x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
|
June 30, 2013
|
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File No.
|
111596
|
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
(Exact name of registrant as specified in its charter)
|
Delaware
|
|
58-1954497
|
(State or other jurisdiction of incorporation or organization)
|
|
(IRS Employer Identification Number)
|
|
|
|
8302 Dunwoody Place, Suite 250, Atlanta, GA
|
|
30350
|
(Address of principal executive offices)
|
|
(Zip Code)
|
N/A
|
(Former name, former address and former fiscal year, if changed since last report)
|
Large accelerated filer £
|
Accelerated Filer T
|
Non-accelerated Filer o
|
Smaller reporting company £
|
Class
|
|
Outstanding at August 1, 2013
|
Common Stock, $.001 Par Value
|
|
56,472,766
|
|
|
shares of registrant’s
|
|
|
Common Stock
|
PART I
|
FINANCIAL INFORMATION
|
Page No.
|
|
|
|
Item 1.
|
1
|
|
|
|
|
|
1
|
|
|
|
|
|
3
|
|
|
|
|
|
4
|
|
|
|
|
|
5
|
|
|
|
|
6 | ||
7 | ||
Item 2
|
23 | |
Item 3.
|
39 | |
Item 4.
|
39 | |
PART II
|
OTHER INFORMATION
|
|
Item 1. | 39 | |
Item 1A.
|
40 | |
Item 6.
|
40 |
(Amounts in Thousands, Except for Share and per Share Amounts)
|
June 30,
2013
|
December 31,
2012
|
||||||
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash
|
$
|
95
|
$
|
4,368
|
||||
Restricted cash
|
35
|
35
|
||||||
Accounts receivable, net of allowance for doubtful accounts of $2,335 and $2,507, respectively
|
10,954
|
11,395
|
||||||
Unbilled receivables - current
|
7,103
|
8,530
|
||||||
Retainage receivable
|
649
|
312
|
||||||
Inventories
|
451
|
473
|
||||||
Prepaid and other assets
|
2,467
|
3,282
|
||||||
Deferred tax assets - current
|
3,178
|
1,553
|
||||||
Current assets related to discontinued operations
|
686
|
499
|
||||||
Total current assets
|
25,618
|
30,447
|
||||||
|
||||||||
Property and equipment:
|
||||||||
Buildings and land
|
26,323
|
26,297
|
||||||
Equipment
|
34,728
|
34,657
|
||||||
Vehicles
|
661
|
661
|
||||||
Leasehold improvements
|
11,625
|
11,625
|
||||||
Office furniture and equipment
|
2,105
|
2,116
|
||||||
Construction-in-progress
|
399
|
334
|
||||||
|
75,841
|
75,690
|
||||||
Less accumulated depreciation and amortization
|
(42,588
|
)
|
(40,376
|
)
|
||||
Net property and equipment
|
33,253
|
35,314
|
||||||
|
||||||||
Property and equipment related to discontinued operations
|
1,616
|
1,614
|
||||||
|
||||||||
Intangibles and other long term assets:
|
||||||||
Permits
|
16,773
|
16,799
|
||||||
Goodwill
|
28,037
|
29,186
|
||||||
Other intangible assets – net
|
3,315
|
3,610
|
||||||
Unbilled receivables – non-current
|
82
|
137
|
||||||
Finite risk sinking fund
|
21,290
|
21,272
|
||||||
Deferred tax asset, net of liabilities
|
1,103
|
1,103
|
||||||
Other assets
|
1,475
|
1,549
|
||||||
Total assets
|
$
|
132,562
|
$
|
141,031
|
(Amounts in Thousands, Except for Share and per Share Amounts)
|
June 30,
2013
|
December 31,
2012
|
||||||
|
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
6,845
|
$
|
8,657
|
||||
Accrued expenses
|
5,008
|
6,254
|
||||||
Disposal/transportation accrual
|
1,233
|
2,294
|
||||||
Unearned revenue
|
2,825
|
3,695
|
||||||
Billings in excess of costs and estimated earnings
|
2,357
|
1,934
|
||||||
Current liabilities related to discontinued operations
|
1,725
|
1,512
|
||||||
Current portion of long-term debt
|
2,568
|
2,794
|
||||||
Total current liabilities
|
22,561
|
27,140
|
||||||
|
||||||||
Accrued closure costs
|
11,425
|
11,349
|
||||||
Other long-term liabilities
|
707
|
674
|
||||||
Long-term liabilities related to discontinued operations
|
1,592
|
1,829
|
||||||
Long-term debt, less current portion
|
11,850
|
11,402
|
||||||
Total long-term liabilities
|
25,574
|
25,254
|
||||||
|
||||||||
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 plus accrued and unpaid dividends of $707 and $674, respectively
|
1,285
|
1,285
|
||||||
|
||||||||
Stockholders' Equity:
|
||||||||
Preferred Stock, $.001 par value; 2,000,000 shares authorized, no shares issued and outstanding
|
¾
|
¾
|
||||||
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 shares 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 shares
|
(88
|
)
|
(88
|
)
|
||||
Total Perma-Fix Environmental Services, Inc. stockholders' equity
|
83,142
|
86,780
|
||||||
Non-controlling interest
|
¾
|
572
|
||||||
Total stockholders' equity
|
83,142
|
87,352
|
||||||
|
||||||||
Total liabilities and stockholders' equity
|
$
|
132,562
|
$
|
141,031
|
|
Three Months Ended
June 30,
|
Six Months Ended
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
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
(Amounts in Thousands)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
