Perma-Fix Environmental Services, Inc. (NASDAQ:
PESI) (the “Company”) today announced financial results
and provided a business update for the second quarter ended June
30, 2022.
Mark Duff, President and CEO of the Company,
commented, “We achieved a 20.5% increase in revenue to $19.5
million and a 198.6% increase in gross profit for the second
quarter of 2022, compared to the same period last year.
Importantly, for the second quarter of 2022, we achieved sequential
and year-over-year revenue growth in both our Treatment and
Services Segments. This growth was due in part to the resumption of
work and attaining complete operational levels on several projects
within our Services Segment, which had been delayed due to the
impact of COVID-19 pandemic. Within our Treatment Segment, we
benefitted from a 54% increase in waste receipts, including both
commercial and international waste.
“We are witnessing increased requests for
proposals within both the government and commercial sectors, as
well as international customers. Moreover, our ability to provide
innovative solutions, including both waste management and
radiological contamination, has supported our ability to join teams
on larger strategic bids. Within our Treatment Segment we are
seeing improvement in our project backlog, including expanded
treatment services to the commercial utility sector. Our Test Bed
Initiative (TBI) program also continues to progress with Nuclear
Regulatory Commission (NRC) approval of the Department of Energy’s
(DOE) Waste Incidental to Reprocessing report, which we believe
opens the door to commence shipment of the next 2,000 gallons to
our facility, which we are hopeful will occur before year-end.
Overall, we remain encouraged by the outlook for the business given
the pace of waste treatment receipts, new bidding opportunities,
and improved federal budgets.”
Financial Results
Revenue for the second quarter of 2022 was
approximately $19.5 million versus approximately $16.1 million for
the same period last year. Services Segment revenue increased to
approximately $11.1 million for the three months ended June 30,
2022 from $8.4 million for the corresponding period of 2021 due to
resumed/increased work under certain projects which had been
delayed/curtailed due to COVID-19 impact and/or administrative
delays experienced by certain customers. These projects were
awarded to us in the second quarter of 2021. Revenue for the
Treatment Segment was approximately $8.4 million and $7.7 million
for the second quarter of 2022 and 2021, respectively. The increase
was primarily due to improvement in waste receipts from certain
customers who have delayed waste shipments due, in part, to the
impact of COVID-19. This improvement is reflected in our Treatment
Segment waste backlog of $7,169,000 at June 30, 2022, an increase
of approximately $1,048,000 from the balance of $6,121,000 at March
31, 2022.
Gross profit for the second quarter of 2022 was
$2.9 million versus $966,000 for the second quarter of 2021
primarily due to higher revenue generated in both segments.
Operating loss for the second quarter of 2022
was approximately $880,000 versus operating loss of $2.2 million
for the second quarter of 2021. Net loss attributable to common
stockholders for the second quarter of 2022 was approximately $1.4
million or ($0.11) per basic share versus net income attributed to
common stockholders for the second quarter of 2021 of approximately
$3.0 million or $0.25 per basic share. Net income attributable to
common stockholders for the second quarter of 2022 included a tax
expense of $347,000 which was primarily driven by our change in
forecasted income for the year. Net income attributable to common
stockholders for the second quarter of 2021 included a “Gain on
extinguishment of debt” recorded in the amount of approximately
$5.4 million resulting from the Paycheck Protection Program (“PPP”)
Loan that was forgiven by the U.S. Small Business Administration in
June 2021.
The Company reported Adjusted EBITDA of
($403,000) from continuing operations for the quarter ended June
30, 2022, as compared to Adjusted EBITDA of ($1.7) million from
continuing operations for the same period of 2021. 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 on extinguishment of debt. As previously disclosed, in
December 2021, the Company made the strategic decision to cease all
research and development (“R&D”) activities under the Medical
Segment and sold 100% of its interest in Perma-Fix Medical S.A.,
which comprised its Medical Segment. 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 (loss)
income from continuing operations for the three and six months
ended June 30, 2022 and 2021.
|
|
(Unaudited) |
|
(Unaudited) |
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
(In thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
(Loss)
income from continuing operations |
|
$ |
(1,257 |
) |
$ |
3,121 |
|
|
$ |
(2,506 |
) |
$ |
2,083 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Depreciation & amortization |
|
|
480 |
|
|
|
400 |
|
|
|
936 |
|
|
|
799 |
|
Interest income |
|
|
(29 |
) |
|
|
(2 |
) |
|
|
(40 |
) |
|
|
(21 |
) |
Interest expense |
|
|
41 |
|
|
|
65 |
|
|
|
76 |
|
|
|
132 |
|
Interest expense - financing fees |
|
|
15 |
|
|
|
9 |
|
|
|
28 |
|
|
|
17 |
|
Income tax expense (benefit) |
|
|
347 |
|
|
|
13 |
|
|
|
(326 |
) |
|
|
(4 |
) |
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
(403 |
) |
|
|
3,606 |
|
|
|
(1,832 |
) |
|
|
3,006 |
|
|
|
|
|
|
|
|
|
|
Gain on
extinguishment of debt |
|
— |
|
|
(5,381 |
) |
|
— |
|
|
(5,381 |
) |
|
|
|
|
|
|
|
|
|
Research and development costs related to |
|
|
|
|
|
|
|
Medical Isotope project |
|
— |
|
|
72 |
|
|
— |
|
|
149 |
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
$ |
(403 |
) |
|
$ |
(1,703 |
) |
|
$ |
(1,832 |
) |
|
$ |
(2,226 |
) |
|
|
|
|
|
|
|
|
|
The tables below present certain unaudited
financial information for the business segments, which excludes
allocation of corporate expenses. As noted above, in December 2021,
the Company made the strategic decision to cease all R&D
activities under the Medical Segment and sold 100% of its interest
in Perma-Fix Medical S.A., which comprised of its Medical
Segment.
