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, 2025.
"Our first quarter results reflect the impact of
several transitional headwinds," said Mark Duff, President and
Chief Executive Officer of Perma-Fix Environmental Services.
"Delays in procurement and waste shipments tied to the change in
federal administration limited revenue growth during the quarter;
however, we still delivered a modest increase compared to the
prior-year period, underscoring the resilience of our core
operations. Importantly, we began to see improvement in waste
receipts late in the quarter, contributing to a strengthened
backlog of over $10 million—an increase of approximately 30% from
year-end 2024."
"At the same time, we incurred higher operating
expenses related to facility readiness for new waste streams and
the continued scale-up of our PFAS (Per -and polyfluoroalkyl)
initiatives. These strategic investments impacted profitability in
the near term, yet we delivered significant year-over-year
improvement in gross margins across both the Treatment and Services
segments—driven by higher waste volume, improved project execution,
and ongoing cost optimization efforts," Duff added.
"Our PFAS program continues to build momentum on
multiple fronts. We’ve received our first commercial shipments from
the Federal Government, with additional approvals pending, and
recently completed key upgrades to our Perma-FAS system, including
a chemical recycling enhancement that has reduced operating costs
and increased margins per gallon processed. Our Gen 2.0 system
remains on track for Q4 deployment, and we believe our destruction
technology offers an efficient solution for the market. With new
regulations emerging in multiple states and growing national
legislative momentum, we expect PFAS to be a contributor to our
long-term growth."
"We remain optimistic regarding the progress in
the hot commissioning program for the U.S. Department of Energy’s
Direct Feed Low-Activity Waste (DFLAW) facility to maintain current
schedules for an August 1 commencement, and we are prepared to
support multiple waste streams as it ramps to full-scale
operations. This initiative, part of the broader Hanford tank
remediation mission, represents what we expect to be a key,
long-term revenue catalyst for Perma-Fix. In parallel, we continue
to see growth in international demand."
"With growing backlog, improved operational
discipline, and increasing project visibility across federal,
commercial, and international markets, we believe Perma-Fix is well
positioned to deliver stronger financial performance in the second
half of 2025."
Financial Results
Revenue was $13.9 million for the first quarter
of 2025, as compared to $13.6 million for the corresponding period
of 2024. The increase was entirely within the Treatment Segment
where revenue increased by $477,000 to approximately $9.2 million
for the first quarter of 2025, from $8.7 million for the same
period of 2024. The increase in revenue was primarily due to
overall higher waste volume partially offset by overall lower
averaged price from waste mix. Services Segment revenue decreased
by approximately $175,000 to $4.7 million in the first quarter of
2025, from $4.9 million for the first quarter of 2024. The decrease
in revenue in the Services Segment was primarily due to lack of
projects, due in part to delay in procurements from temporary
suspension mandates as directed by the new Administration
transition team.
Gross profit for the first quarter of 2025, was
$657,000 versus gross loss of $620,000 for the first quarter of
2024. The increases in Treatment Segment gross profit of $302,000
and gross margin to 2.7% from (0.6)% were attributed to higher
revenue from overall higher waste volume, partially offset by
overall lower averaged price from waste mix and increase in fixed
costs. The increase in fixed costs was attributed partly to
implementation of operational readiness to support receipts of a
certain specific waste steam that are expected to continue for at
least the remainder of 2025. The processing of this waste stream
required hiring of additional staff, associated training and
start-up costs. Services Segment gross profit increased by
approximately $975,000 and gross margin increased to 8.6% from
(11.6)%. The increases were attributed to cost initiatives that we
implemented to align expenses with our revenue backlog.
Additionally, our overall Services Segment gross margin is impacted
by our current projects which are competitively bid on and will
therefore, have varying margin structures.
Operating loss for the first quarter of 2025,
was $3.7 million versus operating loss of $4.5 million for the
corresponding period of 2024. Net loss for each of the first
quarters of 2025 and 2024 was approximately $3.6 million. Net loss
for the first quarter of 2024, included a tax benefit of
approximately $956,000. Net loss per share (both basic and diluted)
for the first quarter of 2025, was $0.19 per share versus net loss
per share (both basic and diluted) of $0.26 for the same period in
2024.