Net loss
|
$
|
(937
|
)
|
$
|
(1,069
|
)
|
$
|
(3,853
|
)
|
$
|
(2,014
|
)
|
||||
Other comprehensive (loss) income:
|
||||||||||||||||
Foreign currency translation (loss) gain
|
¾
|
(9
|
)
|
(2
|
)
|
2
|
||||||||||
Total other comprehensive (loss) income
|
¾
|
(9
|
)
|
(2
|
)
|
2
|
||||||||||
|
||||||||||||||||
Comprehensive loss
|
(937
|
)
|
(1,078
|
)
|
(3,855
|
)
|
(2,012
|
)
|
||||||||
Comprehensive (loss) income attributable to non-controlling interest
|
(61
|
)
|
102
|
(64
|
)
|
158
|
||||||||||
Comprehensive loss attributable to Perma-Fix Environmental Services, Inc. stockholders
|
$
|
(876
|
)
|
$
|
(1,180
|
)
|
$
|
(3,791
|
)
|
$
|
(2,170
|
)
|
Common Stock
|
Common
|
Accumulated
|
Non-
|
|||||||||||||||||||||||||||||
|
Shares
|
Amount
|
Additional
Paid-In
Capital
|
Stock
Held In
Treasury
|
Other
Comprehensive
Loss
|
controlling
Interest in
Subsidiary
|
Accumulated
Deficit
|
Total
Stockholders'
Equity
|
||||||||||||||||||||||||
Balance at December 31, 2012
|
56,238,525
|
56
|
$
|
102,819
|
$
|
(88
|
)
|
$
|
(2
|
)
|
$
|
572
|
$
|
(16,005
|
)
|
$
|
87,352
|
|||||||||||||||
|
||||||||||||||||||||||||||||||||
Net loss
|
¾
|
¾
|
¾
|
¾
|
¾
|
(64
|
)
|
(3,789
|
)
|
(3,853
|
)
|
|||||||||||||||||||||
Foreign currency translation adjustment
|
¾
|
¾
|
¾
|
¾
|
(2
|
)
|
¾
|
¾
|
(2
|
)
|
||||||||||||||||||||||
Distribution to non-controlling interest
|
¾
|
¾
|
¾
|
¾
|
¾
|
(490
|
)
|
¾
|
(490
|
)
|
||||||||||||||||||||||
Redemption of non-controlling interest
|
¾
|
¾
|
¾
|
¾
|
¾
|
(18
|
)
|
¾
|
(18
|
)
|
||||||||||||||||||||||
Issuance of common stock for services
|
133,748
|
¾
|
99
|
¾
|
¾
|
¾
|
¾
|
99
|
||||||||||||||||||||||||
Stock-based compensation
|
¾
|
¾
|
54
|
¾
|
¾
|
¾
|
¾
|
54
|
||||||||||||||||||||||||
Balance at June 30, 2013
|
56,372,273
|
$
|
56
|
$
|
102,972
|
$
|
(88
|
)
|
$
|
(4
|
)
|
$
|
¾
|
$
|
(19,794
|
)
|
$
|
83,142
|
|
Six Months Ended
June 30,
|
|||||||
(Amounts in Thousands)
|
2013
|
2012
|
||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
(3,853
|
)
|
$
|
(2,014
|
)
|
||
Less: income (loss) on discontinued operations
|
15
|
(198
|
)
|
|||||
|
||||||||
Loss from continuing operations
|
(3,868
|
)
|
(1,816
|
)
|
||||
Adjustments to reconcile net income to cash provided by operations:
|
||||||||
Depreciation and amortization
|
2,576
|
2,753
|
||||||
Amortization of debt discount
|
―
|
12
|
||||||
Amortization of fair value of customer contracts
|
(1,043
|
)
|
(1,943
|
)
|
||||
Deferred tax benefit
|
(1,636
|
)
|
(852
|
)
|
||||
Provision for bad debt and other reserves
|
43
|
43
|
||||||
Impairment loss on goodwill
|
1,149
|
―
|
||||||
Loss (gain) on disposal of plant, property and equipment
|
2
|
(3
|
)
|
|||||
Foreign exchange (loss) gain
|
(2
|
)
|
2
|
|||||
Issuance of common stock for services
|
99
|
102
|
||||||
Stock-based compensation
|
54
|
98
|
||||||
Changes in operating assets and liabilities of continuing operations, net of effect from business acquisitions:
|
||||||||
Accounts receivable
|
60
|
2,031
|
||||||
Unbilled receivables
|
1,482
|
(3,632
|
)
|
|||||
Prepaid expenses, inventories and other assets
|
1,078
|
1,646
|
||||||
Accounts payable, accrued expenses and unearned revenue
|
(3,603
|
)
|
(6,887
|
)
|
||||
Cash used in continuing operations
|
(3,609
|
)
|
(8,446
|
)
|
||||
Cash used in discontinued operations
|
(167
|
)
|
(372
|
)
|
||||
Cash used in operating activities
|
(3,776
|
)
|
(8,818
|
)
|
||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Purchases of property and equipment
|
(175
|
)
|
(387
|
)
|
||||
Change in restricted cash, net
|
―
|
1,500
|
||||||
Proceeds from sale of plant, property and equipment
|
―
|
3
|
||||||
Non-controlling distribution/redemption
|
(508
|
)
|
―
|
|||||
Payment to finite risk sinking fund
|
(18
|
)
|
(1,899
|
)
|
||||
Cash used in investing activities
|
(701
|
)
|
(783
|
)
|
||||
|
||||||||
Cash flows from financing activities:
|
||||||||
Net borrowing of revolving credit
|
1,671
|
643
|
||||||
Principal repayments of long term debt
|
(1,449
|
)
|
(2,134
|
)
|
||||
Proceeds from finite risk financing
|
―
|
565
|
||||||
Payment of finite risk financing
|
―
|
(251
|
)
|
|||||
Cash provided by (used in) financing activities of continuing operations
|
222
|
(1,177
|
)
|
|||||
Principal repayments of long term debt for discontinued operations
|
(18
|
)
|
(17
|
)
|
||||
Cash provided by (used in) financing activities
|
204
|
(1,194
|
)
|
|||||
|
||||||||
Decrease in cash
|
(4,273
|
)
|
(10,795
|
)
|
||||
Cash at beginning of period
|
4,368
|
12,055
|
||||||
Cash at end of period
|
$
|
95
|
$
|
1,260
|
||||
|
||||||||
Supplemental disclosure:
|
||||||||
Interest paid
|
$
|
353
|
$
|
479
|
||||
Income taxes paid
|
104
|
470
|
1.
