Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) (the
“Company”) today announced financial results and provided a
business update for the fourth quarter and full year ended December
31, 2023.
Mark Duff, President and CEO of the Company,
commented, “I am pleased to report solid financial results for the
fourth quarter and 2023. Specifically, we achieved a 35.6% and
27.1% increase in revenue, as well as a 112.7% and 70.4% increase
in gross profit, for the fourth quarter and full year,
respectively. Most notably, we have been preparing for several key
initiatives that are progressing and we believe would be impactful
to our business later in 2024 and throughout 2025. Despite related
investments in both our internal bidding organization, as well as
research and development (R&D), we achieved positive EBITDA (as
defined and reconciled to GAAP below) and positive net income in
2023.”
“Within our Treatment Segment, we benefitted
from an improvement in waste volume receipts early in the quarter.
Within the Services Segment, we realized several new awards from
the Buffalo Corp of Engineers, U.S. Geological Survey (USGS), the
U.S. Navy and several commercial clients. At the same time, we
developed teaming relationships for several large procurements. In
addition, a joint venture in which we have a 50% interest, received
formal award of the Joint Research Council project through the
European Union at the Ispra, Italy facility, which we believe could
generate up to 50 million Euros over the next 7 years. Work under
this JV is beginning in Q1 2024, and the scope of work for the
Company is expected to ramp up in late 2025. Overall, we feel that
we finished the year strong with several strategic wins and
accomplishments that we believe will support our long-term
growth.”
“It is important to note, we are actively
bidding on large future contracts within the U.S. Department of
Energy (DOE) and U.S. Navy, as well as other mid-size procurement
initiatives at DOE, the U.S. Department of Defense (DOD) and the
U.S. Environmental Protection Agency (EPA) facilities. In addition,
we have made important advances on a new technology to treat PFAS
(Per-and Polyfluorinated Substances) contamination, which we look
forward to unveiling in the near future. Moreover, we believe we
are positioned to provide extensive waste treatment services in
support of DOE’s Hanford closure strategy, including the treatment
of effluent from the DFLAW (Direct-Feed Low-Activity Waste)
facility once it commences vitrification operations, which is
expected in early 2025. Finally, we are expanding our waste
treatment offering within the commercial and international markets,
including central Europe, Mexico and Canada. Although there may be
some lumpiness in performance resulting from delays in
procurements, project starts and waste shipments due, in part, to
the Continuing Resolution for the 2024 federal budget, we remain
encouraged by the long-term outlook for the business based on what
we expect are the growing project opportunities, sales pipeline,
and potentially company-changing projects in 2025.”
Financial Results
Fourth-Quarter 2023 ResultsRevenue for the
fourth quarter of 2023 was $22.7 million versus $16.8 million for
the same period last year. Revenue from the Services Segment
increased approximately $4.3 million to $12.5 million in the fourth
quarter of 2023 from $8.2 million for the corresponding of 2022
primarily due to continuing operation and improved productivity on
certain projects which had been delayed/curtailed in 2022 due, in
part, from the lingering effect of the COVID-19 pandemic. Revenue
from the Treatment Segment increased by approximately $1.6 million
to $10.2 million in the fourth quarter of 2023 from $8.6 million
for the corresponding period of 2022. The increase was primarily
due to overall higher waste volume which was offset by lower
averaged price from waste mix. As previously disclosed, starting in
the latter part of the second quarter of 2022, our Treatment
Segment began to see steady improvements in waste receipts from
certain customers who had previously delayed waste shipments due,
in part, from the lingering effects of COVID-19. Revenue from both
Segments were also positively impacted by new contracts awarded to
us in 2023 as procurement and planning on behalf of our government
clients continued to progress as the lingering effect of the
COVID-19 pandemic subsided.
Gross profit for the fourth quarter of 2023 was
$4.3 million versus $2.0 million for the fourth quarter of 2022.
The increase in gross profit in the Services Segment of
approximately $1.7 million or 181.4% was primarily due to higher
revenue. The improvement in gross margin to 21.3% in the fourth
quarter of 2023 as compared to 11.6% for the corresponding period
of 2022 was primarily due to improved margin projects. The increase
in gross profit in the Treatment Segment of approximately $564,000
or 52.5% and the improvement in gross margin to approximately 16.0%
in the fourth quarter of 2023 as compared to gross margin of
approximately 12.5% in the corresponding period of 2022 was
primarily due to overall higher revenue as discussed above and
overall lower fixed costs.
Operating loss for the fourth quarter of 2023
was approximately $9,000 versus operating loss of $1.7 million for
the fourth quarter of 2022. Income from continuing operations for
the fourth quarter of 2023 was approximately $470,000 as compared
to a loss from continuing operations of $1.5 million for the
corresponding period of 2022.