The Company reported EBITDA of ($3.3) million
from continuing operations for the first quarter of 2025, as
compared to EBITDA of ($4.0) million from continuing operations for
the first quarter of 2024. 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, 2025,
and 2024.
|
|
|
Quarter Ended |
|
|
|
|
March 31, |
|
|
(In thousands) |
|
|
2025 |
|
|
|
2024 |
|
|
|
Loss from continuing operations |
|
$ |
(3,500 |
) |
|
$ |
(3,458 |
) |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
Depreciation & amortization |
|
|
436 |
|
|
|
431 |
|
|
|
Interest income |
|
|
(335 |
) |
|
|
(174 |
) |
|
|
Interest expense |
|
|
112 |
|
|
|
116 |
|
|
|
Interest expense - financing fees |
|
|
20 |
|
|
|
13 |
|
|
|
Income tax benefit |
|
|
— |
|
|
|
(956 |
) |
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
(3,267 |
) |
|
$ |
(4,028 |
) |
|
|
|
The tables below present certain unaudited
financial information for the business segments, which excludes
allocation of corporate expenses.
|
|
|
Quarter Ended |
|
Quarter Ended |
|
|
|
|
March 31, 2025 |
|
March 31, 2024 |
|
|
(In thousands) |
|
Treatment |
|
Services |
|
|
Treatment |
|
Services |
|
|
|
Revenues |
|
$ |
9,186 |
|
|
$ |
4,733 |
|
|
|
$ |
8,709 |
|
|
$ |
4,908 |
|
|
|
|
Gross profit (loss) |
|
|
250 |
|
|
|
407 |
|
|
|
|
(52 |
) |
|
|
(568 |
) |
|
|
|
Loss from operations |
|
|
(1,397 |
) |
|
|
(347 |
) |
|
|
|
(1,335 |
) |
|
|
(1,388 |
) |
|
|
|
|
Conference Call
Perma-Fix will host a conference call at 10:00
a.m. EDT on Thursday, May 8, 2025. 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: 146674. 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
https://www.webcaster4.com/Webcast/Page/2243/52435 or in the
investor section of the Company’s website at
https://ir.perma-fix.com/conference-calls. 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 15, 2025, 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: 52435.
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.
Please visit us at http://www.perma-fix.com.
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: stronger performance in
the second half of 2025; Gen 2.0 system deployment in Q4; believe
our destruction technology offers an efficient solution; expect our
PFAS to be a contributor to long-term growth; hot commissioning
program of DFLAW facility for August 1 commencement of waste
receipt; support multiple waste streams from full-scale operations;
DFLAW represents long-term revenue catalyst for Perma-Fix;
international demand; and operational readiness to support a waste
stream expected to continue for the remainder of 2025. 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 2024
Form 10-K and Form 10-Q for quarter ended March 31, 2025. 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.
