Date: May 6, 2010
Source: Perma-Fix Environmental Services, Inc.
Perma-Fix Environmental Services, Inc. (PESI) today announced results for the first quarter ended March 31, 2010.
Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "Perma-Fix has established a unique position within the nuclear waste treatment and nuclear services market due to our technologies, our track record and our permits. In the first quarter of 2010, our seasonally weakest period, revenue increased 18% and operating income increased by more than 97% compared to the first quarter of 2009. We achieved these results, even while our Perma-Fix II unit for radioactive organic waste treatment was temporarily shut down as we made major enhancements to the unit. With this unit expected back online in mid-May, combined with our growing on-site service work and our expansion into higher activity wastes, the outlook for 2010 is quite promising. Longer-term, we continue to develop new treatment technologies for higher activity waste and remain focused on growing our nuclear services business."
Financial Results
Revenue for the first quarter of 2010 increased 17.5% to $25.9 million, versus $22.0 million for the same period last year. The increase in revenue is mainly attributable to increased on-site work at the Hanford facility in Richland, Washington and the company's shift into higher activity wastes. Revenue for the Nuclear Segment increased to $22.9 million from $19.1 million for the same period last year. Revenue for the Industrial Segment increased to $2.3 million versus $2.1 million for the same period last year due primarily to higher waste volume and improved pricing. Revenue from the Engineering Segment decreased to $675,000 from $779,000 for the same period last year.
Operating income for the first quarter increased 97.4% to $1.5 million versus $766,000 for the first quarter of 2009. Net income for the first quarter of 2010 was $638,000, or $0.01 per share, versus net income of $548,000 or $0.01 per share, for the same period last year. Net income in the first quarter of 2010 included a $436,000 in income tax expense, compared to only $9,000 in 2009, as 2009 included a full valuation allowance of our available net operating losses carry forward. Net income in the first quarter of 2009 also included a recovery in discontinued operations of approximately $400,000 related to closure costs for Perma-Fix Treatment Services, Inc.
The Company had EBITDA of $2.7 million for continuing operations during the quarter ended March 31, 2010, as compared to EBITDA of approximately $1.9 million for the same period of 2009. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is not a measure of performance calculated in accordance with accounting principles generally accepted in the United States ("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 is relevant and useful by enhancing the readers' ability to understand the company's operating performance. The Company's management utilizes EBITDA as a means to measure performance. The Company's measurements of EBITDA may not be comparable to similar titled measures reported by other companies. The table below reconciles EBITDA, a non-GAAP measure, to net income for the three months ended March 31, 2010 and 2009.
Quarter Ended
March 31,
------------------
(In thousands) 2010 2009
----------------------- -------- --------
Net Income from
Continuing Operations $ 780 $ 249
Adjustments:
Depreciation &
Amortization 1,136 1,180
Interest Income (21) (51)
Interest Expense 220 547
Interest Expense -
Financing Fees 102 13
Income Tax Expense 436 9
-------- --------
EBITDA $ 2,653 $ 1,947
======== ========
The tables below present certain financial information for the business segments, excluding allocation of corporate expenses:
Quarter Ended March 31, 2010 Quarter Ended March 31, 2009
--------------------------------- ---------------------------------
(In thousands) Nuclear Industrial Engineering Nuclear Industrial Engineering
-------- ---------- ----------- -------- ---------- -----------
Net revenues $22,892 $ 2,292 $ 675 $19,114 $ 2,109 $ 779
Gross profit 4,637 595 160 3,946 456 211
Segment profit 2,407 190 38 1,754 54 86
Conference Call
Perma-Fix will host a conference call at 11:00 a.m. ET on Thursday, May 6, 2010. The call will be available on the Company's website at www.perma-fix.com, or by calling (877) 407-8033 for U.S. callers, or (201) 689-8033 for international callers. 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 midnight May 13, 2010, and can be accessed by calling: (877) 660-6853 (U.S. callers) or (201) 612-7415 (international callers) and entering account # 286 and conference ID: 350128.
About Perma-Fix Environmental Services
Perma-Fix Environmental Services, Inc., a national environmental services company, provides unique mixed waste and industrial waste management services. The Company's increased focus on nuclear services includes radioactive and mixed waste treatment services for hospitals, research labs and institutions, federal agencies, including DOE, DOD, and nuclear utilities. The Company's industrial services treat hazardous and non-hazardous waste for a variety of customers including, Fortune 500 companies, federal, state and local agencies and thousands of other clients. Nationwide, the company operates seven waste treatment facilities.