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, 2022 |
|
June 30, 2022 |
|
|
(Unaudited) |
|
(Unaudited) |
(In thousands) |
|
Treatment |
|
Services |
|
Treatment |
|
Services |
Net revenues |
|
$ |
8,393 |
|
$ |
11,062 |
|
$ |
15,872 |
|
$ |
19,498 |
Gross
profit |
|
|
1,563 |
|
|
1,321 |
|
|
2,201 |
|
|
2,319 |
Segment
profit |
|
|
60 |
|
|
472 |
|
|
137 |
|
|
871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, 2021 |
|
June 30, 2021 |
|
|
|
|
(Unaudited) |
|
|
|
(Unaudited) |
(In thousands) |
|
Treatment |
|
Services |
|
|
Medical |
|
Treatment |
|
Services |
|
|
Medical |
Net
revenues |
|
$ |
7,706 |
|
$ |
8,439 |
|
|
$ |
— |
|
$ |
15,201 |
|
$ |
24,077 |
|
|
$ |
— |
Gross profit
(negative gross profit) |
|
|
1,433 |
|
|
(467 |
) |
|
|
— |
|
|
2,358 |
|
|
964 |
|
|
|
— |
Segment profit (loss) |
|
|
468 |
|
|
(1,302 |
) |
|
|
(72 |
) |
|
|
366 |
|
|
(747 |
) |
|
|
(149 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COVID-19
The Company continues to proactively update its
ongoing business operations and safety plans, which we believe will
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.
Conference Call
Perma-Fix will host a conference call at 11:00
a.m. ET on Friday, August 5, 2022. The call will be available on
the Company’s website at www.perma-fix.com, or by calling toll free
877-545-0320 for U.S. callers, or +1 973-528-0002 for international
callers and by entering access code: 963791. 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 Friday, August
12, 2022, and can be accessed by calling: 877-481-4010 for U.S.
callers, or +1 919-882-2331 for international callers and entering
conference ID: 46310.
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”, “plans to”,
“estimates”, “projects”, and similar expressions. Forward-looking
statements include, but are not limited to: shipment of the next
2,000 gallons before year-end and outlook. 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 2021 Form 10-K and
Form 10-Q for quarters ended March 31, 2022 and June 30, 2022. 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 |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
(Amounts in Thousands, Except for Per Share Amounts) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
Net revenues |
$ |
19,455 |
|
$ |
16,145 |
|
$ |
35,370 |
|
$ |
39,278 |
|
Cost of
goods sold |
|
16,571 |
|
|
15,179 |
|
|
30,850 |
|
|
35,956 |
|
Gross profit |
|
2,884 |
|
|
966 |
|
|
4,520 |
|
|
3,322 |
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses |
|
3,684 |
|
|
2,997 |
|
|
7,106 |
|
|
6,202 |
|
Research and
development |
|
80 |
|
|
144 |
|
|
176 |
|
|
295 |
|
Loss on
disposal of property and equipment |
|
— |
|
— |
|
1 |
|
|
— |
Loss from operations |
|
(880 |
) |
|
(2,175 |
) |
|
(2,763 |
) |
|
(3,175 |
) |
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
Interest
income |
|
29 |
|
|
2 |
|
|
40 |
|
|
21 |
|
Interest
expense |
|
(41 |
) |
|
(65 |
) |
|
(76 |
) |
|
(132 |
) |
Interest
expense-financing fees |
|
(15 |
) |
|
(9 |
) |
|
(28 |
) |
|
(17 |
) |
Other |
|
(3 |
) |
|
— |
|
(5 |
) |
|
1 |
|
Gain on
extinguishment of debt |
|
— |
|
5,381 |
|
|
— |
|
5,381 |
|
(Loss)
income from continuing operations before taxes |
|
(910 |
) |
|
3,134 |
|
|
(2,832 |
) |
|
2,079 |
|
Income tax
expense (benefit) |
|
347 |
|
|
13 |
|
|
(326 |
) |
|
(4 |
) |
(Loss)
income from continuing operations, net of taxes |
|
(1,257 |
) |
|
3,121 |
|
|
(2,506 |
) |
|
2,083 |
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations (net of taxes) |
|
(188 |
) |
|
(127 |
) |
|
(282 |
) |
|
(242 |
) |
Net (loss) income |