Net income for the fourth quarter of 2023 was
approximately $81,000 as compared to net loss of $1.7 million for
the fourth quarter of 2022. Income per share (both basic and
diluted) was $0.01 for the fourth quarter of 2023 as compared to a
loss per share (both basic and diluted) of $0.13 for the
corresponding period of 2022.
2023 Financial ResultsRevenue in 2023 was $89.7
million versus $70.6 million in 2022. Revenue from the Services
Segment increased by approximately $9.0 million to $46.2 million
for the year ended December 31, 2023, from $37.2 million for the
corresponding period of 2022. The increase was primarily due to
achievement of full operational status and improved productivity on
certain projects which had been delayed/curtailed in the early part
of 2022 due, in part, from the lingering effects of the COVID-19
pandemic. Revenue from the Treatment Segment increased by
approximately $10.1 million to $43.5 million in 2023 from $33.4
million in 2022. The increase was primarily due to overall higher
waste volume which was offset by lower averaged price from waste
mix. Similar to the fourth quarter of 2023 as discussed above, the
increase in waste volume was primarily due to steady improvements
in waste receipts from certain customers who had previously delayed
waste shipments due, in part, from the lingering effects of
COVID-19. Revenue from both Segments were also positively impacted
by new contracts awarded to us in 2023 as procurement and planning
on behalf of our government clients continued to progress as the
lingering effect of COVID-19 pandemic subsided.
Gross profit in 2023 was $16.4 million as
compared to $9.6 million in 2022. Gross profit increased in both
Segments. The increase in gross profit in the Services Segment of
approximately $5.1 million or 117.4% was primarily due to higher
revenue and the increase in gross margin to approximately 20.5%
from 11.7% was primarily due to improved margin projects. The
increase in gross profit in the Treatment Segment of approximately
$1.6 million or 31.1% was primarily due to higher revenue from
overall higher waste volume which was offset by lower averaged
price waste from waste mix. Treatment Segment gross margin
increased slightly to 15.8% for the year ended 2023 as compared to
approximately 15.7% in the prior year. Despite the slight increase
in gross margin, Treatment Segment gross margin was negatively
impacted by higher variable costs from waste mix and the impact of
overall increase in fixed costs.
Operating income in 2023 was $756,000 versus
operating loss of $5.4 million in 2022. Income from continuing
operations in 2023 was approximately $918,000 as compared to a loss
from continuing operations of $3.2 million in 2022. Loss from
continuing operations for 2022 included an income recorded in the
amount of approximately $2.0 million (within other income and
current other receivables), representing a refundable tax credit
against the Company’s shares of certain payroll taxes as permitted
by the Employee Retention Credit (“ERC”) program under the
Coronavirus Aid, Relief and Economic Securities Act (“CARES Act”),
as amended. The ERC program was provided to qualifying businesses
that kept employee on their payroll during the COVID-19
pandemic.
Net income in 2023 was approximately $485,000
compared to net loss of $3.8 million in 2022. Income per share
(both basic and diluted) was $0.04 in 2023 as compared to loss per
share (both basic and diluted) of $0.29 in 2022.
The Company achieved EBITDA of $3.3 million from
continuing operations for the twelve-months ended December 31,
2023, and Adjusted EBITDA of approximately ($3.3) million for the
same period of 2022. There was no adjustment to EBITDA for the
twelve-months ended December 31, 2023. The Company defines EBITDA
as earnings before interest, taxes, depreciation and amortization.
Adjusted EBITDA is defined as EBITDA before income from ERC refund
claim (net of costs incurred). Neither EBITDA nor Adjusted EBITDA
are 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
(loss) from continuing operations for the three and twelve-months
ended December 31, 2023, and 2022.
| |
|
Quarter Ended |
|
Twelve Months
Ended |
|
| |
|
December 31, |
|
December 31, |
|
| |
|
(Unaudited) |
|
(Unaudited) |
|
|
(In thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
| Income
(loss) from continuing operations |
|
$ |
470 |
|
|
$ |
(1,529 |
) |
|
$ |
918 |
|
|
$ |
(3,211 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization |
|
|
443 |
|
|
|
676 |
|
|
|
2,568 |
|
|
|
2,109 |
|
|
|
Interest income |
|
|
(161 |
) |
|
|
(30 |
) |
|
|
(606 |
) |
|
|
(99 |
) |
|
|
Interest expense |
|
|
134 |
|
|
|
52 |
|
|
|
323 |
|
|
|
175 |
|
|
|
Interest expense - financing fees |
|
|
13 |
|
|
|
17 |
|
|
|
93 |
|
|
|
61 |
|
|
|
Income tax (benefit) expense |
|
|
(465 |
) |
|
|
(231 |
) |
|
|
17 |
|
|
|
(378 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
434 |
|
|
|
(1,045 |
) |
|
|
3,313 |
|
|
|
(1,343 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| Income from
ERC refund claim, net (1) |
|
- |
|
- |
|
- |
|
|
(1,908 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| Adjusted
EBITDA |
|
$ |
434 |
|
|
$ |
(1,045 |
) |
|
$ |
3,313 |
|
|
$ |
(3,251 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| (1) net of costs
incurred in connection with the ERC program in the amount of
approximately $67. |
|
|
|
The tables below present certain financial
information for the business segments, which exclude allocation of
corporate expenses.