|
Basis of Presentation
|
2.
|
Summary of Significant Accounting Policies
|
3.
|
Stock Based Compensation
|
Stock Options
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Employee Stock Options
|
$
|
3,000
|
$
|
34,000
|
$
|
36,000
|
$
|
72,000
|
||||||||
Director Stock Options
|
¾
|
¾
|
18,000
|
26,000
|
||||||||||||
Total
|
$
|
3,000
|
$
|
34,000
|
$
|
54,000
|
$
|
98,000
|
4.
|
Stock Plans and Non-Qualified Option Agreement
|
Shares
|
Weighted Average
Exercise Price
|
Weighted Average
Remaining
Contractual Term
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Options outstanding Janury 1, 2013
|
2,644,000
|
$
|
1.96
|
|||||||||||||
Granted
|
|
─
|
|
─
|
||||||||||||
Exercised
|
|
─
|
─
|
$
|
─
|
|||||||||||
Forfeited
|
(690,000
|
)
|
1.87
|
|||||||||||||
Options outstanding End of Period (1)
|
1,954,000
|
2.00
|
3.0
|
$
|
─
|
|||||||||||
Options Exercisable at June 30, 2013(1)
|
1,754,000
|
$
|
2.05
|
2.9
|
$
|
─
|
||||||||||
Options Vested and expected to be vested at June 30, 2013
|
1,954,000
|
$
|
2.00
|
3.0
|
$
|
─
|
||||||||||
|
||||||||||||||||
|
|
Shares
|
Weighted Average
Exercise Price
|
Weighted Average
Remaining
Contractual Term
|
Aggregate
Intrinsic
Value
|
|||||||||||
Options outstanding Janury 1, 2012
|
3,039,833
|
$
|
1.98
|
|||||||||||||
Granted
|
|
─
|
|
─
|
||||||||||||
Exercised
|
|
─
|
|
─
|
$
|
─
|
||||||||||
Forfeited
|
(425,333
|
)
|
1.90
|
|||||||||||||
Options outstanding End of Period (2)
|
2,614,500
|
1.99
|
3.8
|
$
|
─
|
|||||||||||
Options Exercisable at June 30, 2012(2)
|
2,064,500
|
$
|
2.13
|
3.0
|
$
|
─
|
||||||||||
Options Vested and expected to be vested at June 30, 2012
|
2,614,500
|
$
|
1.99
|
3.8
|
$
|
─
|
(1)
|
Options with exercise prices ranging from $1.10 to $2.95
|
(2)
|
Options with exercise prices ranging from $1.41 to $2.95
|
5. | (Loss) Income Per Share |
|
Three Months Ended
June 30,
(Unaudited)
|
Six Months Ended
June 30,
(Unaudited)
|
||||||||||||||
(Amounts in Thousands, Except for Per Share Amounts)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Loss per share from continuing operations attributable to Perma-Fix Environmental Services, Inc.common stockholders
|
||||||||||||||||
Loss from continuing operations
|
$
|
(980
|
)
|
$
|
(1,009
|
)
|
$
|
(3,868
|
)
|
$
|
(1,816
|
)
|
||||
Basic loss per share
|
$
|
(.02
|
)
|
$
|
(.02
|
)
|
$
|
(.07
|
)
|
$
|
(.04
|
)
|
||||
Diluted loss per share
|
$
|
(.02
|
)
|
$
|
(.02
|
)
|
$
|
(.07
|
)
|
$
|
(.04
|
)
|
||||
|
||||||||||||||||
Income (loss) per share from discontinued operations attributable to Perma-Fix Environemental Services, Inc. common stockholders
|
||||||||||||||||
Income (loss) from discontinued operations
|
$
|
43
|
$
|
(60
|
)
|
$
|
15
|
$
|
(198
|
)
|
||||||
Basic income (loss) per share
|
$
|
¾
|
$
|
¾
|
$
|
¾
|
$
|
¾
|
||||||||
Diluted income (loss) per share
|
$
|
¾
|
$
|
¾
|
$
|
¾
|
$
|
¾
|
||||||||
|
||||||||||||||||
Weighted average common shares outstanding – basic
|
56,334
|
56,094
|
56,303
|
56,078
|
||||||||||||
Potential shares exercisable under stock option plans
|
¾
|
¾
|
¾
|
¾
|
||||||||||||
Weighted average shares outstanding – diluted
|
56,334
|
56,094
|
56,303
|
56,078
|
||||||||||||
|
||||||||||||||||
Potential shares excluded from above weighted average share calculations due to their anti-dilutive effect include:
|
||||||||||||||||
Upon exercise of stock options
|
1,954
|
2,614
|
1,954
|
2,124
|
6. | Other Intangible Assets and Goodwill |
|
June 30, 2013
|
December 31, 2012
|
|||||||||||||||||||||||||
|
Useful
Lives
(Years)
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net
Carrying
Amount
|
||||||||||||||||||||
Intangibles (amount in thousands)
|
|||||||||||||||||||||||||||
Patent
|
8-18
|
$
|
477
|
$
|
(131
|
)
|
$
|
346
|
$
|
453
|
$
|
(105
|
)
|
$
|
348
|
||||||||||||
Software
|
3
|
380
|
(210
|
)
|
170
|
380
|
(145
|
)
|
235
|
||||||||||||||||||
Non-compete agreement
|
1.2
|
265
|
(97
|
)
|
168
|
265
|
(62
|
)
|
203
|
||||||||||||||||||
Customer contracts
|
0.5
|
790
|
(790
|
)
|
¾
|
790
|
(790
|
)
|
¾
|
||||||||||||||||||
Customer relationships
|
12
|
3,370
|
(739
|
)
|
2,631
|
3,370
|
(546
|
)
|
2,824
|
||||||||||||||||||
Total
|
$
|
5,282
|
$
|
(1,967
|
)
|
$
|
3,315
|
$
|
5,258
|
$
|
(1,648
|
)
|
$
|
3,610
|
7.
