Perma-Fix Announces 46% Increase in Revenue and $2.2 Million of EBITDA for the Fourth Quarter of 2008

ATLANTA, March 30 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI) today announced results for the fourth quarter ended December 31, 2008.

Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "We are pleased to report a 46% increase in revenue to $23.5 million for the fourth quarter of 2008, compared to $16.1 million for the fourth quarter of 2007. At the same time, we continue to generate strong cash flow and enhance our balance sheet. During the fourth quarter alone, we generated EBITDA of $2.2 million and net income of $725,000. Overall, we believe we have positioned our company for continued revenue growth and improved profitability in 2009."

Dr. Centofanti continued, "The milestones we achieved in 2008 represent some of the most significant in the Company's history and we are pleased to report on these developments and the impact to our Company. Foremost among these was commencement of the subcontract awarded to us by CH Plateau Remediation Company (CHPRC) to clean up the Department of Energy's (DOE) Hanford nuclear waste site in Washington State. We were awarded this subcontract in the second quarter of 2008 with work on the project officially beginning on October 1, 2008. As a result, we generated approximately $7 million of revenue from the contract during the fourth quarter. The commencement of work at the Hanford Site was an important step toward expanding our core competencies and adding new revenue streams."

"We achieved another major milestone in November of 2008 with the receipt of a permit from the Environmental Protection Agency (EPA) to commercially store and dispose of radioactive Polychlorinated Biphenyls (PCBs) at the Company's Diversified Scientific Services, Inc. (DSSI) facility. We had been pursuing this permit over the last four years and as a result of our hard work, with both State and Federal regulators, we now have final EPA approval to offer this service throughout the DOE complex. Through the issuance of this authorization, our DSSI facility is now able to accept a wider range of TSCA regulated wastes, allowing the DOE to adhere to its current closure plan for the TSCA incinerator in fiscal 2009 in favor of our newly permitted alternative."

"Last year was a transitional year for Perma-Fix as we took action to revamp the Company to focus on nuclear services. In line with this strategic initiative, during the first half of 2008 we sold three of our Industrial Segment operations. We subsequently made the decision to retain our three remaining operating facilities within the Segment. We believe these three remaining operations are self sufficient, which will allow senior management the freedom to focus on growing our nuclear operations, while benefitting from the cash flow and growth prospects of these facilities. We anticipate this restructuring of our Industrial Segment will favorably impact our earnings in 2009."

Dr. Centofanti concluded, "We have been very proactive in accelerating Perma-Fix's growth and are achieving this through new contract wins, building alliances, expanding our capabilities, obtaining coveted permits and refocusing the Company. We are also optimistic that Perma-Fix will be a beneficiary of the stimulus plan that was approved in February 2009, which has over $6 billion designated for nuclear waste clean-up throughout the DOE complex. In addition, the DOE fiscal 2009 annual budget has been increased to $6.4 billion, from $5.2 billion in fiscal 2008. Time will tell what the full impact might be for Perma-Fix, but one thing is certain--the new administration's commitment to cleaning up the nation's legacy nuclear waste. We believe that our goal of making America a cleaner and safer place for generations to come by eliminating nuclear and other forms of waste contamination is one of the most rewarding endeavors and will benefit the overall population as well as our shareholders."

Financial Results

Revenue for the fourth quarter of 2008 was $23.5 million, versus $16.1 million for the same period last year. The increase in revenue was due primarily to work that commenced on October 1st in relation to the CH Plateau Remediation Contract to clean up the DOE's Hanford nuclear waste site. Revenue for the Nuclear Segment increased to $19.8 million versus $13.1 million for the same period last year. Revenue for the Industrial Segment increased to $3.0 million versus $2.3 million for the same period last year due primarily to oil sale revenue which is reflective of the high global oil costs throughout most of 2008. Revenue from the Engineering Segment remained relatively flat at $658,000 versus $661,000 for the same period last year. Operating income for the fourth quarter was $1.2 million versus an operating loss of $2.4 million for the same period the previous year. Net income applicable to common stockholders for the fourth quarter of 2008 was $725,000, or $0.01 per share, versus a net loss of $7.4 million or $0.14 per share, for the same period last year. Net income applicable to common stockholders in the fourth quarter of 2008 included a loss from discontinued operations, net of taxes, of $115,000 compared to a loss of $4.7 million from discontinued operations for the comparable period in the fourth quarter of 2007.

