Perma-Fix Reports Record Revenues and Record YTD Profitability
* Record Revenues for the Quarter and YTD 2005
* Nuclear Segment Revenues Increase 62.3%
ATLANTA, Aug. 2 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI) (BSE: PESI) (Germany: PES.BE) today announced that its revenue for the second quarter ended June 30, 2005, increased 32.6% to a record $25.4 million compared to $19.1 million for the second quarter of 2004. Revenue for the Nuclear Segment increased 62.3% to $13.8 million, primarily as a result of increased shipments within the mixed waste market, including new government and commercial contracts. Revenue for the Industrial Segment increased 10.8% to $10.9 million for the quarter.
Income from continuing operations for the second quarter of 2005 was $1.4 million, compared to income from continuing operations of $589,000 in the second quarter of 2004. Net income applicable to common stock for the quarter was $1.2 million, or $0.03 per share, compared to net income applicable to common stock of $70,000, or $0.00 per share, for the same period in 2004. Net income for the second quarter of 2005 included $122,000 of expenses related to discontinued operations at the Detroit facility, which was closed in the third quarter of 2004.
The table below presents certain financial information for the business segments, excluding allocation of corporate expenses.
Quarter Ended Quarter Ended
June 30, 2005 June 30, 2004
(In Industrial Nuclear Engineering Industrial Nuclear Engineering
thousands)
Net revenues $10,853 13,807 $699 $9,791 $8,509 $828
Gross profit 959 6,242 142 2,274 3,160 269
Segment profit
(loss) (1,003) 4,003 42 298 1,332 125
Revenue for the six months of 2005 increased 30.7% to a record $47.0 million compared to $35.9 million for the six months of 2004. Revenue for the Nuclear Segment increased 37.4% to $24.7 million, also a record for the Segment. Revenue for the Industrial Segment increased 26.8% to $20.8 million for the six months.
Income from continuing operations for the six months reached a record $1.5 million, compared to a loss from continuing operations of $856,000 in 2004. Net income applicable to common stock for the six months was $1.1 million, or $0.03 per share, compared to net loss applicable to common stock of $2.0 million or $0.05 per share, for the same period in 2004. Net income for the 2005 period included $289,000 of expenses related to discontinued operations at the Detroit facility, which was closed in the third quarter of 2004.
The table below presents certain financial information for the business segments, excluding allocation of corporate expenses.
Six Months Ended Six Months Ended
June 30, 2005 June 30, 2004
(In Industrial Nuclear Engineering Industrial Nuclear Engineering
thousands)
Net revenues $20,802 $24,703 $1,462 $16,399 $17,984 $1,556
Gross profit 2,759 9,787 298 2,594 6,523 436
Segment
profit
(loss) (1,248) 5,650 73 (1,228) 2,599 193
Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, commented, "Our record-setting results in the second quarter and first half are attributable to our Nuclear Segment. Within Nuclear, we saw increases in the shipments of mixed waste, a very favorable product mix, and the improvements in treatment processes and operational efficiencies. Overall, Nuclear has continued its steady growth with a great second quarter."
Dr. Centofanti continued, "Performance in the Industrial Segment did not meet expectations. Despite encouraging and substantial increases in revenue, the Segment's gross profit and net income results were well below established goals. Efforts to evaluate and increase division performance are ongoing."
Perma-Fix Environmental Services, Inc. is a national environmental services company, providing unique mixed waste and industrial waste management services. The Nuclear Segment provides radioactive and mixed waste treatment services to hospitals, research laboratories and institutions, numerous federal agencies including the Departments of Energy and Defense and nuclear utilities. The Industrial Segment provides hazardous and non-hazardous waste treatment services for a diverse group of customers including Fortune 500 companies, numerous federal, state and local agencies and thousands of smaller clients. The Company operates eleven major waste treatment facilities across the country.
Please visit us on the World Wide Web at http://www.perma-fix.com .
Contacts:
Dr. Louis F. Centofanti Valerie Kimball or J. Todd Atenhan
Chairman and CEO EPOCH Financial Group, Inc.