|
Long Term Debt
|
(Amounts in Thousands)
|
June 30,
2013
|
December
31, 2012
|
||||||
Revolving Credit facility dated October 31, 2011, borrowings based upon eligible accounts receivable, subject to monthly borrowing base calculation, variable interest paid monthly at our option of prime rate (3.25% at June 30, 2013) plus 2.0% or London Interbank Offer Rate ("LIBOR") plus 3.0%, balance due October 31, 2016. Effective interest rate for first six months of 2013 was 3.30%. (1)
|
$
|
1,671
|
$
|
—
|
||||
Term Loan dated October 31, 2011, payable in equal monthly installments of principal of $190, balance due in October 31, 2016, variable interest paid monthly at option of prime rate plus 2.5% or LIBOR plus 3.5%. Effective interest rate for first six months of 2013 was 4.06%. (1)
|
12,381
|
13,524
|
||||||
Promissory Note dated September 28, 2010, payable in 36 monthly equal installments of $40, which includes interest and principal, beginning October 15, 2010, interest accrues at annual rate of 6.0%. (2)
|
119
|
352
|
||||||
Promissory Note dated February 12, 2013, payable in monthly installments of $10, which includes interest and principal, starting February 28, 2013, interest accrues at annual rate of 6.0%, balance due January 31, 2015. (2)
|
184
|
—
|
||||||
Various capital lease and promissory note obligations, payable 2013 to 2014, interest at rates ranging from 5.2% to 8.0%.
|
116
|
391
|
||||||
|
14,471
|
14,267
|
||||||
Less current portion of long-term debt
|
2,568
|
2,794
|
||||||
Less long-term debt related to assets held for sale
|
53
|
71
|
||||||
|
$
|
11,850
|
$
|
11,402
|
· | up to $25,000,000 revolving credit facility (“Revolving Credit”), subject to the amount of borrowings based on a percentage of eligible receivables. The revolving credit advances are subject to limitations of an amount up to the sum of (a) up to 85% of Commercial Receivables aged 90 days or less from invoice date, (b) up to 85% of Commercial Broker Receivables aged up to 120 days from invoice date, (c) up to 85% of acceptable Government Agency Receivables aged up to 150 days from invoice date, and (d) up to 50% of acceptable unbilled amounts aged up to 60 days, less (e) reserves the Agent reasonably deems proper and necessary; |
· | a term loan (“Term Loan”) of $16,000,000, which requires monthly installments of approximately $190,000 (based on a seven-year amortization); and |
· |
equipment line of credit up to $2,500,000, subject to certain limitations.
|
8. | Commitments and Contingencies |
9. | Discontinued Operations and Divestitures |
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
(Amounts in Thousands)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
Net revenues
|
$
|
809
|
$
|
599
|
$
|
1,472
|
$
|
1,215
|
||||||||
Interest expense
|
$
|
(9
|
)
|
$
|
(9
|
)
|
$
|
(13
|
)
|
$
|
(17
|
)
|
||||
Operating income (loss) from discontinued operations
|
$
|
67
|
$ |
(86
|
)
|
$
|
26
|
$
|
(294
|
)
|
||||||
Income tax expense (benefit)
|
$
|
24
|
$ |
(26
|
)
|
$
|
11
|
$
|
(96
|
)
|
||||||
Income (loss) from discontinued operations
|
$
|
43
|
$
|
(60
|
)
|
$
|
15
|
$
|
(198
|
)
|
June 30,
2013
|
December 31,
2012
|
|||||||
|
||||||||
Accounts receivable, net (1)
|
$
|
578
|
$
|
391
|
||||
Inventories
|
37
|
32
|
||||||
Other assets
|
16
|
16
|
||||||
Property, plant and equipment, net (2)
|
1,616
|
1,614
|
||||||
Total assets held for sale
|
$
|
2,247
|
$
|
2,053
|
||||
Accounts payable
|
$
|
341
|
$
|
229
|
||||
Accrued expenses and other liabilities
|
544
|
528
|
||||||
Note payable
|
53
|
71
|
||||||
Environmental liabilities
|
1,373
|
1,373
|
||||||
Total liabilities held for sale
|
$
|
2,311
|
$
|
2,201
|
(1)
|
net of allowance for doubtful accounts of $25,000 and $45,000 as of June 30, 2013 and December 31, 2012, respectively.
|
(2)
|
net of accumulated depreciation of $60,000 for each period presented.