The Company had EBITDA of $2.2 million for continuing operations during the quarter ended December 31, 2008, as compared to EBITDA of approximately $540,000 for the same period of 2007. 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. Due to the unique transactions that have resulted from bringing certain facilities within our Industrial Segment back into Continuing Operations, such as asset Impairment expense (recovery) and the "catch-up" of depreciation, the Company recognizes that the EBITDA is an "adjusted EBITDA" and understands these differences when measuring performance. The table below reconciles EBITDA, a non-GAAP measure, to net income for the three and twelve months ended December 31, 2008 and 2007.



                                   Quarter Ended        Twelve Months Ended
                                    December 31,            December 31,
    (In thousands)              2008           2007      2008        2007
    Net (loss) income from
     continuing operations      $826        $(2,729)     $920     $(2,380)


    Adjustments:
     Depreciation &
      amortization             1,049          1,121     4,866       4,092
     Asset impairment expense
      (recovery)                   -          1,836      (507)      1,836
     Interest income             (56)           (75)     (226)       (312)
     Interest expense            399            358     1,317       1,321
     Interest expense -
      financing fees              14             52       137         196
     Income tax expense
      (benefit)                    8            (23)       10           -

    EBITDA                    $2,240           $540    $6,517      $4,753




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

                           Quarter Ended                 Quarter Ended
                         December 31, 2008             December 31, 2007
    (In
     thousands) Nuclear Engineering Industrial  Nuclear Engineering Industrial
    Net
     revenues   $19,849     $658       $3,036  $13,144     $661      $2,287
    Gross profit  4,331      142        1,296    3,399      197         516
    Segment profit
     (loss)       1,387      (15)       1,195      739       83      (2,036)


                      Twelve Months Ended           Twelve Months Ended
                       December 31, 2008             December 31, 2007
    (In
     thousands) Nuclear Engineering Industrial  Nuclear Engineering Industrial
    Net
     revenues   $61,359   $3,194      $10,951  $51,704   $2,398     $10,442
    Gross profit 15,610    1,072        3,512   16,505      760       1,735
    Segment profit
     (loss)       4,908      418        1,803    6,599      245      (3,132)


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 include, but are not limited to: that we believe that we have positioned our company for continued growth and improved profitability in 2009; that we expect to generate revenue of approximately $200 million to $250 million under the subcontract in Hanford, Washington from on-site and off-site services over the next five years, with the opportunity to extend the subcontract for an additional five years; that we are now able to accept a wider range of TSCA regulated wastes, allowing the DOE to adhere to its current closure plan for the TSCA incinerator in fiscal 2009 in favor of our newly permitted alternative; that we look to broaden our involvement in the treatment of higher activity wastes at our M&EC SouthBay facility and others, which will generate another revenue stream for Perma-Fix; that our three remaining operating facilities within the Industrial Segment are self sufficient which will allow senior management the freedom to focus on growing our nuclear operations, while benefitting from the cash flow and growth prospects of these facilities; that the restructuring of our Industrial Segment will favorably impact our earnings in 2009; ; and that we will be a beneficiary of the stimulus plan that was approved in February 2009. 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 funding for the new remediation projects; receipt of a final permit from the EPA relative to treatment of radioactive PCBs; community reaction to our permit application to treat PCB radioactive waste; and the additional factors referred to under "Special Note Regarding Forward-Looking Statements" of our 2008 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.

