SOURCE: Perma-Fix Environmental Services, Inc.

Perma-Fix Environmental Services, Inc. Logo

December 12, 2013 12:00 ET

Perma-Fix Reports Financial Results for the Third Quarter of 2013

Schedules Investor Call for Tuesday, December 17, 2013

ATLANTA, GA--(Marketwired - December 12, 2013) - Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) today announced results for the third quarter ended September 30, 2013.

Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "As previously disclosed, I am pleased to report we achieved positive EBITDA for the third quarter of 2013. Although the fiscal environment remains challenging, we are cautiously optimitistic about the outlook for 2014. We see a number of exciting opportunities domestically and internationally, and having reduced our operating expenses, we expect to see improved financial results next year."

Financial Results

Revenue for the third quarter of 2013 was $19.1 million versus $29.2 million for the same period last year. Revenue for the Treatment Segment was $8.9 million compared to $11.4 million for the same period in 2012 as significant volume of waste receipts were received late in the quarter and were not yet processed. Revenue from the Services Segment was $10.1 million versus $17.8 million for the same period in 2012.

Gross profit for the third quarter of 2013 was $3.1 million versus $4.2 million for the third quarter of 2012. Gross margin increased to 16.4% from 14.5% for the same period last year primarily due to expense reductions in both segments and continued efforts to streamline all other costs.

Operating loss for the third quarter of 2013 was $667,000 versus operating loss of $492,000 for the third quarter of 2012. Net loss attributable to common stockholders for the third quarter of 2013 was $808,000, or ($0.07) per share, versus net loss of $554,000 or ($0.05) per share, for the same period in 2012. 

The Company recorded Adjusted EBITDA of $770,000 from continuing operations during the quarter ended September 30, 2013, as compared to Adjusted EBITDA of $1.3 million for the same period of 2012. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with Generally Accepted Accounting Principles 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 measurement of EBITDA may not be comparable to similarly titled measures reported by other companies. Due to the unique accounting for the recognition of fair market value of percentage of completion contracts resulting from the acquisition of SEC and the goodwill impairment charge for the CHPRC reporting unit, the Company recognizes that EBITDA is an "Adjusted EBITDA" and understands these differences when measuring performance. The table below reconciles EBITDA and Adjusted EBITDA, both non-GAAP measures, to loss from continuing operations for the three and nine months ended September 30, 2013 and 2012.

             
   Quarter Ended   Nine Months Ended  
   September 30,   September 30,  
(In thousands)  2013   2012   2013   2012  
Loss from continuing operations  $(568 ) $(472 ) $(4,436 ) $(2,288 )
                      
                      
Adjustments:                     
  Depreciation & amortization   1,267    1,349    3,843    4,102  
  Interest income   (8 )  (10 )  (27 )  (31 )
  Interest expense   187    223    532    642  
  Interest expense - financing fees   40    23    87    84  
  Loss on debt modification - financing fees   65    -    65    -  
  Income tax benefit   (383 )  (247 )  (1,943 )  (1,102 )
                      
EBITDA   600    866    (1,879 )  1,407  
                      
Cost in excess of revenue and amortization of acquired contracts   170    460    1,003    1,866  
Impairment loss on goodwill   -    -    1,149    -  
                      
Adjusted EBITDA  $770   $1,326   $273   $3,273  
                                 

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, 2013  September 30, 2013  
(In thousands)  Treatment  Services  Treatment  Services  
Net revenues  $8,929  $10,143  $26,379  $35,306  
Gross profit   1,801   1,328   3,968   3,722  
Segment profit (loss)   616   387   524   (432 )
                           
                           
                           
   Three Months Ended   Nine Months Ended
   September 30, 2012   September 30, 2012
(In thousands)  Treatment  Services   Treatment  Services
Net revenues  $11,405  $17,785   $34,284  $66,540
Gross profit   3,097   1,129    6,904   5,621
Segment profit (loss)   1,352   (47 )  2,517   1,047
                           

Conference Call

Perma-Fix will host a conference call at 10:00 AM EST December 17, 2013. The call will be available on the Company's website at www.perma-fix.com, or by calling 877-407-0778 for U.S. callers, or 201-689-8565 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 December 24, 2013, and can be accessed by calling: 877-660-6853 (U.S. callers) or 201-612-7415 (international callers) and entering conference ID: 13573698.

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 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 on the World Wide Web 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: improved financial results next year. 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; that Congress provides continuing and appropriate funding for the DOD's and DOE's remediation projects; ability to obtain new foreign and domestic remediation contracts; and the additional factors referred to under "Special Note Regarding Forward-Looking Statements" of our 2012 Form 10-K/A and Forms 10-Q for quarters ended March 31, 2013, June 30, 2013 and September 30, 2013. 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.

Please visit us on the World Wide Web at http://www.perma-fix.com.