|
June 30,
2013
|
December 31,
2012
|
|||||||
|
||||||||
Other assets
|
$
|
55
|
$
|
60
|
||||
Total assets of discontinued operations
|
$
|
55
|
$
|
60
|
||||
Accrued expenses and other liabilities
|
$
|
796
|
$
|
884
|
||||
Accounts payable
|
15
|
15
|
||||||
Environmental liabilities
|
195
|
241
|
||||||
Total liabilities of discontinued operations
|
$
|
1,006
|
$
|
1,140
|
10. | Operating Segments |
· | from which we may earn revenue and incur expenses; |
· | whose operating results are regularly reviewed by the Chief Operating Officer to make decisions about resources to be allocated to the segment and assess its performance; and |
· | for which discrete financial information is available. |
- | nuclear, low-level radioactive, mixed waste (containing both hazardous and low-level radioactive constituents), hazardous and non-hazardous waste treatment, processing and disposal services primarily through four uniquely licensed and permitted treatment and storage facilities; and, |
- | research and development activities to identify, develop and implement innovative waste processing techniques for problematic waste streams. |
- | On-site waste management services to commercial and government customers; |
- | Technical services, which include: |
o | professional radiological measurement and site survey of large government and commercial installations using advance methods, technology and engineering; |
o | integrated Occupational Safety and Health services including industrial hygiene (“IH”) assessments; hazardous materials surveys, e.g., exposure monitoring; lead and asbestosmanagement/abatement oversight; indoor air quality evaluations; health risk and exposure assessments; health & safety plan/program development, compliance auditing and training services; and Occupational Safety and Health Administration (“OSHA”) citation assistance; |
o | global technical services providing consulting, engineering, project management, waste management, environmental, and decontamination and decommissioning field, technical, and management personnel and services to commercial and government customers; and, |
o | augmented engineering services (through our Schreiber, Yonley & Associates subsidiary – “SYA”) providing consulting environmental services to industrial and government customers: |
§ | including air, water, and hazardous waste permitting, air, soil and water sampling, compliance reporting, emission reduction strategies, compliance auditing, and various compliance and training activities; and, |
§ | engineering and compliance support to other segments; |
- | Nuclear services, which include: |
o | technology-based services including engineering, decontamination and decommissioning (“D&D”), specialty services and construction, logistics, transportation, processing and disposal; |
o | remediation of nuclear licensed and federal facilities and the remediation cleanup of nuclear legacy sites. Such services capability includes: project investigation; radiological engineering; partial and total plant D&D; facility decontamination, dismantling, demolition, and planning; site restoration; site construction; logistics; transportation; and emergency response; and |
- | A company owned equipment calibration and maintenance laboratory that services, maintains, calibrates, and sources (i.e., rental) of health physics, IH and customized nuclear, environmental, and occupational safety and health (“NEOSH”) instrumentation. |
Segment Reporting for the Quarter Ended June 30, 2013
|
||||||||||||||||||||||
|
Treatment
|
Services
|
Segments Total
|
Corporate (2)
|
Consolidated Total
|
|||||||||||||||||
Revenue from external customers
|
$
|
10,108
|
$
|
12,676
|
$
|
22,784
|
(3)
|
$
|
¾
|
$
|
22,784
|
|||||||||||
Intercompany revenues
|
407
|
16
|
423
|
¾
|
¾
|
|||||||||||||||||
Gross profit
|
2,312
|
1,711
|
4,023
|
¾
|
4,023
|
|||||||||||||||||
Interest income
|
¾
|
¾
|
¾
|
9
|
9
|
|||||||||||||||||
Interest expense
|
22
|
1
|
23
|
177
|
200
|
|||||||||||||||||
Interest expense-financing fees
|
¾
|
¾
|
¾
|
24
|
24
|
|||||||||||||||||
Depreciation and amortization
|
1,024
|
238
|
1,262
|
27
|
1,289
|
|||||||||||||||||
Segment profit (loss)
|
795
|
(619
|
)
|
176
|
(1,156
|
)
|
(980
|
)
|
||||||||||||||
Segment assets(1)
|
72,422
|
31,810
|
104,232
|
28,330
|
(4)
|
132,562
|
||||||||||||||||
Expenditures for segment assets
|
59
|
¾
|
59
|
¾
|
59
|
|||||||||||||||||
Total long-term debt, net of current portion
|
14
|
¾
|
14
|
11,836
|
11,850
|
|||||||||||||||||
|
||||||||||||||||||||||
Segment Reporting for the Quarter Ended June 30, 2012
|
||||||||||||||||||||||
|
Treatment
|
Services
|
Segments Total
|
Corporate (2)
|
Consolidated Total
|
|||||||||||||||||
Revenue from external customers
|
$
|
10,037
|
$
|
23,661
|
$
|
33,698
|
(3)
|
$
|
¾
|
$
|
33,698
|
|||||||||||
Intercompany revenues
|
549
|
49
|
598
|
¾
|
¾
|
|||||||||||||||||
Gross profit
|
1,087
|
2,843
|
3,930
|
¾
|
3,930
|
|||||||||||||||||
Interest income
|
¾
|
¾
|
¾
|
7
|
7
|
|||||||||||||||||
Interest expense
|
3
|
¾
|
3
|
196
|
199
|
|||||||||||||||||
Interest expense-financing fees
|
¾
|
¾
|
¾
|
26
|
26
|
|||||||||||||||||
Depreciation and amortization
|
1,125
|
218
|
1,343
|
18
|
1,361
|
|||||||||||||||||
Segment profit (loss)
|
72
|
989
|
1,061
|
(2,070
|
)
|
(1,009
|
)
|
