Perma-Fix Reports Financial Results and Provides Business Update for the First Quarter of 2022

ATLANTA, May 05, 2022 (GLOBE NEWSWIRE) -- Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) (the “Company”) today announced financial results and provided a business update for the first quarter ended March 31, 2022.

Mark Duff, President and CEO of the Company, commented, “As previously disclosed, we continued to experience the impacts of the pandemic in the first couple months of the first quarter of 2022, which directly resulted in delays for both service and treatment projects. However, we started to realize improved results in March, which we believe will continue in the second quarter of 2022.  Specifically, we have completed the transition and startup of several service projects that are close to  full operations and contributing to meaningful revenue growth within our Service Segment in the second quarter of 2022.  In turn, we anticipate this trend will be reflected in improved financial performance in the second quarter. Moreover, while the federal government clients have been slow to procure new task orders in 2022, we anticipate a number of these opportunities will be awarded during the second and third quarters. Within our Treatment Segment, we are seeing increased demand for waste treatment capacity within both the government and commercial sectors, which we believe bodes well for the balance of 2022.  Perma-Fix remains well-positioned to resume and exceed the  performance levels attained prior to the pandemic through increased bidding activities, waste treatment capability expansion, and rising federal budgets that directly support our core competencies.”

The Company continues to proactively update its ongoing business operations and safety plans, which we believe will mitigate any potential impact of COVID-19. However, as the situations surrounding COVID-19 remain fluid, the full impact and extent of the pandemic on the Company’s financial results cannot be estimated with any degree of certainty.

Financial Results

Revenue was $15.9 million for the first quarter of 2022 as compared to $23.1 million for the corresponding period of 2021. The decrease in revenue was primarily within our Services Segment where revenue decreased by approximately $7.2 million to $8.4 million for the first quarter of 2022 as compared to $15.6 million for the corresponding period of 2021. Work under certain of the new projects awarded to our Services Segment at the end of the second quarter of 2021 continued to be delayed/curtailed into the first quarter of 2022 due to COVID-19 impact and/or administrative delays experienced by certain customers. However, we have begun to see improvement in activities from certain of these new projects starting in the latter part of the first quarter of 2022. Treatment Segment revenue remained steady at approximately $7.5 million. Although we saw minimal change in revenue within our Treatment Segment, our Treatment Segment revenue has not returned to pre-pandemic levels as certain customers continue to delay waste shipments due, in part, to the impact of COVID-19.

Gross profit for the first quarter of 2022 was $1.6 million versus $2.4 million for the first quarter of 2021 primarily due to overall lower revenue and the impact of our fixed costs primarily at our Treatment Segment plants. Certain of our fixed costs have been impacted by inflation which contributed to lower gross profit.

Operating loss for the first quarter of 2022 was $1.9 million versus operating loss of $999,000 for the corresponding period of 2021. Net loss for the first quarter of 2022 was $1.3 million versus net loss of $1.2 million for the corresponding period of 2021. Net loss for the first quarter of 2022 included a tax benefit of $673,000. Net loss attributable to common stockholders (both basic and diluted) for the first quarter of 2022 was $1.3 million or ($0.10) per share versus net loss attributable to common stockholders (both basic and diluted) of $1.1 million or ($0.09) per share, for the same period in 2021. 

The Company reported Adjusted EBITDA of ($1.4) million from continuing operations at March 31, 2022, as compared to Adjusted EBITDA of ($522,000) from continuing operations during the corresponding period of 2021. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before research and development (“R&D”) costs related to the Medical Isotope project.  As previously disclosed, in December 2021, the Company made the strategic decision to cease all R&D activities under the Medical Segment and sold 100% of its interest in Perma-Fix Medical S.A., which comprised of its Medical Segment. Both EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with Generally Accepted Accounting Principles in the United States of America (“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 and Adjusted EBITDA is relevant and useful by enhancing the readers’ ability to understand the Company’s operating performance. The Company’s management utilizes EBITDA and Adjusted EBITDA as means to measure performance. The Company’s measurements of EBITDA and Adjusted EBITDA may not be comparable to similar titled measures reported by other companies. The table below reconciles EBITDA and Adjusted EBITDA, both non-GAAP measures, to GAAP numbers for loss from continuing operations for the three months ended March 31, 2022 and 2021. 

    Quarter Ended
    March 31,
    (Unaudited) (Unaudited)
(In thousands)     2022     2021  
Loss from continuing operations   $ (1,249 )   $ (1,038 )
Depreciation & amortization     456       400  
Interest income     (11 )     (18 )
Interest expense     35       67  
Interest expense - financing fees     13       8  
Income tax benefit     (673 )     (17 )
EBITDA     (1,429 )     (598 )
Research and development costs related to        
Medical Isotope project           76  
Adjusted EBITDA   $ (1,429 )   $ (522 )

The tables below present certain unaudited financial information for the business segments, which excludes allocation of corporate expenses. As noted above, in December 2021, the Company made the strategic decision to cease all R&D activities under the Medical Segment and sold 100% of its interest in Perma-Fix Medical S.A., which comprised of its Medical Segment.

