Perma-Fix Reports 66% Increase in Revenue, $4.4 Million of EBITDA, and $2.6 Million of Net Income for the Third Quarter of 2009

ATLANTA, Nov. 6 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services, Inc. (Nasdaq: PESI) today announced results for the third quarter ended September 30, 2009.

Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "Revenue for the third quarter of 2009 grew approximately 66% compared to the same period last year, due to several factors, including a sharp increase in nuclear waste receipts during the quarter and our new Hanford subcontract. The improved waste receipts not only contributed to revenue, but also had a favorable impact on our backlog. As a result of this growth, we generated EBITDA of $4.4 million in the third quarter of 2009, up from $1.0 million in the third quarter of last year. We also achieved net income of $2.6 million versus a loss of $341,000 for the same period last year."

Dr. Centofanti, continued, "Besides the growth in our base nuclear waste treatment business, we have had several successes over the last year that are now contributing to revenue and earnings. These include our Hanford subcontract, the new PCB destruction permit and our movement into treating more complex nuclear waste streams. Within our Industrial Segment, we continued to experience some weakness as industrial customers deferred waste treatment projects and as significantly lower oil prices versus last year negatively impacted our waste oil recovery business. Nevertheless, we continue to operate the industrial business profitably, and believe there are a number of growth opportunities ahead."

Financial Results

Revenue for the third quarter of 2009 was $26.5 million, versus $16.0 million for the same period last year. The increase in revenue was due to work that commenced on October 1, 2008, from the CH Plateau Remediation Company subcontract to clean up the DOE's Hanford nuclear waste site, as well as an increase in nuclear waste receipts during the quarter. Revenue for the Nuclear Segment increased to $23.5 million from $12.5 million for the same period last year. Revenue for the Industrial Segment decreased to $2.1 million versus $2.6 million for the same period last year due primarily to reduced waste oil sales. Revenue from the Engineering Segment increased to $888,000 versus $846,000 for the same period last year. Operating income for the third quarter was $3.2 million versus a loss of $34,000 for the same period the previous year. Net income for the third quarter of 2009 was $2.6 million, or $0.05 per share, versus a loss of $341,000 or $0.01 per share, for the same period last year. Net income in the third quarter of 2009 included a reduction of approximately $787,000 in disposal/transportation costs in our cost of goods sold resulting from a change in estimate related to accrued costs to dispose of legacy waste that were assumed as part of our acquisition of our Perma-Fix Northwest Richland (PFNWR) facility in June 2007. This change in estimate was necessary due to our accumulation of new information that has resulted in our identifying more efficient and cost effective ways to dispose of this waste.

The Company had EBITDA of $4.4 million from continuing operations during the quarter ended September 30, 2009, as compared to EBITDA of approximately $1.0 million for the same period of 2008. 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 nine months ended September 30, 2009 and 2008.

                                        Quarter Ended       Nine Months Ended
                                        September 30,          September 30,
                                        -------------       ------------------
    (In thousands)                      2009     2008         2009     2008
    -------------                       ----     ----         ----     ----
    Net Income (loss)                 $2,629    $(276)      $3,861      $96


    Adjustments:
     Depreciation & Amortization       1,188    1,579        3,569    3,817
     Asset Impairment Recovery             ?     (507)           ?     (507)
     Interest Income                     (29)     (52)        (121)    (170)
     Interest Expense                    331      294        1,346    1,031
     Interest Expense - Financing Fees   104       14          180      124
     Income Tax expense (benefit)        165      (14)         265        3
                                         ---      ---          ---      ---

    EBITDA                            $4,388   $1,038       $9,100   $4,394
                                      ======   ======       ======   ======


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


                           Quarter Ended                 Quarter Ended
                        September 30, 2009            September 30, 2008
                        ------------------            ------------------
    (In thousands)   Nuclear  Engi-  Industrial    Nuclear  Engi-  Industrial
                             neering                       neering
                     ------- ------- ----------    ------- ------- ----------
    Net revenues     $23,518    $888     $2,128    $12,519    $846     $2,624
    Gross profit       6,689     258        741      3,168     347        590
    Segment profit     4,220      74        266        782     170        309

                         Nine Months Ended             Nine Months Ended
                        September 30, 2009            September 30, 2008
                        ------------------            ------------------
    (In thousands)   Nuclear  Engi-  Industrial    Nuclear  Engi-  Industrial
                             neering                       neering
                     ------- ------- ----------    ------- ------- ----------
    Net revenues     $63,364  $2,670     $6,200    $41,510  $2,537     $7,914
    Gross profit      16,281     797      1,723     11,279     931      2,215
    Segment profit     8,682     319        180      3,521     433        609

Conference Call

Perma-Fix will host a conference call at 11:00 a.m. ET on Friday, November 6, 2009. The call will be available on the Company's website at www.perma-fix.com, or by calling (877) 407-8033 for U.S. callers, or (201) 689-8033 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 November 13, 2009, and can be accessed by calling: (877) 660-6853 (U.S. callers) or (201) 612-7415 (international callers) and entering Account #286 and conference ID: 336508.