FINANCIAL TABLES FOLLOW

   
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)  2013   2012   2013   2012  
                      
Net revenues  $19,072   $29,190   $61,685   $100,824  
Cost of goods sold   15,943    24,964    53,995    88,299  
  Gross profit   3,129    4,226    7,690    12,525  
                      
Selling, general and administrative expenses   3,276    4,198    10,833    13,825  
Research and development   520    502    1,420    1,390  
Impairment loss on goodwill   -    -    1,149    -  
Loss on disposal of property and equipment   -    18    2    15  
  Loss from operations   (667 )  (492 )  (5,714 )  (2,705 )
                      
Other income (expense):                     
Interest income   8    10    27    31  
Interest expense   (187 )  (223 )  (532 )  (642 )
Interest expense-financing fees   (40 )  (23 )  (87 )  (84 )
Loss on debt modification   (65 )  -    (65 )  -  
Other   -    9    (8 )  10  
Loss from continuing operations before taxes   (951 )  (719 )  (6,379 )  (3,390 )
Income tax benefit   (383 )  (247 )  (1,943 )  (1,102 )
Loss from continuing operations, net of taxes   (568 )  (472 )  (4,436 )  (2,288 )
                      
Loss from discontinued operations, net of taxes   (240 )  (61 )  (224 )  (259 )
  Net loss   (808 )  (533 )  (4,660 )  (2,547 )
                      
Net income (loss) attributable to non-controlling interest   -    21    (64 )  179  
                      
Net loss attributable to Perma-Fix Environmental Services, Inc. common stockholders  $(808 ) $(554 ) $(4,596 ) $(2,726 )
                      
Net loss per common share attributable to Perma-Fix Environmental Services, Inc. stockholders - basic:
                    
Continuing operations  $(.05 ) $(.04 ) $(.39 ) $(.22 )
Discontinued operations  $(.02 ) $(.01 ) $(.02 ) $(.02 )
  Net loss per common share  $(.07 ) $(.05 ) $(.41 ) $(.24 )
                      
Net loss per common share attributable to Perma-Fix Environmental Services, Inc. stockholders - diluted:
                    
Continuing operations  $(.05 ) $(.04 ) $(.39 ) $(.22 )
Discontinued operations  $(.02 ) $(.01 ) $(.02 ) $(.02 )
  Net loss per common share  $(.07 ) $(.05 ) $(.41 ) $(.24 )
                      
Number of common shares used in computing net loss per share:                     
Basic   11,353    11,228    11,292    11,220  
Diluted   11,353    11,228    11,292    11,220  
                                 
                                 
             
PERMA-FIX ENVIRONMENTAL SERVICES, INC.  
CONDENSED BALANCE SHEET  
(UNAUDITED)  
             


(Amounts in Thousands, Except for Share and Per Share Amounts)
 
September 30,
2013
  (Restated)
December 31,
2012
 
            
ASSETS           
Current assets:           
  Cash and equivalents  $127   $4,403  
  Account receivable, net of allowance for doubtful accounts of $1,955 and $2,507   
12,240
   
11,395
 
  Unbilled receivables   6,770    8,530  
  Other current assets   4,229    4,067  
  Deferred tax assets - current   3,590    1,316  
  Assets of discontinued operations included in current assets, net of allowance for doubtful accounts of $40 and $45   
3,794
   
499
 
   Total current assets   30,750    30,210  
            
Net property and equipment   32,370    35,314  
Property and equipment of discontinued operations, net of accumulated depreciation of $48 and $60, respectively   1,493    1,614  
Intangibles and other assets   70,763    72,553  
   Total assets  $135,376   $139,691  
            
LIABILITIES AND STOCKHOLDERS' EQUITY           
Current liabilities  $21,272   $26,046  
Current liabilities related to discontinued operations   4,999    1,512  
   Total current liabilities   26,271    27,558  
            
Long-term liabilities   26,751    24,765  
Long-term liabilities related to discontinued operations   1,494    1,829  
   Total liabilities   54,516    54,152  
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 plus accrued and unpaid dividends of $723 and $674, respectively   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, 11,392,132 and 11,247,642 shares issued, respectively; 11,384,490 and 11,240,000 outstanding, respectively   11    
11
 
  Additional paid-in capital   103,353    102,864  
  Accumulated deficit   (23,699 )  (19,103 )
  Accumulated other comprehensive loss   (2 )  (2 )
  Less Common Stock in treasury at cost: 7,642 and 0 shares, respectively   (88 )  (88 )
   Total Perma-Fix Environmental Services, Inc. stockholders' equity   79,575    83,682  
  Non-controlling interest   -    572  
    Total stockholders' equity   79,575    84,254  
            
   Total liabilities and stockholders' equity  $135,376   $139,691  
                     
                     

Contact Information

  • Contacts:
    David K. Waldman
    US Investor Relations
    Crescendo Communications, LLC
    (212) 671-1021

    Herbert Strauss
    European Investor Relations
    herbert@eu-ir.com
    +43 316 296 316