Exhibit 99.2
 
 
Perma-Fix Achieves $1.9 Million of Adjusted EBITDA
for the Second Quarter of 2013

Gross margin improves to 17.7% from 11.7%
for the same period last year

ATLANTA – August 7, 2013 – Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) today announced results for the second quarter ended June 30, 2013.

Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, “I am pleased to report a significant improvement in our financial results compared to both the first quarter of 2013 and the second quarter of 2012. Despite one of the most difficult funding environments in our Company’s history, we achieved nearly $2 million of adjusted EBITDA for the second quarter. Within the Services Segment we have been awarded some initial small contracts, and we are actively bidding on a number of sizable projects. Within the Treatment Segment, there is significant pent up demand within the U.S. Department of Energy (DOE) due to delayed treatment at a number of sites, and funding for these projects has slowly begun to return. In addition, we are aggressively pursuing a number of significant opportunities treating more complex and higher activity waste streams, including solutions we developed to address tank waste at the DOE’s Hanford, Washington site.”

“As a result of our cost saving initiatives, we have significantly reduced our fixed cost threshold, and believe that going forward we can generate positive cash flow in even the most challenging markets. As we increase the throughput at our facilities, we expect to benefit from high incremental margin wastes. From a competitive standpoint, we believe we have weathered the current market far better than others. This has allowed us to maintain and also enhance our reputation as an emerging leader within the nuclear services industry.”

Financial Results

Revenue for the second quarter of 2013 was $22.8 million versus $33.7 million for the same period last year. Revenue for the Treatment Segment was $10.1 million compared to $10.0 million for the same period in 2012. Revenue from the Services Segment was $12.7 million versus $23.7 million for the same period in 2012.

Gross profit for the second quarter of 2013 was $4.0 million versus $3.9 million for the second quarter of 2012. Gross margin increased to 17.7% from 11.7% for the same period last year primarily due to expense reductions in both segments as we continue to focus on efficiencies within our operations and administrative infrastructure.

Operating loss for the second quarter of 2013 was $898,000 versus operating loss of $1.2 million for the second quarter of 2012. Operating loss for the second quarter of 2013 included a non-cash, goodwill impairment charge of approximately $1.1 million related to the expiration of the CH Plateau Remediation Company (“CHPRC”) contract. Net loss attributable to common stockholders for the second quarter of 2013 was $876,000, or ($0.02) per share, versus net loss of $1.2 million or ($0.02) per share, for the same period in 2012.
The Company recorded Adjusted EBITDA of $1.9 million from continuing operations during the quarter ended June 30, 2013, as compared to Adjusted EBITDA of $695,000 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 six months ended June 30, 2013 and 2012.

 
  
Quarter Ended
    
Six Months Ended
  
 
  
June 30,
    
June 30,
  
(In thousands)
  
2013
    
2012
    
2013
    
2012
  
Loss from continuing operations
  
$
(980
)
  
$
(1,009
)
  
$
(3,868
)
  
$
(1,816
)
 
                                
 
                                
Adjustments:
                                
Depreciation & amortization
    
1,289
      
1,361
      
2,576
      
2,753
  
Interest income
    
(9
)
    
(7
)
    
(18
)
    
(21
)
Interest expense
    
200
      
199
      
344
      
420
  
Interest expense - financing fees
    
24
      
26
      
47
      
60
  
Income tax benefit
    
(132
)
    
(399
)
    
(1,560
)
    
(855
)
 
                                
EBITDA
    
392
      
171
      
(2,479
)
    
541
  
 
                                
Cost in excess of revenue and amortization of acquired contracts
    
396
      
524
      
833
      
1406
  
Impairment loss on goodwill
    
1,149
      
—
      
1,149
      
—
  
 
                                
Adjusted EBITDA
  
$
1,937
    
$
695
    
$
(497
)
  
$
1,947
  

The tables below present certain unaudited financial information for the business segments, excluding allocation of corporate expenses:

 
  
Three Months Ended
    
Six Months Ended
  
 
  
June 30, 2013
    
June 30, 2013
  
(In thousands)
  
Treatment
    
Services
    
Treatment
    
Services
  
Net revenues
  
$
10,108
    
$
12,676
    
$
17,450
    
$
25,163
  
Gross profit
    
2,312
      
1,711
      
2,167
      
2,393
  
Segment profit (loss)
    
795
      
(619
)
    
(93
)
    
(819
)
 
  
Three Months Ended
    
Six Months Ended
  
 
  
June 30, 2012
    
June 30, 2012
  
(In thousands)
  
Treatment
    
Services
    
Treatment
    
Services
  
Net revenues
  
$
10,037
    
$
23,661
    
$
22,879
    
$
48,755
  
Gross profit
    
1,087
      
2,843
      
3,808
      
4,491
  
Segment profit
    
72
      
989
      
1,164
      
1,094
  

Conference Call

Perma-Fix will host a conference call at 11:00 a.m. ET today, Wednesday, August 7, 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 Wednesday, August 14, 2013, and can be accessed by calling: 877-660-6853 (U.S. callers) or 201-612-7415 (international callers) and entering conference ID: 419147.