|||||||||||||||
Segment assets(1)
|
78,982
|
43,568
|
122,550
|
31,231
|
(4)
|
153,781
|
||||||||||||||||
Expenditures for segment assets
|
74
|
103
|
177
|
2
|
179
|
|||||||||||||||||
Total long-term debt, net of current portion
|
60
|
2
|
62
|
12,940
|
13,002
|
|||||||||||||||||
|
||||||||||||||||||||||
Segment Reporting for the Six Months Ended June 30, 2013
|
||||||||||||||||||||||
|
Treatment
|
Services
|
Segments Total
|
Corporate (2)
|
Consolidated Total
|
|||||||||||||||||
Revenue from external customers
|
$
|
17,450
|
$
|
25,163
|
$
|
42,613
|
(3)
|
$
|
¾
|
$
|
42,613
|
|||||||||||
Intercompany revenues
|
1,075
|
55
|
1,130
|
¾
|
¾
|
|||||||||||||||||
Gross profit
|
2,167
|
2,393
|
4,560
|
¾
|
4,560
|
|||||||||||||||||
Interest income
|
¾
|
¾
|
¾
|
18
|
18
|
|||||||||||||||||
Interest expense
|
27
|
(4
|
)
|
23
|
321
|
344
|
||||||||||||||||
Interest expense-financing fees
|
¾
|
¾
|
¾
|
47
|
47
|
|||||||||||||||||
Depreciation and amortization
|
2,063
|
460
|
2,523
|
53
|
2,576
|
|||||||||||||||||
Segment loss
|
(93
|
)
|
(819
|
)
|
(912
|
(2,956
|
)
|
(3,868
|
)
|
|||||||||||||
Segment assets(1)
|
72,422
|
31,810
|
104,232
|
28,330
|
(4)
|
132,562
|
||||||||||||||||
Expenditures for segment assets
|
175
|
¾
|
175
|
¾
|
175
|
|||||||||||||||||
Total long-term debt, net of current portion
|
14
|
¾
|
14
|
11,836
|
11,850
|
|||||||||||||||||
|
||||||||||||||||||||||
Segment Reporting for the Six Months Ended June 30, 2012
|
||||||||||||||||||||||
|
Treatment
|
Services
|
Segments Total
|
Corporate (2)
|
Consolidated Total
|
|||||||||||||||||
Revenue from external customers
|
$
|
22,879
|
$
|
48,755
|
$
|
71,634
|
(3)
|
$
|
¾
|
$
|
71,634
|
|||||||||||
Intercompany revenues
|
1,158
|
117
|
1,275
|
¾
|
¾
|
|||||||||||||||||
Gross profit
|
3,808
|
4,491
|
8,299
|
¾
|
8,299
|
|||||||||||||||||
Interest income
|
¾
|
¾
|
¾
|
21
|
21
|
|||||||||||||||||
Interest expense
|
5
|
6
|
11
|
409
|
420
|
|||||||||||||||||
Interest expense-financing fees
|
¾
|
¾
|
¾
|
60
|
60
|
|||||||||||||||||
Depreciation and amortization
|
2,255
|
462
|
2,717
|
36
|
2,753
|
|||||||||||||||||
Segment profit (loss)
|
1,164
|
1,094
|
2,258
|
(4,074
|
)
|
(1,816
|
)
|
|||||||||||||||
Segment assets(1)
|
78,982
|
43,568
|
122,550
|
31,231
|
(4)
|
153,781
|
||||||||||||||||
Expenditures for segment assets
|
242
|
141
|
383
|
4
|
387
|
|||||||||||||||||
Total long-term debt, net of current portion
|
60
|
2
|
62
|
12,940
|
13,002
|
(1) | Segment assets have been adjusted for intercompany accounts to reflect actual assets for each segment. |
(2) | Amounts reflect the activity for corporate headquarters not included in the segment information. |
(3) | Includes revenues generated from CH Plateau Remediation Company (“CHPRC”) of $6,419,000 or 28.2% and $12,440,000 or 29.2% for the three and six months ended June 30, 2013, respectively and $6,323,000 or 18.8% and $12,633,000 or 17.6% for the corresponding period of 2012, respectively. |
(4) | Amount includes assets from discontinued operations of $2,302,000 and $2,381,000 as of June 30, 2013 and 2012, respectively. |
11. | Income Taxes |
12. | Related Party Transaction |
(i) | effective May 24, 2013 (“Separation Date”), Leichtweis voluntarily terminated and retired as an employee of the Company, Senior Vice President of the Company and President of SEC; |
(ii) | the Leichtweis Employment Agreement dated October 31, 2011 between the Company and Leichtweis was terminated and becomes null and void, except for the “Confidentiality of Trade Secrets and Business Information” (“Section 7”) clause of the Leichtweis Employment Agreement. No severance and Special Bonus (as defined in the Leichtweis Employment Agreement) were payable to Leichtweis under the Leichtweis Employment Agreement. Leichtweis was paid all accrued salary, vacation and any benefit under the employee’s benefit plan to Separation Date. Leichtweis voluntary termination of employment with the Company was for reasons other than for “Good Reason” (as defined by Leichtweis Employment Agreement) and is within the meaning of Treasury Regulation § 1.409A-1(h)(1) as of the Separation Date; |
|
(iii) | the Management Incentive Plan (“MIP”) effective as of November 1, 2011, as amended on July 12, 2012, for the benefit of Leichtweis was forfeited and cancelled. No payment was payable under the MIP as of the Separation Date; |
(iv) | A nonqualified stock option (the “Option”) granted to Leichtweis on October 31, 2011, in accordance with a Non-Qualified Stock Option Agreement, which provided for the purchase of up to 250,000 shares of the Company’s Common Stock at $1.35 per share pursuant to the Leichtweis Employment Agreement was forfeited. Within 30 days after Separation Date, Leichtweis had the option to exercise 62,500 options (amount vested) to purchase 62,500 shares of the Company’s common stock, which he elected not to exercise; |
(v) | the Company generally released Leichtweis from and against all claims against Leichtweis under the Leichtweis Employment Agreement except for claims against Leichtweis under “Section 7” of the Employment Agreement; and |
(vi)
|
Leichtweis released the Company and its subsidiaries and all of their representatives, officers, directors, employees and affiliates from and against any and all Claims (as defined in the Agreement).
