapidly advancing several initiatives within the Treatment Segment that we believe have the potential to enhance our revenues at each of our treatment facilities. The foundation of our growth strategy is based on the addition of experienced technical talent in waste management and health physics over the past two years. We believe this foundation, coupled with new technology launches in both services and treatment will continue to provide our clients value and support our growth goals once COVID is behind us.”

COVID-19
Similar to most of the US, Perma-Fix is beginning to relax the COVID-19-related precautions associated with ongoing operations as more staff is vaccinated and the new cases continue to decline in the Company’s locations. However, the Company’s Treatment Segment continues to see delays in waste shipments from key customers due to continued impacts of COVID-19 and the Services Segment is realizing delays in procurement actions and contract awards. As the situations surrounding COVID-19 remain fluid, the full impact and extent of the pandemic on the Company’s financial results cannot be estimated with any degree of certainty but appear to be subsiding towards the end of the second quarter of 2021. The Company is realizing pent-up demand in both segments, which has been reflected in the large increase in proposal requests throughout Q1 2021 and into Q2 2021.

Financial Results

Revenue was $23.1 million for the first quarter of 2021 as compared to $24.9 million for the corresponding period of 2020. The decrease in revenue was entirely within our Treatment Segment where revenue decreased to $7.5 million for the first quarter of 2021 from $9.6 million corresponding period of 2020. The revenue decrease in the Treatment segment was primarily the result of reduced volume from waste shipment delays from the impact of COVID-19. Also, lower averaged price waste from revenue mix contributed to the decrease in revenue within the Treatment Segment. Revenue for the Services Segment increased to $15.6 million for the first quarter of 2021 from $15.3 million for the same period in 2020. The Services Segment revenues are project based; as such, the scope, duration and completion of each project vary. As a result, the Services Segment revenues are subject to differences relating to timing and project value.

Gross profit for the first quarter of 2021 was $2.4 million versus $4.6 million for the first quarter of 2020 primarily due to lower revenue generated in the Treatment Segment and the impact of the fixed costs at our treatment plants.

Operating loss for the first quarter of 2021 was $999,000 versus operating income of $1.4 million for the corresponding period of 2020. Net loss attributable to common stockholders (both basic and diluted) for the first quarter of 2021 was $1.1 million or ($0.09) per share versus net income attributable to common stockholders (both basic and diluted) of $1.2 million or $0.10 per share, for the same period in 2020.

The Company reported Adjusted EBITDA of ($522,000) from continuing operations at March 31, 2021, as compared to Adjusted EBITDA of $1.9 million from continuing operations during the corresponding period of 2020. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before research and development costs related to the Medical Isotope project. Both EBITDA and Adjusted EBITDA are not measures 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 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 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 (loss) income from continuing operations for the three months ended March 31, 2021 and 2020.

  Quarter Ended
  March 31,
  (Unaudited) (Unaudited)
(In thousands)  2021   2020 
(Loss) income from continuing operations $(1,038) $1,308 
     
Adjustments:    
Depreciation & amortization  400   346 
Interest income  (18)  (56)
Interest expense  67   120 
Interest expense - financing fees  8   68 
Income tax (benefit) expense  (17)  14 
     
EBITDA  (598)  1,800 
     
Research and development costs related to    
Medical Isotope project  76   66 
     
Adjusted EBITDA $(522) $1,866 
     

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

  Quarter Ended Quarter Ended
  March 31, 2021 March 31, 2020
  (Unaudited) (Unaudited)
(In thousands) Treatment Services Medical Treatment Services Medical
Revenues $7,495  $15,638  $  $9,563  $15,297  $ 
Gross profit  925   1,431      2,745   1,895    
Segment (loss) profit  (102)  555   (76)  1,533   1,318   (66)
                         

Conference Call

Perma-Fix will host a conference call at 11:00 a.m. ET on Thursday, May 6, 2021. The conference call will be available via telephone by dialing toll free 877-876-9173 for U.S. callers, or +1 785-424-1667 for international callers. 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/2243/41236 or on the Company’s website at www.perma-fix.com. 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 13, 2021, and can be accessed by calling: 877-481-4010 for U.S. callers, or 919-882-2331 for international callers and entering conference ID: 41236.