Perma-Fix Environmental Services, Inc. vkimball@epochfinancial.com
404) 847-9990 888-917-5109
Herbert Strauss-
European investor relations
herbert@eu-ir.com
+43 316 296 316
FINANCIAL TABLES FOLLOW
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
(Amounts in Thousands, June 30, June 30,
Except for Per
Share Amounts) 2005 2004 2005 2004
Net revenues $25,359 $19,128 $46,967 $35,939
Cost of goods sold 18,016 13,425 34,123 26,386
Gross profit 7,343 5,703 12,844 9,553
Selling, general and
administrative expenses 5,741 4,320 10,660 8,658
Gain on disposal of
fixed assets (337) (1) (337) (18)
Income from operations 1,939 1,384 2,521 913
Other income (expense):
Interest income 1 1 2 2
Interest expense (381) (575) (793) (1,240)
Interest
expense-financing fees (110) (257) (221) (513)
Other (45) 36 (59) (18)
Income (loss) from
continuing operations 1,404 589 1,450 (856)
Loss from discontinued
operations (122) (472) (289) (1,025)
Net income (loss) 1,282 117 1,161 (1,881)
Preferred Stock dividends 47 47 94 94
Net income (loss)
applicable to Common
Stock $1,235 $70 $1,067 $(1,975)
Net income (loss) per
common share - basic
Continuing operations $.03 $.01 $.03 $(.02)
Discontinued operations -- (.01) -- (.03)
Net income (loss) per
common share $.03 $-- $.03 $(.05)
Net income (loss) per
common share - diluted
Continuing operations $.03 $.01 $.03 $(.02)
Discontinued operations -- (.01) -- (.03)
Net income (loss) per
common share $.03 $-- .03 $(.05)
Number of shares and
potential common shares
used in net income
(loss) per common
share:
Basic 41,805 41,448 41,792 39,244
Diluted 44,475 45,210 44,506 39,244
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30,
(Amounts in Thousands, 2005 December 31,
Except for Share Amounts) (Unaudited) 2004
ASSETS
Current assets
Cash $100 $215
Restricted cash 60 60
Accounts receivable, net of
allowance for doubtful
accounts of $517 and $570 26,678 27,192
Prepaid expenses and other 2,786 3,818
Current assets of discontinued
operations, net of allowance
for doubtful accounts of
$93 and $125 194 1,609
Total current assets 29,818 32,894
Net property and equipment 46,063 47,261
Property and equipment of
discontinued operations 603 600
Permits 13,045 12,895
Goodwill 1,330 1,330
Finite Risk Sinking Fund 3,216 2,225
Other assets 2,875 3,250
Total assets $96,950 $100,455
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $6,788 $6,529
Accrued expenses and other 15,692 17,936
Current liabilities of
discontinued operations 2,235 2,550
Current portion of
long-term debt 2,868 6,376
Total current liabilities 27,583 33,391
Other long-term liabilities 9,410 9,147
Long-term liabilities of
discontinued operations 1,600 1,804
Long-term debt, less
current portion 13,664 12,580
Total long-term liabilities 24,674 23,531
Total liabilities 52,257 56,922
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, 2,500 shares
issued and outstanding -- --
Common Stock, $.001 par value;
75,000,000 shares authorized,
42,793,267 and 42,749,117 shares
issued, including 988,000 shares
held as treasury stock,
respectively 43 43
Additional paid-in capital 80,968 80,902
Accumulated deficit (35,727) (36,794)
Interest rate swap (14) (41)
45,270 44,110
Less: Common Stock in treasury
at cost; 988,000 shares (1,862) (1,862)
Total stockholders' equity 43,408 42,248
Total liabilities and
stockholders' equity $96,950 $100,455
SOURCE Perma-Fix Environmental Services, Inc.
-0- 08/02/2005
/CONTACT: Louis F. Centofanti, Chairman and CEO, Perma-Fix Environmental
Services, Inc., +1-404-847-9990; or Valerie Kimball,
vkimball@epochfinancial.com, or J. Todd Atenhan, both of EPOCH Financial
Group, Inc., +1-888-917-5109; or Herbert Strauss-European investor relations,
+011-43-316-296-316, or herbert@eu-ir.com/
/Web site: http://www.perma-fix.com /
(PESI)
CO: Perma-Fix Environmental Services, Inc.
ST: Georgia
IN: ENV
SU: ERN
DS
-- FLTU012 --
3320 08/02/2005 08:05 EDT http://www.prnewswire.com
Released August 2, 2005