Perma-Fix Environmental Services, Inc. (NASDAQ:
PESI) (the “Company”) today announced results for the
fourth quarter and full year ended December 31, 2020.
2020 Financial Highlights:
- Revenue for 2020
increased 43.5% to $105.4 million versus $73.5 million for the same
period last year
- Services Segment
revenue increased 127.5% to $75.3 million for 2020 versus $33.1
million for 2019
- Treatment Segment
revenue decreased to $30.1 million versus $40.4 million for
2019
- Gross profit for
2020 increased to $15.9 million versus $15.6 million for 2019
- Net income
attributable to common stockholders increased to $2.9 million, or
$0.24 per share (basic) for 2020, compared to net income of $2.3
million or $0.19 per share (basic) for 2019
- Generated adjusted
EBITDA (defined below) of $5.4 million compared to $5.2 million for
2019 (see reconciliation to GAAP below)
Mark Duff, Chief Executive Officer, stated, “We
achieved year-over-year growth of 28% and 44% for the fourth
quarter and 2020, respectively, reflecting steady expansion of our
Services Segment as we continued to execute on our strategic plan
and business development initiatives. The growth in our Services
Segment was offset by weakness in our Treatment Segment, as
previously disclosed, due in large part to the impact of the
COVID-19 pandemic. Although we continue to face some
pandemic-related challenges in the first half of 2021, we remain
optimistic about the outlook for the full year.”
“Looking ahead, we are actively bidding on a
number of very large service projects. Moreover, we are rapidly
advancing several initiatives within the Treatment Segment that we
believe have the potential to significantly enhance our revenues,
while establishing increased market share and large backlog for
waste processing. In particular, we are making continued progress
at Hanford regarding opportunities to leverage our advanced
capabilities to solve large-scale waste management problems at the
site. We believe our technologies and off-site processing
capabilities provide a unique and cost-effective solution to
addressing some of the country’s largest environmental remediation
challenges, and we look forward to playing a major role in
addressing these national priorities.”
COVID-19Similar 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 our locations.
However, the Company’s Treatment Segment continues to see delays in
waste shipments from certain customers due to continued impacts of
COVID-19 and the Services Segment is realizing delays in
procurement actions which will push out funded backlog. 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.
Financial Results
Fourth-Quarter 2020 ResultsRevenue for the
fourth quarter of 2020 was $28.3 million versus $22.1 million for
the same period last year. Revenue from the Services Segment
increased by $10.8 million to $22.6 million from $11.8 million for
the same period in 2019. The increase in Services Segment revenues
was attributed to more project work. Revenue for the Treatment
Segment decreased approximately $4.6 million to $5.7 million in the
fourth quarter of 2020 from $10.3 million for the corresponding
period of 2019. The revenue decrease in the Treatment segment was
the result of reduced volume from waste shipment delays from the
impact of COVID-19 as well as lower average price which was
impacted by waste mix.
Gross profit for the fourth quarter of 2020 was
$3.2 million and $4.7 million for the fourth quarter of 2019.
Operating income for the fourth quarter of 2020
was $188,000 versus $1.2 million for the fourth quarter of 2019.
Income from continuing operations for the fourth quarter of 2020
was approximately $100,000 as compared to income from continuing
operations of $1.0 million for the corresponding period of 2019.
Net loss attributable to common stockholders for the fourth quarter
of 2020 was $10,000 as compared to net income attributable to
common stockholders of $930,000 for the fourth quarter of 2019.
Earnings per share (basic) attributable to common stockholders was
$0.00 for the fourth quarter of 2020 as compared to income per
share (basic) of $0.08 for the corresponding period of 2019.
2020 Financial ResultsRevenue in 2020 was $105.4
million versus $73.5 million in 2019. Revenue from the Services
Segment increased by $42.2 million to $75.3 million from $33.1
million in 2019. The increase in Services Segment revenues was
attributed to more project work. Revenue for the Treatment Segment
decreased approximately $10.3 million to $30.1 million in 2020 from
$40.4 million in 2019. The revenue decrease in the Treatment
segment was primarily the result of reduced volume from waste
shipment delays from the impact of COVID-19.
Gross profit in 2020 was $15.9 million and $15.6
million in 2019.