|
13. | Subsequent Events |
· | demand for our services subject to fluctuations due to variety of factors; |
· | uncertainty with the federal budget and the availability of funding and sequestration; |
· | relative success of the customer’s counterclaim and Company’s claims for damages could result in a substantial change to earnings; |
· | the Company believes the ultimate recovery of incurred costs related to the claims is probable under ASC 605-35-25; |
· | significant reduction in the level of governmental funding could have a material adverse impact to our business, financial position, results of operations and cash flows in the current year and in the future; |
· | expect to meet our financial covenants in remaining quarters of 2013; |
· | ability to improve operations and liquidity; |
· | ability to continue under existing contracts with the federal government (directly or indirectly as a subcontractor; |
· | potential large fluctuations in revenue in each of our quarters in the near future; |
· | ability to fund expenses to remediate sites from funds generated internally; |
· | collectability of our receivables; |
· | potential effect on our operations with the adoption of programs by federal or state government mandating a substantial reduction in greenhouse gas emissions; |
· | ability to fund budgeted capital expenditures during 2013 through our operations and lease financing; |
· | our cash flows from operations and our available liquidity from our amended and restated line of credit are sufficient to service the Company’s current obligations; |
· | continue to take steps to improve our operations and liquidity and to invest working capital into our facilities to fund capital additions to our segments; |
· | ability to obtain similar insurance in future years, or that the cost of such insurance will not increase materially; |
· | we could be subject to fines, penalties or other liabilities or could be adversely affected by existing or subsequently enacted laws or regulations; |
· | economic conditions and environmental clean-up budgets improve; |
· | plan to fund any repurchases of our common stock through our internal cash flow and/or borrowing under our line of credit; |
· | being potentially responsible party at a remedial action site, which could have a material adverse effect; and |
· | we could be deemed responsible for part for the cleanup of certain properties and be subject to fines and civil penalties in connection with violations of regulatory requirements. |
· | general economic conditions; |
· | material reduction in revenues; |
· | ability to meet PNC covenant requirements; |
· | inability to collect in a timely manner a material amount of receivables; |
· | increased competitive pressures; |
· | the ability to maintain and obtain required permits and approvals to conduct operations; |
· | public not accepting our new technology; |
· | the ability to develop new and existing technologies in the conduct of operations; |
· | inability to maintain and obtain closure and operating insurance requirements; |
· | inability to retain or renew certain required permits; |
· | discovery of additional contamination or expanded contamination at any of the sites or facilities leased or owned by us or our subsidiaries which would result in a material increase in remediation expenditures; |
· | delays at our third party disposal site can extend collection of our receivables greater than twelve months; |
· | refusal of third party disposal sites to accept our waste; |
· | changes in federal, state and local laws and regulations, especially environmental laws and regulations, or in interpretation of such; |
· | potential increases in equipment, maintenance, operating or labor costs; |
· | management retention and development; |
· | financial valuation of intangible assets is substantially more/less than expected; |
· | the requirement to use internally generated funds for purposes not presently anticipated; |
· | inability to continue to be profitable on an annualized basis; |
· | inability of the Company to maintain the listing of its Common Stock on the NASDAQ; |
· | terminations of contracts with federal agencies or subcontracts involving federal agencies, or reduction in amount of waste delivered to the Company under the contracts or subcontracts; |
· | renegotiation of contracts involving the federal government; |
· | federal government’s inability or failure to provide necessary funding to remediate contaminated federal sites; |
· | disposal expense accrual could prove to be inadequate in the event the waste requires re-treatment; and |
