Perma-Fix Environmental Services, Inc. (NASDAQ:
PESI) (the “Company”) today announced financial results
and provided a business update for the third quarter ended
September 30, 2021.
Mark Duff, President and CEO of the Company,
commented, “We have started to see an improvement in the business
following the pandemic-related decline. Specifically, our Treatment
Segment revenues have begun to increase, which has continued to
build heading into the fourth quarter. Importantly, we hope to
capitalize on the pent-up demand as the industry returns to normal.
Similarly, our Services Segment was impacted by a hiatus in new
contract awards due to the pandemic, as reflected in our third
quarter results. However, the government has begun issuing these
awards, and we’re starting to see the positive impact. I’m pleased
to report we have already won a number of service contracts, adding
approximately $50 million of project backlog since the start of the
third quarter, which we believe should have a positive impact on
our results beginning in the fourth quarter and into 2022. We also
secured numerous Indefinite Delivery/Indefinite Quantity (IDIQ) or
multi-award task order contracts (MATOCs), which limit competition
and provide an opportunity for quick and low-cost proposal
development. In addition, we have continued to define and position
for new procurement and market expansion opportunities with the US
Navy, the US Department of Defense (DOD) and the US Department of
Energy (DOE). These opportunities include work scope directly
within our core competencies that will support innovative solutions
and the potential for increased revenue within both sectors.”
“We continue to maintain a solid balance sheet,
with cash on hand of more than $7.2 million as of September 30,
2021. As a result, we believe that we are capitalized to execute on
our business strategy. We feel our recent funding will allow us to
accelerate facility upgrades to support potential new revenue
streams from Hanford and other government sites that could be a
benefit to our Treatment Segment.”
COVID-19The Company continues
to proactively update its ongoing business operations and safety
plans to mitigate any potential impact of COVID-19. However, 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.
Financial ResultsRevenue for
the third quarter of 2021 was $15.8 million versus $30.2 million
for the same period last year. The decrease was primarily within
the Services Segment where revenue decreased to approximately $6.9
million for the three months ended September 30, 2021 from $23.1
million for the corresponding period of 2020 resulting primarily
from delays in procurement actions and contract awards from the
impact of COVID-19 in the first half of 2021 and the completion of
a certain large project within the Services Segment in the second
quarter of 2021. However, since the end of the second quarter of
2021, our Services Segment has been awarded a number of new
contracts, including a fixed price contract awarded to the Company
at the end of the third quarter of 2021 with a value of
approximately $40.0 million for the decommissioning of a navy ship.
We expect to see a ramp-up of activities from these new projects
starting in the fourth quarter of 2021. The Company’s 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. Revenue for the Treatment Segment was approximately
$8.9 million and $7.1 million for the third quarter of 2021 and
2020, respectively. Treatment Segment revenue for the third quarter
of 2021 included revenue recognized in the amount of approximately
$1,286,000 from a request for equitable adjustment (“REA”) under a
certain contract. The Company’s revenue within our Treatment
Segment for each of the third quarters of 2021 and 2020 continued
to be negatively impacted by waste shipment delays from certain key
customers primarily due to the impact of COVID-19.
Gross profit for the third quarter of 2021 was
$2.2 million versus $4.8 million for the third quarter of 2020. The
decrease was entirely within our Services Segment due to lower
revenue from fewer projects resulting primarily from delays in
contract awards from the impact of COVID-19 and the completion of a
certain large project as discussed above.
Operating loss for the third quarter of 2021 was
approximately $1.4 million versus operating income of $1.3 million
for the third quarter of 2020. Net income attributable to common
stockholders for the third quarter of 2021 was approximately $1.4
million or $0.11 per share (both basic and diluted) versus $1.4
million or $0.12 per share (both basic and diluted) for the third
quarter of 2020. Net income attributable to common stockholders for
the third quarter of 2021 included a tax benefit recorded in the
amount of approximately $2.4 million resulting from the release of
valuation allowance on the Company’s deferred tax assets.
The Company recorded Adjusted EBITDA of
($798,000) from continuing operations during the quarter ended
September 30, 2021, as compared to Adjusted EBITDA of $2.0 million
for the same 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 and (gain) loss on
extinguishment of debt. 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 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 nine months ended
September 30, 2021 and 2020.