Operating income in 2020 was $3.3 million versus
$3.0 million in 2019. Income from continuing operations in 2020 was
approximately $3.1 million as compared to income from continuing
operations of $2.7 million in 2019. Net income attributable to
common stockholders in 2020 was $2.9 million as compared to net
income attributable to common stockholders of $2.3 million in 2019.
Earnings per share (basic) attributable to common stockholders was
$0.24 in 2020 as compared to income per share (basic) of $0.19 in
2019.
The Company’s Adjusted EBITDA at December 31,
2020 was approximately $5.4 million from continuing operations as
compared to approximately $5.2 million for the corresponding period
of 2019. 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 and closure costs accrued for the Company’s East
Tennessee Materials and Energy Corporation (“M&EC”) facility.
Both EBITDA and Adjusted EBITDA are not 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 from continuing operations for
the three and twelve months ended December 31, 2020 and 2019.
|
|
Quarter Ended |
|
Twelve Months
Ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(In thousands) |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
Income from
continuing operations |
|
$ |
100 |
|
|
$ |
1,014 |
|
|
$ |
3,149 |
|
|
$ |
2,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Depreciation & amortization |
|
|
408 |
|
|
|
373 |
|
|
|
1,596 |
|
|
|
1,342 |
|
|
Interest income |
|
|
(28 |
) |
|
|
(72 |
) |
|
|
(140 |
) |
|
|
(337 |
) |
|
Interest expense |
|
|
92 |
|
|
|
139 |
|
|
|
398 |
|
|
|
432 |
|
|
Interest expense - financing fees |
|
|
107 |
|
|
|
69 |
|
|
|
294 |
|
|
|
208 |
|
|
Income tax (benefit) expense |
|
|
(61 |
) |
|
|
58 |
|
|
|
(189 |
) |
|
|
157 |
|
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
27 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
618 |
|
|
|
1,581 |
|
|
|
5,135 |
|
|
|
4,534 |
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development costs related to |
|
|
|
|
|
|
|
|
|
medical Isotope project |
|
|
91 |
|
|
|
87 |
|
|
|
311 |
|
|
|
314 |
|
|
Closure
costs accrued for M&EC subsidiary |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
330 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
$ |
709 |
|
|
$ |
1,668 |
|
|
$ |
5,446 |
|
|
$ |
5,178 |
|
|
|
|
|
|
|
|
|
|
|
|
The tables below present certain financial
information for the business segments, which exclude allocation of
corporate expenses:
|
|
Three Months
Ended |
|
Twelve Months
Ended |
|
|
December 31,
2020 |
|
December 31,
2020 |
|
|
(Unaudited) |
|
(Unaudited) |
(In thousands) |
|
Treatment |
|
Services |
|
|
Medical |
|
Treatment |
|
Services |
|
|
Medical |
Net revenues |
|
$ |
5,675 |
|
|
$ |
22,672 |
|
$ |
— |
|
|
$ |
30,143 |
|
$ |
75,283 |
|
$ |
— |
|
(Negative
gross profit)/gross profit |
|
|
(42 |
) |
|
|
3,235 |
|
|
— |
|
|
|
5,491 |
|
|
10,402 |
|
|
— |
|
Segment
(loss) profit |
|
|
(983 |
) |
|
|
2,660 |
|
|
(91 |
) |
|
|
1,758 |
|
|
7,820 |
|
|
(311 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Twelve Months
Ended |
|
|
December 31,
2019 |
|
December 31,
2019 |
|
|
(Unaudited) |
|
(Audited) |
(In thousands) |
|
Treatment |
|
Services |
|
|
Medical |
|
Treatment |
|
Services |
|
|
Medical |
Net revenues |
|
$ |
10,285 |
|
$ |
11,796 |
|
$ |
— |
|
|
$ |
40,364 |
|
$ |
33,095 |
|
$ |
— |
|
Gross
profit |
|
|
3,326 |
|
|
1,329 |
|
|
— |
|
|
|
12,248 |
|
|
3,336 |
|
|
— |
|
Segment
profit (loss) |
|
|
2,189 |
|
|
478 |
|
|
(87 |
) |
|
|
7,820 |
|
|
795 |
|
|
(314 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call
Perma-Fix will host a conference call at 1:00
p.m. ET on Monday, March 29, 2021. A webcast of the call may be
accessed at https://www.webcaster4.com/Webcast/Page/2243/40535 or
on the Company’s website at www.perma-fix.com. The conference call
will also 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 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 Monday, April
05, 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: 40535
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”, “plans to”,
“estimates”, “projects”, and similar expressions. Forward-looking
statements include, but are not limited to: strategic plan and
business development initiatives; impact of COVID-19 pandemic;
demand for our services; outlook for the full year; enhance
revenues; increase market share and large backlog for waste
processing; our technologies and off-site processing capabilities;
and end of second quarter of 2021. 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; impact of the COVID-19; and the “Risk Factors” discussed
in, and the additional factors referred to under "Special Note
Regarding Forward-Looking Statements" of, our 2020 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.