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: can generate positive cash flow going forward, expect to benefit from high incremental margin waste, and enhance our reputation as an emerging leader in the nuclear services industry. 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 and Forms 10-Q for quarters ended March 31, 2013 and June 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
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
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)
  
2013
    
2012
    
2013
    
2012
  
 
                
Net revenues
  
$
22,784
    
$
33,698
    
$
42,613
    
$
71,634
  
Cost of goods sold
    
18,761
      
29,768
      
38,053
      
63,335
  
Gross profit
    
4,023
      
3,930
      
4,560
      
8,299
  
 
                                
Selling, general and administrative expenses
    
3,370
      
4,589
      
7,556
      
9,627
  
Research and development
    
402
      
535
      
901
      
888
  
Impairment loss on goodwill
    
1,149
      
¾
      
1,149
      
¾
  
(Gain) loss on disposal of property and equipment
    
¾
      
(3
)
    
2
      
(3
)
Loss from operations
    
(898
)
    
(1,191
)
    
(5,048
)
    
(2,213
)
 
                                
Other income (expense):
                                
Interest income
    
9
      
7
      
18
      
21
  
Interest expense
    
(200
)
    
(199
)
    
(344
)
    
(420
)
Interest expense-financing fees
    
(24
)
    
(26
)
    
(47
)
    
(60
)
Other
    
1
      
1
      
(7
)
    
1
  
Loss from continuing operations before taxes
    
(1,112
)
    
(1,408
)
    
(5,428
)
    
(2,671
)
Income tax benefit
    
(132
)
    
(399
)
    
(1,560
)
    
(855
)
Loss from continuing operations, net of taxes
    
(980
)
    
(1,009
)
    
(3,868
)
    
(1,816
)
 
                                
Income (loss) from discontinued operations, net of taxes
    
43
      
(60
)
    
15
      
(198
)
Net loss
    
(937
)
    
(1,069
)
    
(3,853
)
    
(2,014
)
 
                                
Net (loss) income attributable to non-controlling interest
    
(61
)
    
102
      
(64
)
    
158
  
 
                                
Net loss attributable to Perma-Fix Environmental Services, Inc. common stockholders
  
$
(876
)
  
$
(1,171
)
  
$
(3,789
)
  
$
(2,172
)
 
                                
Net loss per common share attributable to Perma-Fix Environmental Services, Inc. stockholders - basic:
                                
Continuing operations
  
$
(.02
)
  
$
(.02
)
  
$
(.07
)
  
$
(.04
)
Discontinued operations
  
$
¾
    
$
¾
    
$
¾
    
$
¾
  
Net loss per common share
  
$
(.02
)
  
$
(.02
)
  
$
(.07
)
  
$
(.04
)
 
                                
Net loss per common share attributable to Perma-Fix Environmental Services, Inc. stockholders - diluted:
                                
Continuing operations
  
$
(.02
)
  
$
(.02
)
  
$
(.07
)
  
$
(.04
)
Discontinued operations
  
$
¾
    
$
¾
    
$
¾
    
$
¾
  
Net loss per common share
  
$
(.02
)
  
$
(.02
)
  
$
(.07
)
  
$
(.04
)
 
                                
Number of common shares used in computing net loss per share:
                                
Basic
    
56,334
      
56,094
      
56,303
      
56,078
  
Diluted
    
56,334
      
56,094
      
56,303
      
56,078
  
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONDENSED BALANCE SHEET
(UNAUDITED)

 
  
June 30,
    
December 31,
  
(Amounts in Thousands, Except for Share and Per Share Amounts)
  
2013
    
2012
  
 
        
ASSETS
        
Current assets:
        
Cash and equivalents
  
$
130
    
$
4,403
  
Account receivable, net of allowance for doubtful accounts of $2,335 and $2,507
    
10,954
      
11,395
  
Unbilled receivables
    
7,103
      
8,530
  
Other current assets
    
3,567
      
4,067
  
Deferred tax assets - current
    
3,178
      
1,553
  
 
                
Assets of discontinued operations included in current assets, net of allowance for doubtful accounts of $25 and $45
    
686
      
499
  
Total current assets
    
25,618
      
30,447
  
 
                
Net property and equipment
    
33,253
      
35,314
  
Property and equipment of discontinued operations, net of accumulated depreciation of $60 and $60, respectively
    
1,616
      
1,614
  
Deferred tax asset, net of liabilities
    
1,103
      
1,103
  
Intangibles and other assets
    
70,972
      
72,553
  
Total assets
  
$
132,562
    
$
141,031
  
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities
  
$
20,836
    
$
25,628
  
Current liabilities related to discontinued operations
    
1,725
      
1,512
  
Total current liabilities
    
22,561
      
27,140
  
 
                
Long-term liabilities
    
23,982
      
23,425
  
Long-term liabilities related to discontinued operations
    
1,592
      
1,829
  
Total liabilities
    
48,135
      
52,394
  
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, 56,372,273 and 56,238,525 shares issued, respectively; 56,334,063 and 56,200,315 outstanding, respectively
    
56
      
56
  
Additional paid-in capital
    
102,972
      
102,819
  
Accumulated deficit
    
(19,794
)
    
(16,005
)
Accumulated other comprehensive loss
    
(4
)
    
(2
)
Less Common Stock in treasury at cost: 38,210 and 0 shares, respectively
    
(88
)
    
(88
)
Total Perma-Fix Environmental Services, Inc. stockholders' equity
    
83,142
      
86,780
  
Non-controlling interest
    
—
      
572
  
Total stockholders' equity
    
83,142
      
87,352
  
 
                
Total liabilities and stockholders' equity
  
$
132,562
    
$
141,031