|
(Unaudited) |
|
(Unaudited) |
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
(In thousands) |
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Income from continuing operations |
$ |
1,381 |
|
|
$ |
1,481 |
|
|
$ |
3,464 |
|
|
$ |
3,049 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Depreciation & amortization |
|
409 |
|
|
|
478 |
|
|
|
1,208 |
|
|
|
1,189 |
|
Interest income |
|
(2 |
) |
|
|
(28 |
) |
|
|
(23 |
) |
|
|
(112 |
) |
Interest expense |
|
77 |
|
|
|
87 |
|
|
|
209 |
|
|
|
306 |
|
Interest expense - financing fees |
|
11 |
|
|
|
58 |
|
|
|
28 |
|
|
|
187 |
|
Income tax benefit |
|
(2,836 |
) |
|
|
(133 |
) |
|
|
(2,840 |
) |
|
|
(128 |
) |
|
|
|
|
|
|
|
|
EBITDA |
|
(960 |
) |
|
|
1,943 |
|
|
|
2,046 |
|
|
|
4,491 |
|
|
|
|
|
|
|
|
|
Research and development costs
related to Medical Isotope project |
|
162 |
|
|
|
81 |
|
|
|
311 |
|
|
|
221 |
|
(Gain) loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(5,381 |
) |
|
|
27 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
(798 |
) |
|
$ |
2,024 |
|
|
$ |
(3,024 |
) |
|
$ |
4,739 |
|
|
|
|
|
|
|
|
|
The tables below present certain unaudited
financial information for the business segments, excluding
allocation of corporate expenses:
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30,
2021 |
|
September 30,
2021 |
|
|
|
|
(Unaudited) |
|
|
|
(Unaudited) |
(In thousands) |
|
Treatment |
|
Services |
|
Medical |
|
Treatment |
|
Services |
|
Medical |
Net revenues |
|
$ |
8,893 |
|
|
$ |
6,904 |
|
|
$ |
— |
|
|
$ |
24,094 |
|
|
$ |
30,981 |
|
|
$ |
— |
|
Gross profit
(negative gross profit) |
|
|
2,487 |
|
|
|
(263 |
) |
|
|
— |
|
|
|
4,845 |
|
|
|
701 |
|
|
|
— |
|
Segment
(loss) profit |
|
|
1,316 |
|
|
|
(984 |
) |
|
|
(162 |
) |
|
|
1,682 |
|
|
|
(1,731 |
) |
|
|
(311 |
) |
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30,
2020 |
|
September 30,
2020 |
|
|
|
|
(Unaudited) |
|
|
|
(Unaudited) |
(In thousands) |
|
Treatment |
|
Services |
|
Medical |
|
Treatment |
|
Services |
|
Medical |
Net revenues |
|
$ |
7,066 |
|
|
$ |
23,106 |
|
|
$ |
— |
|
|
$ |
24,469 |
|
|
$ |
52,610 |
|
|
$ |
— |
|
Gross
profit |
|
|
1,094 |
|
|
|
3,656 |
|
|
|
— |
|
|
|
5,533 |
|
|
|
7,167 |
|
|
|
— |
|
Segment
profit (loss) |
|
|
450 |
|
|
|
2,811 |
|
|
|
(81 |
) |
|
|
2,742 |
|
|
|
5,160 |
|
|
|
(221 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call Perma-Fix will
host a conference call at 2:00 p.m. ET on Thursday, November 11,
2021. The call will be available in the investors section of 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: 592717. 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 Thursday,
November 18, 2021 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: 43641.
About Perma-Fix Environmental
ServicesPerma-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 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: results beginning the
fourth quarter and into 2022; revenue increase; capitalized to
execute business strategy; new projects; capitalize on pent-up
demand; backlog impact; revenue within both sectors; and support
potential new revenue streams 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; failure of Congress to
provides continuing funding for the DOD’s and DOE’s remediation
projects; ability to obtain new foreign and domestic remediation
contracts; inability to meet financial covenants; impact of
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 and Forms 10-Q for quarters
ended March 31, 2021, June 30, 2021 and September 30, 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.
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(UNAUDITED)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
September 30, |
|
|
September 30, |
(Amounts in Thousands, Except for Per Share Amounts) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
$ |
15,797 |
|
|
$ |
30,172 |
|
|
$ |
55,075 |
|
|
$ |
77,079 |
|
Cost of goods sold |
|
13,573 |
|
|
|
25,422 |
|
|
|
49,529 |
|
|
|
64,379 |
|
Gross profit |
|
2,224 |
|
|
|
4,750 |
|
|
|
5,546 |
|
|
|
12,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
3,348 |
|
|
|
3,308 |
|
|
|
9,550 |
|
|
|
8,935 |
|
Research and development |
|
243 |
|
|
|
157 |
|
|
|
538 |
|
|
|
598 |
|
Loss on disposal of property and equipment |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
27 |
|
(Loss) income from operations |
|
(1,368 |
) |
|
|
1,285 |
|
|
|
(4,543 |
) |
|
|
3,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
2 |
|
|
|
28 |
|
|
|
23 |
|
|
|
112 |
|
Interest expense |
|
(77 |
) |
|
|
(87 |
) |
|
|
(209 |
) |
|
|
(306 |
) |
Interest expense-financing fees |
|
(11 |
) |
|
|
(58 |
) |
|
|
(28 |
) |
|
|
(187 |
) |
Other |
|
(1 |
) |
|
|
180 |
|
|
|
— |
|
|
|
189 |
|
Gain (loss) on debt extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
5,381 |
|
|
|
(27 |
) |
(Loss) income from continuing operations before taxes |
|
(1,455 |
) |
|
|
1,348 |
|
|
|
624 |
|
|
|
2,921 |
|
Income tax benefit |
|
(2,836 |
) |
|
|
(133 |
) |
|
|
(2,840 |
) |
|
|
(128 |
) |
Income from continuing operations, net of taxes |
|
1,381 |
|
|
|
1,481 |
|
|
|
3,464 |
|
|
|
3,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of taxes |
|
(43 |
) |
|
|
(67 |
) |
|
|
(285 |
) |
|
|
(266 |
) |
Net income |
|
1,338 |
|
|
|
1,414 |
|
|
|
3,179 |
|
|
|
2,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to non-controlling interest |
|
(64 |
) |
|
|
(32 |
) |
|
|
(123 |
) |
|
|
(87 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
Perma-Fix Environmental Services, Inc. common stockholders |
$ |
1,402 |
|
|
$ |
1,446 |
|
|
$ |
3,302 |
|
|
$ |
2,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common
share attributable to Perma-Fix Environmental Services, Inc.