* Any references to "Audited" in the headings as
noted in the table below and within the financial statements as
follows are derived from a previously filed Form 10-K.
| |
|
Three Months
Ended |
|
Twelve Months
Ended |
| |
|
December 31,
2023 |
|
December 31,
2023 |
| |
|
(Unaudited) |
|
(Unaudited) |
|
(In thousands) |
|
Treatment |
|
Services |
|
|
Treatment |
|
Services |
| Net
revenues |
|
$ |
10,255 |
|
|
$ |
12,464 |
|
|
$ |
43,477 |
|
$ |
46,258 |
| Gross
profit |
|
|
1,639 |
|
|
|
2,656 |
|
|
|
6,876 |
|
|
9,493 |
| Segment
(loss) profit |
|
|
(390 |
) |
|
|
2,782 |
|
|
|
2,228 |
|
|
5,716 |
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months
Ended |
|
Twelve Months
Ended |
| |
|
December 31,
2022 |
|
December 31,
2022 |
| |
|
(Unaudited) |
|
(Audited) |
|
(In thousands) |
|
Treatment |
|
Services |
|
|
Treatment |
|
Services |
| Net
revenues |
|
$ |
8,609 |
|
$ |
8,148 |
|
|
$ |
33,358 |
|
$ |
37,241 |
| Gross
profit |
|
|
1,075 |
|
|
944 |
|
|
|
5,243 |
|
|
4,366 |
| Segment
profit |
|
|
2 |
|
|
117 |
|
|
|
1,767 |
|
|
1,698 |
| |
|
|
|
|
|
|
|
|
|
Conference Call Perma-Fix will
host a conference call at 11:00 AM Eastern Time on Wednesday, March
13, 2024. 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: 514355. 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 Wednesday, March
20, 2024, 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: 50109.
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: long-term growth; key
initiatives impactful to our business in 2024 and throughout 2025;
revenue up to 50 million Euros generated under JV over the next 7
years; scope of work for the Company to ramp up in later phases of
JV contract; treatment of effluent from DFLAW facility in early
2025; and long-term outlook based on growing project opportunities,
sales pipeline, and potentially company-changing projects in 2025.
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; full or partial government
shutdown; and the “Risk Factors” discussed in, and the additional
factors referred to under "Special Note Regarding Forward-Looking
Statements" of, our 2023 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.
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, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
(Amounts in Thousands, Except for Per Share Amounts) |
|
(Unaudited) |
|
(Unaudited) |
(Audited) |
| |
|
|
|
|
|
|
|
|
| Net
revenues |
$ |
22,719 |
|
$ |
16,757 |
|
$ |
89,735 |
|
$ |
70,599 |
|
| Cost of
goods sold |
|
18,424 |
|
|
14,738 |
|
|
73,366 |
|
|
60,990 |
|
|
Gross profit |
|
4,295 |
|
|
2,019 |
|
|
16,369 |
|
|
9,609 |
|
| |
|
|
|
|
|
|
|
|
| Selling,
general and administrative expenses |
|
4,006 |
|
|
3,617 |
|
|
14,975 |
|
|
14,652 |
|
| Research and
development |
|
221 |
|
|
90 |
|
|
561 |
|
|
336 |
|
| Loss on
disposal of property and equipment |
|
77 |
|
|
17 |
|
|
77 |
|
|
18 |
|
|
Loss (income) from operations |
|
(9 |
) |
|
(1,705 |
) |
|
756 |
|
|
(5,397 |
) |
| |
|
|
|
|
|
|
|
|
| Other income
(expense): |
|
|
|
|
|
|
|
|
| Interest
income |
|
161 |
|
|
30 |
|
|
606 |
|
|
99 |
|
| Interest
expense |
|
(134 |
) |
|
(52 |
) |
|
(323 |
) |
|
(175 |
) |
| Interest
expense-financing fees |
|
(13 |
) |
|
(17 |
) |
|
(93 |
) |
|
(61 |
) |
| Other |
|
- |
|
|
(16 |
) |
|
(11 |
) |
|
1,945 |
|
| Income
(loss) from continuing operations before taxes |
|
5 |
|
|
(1,760 |
) |
|
935 |
|
|
(3,589 |
) |
| Income tax
benefit (expense) |
|