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 U.S Department of Energy (“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: return to normalization; second half of 2021; award of contracts; benefit from the government’s fiscal 2020 carryover funds, in addition to 2021 allocations that have been delayed; acceleration of projects within our Treatment Segment; proposal requests; growth strategy; new technology launches; advancing initiatives; growth goals; and impact of COVID-19. 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; inability to meet financial covenants; and the additional factors referred to under “Risk Factors” and "Special Note Regarding Forward-Looking Statements" of our 2020 Form 10-K and Form 10-Q for quarter ended March 31, 2021. 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

   
         
  Three Months Ended March 31,
(Amounts in Thousands, Except for Per Share Amounts) 2021 2020
       
Revenues $23,133  $24,860 
Cost of goods sold  20,777   20,220 
Gross profit  2,356   4,640 
       
Selling, general and administrative expenses  3,205   2,928 
Research and development  150   232 
Loss on disposal of property and equipment     31 
(Loss) income from operations  (999)  1,449 
       
Other income (expense):      
Interest income  18   56 
Interest expense  (67)  (120)
Interest expense-financing fees  (8)  (68)
Other  1   5 
(Loss) income from continuing operatrions before taxes  (1,055)  1,322 
Income tax (benefit) expense  (17)  14 
(Loss) income from continuing operations, net of taxes  (1,038)  1,308 
       
Loss from discontinued operations (net of taxes of $0)  (115)  (114)
Net (loss) income  (1,153)  1,194 
       
Net loss attributable to non-controlling interest  (30)  (26)
       
Net (loss) income attributable to Perma-Fix Environmental Services, Inc.      
common stockholders $(1,123) $1,220 
       
Net (loss) income per common share attributable to Perma-Fix      
Environmental Services, Inc. stockholders - basic and diluted:      
       
Continuing operations $(.08) $.11 
Discontinued operations  (.01)  (.01)
Net (loss) income per common share $(.09) $.10 
       
       
Number of common shares used in computing net (loss) income per share:      
Basic  12,165   12,122 
Diluted  12,165   12,346 
         

PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED BALANCE SHEET

  March 31, December 31,
   2021   2020 
(Amounts in Thousands, Except for Share and Per Share Amounts) (Unaudited) (Audited)
     
ASSETS    
Current assets:    
Cash $713  $7,924 
Account receivable, net of allowance for doubtful accounts of $387 and $404, respectively  20,121   9,659 
Unbilled receivables  9,229   14,453 
Other current assets  4,403   4,577 
Assets of discontinued operations included in current assets  20   22 
Total current assets  34,486   36,635 
     
Net property and equipment  17,822   17,783 
Property and equipment of discontinued operations  81   81 
     
Operating lease right-of-use assets  2,220   2,287 
     
Intangibles and other assets  22,201   22,133 
Total assets $76,810  $78,919 
     
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities $32,666  $32,065 
Current liabilities related to discontinued operations  817   898 
Total current liabilities  33,483   32,963 
     
Long-term liabilities  11,589   13,253 
Long-term liabilities related to discontinued operations  296   252 
Total liabilities  45,368   46,468 
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, 12,173,376 and 12,161,539 shares issued, respectively; 12,165,734 and 12,153,897 shares outstanding, respectively  12   12 
Additional paid-in capital  109,055   108,931 
Accumulated deficit  (75,578)  (74,455)
Accumulated other comprehensive loss  (187)  (207)
Less Common Stock held in treasury, at cost: 7,642 shares  (88)  (88)
Total Perma-Fix Environmental Services, Inc. stockholders' equity  33,214   34,193 
Non-controlling interest in subsidiary  (1,772)  (1,742)
Total stockholders' equity  31,442   32,451 
     
Total liabilities and stockholders' equity $76,810  $78,919