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-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 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 RelationsCrescendo Communications, LLC (212) 671-1021
Herbert Strauss-European Investor Relationsherbert@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 |
|
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