Perma-Fix Sales Up 18% in First Quarter

Date: May 6, 2010

Source: Perma-Fix Environmental Services, Inc.

Perma-Fix Announces 18% Increase in Revenue and 97% Increase in Operating Income for the First Quarter of 2010

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

    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, 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.


                                    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

    Basic                             54,693    53,982
                                    ========  ========

    Diluted                           54,901    54,005
                                    ========  ========


                                       March 31,
  (Amounts in Thousands, Except for      2010       December
   Share Amounts)                     (Unaudited)   31, 2009
  ----------------------------------  -----------  ----------

  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
                                      ===========  ==========

  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

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