Perma-Fix Reports Financial Results and Provides Business Update for the First Quarter of 2024

ATLANTA, May 09, 2024 (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, 2024.

Mark Duff, President and CEO of the Company, commented, “As previously disclosed, our financial performance in the first quarter of 2024 was impacted by a few temporary headwinds. However, we have seen steady improvement heading into the second quarter and anticipate a strong second half of 2024. The weakness we experienced was due in part to delayed project starts and waste shipments, as well as challenging weather conditions during the first quarter of 2024. However, we used this period for equipment replacement and repairs, program enhancements, and testing to support permit expansion and broader market penetration. Additionally, we accelerated investments in research and development on our new technology to treat PFAS (Per- and Polyfluorinated Substances) contamination, which resulted in the completion of pilot plant testing with PFAS destruction levels exceeding anticipated regulatory requirements. We are now in the process of final designs and fabrication for the first operational unit and plan to begin accepting commercial waste for destruction before the end of the year.”

“We believe we are in a good position based on new strategic wins, growing project opportunities, and increased bidding activities. Importantly, we are pursuing several large procurements within the U.S. government, as well as commercial and international waste opportunities. Moreover, we have made further progress in our strategy to provide critical services to the U.S. Department of Energy’s (DOE) Hanford tank remediation mission, including the treatment of effluent from the DFLAW (Direct-Feed Low-Activity Waste) facility once it commences vitrification operations, which is expected in 2025.”

"Lastly, I would like to commend the DOE, U.S. Environmental Protection Agency (EPA), and the Washington State Department of Ecology on their recent landmark agreement, widely referred to as the “Settlement Agreement,” for treating a significant portion of the Hanford site tank waste through grouting, as a supplement to vitrification. Under the agreement, DOE has committed to grout waste it empties from 22 of the tanks on the west side of the site by 2040. We believe that our Perma-Fix Northwest facility in Richland, Washington, adjacent to the Hanford site, is ideally suited to treat a large portion of this waste given its proximity, permits and our proven track record. Moreover, we believe we can provide a highly cost-effective solution for these wastes that could potentially save taxpayers billions of dollars. At the same time, per the Settlement Agreement, DOE has reaffirmed its timeline to complete “hot commissioning” and commence vitrification at the DFLAW facility by August 1, 2025, and we look forward to the opportunity to treat the effluent resulting from this process. Overall, we look forward to working closely with DOE to advance its mission of remediating this and other critical sites around the country,” concluded Duff.

Financial Results

Revenue was $13.6 million for the first quarter of 2024 as compared to $20.1 million for the corresponding period of 2023. Services Segment revenue decreased by approximately $5.6 million to $4.9 million for the first quarter of 2024 as compared to $10.5 million for the corresponding period of 2023. The decrease in revenue in the Services Segment was due in part to the completion of two large projects which were not replaced by new project starts due to delays in mobilization activities until late April 2024 resulting from Continuing Resolution impacts. The Continuing Resolution impacts from the inability of Congress to pass the federal budget until late March 2024 contributed to delays in procurements, project starts and waste shipments by certain government clients due to uncertain budget projections. Treatment Segment revenue decreased by approximately $900,000 to $8.7 million for the first quarter of 2024 as compared to approximately $9.6 million for the corresponding period of 2023. The decrease in revenue in the Treatment Segment was primarily due to overall lower waste volume and lower averaged price from waste mix. The overall lower waste volume was attributed to Continuing Resolution impact as discussed above in addition to poor weather conditions which resulted in waste shipment delays from certain customers. Additionally, our Treatment Segment waste volume was negatively impacted by delays in waste treatment production and waste receipts due to temporary outages at certain of our facilities resulting from equipment replacements and repairs, program enhancements and testing to support permit expansion and broader market penetration.

Gross loss for the first quarter of 2024 was $620,000 versus gross profit of $3.0 million for the first quarter of 2023 primarily due to decreased revenue generated from both segments as discussed above.

Operating loss for the first quarter of 2024 was $4.5 million versus operating loss of $576,000 for the corresponding period of 2023. Net loss for the first quarter of 2024 was $3.6 million versus net loss of $411,000 for the corresponding period of 2023. Net loss per share (both basic and diluted) for the first quarter of 2024 was $0.26 per share versus net loss per share (both basic and diluted) of $0.03 for the same period in 2023.