· | Factors set forth in “Special Note Regarding Forward-Looking Statements” contained in our 2012 Form 10-K. |
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||||||||||||||||||
Consolidated (amounts in thousands)
|
2013
|
%
|
2012
|
%
|
2013
|
%
|
2012
|
%
|
||||||||||||||||||||||||
Net revenues
|
$
|
22,784
|
100.0
|
$
|
33,698
|
100.0
|
$
|
42,613
|
100.0
|
$
|
71,634
|
100.0
|
||||||||||||||||||||
Cost of goods sold
|
18,761
|
82.3
|
29,768
|
88.3
|
38,053
|
89.3
|
63,335
|
88.4
|
||||||||||||||||||||||||
Gross profit
|
4,023
|
17.7
|
3,930
|
11.7
|
4,560
|
10.7
|
8,299
|
11.6
|
||||||||||||||||||||||||
Selling, general and administrative
|
3,370
|
14.8
|
4,589
|
13.6
|
7,556
|
17.7
|
9,627
|
13.4
|
||||||||||||||||||||||||
Impairment loss on intangible asset
|
1,149
|
5.0
|
―
|
―
|
1,149
|
2.7
|
―
|
―
|
||||||||||||||||||||||||
Research and development
|
402
|
1.8
|
535
|
1.6
|
901
|
2.1
|
888
|
1.3
|
||||||||||||||||||||||||
(Gain) loss on disposal of property and equipment
|
―
|
―
|
(3
|
)
|
―
|
2
|
―
|
(3
|
)
|
―
|
||||||||||||||||||||||
Loss from operations
|
(898
|
)
|
(3.9
|
)
|
(1,191
|
)
|
(3.5
|
)
|
(5,048
|
)
|
(11.8
|
)
|
(2,213
|
)
|
(3.1
|
)
|
||||||||||||||||
Interest income
|
9
|
―
|
7
|
―
|
18
|
―
|
21
|
―
|
||||||||||||||||||||||||
Interest expense
|
(200
|
)
|
(.9
|
)
|
(199
|
)
|
(.6
|
)
|
(344
|
)
|
(.8
|
)
|
(420
|
)
|
(.5
|
)
|
||||||||||||||||
Interest expense-financing fees
|
(24
|
)
|
(.1
|
)
|
(26
|
)
|
(.1
|
)
|
(47
|
)
|
(.1
|
)
|
(60
|
)
|
(.1
|
)
|
||||||||||||||||
Other
|
1
|
―
|
1
|
―
|
(7
|
)
|
―
|
1
|
―
|
|||||||||||||||||||||||
Loss from continuing operations before taxes
|
(1,112
|
)
|
(4.9
|
)
|
(1,408
|
)
|
(4.2
|
)
|
(5,428
|
)
|
(12.7
|
)
|
(2,671
|
)
|
(3.7
|
)
|
||||||||||||||||
Income tax benefit
|
(132
|
)
|
(0.6
|
)
|
(399
|
)
|
(1.2
|
)
|
(1,560
|
)
|
(3.6
|
)
|
(855
|
)
|
(1.2
|
)
|
||||||||||||||||
Loss from continuing operations
|
$
|
(980
|
)
|
(4.3
|
)
|
$
|
(1,009
|
)
|
(3.0
|
)
|
$
|
(3,868
|
)
|
(9.1
|
)
|
$
|
(1,816
|
)
|
(2.5
|
)
|
(In thousands)
|
2013
|
%
Revenue
|
2012
|
%
Revenue
|
Change
|
%
Change
|
||||||||||||||||||
Treatment
|
||||||||||||||||||||||||
Government waste
|
$
|
5,072
|
22.3
|
$
|
6,885
|
20.4
|
$
|
(1,813
|
)
|
(26.3
|
)
|
|||||||||||||
Hazardous/non-hazardous
|
1,691
|
7.4
|
729
|
2.2
|
962
|
132.0
|
||||||||||||||||||
Other nuclear waste
|
3,345
|
14.7
|
2,423
|
7.2
|
922
|
38.1
|
||||||||||||||||||
Total
|
10,108
|
44.4
|
10,037
|
29.8
|
71
|
0.7
|
||||||||||||||||||
|
||||||||||||||||||||||||
Services
|
||||||||||||||||||||||||
Nuclear services
|
11,253
|
49.4
|
17,581
|
52.2
|
(6,328
|
)
|
(36.0
|
)
|
||||||||||||||||
Technical services
|
1,423
|
6.2
|
6,080
|
18.0
|
(4,657
|
)
|
(76.6
|
)
|
||||||||||||||||
Total
|
12,676
|
55.6
|
23,661
|
70.2
|
(10,985
|
)
|
(46.4
|
)
|
||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
22,784
|
100.0
|
$
|
33,698
|
100.0
|
$
|
(10,914
|
)
|
(32.4
|
)
|
(In thousands)
|
2013
|
%
Revenue
|
2012
|
%
Revenue
|
Change
|
%
Change
|
||||||||||||||||||
Treatment
|
||||||||||||||||||||||||
Government waste
|
$
|
9,301
|
21.8
|
$
|
16,595
|
23.2
|
$
|
(7,294
|
)
|
(44.0
|
)
|
|||||||||||||
Hazardous/non-hazardous
|
2,379
|
5.6
|
1,585
|
2.2
|
794
|
50.1
|
||||||||||||||||||
Other nuclear waste
|
5,770
|
13.5
|
4,699
|
6.5
|
1,071
|
22.8
|
||||||||||||||||||
Total
|
17,450
|
40.9
|
22,879
|
31.9
|
(5,429
|
)
|
(23.7
|
)
|
||||||||||||||||
|
||||||||||||||||||||||||
Services
|
||||||||||||||||||||||||
Nuclear services
|
21,442
|
50.3
|
36,242
|
50.6
|
(14,800
|
)
|
(40.8
|
)
|
||||||||||||||||
Technical services
|
3,721
|
8.8
|
12,513
|
17.5
|
(8,792
|
)
|
(70.3
|
)
|
||||||||||||||||
Total
|
25,163
|
59.1
|
48,755
|
68.1
|
(23,592
|
)
|
(48.4
|
)
|
||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$
|
42,613
|
100.0
|
$
|
71,634
|
100.0
|
$
|
(29,021
|
)
|
(40.5
|
)
|
(In thousands)
|
2013
|
%
Revenue
|
2012
|
%
Revenue
|
Change
|
|||||||||||||||
Treatment
|
$
|
7,796
|
77.1
|
$
|
8,950
|
89.2
|
$
|
(1,154
|
)
|
|||||||||||
Services
|
10,965
|
86.5
|
20,818
|
88.0
|
(9,853
|
)
|
||||||||||||||
Total
|
$
|
18,761
|
82.3
|
$
|
29,768
|
88.3
|
$
|
(11,007
|
)
|
(In thousands)
|
2013
|
%
Revenue
|
2012
|
%
Revenue
|
Change
|
|||||||||||||||
Treatment
|
$
|
15,283
|
87.6
|
$
|
19,071
|
83.4
|
$
|
(3,788
|
)
|
|||||||||||
Services
|
22,770
|
90.5
|
44,264
|
90.8
|
(21,494
|
)
|
||||||||||||||
Total
|
$
|
38,053
|
89.3
|
$
|
63,335
|
88.4
|
$
|
(25,282
|
)
|
(In thousands)
|
2013
|
%
Revenue
|
2012
|
%
Revenue
|
Change
|
|||||||||||||||
Treatment
|
$
|
2,312
|
22.9
|
$
|
1,087
|
10.8
|
$
|
1,225
|
||||||||||||
Services
|
1,711
|
13.5
|
2,843
|
12.0
|
(1,132
|
)
|
||||||||||||||
Total
|
$
|
4,023
|
17.7
|
$
|
3,930
|
11.7
|
$
|
93
|