Contacts:David K. Waldman-US
Investor RelationsCrescendo Communications, LLC (212) 671-1021
Herbert Strauss-European Investor Relationsherbert@eu-ir.com+43
316 296 316
FINANCIAL TABLES FOLLOW
|
PERMA-FIX ENVIRONMENTAL SERVICES, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
|
|
|
Three Months Ended March 31, |
|
|
(Amounts in Thousands, Except for Per Share Amounts) |
|
2025 |
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
13,919 |
|
|
$ |
13,617 |
|
|
|
Cost of goods sold |
|
13,262 |
|
|
|
14,237 |
|
|
|
Gross profit (loss) |
|
657 |
|
|
|
(620 |
) |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
4,015 |
|
|
|
3,544 |
|
|
|
Gain on disposal of property and equipment |
|
(5 |
) |
|
|
— |
|
|
|
Research and development |
|
383 |
|
|
|
296 |
|
|
|
Loss from operations |
|
(3,736 |
) |
|
|
(4,460 |
) |
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
Interest income |
|
335 |
|
|
|
174 |
|
|
|
Interest expense |
|
(112 |
) |
|
|
(116 |
) |
|
|
Interest expense-financing fees |
|
(20 |
) |
|
|
(13 |
) |
|
|
Other |
|
33 |
|
|
|
1 |
|
|
|
Loss from continuing operations before taxes |
|
(3,500 |
) |
|
|
(4,414 |
) |
|
|
Income tax benefit |
|
— |
|
|
|
(956 |
) |
|
|
Loss from continuing operations, net of taxes |
|
(3,500 |
) |
|
|
(3,458 |
) |
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations (net of taxes) |
|
(73 |
) |
|
|
(102 |
) |
|
|
Net loss |
$ |
(3,573 |
) |
|
$ |
(3,560 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss per common share - basic and diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
(.19 |
) |
|
$ |
(.25 |
) |
|
|
Discontinued operations |
|
— |
|
|
|
(.01 |
) |
|
|
Net loss per common share |
$ |
(.19 |
) |
|
$ |
(.26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares used in computing |
|
|
|
|
|
|
net loss per share: |
|
|
|
|
|
|
|
Basic |
|
18,424 |
|
|
|
13,676 |
|
|
|
Diluted |
|
18,424 |
|
|
|
13,676 |
|
|
|
|
|
PERMA-FIX ENVIRONMENTAL SERVICES, INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEET |
|
|
|
|
|
March 31, |
|
December 31, |
|
(Amounts in Thousands, Except for Share and Per Share Amounts) |
|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash |
|
$ |
25,745 |
|
|
$ |
28,975 |
|
|
Account receivable, net of allowance for credit losses of $221
and |
|
|
|
|
|
$202, respectively |
|
|
9,311 |
|
|
|
11,579 |
|
|
Unbilled receivables |
|
|
5,168 |
|
|
|
4,990 |
|
|
Other current assets |
|
|
5,164 |
|
|
|
4,659 |
|
|
Assets of discontinued operations included in current assets |
|
|
36 |
|
|
|
20 |
|
|
Total current assets |
|
|
45,424 |
|
|
|
50,223 |
|
|
|
|
|
|
|
|
Net property and equipment |
|
|
21,395 |
|
|
|
21,133 |
|
|
Property and equipment of discontinued operations |
|
|
130 |
|
|
|
130 |
|
|
Operating lease right-of-use assets |
|
|
1,614 |
|
|
|
1,697 |
|
|
Intangibles and other assets |
|
|
24,290 |
|
|
|
24,065 |
|
|
Total assets |
|
$ |
92,853 |
|
|
$ |
97,248 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
Current liabilities |
|
$ |
20,534 |
|
|
$ |
21,696 |
|
|
Current liabilities related to discontinued operations |
|
|
258 |
|
|
|
244 |
|
|
Total current liabilities |
|
|
20,792 |
|
|
|
21,940 |
|
|
|
|
|
|
|
|
Long-term liabilities |
|
|
11,925 |
|
|
|
11,973 |
|
|
Long-term liabilities related to discontinued operations |
|
|
948 |
|
|
|
945 |
|
|
Total liabilities |
|
|
33,665 |
|
|
|
34,858 |
|
|
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, |
|
|
|
|
|
18,436,035 and 18,384,879 shares issued, respectively; |
|
|
|
|
|
18,428,393 and 18,377,237 shares outstanding, respectively |
|
|
18 |
|
|
|
18 |
|
|
Additional paid-in capital |
|
|
159,944 |
|
|
|
159,590 |
|
|
Accumulated deficit |
|
|
(100,503 |
) |
|
|
(96,930 |
) |
|
Accumulated other comprehensive loss |
|
|
(183 |
) |
|
|
(200 |
) |
|
Less Common Stock held in treasury, at cost: 7,642 shares |
|
|
(88 |
) |
|
|
(88 |
) |
|
Total stockholders' equity |
|
|
59,188 |
|
|
|
62,390 |
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
92,853 |
|
|
$ |
97,248 |
|
|
|
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