stockholders - basic: |
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
.12 |
|
|
$ |
.13 |
|
|
$ |
.29 |
|
|
$ |
.26 |
|
Discontinued operations |
|
(.01 |
) |
|
|
(.01 |
) |
|
|
(.02 |
) |
|
|
(.02 |
) |
Net income per common share |
$ |
.11 |
|
|
$ |
.12 |
|
|
$ |
.27 |
|
|
$ |
.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common
share attributable to Perma-Fix Environmental Services, Inc.
stockholders - diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
.12 |
|
|
$ |
.13 |
|
|
$ |
.29 |
|
|
$ |
.25 |
|
Discontinued operations |
|
(.01 |
) |
|
|
(.01 |
) |
|
|
(.02 |
) |
|
|
(.02 |
) |
Net income per common share |
$ |
.11 |
|
|
$ |
.12 |
|
|
$ |
.27 |
|
|
$ |
.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of common shares used
in computing net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
12,198 |
|
|
|
12,145 |
|
|
|
12,181 |
|
|
|
12,134 |
|
Diluted |
|
12,406 |
|
|
|
12,371 |
|
|
|
12,416 |
|
|
|
12,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERMA-FIX ENVIRONMENTAL SERVICES,
INC.CONSOLIDATED BALANCE SHEET
|
|
September 30, |
|
December 31, |
|
|
|
2021 |
|
|
|
2020 |
|
(Amounts in Thousands, Except for Share and Per Share Amounts) |
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash |
|
$ |
7,222 |
|
|
$ |
7,924 |
|
Account receivable, net of allowance for doubtful accounts of $60
and $404, respectively |
|
|
11,816 |
|
|
|
9,659 |
|
Unbilled receivables |
|
|
5,696 |
|
|
|
14,453 |
|
Other current assets |
|
|
4,675 |
|
|
|
4,577 |
|
Assets of discontinued operations included in current assets |
|
|
18 |
|
|
|
22 |
|
Total current assets |
|
|
29,427 |
|
|
|
36,635 |
|
|
|
|
|
|
Net property and equipment |
|
|
18,363 |
|
|
|
17,783 |
|
Property and equipment of discontinued operations |
|
|
81 |
|
|
|
81 |
|
|
|
|
|
|
Operating lease right-of-use assets |
|
|
2,570 |
|
|
|
2,287 |
|
|
|
|
|
|
Intangibles and other assets |
|
|
24,963 |
|
|
|
22,133 |
|
Total assets |
|
$ |
75,404 |
|
|
$ |
78,919 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities |
|
$ |
21,948 |
|
|
$ |
32,065 |
|
Current liabilities related to discontinued operations |
|
|
332 |
|
|
|
898 |
|
Total current liabilities |
|
|
22,280 |
|
|
|
32,963 |
|
|
|
|
|
|
Long-term liabilities |
|
|
11,264 |
|
|
|
13,253 |
|
Long-term liabilities related to discontinued operations |
|
|
802 |
|
|
|
252 |
|
Total liabilities |
|
|
34,346 |
|
|
|
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,
12,304,265 and 12,161,539 shares issued, respectively; 12,296,623
and 12,153,897 shares outstanding, respectively |
|
|
12 |
|
|
|
12 |
|
Additional paid-in capital |
|
|
109,954 |
|
|
|
108,931 |
|
Common Stock subscriptions |
|
|
4,387 |
|
|
|
— |
|
Accumulated deficit |
|
|
(71,153 |
) |
|
|
(74,455 |
) |
Accumulated other comprehensive loss |
|
|
(189 |
) |
|
|
(207 |
) |
Less Common Stock held in treasury, at cost: 7,642 shares |
|
|
(88 |
) |
|
|
(88 |
) |
Total Perma-Fix Environmental Services, Inc. stockholders'
equity |
|
|
42,923 |
|
|
|
34,193 |
|
Non-controlling interest in subsidiary |
|
|
(1,865 |
) |
|
|
(1,742 |
) |
Total stockholders' equity |
|
|
41,058 |
|
|
|
32,451 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
75,404 |
|
|
$ |
78,919 |
|
|
|
|
|
|
PermaFix Environmental S... (NASDAQ:PESI)
Historical Stock Chart
From Jun 2024 to Jul 2024
PermaFix Environmental S... (NASDAQ:PESI)
Historical Stock Chart
From Jul 2023 to Jul 2024