The Company reported EBITDA of ($4.0) million from continuing operations at March 31, 2024, as compared to EBITDA of $171,000 from continuing operations for the corresponding period of 2023. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is not a measure 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 is relevant and useful by enhancing the readers’ ability to understand the Company’s operating performance. The Company’s management utilizes EBITDA as a mean to measure performance. The Company’s measurement of EBITDA may not be comparable to similar titled measures reported by other companies. The table below reconciles EBITDA, a non-GAAP measure, to GAAP numbers for loss from continuing operations for the three months ended March 31, 2024, and 2023.

    Quarter Ended
    March 31,
    (Unaudited) (Unaudited)
(In thousands)     2024       2023  
Loss from continuing operations   $ (3,458 )   $ (318 )
Depreciation & amortization     431       747  
Interest income     (174 )     (127 )
Interest expense     116       53  
Interest expense - financing fees     13       20  
Income tax benefit     (956 )     (204 )
EBITDA   $ (4,028 )   $ 171  

The tables below present certain unaudited financial information for the business segments, which excludes allocation of corporate expenses.

    Quarter Ended   Quarter Ended  
    March 31, 2024   March 31, 2023  
    (Unaudited)   (Unaudited)  
(In thousands)   Treatment   Services     Treatment   Services    
Revenues   $ 8,709     $ 4,908       $ 9,594   $ 10,513    
Gross (loss) profit     (52 )     (568 )       1,252     1,757    
Segment (loss) profit     (846 )     (957 )       331     973    

Conference Call

Perma-Fix will host a conference call at 11:00 a.m. EDT on Thursday, May 9, 2024. The conference call will be available via telephone by dialing toll free 888-506-0062 for U.S. callers, or +1 973-528-0011 for international callers and by entering access code: 429091. 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 16, 2024, and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code: 50534.

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 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: accepting commercial waste for destruction before the end of the year; well positioned; treatment of effluent from DFLAW facility; and cost-effective solution for Hanford site tank waste; . 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; and the additional factors referred to under “Risk Factors” and "Special Note Regarding Forward-Looking Statements" of our 2023 Form 10-K and Form 10-Q for quarter ended March 31, 2024. 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)   2024       2023  
Revenues $ 13,617     $ 20,107  
Cost of goods sold   14,237       17,098  
Gross (loss) profit   (620 )     3,009  
Selling, general and administrative expenses   3,544       3,486  
Research and development   296       99  
Loss from operations   (4,460 )     (576 )
Other income (expense):          
Interest income   174       127  
Interest expense   (116 )     (53 )
Interest expense-financing fees   (13 )     (20 )
Other   1      
Loss from continuing operations before taxes   (4,414 )     (522 )
Income tax benefit   (956 )     (204 )
Loss from continuing operations, net of taxes   (3,458 )     (318 )
Loss from discontinued operations (net of taxes)   (102 )     (93 )
Net loss $ (3,560 )   $ (411 )
Net loss per common share - basic and diluted:          
Continuing operations $ (.25 )   $ (.02 )
Discontinued operations   (.01 )     (.01 )
Net loss per common share $ (.26 )   $ (.03 )
Number of common shares used in computing net loss per share:        
Basic   13,676       13,358  
Diluted   13,676       13,358  



    March 31,   December 31,
      2024       2023  
(Amounts in Thousands, Except for Share and Per Share Amounts)   (Unaudited)    
Current assets:        
Cash   $ 2,374     $ 7,500  
Account receivable, net of allowance for credit losses of $19 and        
$30, respectively     8,701       9,722  
Unbilled receivables     8,797       8,432  
Other current assets     5,026       4,893  
Assets of discontinued operations included in current assets     13       13  
Total current assets     24,911       30,560  
Net property and equipment     18,890       19,009  
Property and equipment of discontinued operations     81       81  
Operating lease right-of-use assets     1,885       1,990  
Intangibles and other assets     28,272       27,109  
Total assets   $ 74,039     $ 78,749  
Current liabilities   $ 24,418     $ 25,678  
Current liabilities related to discontinued operations     238       269  
Total current liabilities     24,656       25,947  
Long-term liabilities     12,188       12,472  
Long-term liabilities related to discontinued operations     955       953  
Total liabilities     37,799       39,372  
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,        
13,730,580 and 13,654,201 shares issued, respectively;        
13,722,938 and 13,646,559 shares outstanding, respectively     14       14  
Additional paid-in capital     116,981       116,502  
Accumulated deficit     (80,511 )     (76,951 )
Accumulated other comprehensive loss     (156 )     (100 )
Less Common Stock held in treasury, at cost: 7,642 shares     (88 )     (88 )
Total stockholders' equity     36,240       39,377  
Total liabilities and stockholders' equity   $ 74,039     $ 78,749  

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Source: Perma-Fix Environmental Services, Inc