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 "forwardlooking 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. All statements, other than statements of historical facts, are forward-looking statements. Statements that include words "expect", "intend", "plan", "believe", "project", "anticipate", "estimate", and similar statements of a future or forward-looking nature are forward-looking statement. Forwardlooking statements include, but are not limited to: we believe there are a number of growth opportunities ahead in our Industrial sector. These forwardlooking 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 continuing funding for the Department of Defense's and Department of Energy's remediation projects; and the additional factors referred to under "Special Note Regarding Forward-Looking Statements" of our 2008 Form 10-K and Form 10-Q for the quarters ending March 31, 2009 and June 30, 2009, and September 30, 2009. The Company makes no commitment to disclose any revisions to forwardlooking statements, or any facts, events or circumstances after the date hereof that bear upon forwardlooking statements.

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

                       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)              2009       2008      2009       2008
    -----------------------------        ----       ----      ----       ----

    Net revenues                      $26,534    $15,989   $72,234    $51,961
    Cost of goods sold                 18,846     11,884    53,433     37,536
                                       ------     ------    ------     ------
     Gross profit                       7,688      4,105    18,801     14,425

    Selling, general and
     administrative expenses            4,486      4,648    13,290     13,704
    Asset impairment recovery               -       (507)        -       (507)
    (Gain) loss on disposal of
     property and equipment                (3)        (2)      (15)       139
                                       ------     ------    ------     ------
     Income (loss) from operations      3,205        (34)    5,526      1,089

    Other income (expense):
    Interest income                        29         52       121        170
    Interest expense                     (331)      (294)   (1,346)    (1,031)
    Interest expense-financing fees      (104)       (14)     (180)      (124)
    Other                                  (5)         -         5         (5)
                                       ------     ------    ------     ------
    Income (loss) from continuing
     operations before taxes            2,794       (290)    4,126         99
    Income tax expense (benefit)          165        (14)      265          3
                                       ------     ------    ------     ------
    Income (loss) from continuing
     operations                         2,629       (276)    3,861         96

    (Loss) income from discontinued
     operations, net of taxes              (7)      (159)       60     (1,218)
    Gain on disposal of discontinued
     operations, net of taxes               -         94         -      2,309
                                       ------     ------    ------     ------
     Net income (loss) applicable
     to Common Stockholders            $2,622      $(341)   $3,921     $1,187
                                       ======     ======    ======     ======

    Net income (loss) per common
     share - basic
    Continuing operations                $.05      $(.01)     $.07       $  -
    Discontinued operations                 -          -         -       (.02)
    Disposal of discontinued operations     -          -         -        .04
                                        -----      -----     -----      -----
     Net income (loss) per common share  $.05      $(.01)     $.07       $.02
                                       ======     ======    ======     ======

    Net income (loss) per common
     share - diluted
    Continuing operations                $.05      $(.01)     $.07       $  -
    Discontinued operations                 -          -         -       (.02)
    Disposal of discontinued operations     -          -         -        .04
                                        -----      -----     -----      -----
     Net income (loss) per common share  $.05      $(.01)     $.07       $.02
                                       ======     ======    ======     ======

    Number of common shares used in
     computing net income (loss) per
      share:
    Basic                              54,281     53,844    54,130     53,760
    Diluted                            54,954     53,844    54,412     54,149



                PERMA-FIX ENVIRONMENTAL SERVICES, INC.
                     CONSOLIDATED BALANCE SHEET


                                                    September 30,
                                                        2009      December 31,
    (Amounts in Thousands, Except for Share Amounts) (Unaudited)     2008
    ----------------------------------------------- ------------- ------------

    ASSETS
    Current assets:
     Cash & equivalents                                     $128         $184
     Account receivable, net of allowance for doubtful
     accounts of $218 and $333                            18,275       13,416
     Unbilled receivables                                  9,746       13,104
     Other current assets                                  3,650        2,909
     Assets of discontinued operations included in
      current assets, net of allowance for doubtful
       accounts of $0 and $0                                  74          110
                                                          ------       ------
        Total current assets                              31,873       29,723

    Net property and equipment                            47,029       47,434
    Property and equipment of discontinued operations,
     net of accumulated depreciation of $13 and $13          651          651
    Intangibles and other assets                          50,122       45,904
                                                          ------       ------
        Total assets                                    $129,675     $123,712
                                                        ========     ========

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities                                   27,991       32,398
    Current liabilities related to discontinued
     operations                                            1,188        1,211
                                                          ------       ------
        Total current liabilities                         29,179       33,609

    Long-term liabilities                                 30,888       25,399
    Long-term liabilities related to discontinued
     operations                                            1,040        1,783
                                                          ------       ------
        Total liabilities                                 61,107       60,791
    Commitments and Contingencies
    Preferred Stock of subsidiary, $1.00 par
     value; 1,467,396                                      1,285        1,285
     shares authorized, 1,284,730 shares issued and
      outstanding, liquidation value $1.00 per share
    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, 54,502,037 and 53,934,560 shares
       issued and outstanding, respectively                   54           54
     Additional paid-in capital                           99,107       97,381
     Accumulated deficit                                 (31,878)     (35,799)
                                                         -------      -------
      Total stockholders' equity                          67,283       61,636
                                                          ------       ------
        Total liabilities and stockholders' equity      $129,675     $123,712
                                                        ========     ========