    Quarter Ended   Quarter Ended
    March 31, 2022   March 31, 2021
    (Unaudited)   (Unaudited)
(In thousands)   Treatment   Services     Treatment   Services     Medical
Revenues   $ 7,479   $ 8,436     $ 7,495     $ 15,638   $  
Gross profit     638     998       925       1,431      
Segment Profit (loss)     78     399       (102 )     555     (76 )

Conference Call

Perma-Fix will host a conference call at 11:00 a.m. ET on Thursday, May 5, 2022. The conference call will be available via telephone by dialing toll free 877-545-0523 for U.S. callers, or +1 973-528-0016  for international callers and by entering access code: 403356.  The conference call will be led by Mark J. Duff, Chief Executive Officer, Dr. Louis F. Centofanti, Executive Vice President of Strategic Initiatives, and Ben Naccarato, Executive Vice President and Chief Financial Officer of Perma-Fix Environmental Services, Inc.

A webcast of the call may be accessed at  or on the Company’s website at 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 Thursday, May 12, 2022, and can be accessed by calling: 877-481-4010 for U.S. callers, or 919-882-2331 for international callers and entering conference ID: 45480.

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 U.S Department of Energy (“DOE”), the U.S 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.

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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”, “plan to”, “estimates”, “projects”, and similar expressions.  Forward‑looking statements include, but are not limited to improve results in the second quarter of 2022; improved revenue growth and financial performance in the second quarter; award of new opportunities during the second and third quarters; balance of 2022; resume and exceed performance levels attained prior to pandemic; and impact of COVID-19. 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 or terminates existing contracts; Congress fails to provides funding for the DOD’s and DOE’s remediation projects; inability to obtain new foreign and domestic remediation contracts; inability to meet financial covenants; and the additional factors referred to under “Risk Factors” and "Special Note Regarding Forward-Looking Statements" of our 2021 Form 10-K and Form 10-Q for quarter ended March 31, 2022. 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.

David K. Waldman-US Investor Relations
Crescendo Communications, LLC
 (212) 671-1021

Herbert Strauss-European Investor Relations
+43 316 296 316



    Three Months Ended
March 31,
(Amounts in Thousands, Except for Per Share Amounts)   2022       2021  
Revenues $ 15,915     $ 23,133  
Cost of goods sold   14,279       20,777  
Gross profit   1,636       2,356  
Selling, general and administrative expenses   3,422       3,205  
Research and development   96       150  
Loss on disposal of property and equipment   1        
Loss from operations   (1,883 )     (999 )
Other income (expense):          
Interest income   11       18  
Interest expense   (35 )     (67 )
Interest expense-financing fees   (13 )     (8 )
Other   (2 )     1  
Loss from continuing operations before taxes   (1,922 )     (1,055 )
Income tax benefit   (673 )     (17 )
Loss from continuing operations, net of taxes   (1,249 )     (1,038 )
Loss from discontinued operations (net of taxes)   (94 )     (115 )
Net loss   (1,343 )     (1,153 )
Net loss attributable to non-controlling interest         (30 )
Net loss attributable to Perma-Fix Environmental Services, Inc.          
common stockholders $ (1,343 )   $ (1,123 )
Net loss per common share attributable to Perma-Fix          
Environmental Services, Inc. stockholders - basic and diluted:          
Continuing operations $ (.09 )   $ (.08 )
Discontinued operations   (.01 )     (.01 )
Net loss per common share $ (.10 )   $ (.09 )
Number of common shares used in computing net loss per share:          
Basic   13,234       12,165  
Diluted   13,234       12,165  

    March 31,   December 31,
      2022       2021  
(Amounts in Thousands, Except for Share and Per Share Amounts)   (Unaudited)   (Audited)
Current assets:        
Cash   $ 3,925     $ 4,440  
Account receivable, net of allowance for doubtful        
accounts of $26 and $85, respectively   10,322       11,372  
Unbilled receivables     5,275       8,995  
Other current assets     5,030       5,152  
Assets of discontinued operations included in current assets     27       15  
Total current assets     24,579       29,974  
Net property and equipment     18,643       18,609  
Property and equipment of discontinued operations     81       81  
Operating lease right-of-use assets     2,347       2,460  
Intangibles and other assets     26,526       26,177  
Total assets   $ 72,176     $ 77,301  
Current liabilities   $ 21,436     $ 25,408  
Current liabilities related to discontinued operations     802       506  
Total current liabilities     22,238       25,914  
Long-term liabilities     10,038       10,126  
Long-term liabilities related to discontinued operations     408       677  
Total liabilities     32,684       36,717  
Commitments and Contingencies        
Stockholders’ equity:        
Preferred Stock, $.001 par value; 2,000,000 shares authorized,        
no shares issued and outstanding            
Common Stock, $.001 par value; 30,000,000 shares authorized,        
13,242,072 and 13,222,552 shares issued, respectively;        
13,234,430 and 13,214,910 shares outstanding, respectively     13       13  
Additional paid-in capital     114,532       114,307  
Accumulated deficit     (74,963 )     (73,620 )
Accumulated other comprehensive loss     (2 )     (28 )
Less Common Stock held in treasury, at cost: 7,642 shares     (88 )     (88 )
Total stockholders' equity     39,492       40,584  
Total liabilities and stockholders' equity   $ 72,176     $ 77,301  





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