Please visit us on the World Wide Web at
http://www.perma-fix.com.
FINANCIAL TABLES FOLLOW
Contacts:David K. Waldman-US
Investor RelationsCrescendo Communications, LLC (212) 671-1021
Herbert Strauss-European Investor Relationsherbert@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, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
(Amounts in Thousands, Except for Per Share Amounts) |
|
(Unaudited) |
|
(Unaudited) |
(Audited) |
|
|
|
|
|
|
|
|
|
Net
revenues |
$ |
28,347 |
|
$ |
22,081 |
|
$ |
105,426 |
|
$ |
73,459 |
|
Cost of
goods sold |
|
25,154 |
|
|
17,426 |
|
|
89,533 |
|
|
57,875 |
|
Gross profit |
|
3,193 |
|
|
4,655 |
|
|
15,893 |
|
|
15,584 |
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses |
|
2,839 |
|
|
3,314 |
|
|
11,774 |
|
|
11,862 |
|
Research and
development |
|
164 |
|
|
135 |
|
|
762 |
|
|
750 |
|
Loss on
disposal of property and equipment |
|
2 |
|
|
— |
|
|
29 |
|
|
3 |
|
Income from operations |
|
188 |
|
|
1,206 |
|
|
3,328 |
|
|
2,969 |
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
Interest
income |
|
28 |
|
|
72 |
|
|
140 |
|
|
337 |
|
Interest
expense |
|
(92 |
) |
|
(139 |
) |
|
(398 |
) |
|
(432 |
) |
Interest
expense-financing fees |
|
(107 |
) |
|
(69 |
) |
|
(294 |
) |
|
(208 |
) |
Other |
|
22 |
|
|
2 |
|
|
211 |
|
|
223 |
|
Loss on debt
extinguishment of debt |
|
— |
|
|
— |
|
|
27 |
|
|
— |
|
Income from
continuing operations before taxes |
|
39 |
|
|
1,072 |
|
|
2,960 |
|
|
2,889 |
|
Income tax
(benefit) expense |
|
(61 |
) |
|
58 |
|
|
(189 |
) |
|
157 |
|
Income from
continuing operations, net of taxes |
|
100 |
|
|
1,014 |
|
|
3,149 |
|
|
2,732 |
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations, net of taxes |
|
(146 |
) |
|
(118 |
) |
|
(412 |
) |
|
(541 |
) |
Net (loss) income |
|
(46 |
) |
|
896 |
|
|
2,737 |
|
|
2,191 |
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to non-controlling interest |
|
(36 |
) |
|
(34 |
) |
|
(123 |
) |
|
(124 |
) |
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to Perma-Fix Environmental |
|
|
|
|
|
|
|
|
Services, Inc. common stockholders |
$ |
(10 |
) |
$ |
930 |
|
$ |
2,860 |
|
$ |
2,315 |
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per common share attributable to |
|
|
|
|
|
|
|
|
Perma-Fix Environmental Services, Inc. stockholders - basic: |
|
|
|
|
|
|
|
|
Continuing
operations |
$ |
.01 |
|
$ |
.09 |
|
$ |
.27 |
|
$ |
.24 |
|
Discontinued
operations |
|
(.01 |
) |
|
(.01 |
) |
|
(.03 |
) |
|
(.05 |
) |
Net income per common share |
$ |
— |
|
$ |
.08 |
|
$ |
.24 |
|
$ |
.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per common share attributable to |
|
|
|
|
|
|
|
|
Perma-Fix Environmental Services, Inc. stockholders - diluted: |
|
|
|
|
|
|
|
|
Continuing
operations |
$ |
.01 |
|
$ |
.09 |
|
$ |
.26 |
|
$ |
.24 |
|
Discontinued
operations |
|
(.01 |
) |
|
(.01 |
) |
|
(.03 |
) |
|
(.05 |
) |
Net income per common share |