(465 |
) |
|
(231 |
) |
|
17 |
|
|
(378 |
) |
| Income
(loss) income from continuing operations, net of taxes |
|
470 |
|
|
(1,529 |
) |
|
918 |
|
|
(3,211 |
) |
| |
|
|
|
|
|
|
|
|
| Loss from
discontinued operations, net of taxes |
|
(389 |
) |
|
(164 |
) |
|
(433 |
) |
|
(605 |
) |
|
Net income (loss) |
|
81 |
|
|
(1,693 |
) |
|
485 |
|
|
(3,816 |
) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Net income
(loss) per common share attributable to |
|
|
|
|
|
|
|
|
|
Perma-Fix Environmental Services, Inc. stockholders - basic and
diluted: |
|
|
|
|
|
|
|
| Continuing
operations |
$ |
.04 |
$ |
(.12) |
$ |
.07 |
$ |
(.24) |
| Discontinued
operations |
|
(.03) |
|
(.01) |
|
(.03) |
|
(.05) |
|
Net income (loss) per common share |
$ |
.01 |
$ |
(.13) |
$ |
.04 |
$ |
(.29) |
| |
|
|
|
|
|
|
|
|
| Number of
common shares used in computing |
|
|
|
|
|
|
|
|
|
net income (loss) per share: |
|
|
|
|
|
|
|
|
| Basic |
|
13,619 |
|
|
13,324 |
|
|
13,506 |
|
|
13,280 |
|
| Diluted |
|
13,838 |
|
|
13,324 |
|
|
13,739 |
|
|
13,280 |
|
| |
|
|
|
|
|
|
|
|
| PERMA-FIX
ENVIRONMENTAL SERVICES, INC.CONDENSED CONSOLIDATED
BALANCE SHEETS |
| |
|
December 31, |
December 31, |
| |
|
|
2023 |
|
|
|
2022 |
|
|
(Amounts in Thousands, Except for Share and Per Share Amounts) |
|
(Unaudited) |
|
(Audited) |
| |
|
|
|
|
| ASSETS |
|
|
|
|
| Current
assets: |
|
|
|
|
|
Cash |
|
$ |
7,500 |
|
|
$ |
1,866 |
|
|
Account receivable, net of allowance for credit losses of $30 and
57, respectively |
|
|
9,722 |
|
|
|
9,364 |
|
|
Unbilled receivables |
|
|
8,432 |
|
|
|
6,062 |
|
|
Other current assets |
|
|
4,893 |
|
|
|
6,219 |
|
|
Assets of discontinued operations included in current assets |
|
|
13 |
|
|
|
15 |
|
|
Total current assets |
|
|
30,560 |
|
|
|
23,526 |
|
|
|
|
|
|
|
| Net property
and equipment |
|
|
19,009 |
|
|
|
18,957 |
|
| Property and
equipment of discontinued operations |
|
|
81 |
|
|
|
81 |
|
|
|
|
|
|
|
| Operating
lease right-of-use assets |
|
|
1,990 |
|
|
|
1,971 |
|
| |
|
|
|
|
| Intangibles
and other assets |
|
|
27,109 |
|
|
|
26,363 |
|
|
Total assets |
|
$ |
78,749 |
|
|
$ |
70,898 |
|
| |
|
|
|
|
| LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
| Current
liabilities |
|
$ |
25,678 |
|
|
$ |
22,346 |
|
| Current
liabilities related to discontinued operations |
|
|
269 |
|
|
|
362 |
|
|
Total current liabilities |
|
|
25,947 |
|
|
|
22,708 |
|
|
|
|
|
|
|
| Long-term
liabilities |
|
|
12,472 |
|
|
|
9,749 |
|
| Long-term
liabilities related to discontinued operations |
|
|
953 |
|
|
|
908 |
|
|
Total liabilities |
|
|
39,372 |
|
|
|
33,365 |
|
| 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, |
|
|
|
|
|
13,654,201 and 13,332,398 shares issued, respectively; |
|
|
|
|
|
13,646,559 and 13,324,756 shares outstanding, respectively |
|
|
14 |
|
|
|
13 |
|
|
Additional paid-in capital |
|
|
116,502 |
|
|
|
115,209 |
|
|
Accumulated deficit |
|
|
(76,951 |
) |
|
|
(77,436 |
) |
|
Accumulated other comprehensive loss |
|
|
(100 |
) |
|
|
(165 |
) |
|
Less Common Stock held in treasury, at cost: 7,642 shares |
|
|
(88 |
) |
|
|
(88 |
) |
|
Total stockholders' equity |
|
|
39,377 |
|
|
|
37,533 |
|
| |
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
78,749 |
|
|
$ |
70,898 |
|
| |
|
|
|
|
PermaFix Environmental S... (NASDAQ:PESI)
Historical Stock Chart
From Oct 2024 to Nov 2024
PermaFix Environmental S... (NASDAQ:PESI)
Historical Stock Chart
From Nov 2023 to Nov 2024