|
(1,445 |
) |
|
2,994 |
|
|
(2,788 |
) |
|
1,841 |
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to non-controlling interest |
|
— |
|
(29 |
) |
|
— |
|
(59 |
) |
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to Perma-Fix Environmental |
|
|
|
|
|
|
|
|
Services, Inc. common stockholders |
$ |
(1,445 |
) |
$ |
3,023 |
|
$ |
(2,788 |
) |
$ |
1,900 |
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share attributable to Perma-Fix |
|
|
|
|
|
|
|
|
Environmental Services, Inc. stockholders - basic: |
|
|
|
|
|
|
|
|
Continuing
operations |
$ |
(.10) |
$ |
.26 |
$ |
(.19) |
$ |
.18 |
Discontinued
operations |
|
(.01) |
|
(.01) |
|
(.02) |
|
(.02) |
Net (loss) income per common share |
$ |
(.11) |
$ |
.25 |
$ |
(.21) |
$ |
.16 |
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share attributable to Perma-Fix |
|
|
|
|
|
|
|
|
Environmental Services, Inc. stockholders - diluted: |
|
|
|
|
|
|
|
|
Continuing
operations |
$ |
(.10) |
$ |
.25 |
$ |
(.19) |
$ |
.17 |
Discontinued
operations |
|
(.01) |
|
(.01) |
|
(.02) |
|
(.02) |
Net (loss) income per common share |
$ |
(.11) |
$ |
.24 |
$ |
(.21) |
$ |
.15 |
|
|
|
|
|
|
|
|
|
Number of
common shares used in computing |
|
|
|
|
|
|
|
|
net (loss) income per share: |
|
|
|
|
|
|
|
|
Basic |
|
13,264 |
|
|
12,180 |
|
|
13,249 |
|
|
12,173 |
|
Diluted |
|
13,264 |
|
|
12,440 |
|
|
13,249 |
|
|
12,420 |
|
|
|
|
|
|
|
|
|
|
|
PERMA-FIX ENVIRONMENTAL SERVICES,
INC.CONSOLIDATED BALANCE SHEETS
|
|
June 30, |
|
December 31, |
|
|
2022 |
|
2021 |
(Amounts in Thousands, Except for Share and Per Share Amounts) |
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
ASSETS |
|
|
|
|
Current
assets: |
|
|
|
|
Cash |
|
$ |
163 |
|
|
$ |
4,440 |
|
Account receivable, net of allowance for doubtful |
|
|
|
|
accounts of $30 and $85, respectively |
|
12,956 |
|
|
|
11,372 |
|
Unbilled receivables |
|
|
6,348 |
|
|
|
8,995 |
|
Other current assets |
|
|
4,197 |
|
|
|
5,152 |
|
Assets of discontinued operations included in current assets |
|
|
17 |
|
|
|
15 |
|
Total current assets |
|
|
23,681 |
|
|
|
29,974 |
|
|
|
|
|
|
Net property
and equipment |
|
|
18,991 |
|
|
|
18,609 |
|
Property and
equipment of discontinued operations |
|
|
81 |
|
|
|
81 |
|
|
|
|
|
|
Operating
lease right-of-use assets |
|
|
2,202 |
|
|
|
2,460 |
|
|
|
|
|
|
Intangibles
and other assets |
|
|
26,193 |
|
|
|
26,177 |
|
Total assets |
|
$ |
71,148 |
|
|
$ |
77,301 |
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS� EQUITY |
|
|
|
|
Current
liabilities |
|
$ |
21,646 |
|
|
$ |
25,408 |
|
Current
liabilities related to discontinued operations |
|
|
914 |
|
|
|
506 |
|
Total current liabilities |
|
|
22,560 |
|
|
|
25,914 |
|
|
|
|
|
|
Long-term
liabilities |
|
|
10,120 |
|
|
|
10,126 |
|
Long-term
liabilities related to discontinued operations |
|
|
265 |
|
|
|
677 |
|
Total liabilities |
|
|
32,945 |
|
|
|
36,717 |
|
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, |
|
|
|
|
13,280,265 and 13,222,552 shares issued, respectively; |
|
|
|
|
13,272,623 and 13,214,910 shares outstanding, respectively |
|
|
13 |
|
|
|
13 |
|
Additional paid-in capital |
|
|
114,755 |
|
|
|
114,307 |
|
Accumulated deficit |
|
|
(76,408 |
) |
|
|
(73,620 |
) |
Accumulated other comprehensive loss |
|
|
(69 |
) |
|
|
(28 |
) |
Less Common Stock held in treasury, at cost: 7,642 shares |
|
|
(88 |
) |
|
|
(88 |
) |
Total stockholders' equity |
|
|
38,203 |
|
|
|
40,584 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
71,148 |
|
|
$ |
77,301 |
|
|
|
|
|
|
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