    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
                  FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2008

                                  Three Months Ended   Twelve Months Ended
                                     December 31,         December 31,
    (Amounts in Thousands,
     Except for Per Share
     Amounts)                     2008         2007     2008       2007

    Net revenues               $23,543      $16,092  $75,504    $64,544
    Cost of goods sold          17,774       11,980   55,310     45,544
     Gross profit                5,769        4,112   20,194     19,000

    Selling, general and
     administrative expenses     5,013        4,589   18,832     18,082
    Asset impairment expense
     (recovery)                      -        1,836     (507)     1,836
    (Gain) loss on disposal of
     property and equipment       (435)          73     (295)       172
     Income (loss) from
      operations                 1,191       (2,386)   2,164     (1,090)

    Other income (expense):
    Interest income                 56           75      226        312
    Interest expense              (399)        (358)  (1,317)    (1,321)
    Interest expense-financing
     fees                          (14)         (52)    (137)      (196)
    Other                            -          (31)      (6)       (85)
    Income (loss) from
     continuing operations
     before taxes                  834       (2,752)     930     (2,380)
    Income tax expense
     (benefit)                       8          (23)      10          -
    Income (loss) from
     continuing operations         826       (2,729)     920     (2,380)

    Loss from discontinued
     operations, net of taxes     (115)      (4,666)  (1,332)    (6,830)
    Gain on disposal of
     discontinued operations,
     net of taxes                   14            -    2,323          -
     Net income (loss)
      applicable to Common
      Stockholders                $725      $(7,395)  $1,911    $(9,210)

    Net income (loss) per
     common share - basic
    Continuing operations         $.01        $(.05)    $.02      $(.05)
    Discontinued operations          -         (.09)    (.02)      (.13)
    Disposal of discontinued
     operations                      -            -      .04          -
     Net income (loss) per
      common share                $.01        $(.14)    $.04      $(.18)

    Net income (loss) per
     common share - diluted
    Continuing operations         $.01        $(.05)    $.02      $(.05)
    Discontinued operations          -         (.09)    (.02)      (.13)
    Disposal of discontinued
     operations                      -            -      .04          -
     Net income (loss) per
      common share                $.01        $(.14)    $.04      $(.18)

    Number of common shares
     used in computing net income
     (loss) per share:
    Basic                       53,934       53,143   53,803     52,549
    Diluted                     53,934       53,143   54,003     52,549



                          PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                                CONSOLIDATED BALANCE SHEET
                                   AS OF DECEMBER 31,


    (Amounts in Thousands, Except for Share Amounts)       2008       2007

    ASSETS
    Current assets:
      Cash & equivalents                                   $184       $173
      Account receivable, net of allowance for doubtful
       accounts of $333 and $203                         13,416     14,961
      Unbilled receivables                               13,104     10,433
      Other current assets                                2,909      3,538
      Assets of discontinued operations included in
       current assets, net of allowance for
       doubtful accounts of $0 and $204                     110      3,505
        Total current assets                             29,723     32,610

    Net property and equipment                           47,434     49,794
    Net Property held for sale                                -        349
    Property and equipment of discontinued
     operations, net of accumulated
     depreciation of $13 and $9,292                         651      3,942
    Intangibles and other assets                         45,904     38,174
    Intangible and other assets of discontinued
     operations                                               -      1,179
        Total assets                                   $123,712   $126,048

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities                                  32,398     43,544
    Current liabilities related to discontinued
     operations                                           1,211      6,220
        Total current liabilities                        33,609     49,764

    Long-term liabilities                                25,399     13,454
    Long-term liabilities related to discontinued
     operations                                           1,783      2,817
        Total liabilities                                60,791     66,035
    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, 53,934,560 and 53,704,516 shares
       issued and outstanding, respectively                  54         54
      Additional paid-in capital                         97,381     96,409
      Stock subscription receivable                           -        (25)
      Accumulated deficit                               (35,799)   (37,710)
      Total stockholders' equity                         61,636     58,728
      Total liabilities and stockholders' equity       $123,712   $126,048







SOURCE Perma-Fix Environmental Services, Inc. CONTACT: Dr. Louis F. Centofanti, Chairman and CEO, Perma-Fix
Environmental Services, Inc.
, +1-770-587-5155, or David K. Waldman-US Investor
Relations, Crescendo Communications, LLC, +1-212-671-1021, or Herbert
Strauss-European Investor Relations, +43 316 296 316, herbert@eu-ir.com/
/Web Site: http://www.perma-fix.com / (PESI)