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: with this unit expected back online in mid-May, combined with our growing on-site services work and our expansion into higher activity wastes, the outlook for 2010 is quite promising; continue to develop new treatment technologies for high activity waste and remain focused on growing our nuclear services business. 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 technologies; that neither the federal government nor any other party to a subcontract involving the federal government terminates or renegotiates any material contract granted to us prior to expiration of the term of the contract, as such contracts are generally terminable or renegotiable on 30 day notice, at the government's option; or 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; that Congress provides continuing funding for the Department of Defense's and Department of Energy's remediation projects; and the additional factors referred to under "Special Note Regarding Forward-Looking Statements" of our 2009 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.
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
March 31,
------------------
(Amounts in Thousands, Except
for Per Share Amounts) 2010 2009
-------------------------------- -------- --------
Net revenues $25,859 $22,002
Cost of goods sold 20,467 17,389
-------- --------
Gross profit 5,392 4,613
Selling, general and
administrative expenses 3,878 3,859
Loss (gain) on disposal of
property and equipment 2 (12)
-------- --------
Income (loss) from operations 1,512 766
Other income (expense):
Interest income 21 51
Interest expense (220) (547)
Interest expense-financing fees (102) (13)
Other 5 1
-------- --------
Income from continuing
operations before taxes 1,216 258
Income tax expense 436 9
-------- --------
Income from continuing
operations, net of taxes 780 249
(Loss) income from discontinued
operations, net of taxes (142) 299
-------- --------
Net income applicable to
Common Stockholders $638 $548
======== ========
Net income (loss) per common
share -- basic
Continuing operations $ .01 $ --
Discontinued operations -- .01
-------- --------
Net income per common share $ .01 $ .01
======== ========
Net income (loss) per common
share -- diluted
Continuing operations $ .01 $ --
Discontinued operations -- .01
-------- --------
Net income per common share $ .01 $ .01
======== ========
Number of common shares used in
computing net income (loss) per
share:
Basic 54,693 53,982
======== ========
Diluted 54,901 54,005
======== ========
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED BALANCE SHEET
March 31,
(Amounts in Thousands, Except for 2010 December
Share Amounts) (Unaudited) 31, 2009
---------------------------------- ----------- ----------
ASSETS
Current assets:
Cash & equivalents $ 152 $ 196
Account receivable, net of
allowance for doubtful accounts
of $306 and $296 13,333 13,141
Unbilled receivables 10,886 9,858
Other current assets 3,656 3,798
Deferred tax assets - current 1,576 1,856
Assets of discontinued
operations included in current
assets 168 174
----------- ----------
Total current assets 29,771 29,023
Net property and equipment 44,625 45,377
Property and equipment of
discontinued operations, net of
accumulated depreciation of $10
and $13, respectively 637 651
Deferred tax asset, net of
liabilities 243 272
Intangibles and other assets 53,489 50,752
----------- ----------
Total assets $ 128,765 $ 126,075
=========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities 24,974 26,190
Current liabilities related to
discontinued operations 916 993
----------- ----------
Total current liabilities 25,890 27,183
Long-term liabilities 25,460 22,655
Long-term liabilities related to
discontinued operations 1,337 1,433
----------- ----------
Total liabilities 52,687 51,271
Commitments and Contingencies
Preferred Stock of subsidiary,
$1.00 par value; 1,467,396 shares
authorized, 1,284,730 shares
issued and outstanding,
liquidation value $1.00 per share 1,285 1,285
Stockholders' equity:
Preferred Stock, $.001 par
value; 2,000,000 shares
authorized, no shares issued
and outstanding -- --
Common Stock, $.001 par value;
75,000,000 shares authorized,
55,994,410 and 54,628,904
shares issued, respectively;
54,956,200 and 54,628,904
outstanding, respectively 55 55
Additional paid-in capital 100,365 99,641
Accumulated deficit (25,539) (26,177)
----------- ----------
74,881 73,519
Less Common Stock in treasury at
cost: 38,210 shares (88) --
----------- ----------
74,793 73,519
----------- ----------
Total liabilities and
stockholders' equity $ 128,765 $ 126,075
=========== ==========
For more information, contact:
Perma-Fix Environmental Services, Inc.
Dr. Louis F. Centofanti, Chairman and CEO
(770) 587-5155
Crescendo Communications, LLC
US Investor Relations
David K. Waldman
(212) 671-1021
European Investor Relations
Herbert Strauss
+43 316 296 316
herbert@eu-ir.com.
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