$ |
— |
|
$ |
.08 |
|
$ |
.23 |
|
$ |
.19 |
|
|
|
|
|
|
|
|
|
|
Number of
common shares used in computing |
|
|
|
|
|
|
|
|
net income (loss) per share: |
|
|
|
|
|
|
|
|
Basic |
|
12,154 |
|
|
12,094 |
|
|
12,139 |
|
|
12,046 |
|
Diluted |
|
12,370 |
|
|
12,273 |
|
|
12,347 |
|
|
12,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERMA-FIX ENVIRONMENTAL SERVICES,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
December 31, |
December 31, |
|
|
|
2020 |
|
|
|
2019 |
|
(Amounts in Thousands, Except for Share and Per Share Amounts) |
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash |
|
$ |
7,924 |
|
|
$ |
390 |
|
Account receivable, net of allowance for doubtful |
|
|
|
|
accounts of $404 and $487, respectively |
|
9,659 |
|
|
|
13,178 |
|
Unbilled receivables |
|
|
14,453 |
|
|
|
7,984 |
|
Other current assets |
|
|
4,577 |
|
|
|
3,470 |
|
Assets of discontinued operations included in current assets |
|
|
22 |
|
|
|
104 |
|
Total current assets |
|
|
36,635 |
|
|
|
25,126 |
|
|
|
|
|
|
Net property
and equipment |
|
|
17,783 |
|
|
|
16,576 |
|
Property and
equipment of discontinued operations |
|
|
81 |
|
|
|
81 |
|
|
|
|
|
|
Operating
lease right-of-use assets |
|
|
2,287 |
|
|
|
2,545 |
|
|
|
|
|
|
Intangibles
and other assets |
|
|
22,133 |
|
|
|
22,151 |
|
Other assets
related to discontinued operations |
|
|
— |
|
|
|
36 |
|
Total assets |
|
$ |
78,919 |
|
|
$ |
66,515 |
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities |
|
$ |
32,065 |
|
|
$ |
24,106 |
|
Current
liabilities related to discontinued operations |
|
|
898 |
|
|
|
994 |
|
Total current liabilities |
|
|
32,963 |
|
|
|
25,100 |
|
|
|
|
|
|
Long-term
liabilities |
|
|
13,253 |
|
|
|
11,935 |
|
Long-term
liabilities related to discontinued operations |
|
|
252 |
|
|
|
244 |
|
Total liabilities |
|
|
46,468 |
|
|
|
37,279 |
|
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, |
|
|
|
|
12,161,539 and 12,123,520 shares issued, respectively; |
|
|
|
|
12,153,897 and 12,115,878 shares outstanding, respectively |
|
|
12 |
|
|
|
12 |
|
Additional paid-in capital |
|
|
108,931 |
|
|
|
108,457 |
|
Accumulated deficit |
|
|
(74,455 |
) |
|
|
(77,315 |
) |
Accumulated other comprehensive loss |
|
|
(207 |
) |
|
|
(211 |
) |
Less Common Stock held in treasury, at cost: 7,642 shares |
|
|
(88 |
) |
|
|
(88 |
) |
Total Perma-Fix Environmental Services, Inc. stockholders'
equity |
|
|
34,193 |
|
|
|
30,855 |
|
Non-controlling interest in subsidiary |
|
|
(1,742 |
) |
|
|
(1,619 |
) |
Total stockholders' equity |
|
|
32,451 |
|
|
|
29,236 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
78,919 |
|
|
$ |
66,515 |
|
|
|
|
|
|
PermaFix Environmental S... (NASDAQ:PESI)
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From Jun 2024 to Jul 2024
PermaFix Environmental S... (NASDAQ:PESI)
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From Jul 2023 to Jul 2024