Attached files
| file | filename |
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| 8-K - PERMA FIX ENVIRONMENTAL SERVICES INC | v176826_8k.htm |
| EX-99.1 - PERMA FIX ENVIRONMENTAL SERVICES INC | v176826_ex99-1.htm |
Perma-Fix
Reports Fourth Quarter and 2009 Results;
Fourth
Quarter Operating Income Increased
198%
to $3.9 Million on 21% Increase in Revenue
Nuclear
Segment Gross Profit Increased 90.9% in the Fourth Quarter of 2009 to $8.1
Million
Fourth
Quarter 2009 Net Income of $5.7 Million, or $0.10 Per Diluted Share, Including
$2.4 Million
Gain
from Valuation Allowance Release Related to Deferred Tax Asset
ATLANTA – March 10, 2010 — Perma-Fix
Environmental Services, Inc. (NASDAQ: PESI) today announced results for
the fourth quarter and twelve months ending December 31, 2009.
Fourth
quarter 2009 highlights include:
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|
·
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Revenue
for the fourth quarter of 2009 increased 20.8% to $28.4
million
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·
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Nuclear
Segment revenue increased 29.2% to $25.6
million
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|
|
·
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Nuclear
Segment gross margins for the fourth quarter of 2009 increased to 31.6%
from 21.4% in the fourth quarter of
2008
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·
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EBITDA
increased 115.8% to $5.1 million
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|
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·
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Operating
income increased 197.9% to $3.9
million
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|
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·
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Net
income of $5.7 million, or $0.10 per diluted share, includes $2.4 million
gain from release of valuation allowance related to deferred tax
asset
|
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·
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Working
capital increased by $2.7 million in the quarter and $5.4 million for the
year.
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Dr. Louis
F. Centofanti, Chairman and Chief Executive Officer, stated, “Revenue for the
fourth quarter of 2009 grew approximately 20.8% compared to the same period last
year, as we continued to receive shipments of more complex nuclear waste
streams. At the same time, gross margins in our Nuclear Segment
increased to 31.6% from 21.4% for the same period last year, and profit margins
within the Nuclear Segment increased to 20.9% from 7.0% for the fourth quarter
of 2008. We attribute the sharp increase in margins to the higher
margin waste streams and fixed cost nature of our nuclear services
business. As a result, we generated EBITDA of $5.1 million in the
fourth quarter of 2009, a 116% increase from $2.4 million in the fourth quarter
of last year. We also achieved net income of $5.7 million, or $0.10 per diluted
share, which included a gain of $2.4 million due to the release of a portion of
our valuation allowance related to our deferred tax asset. This
compares to net income of $725,000, or $0.01 per diluted share for the same
period last year. Although the third quarter is typically our
seasonally strongest period, revenues in the fourth quarter of 2009 increased 7%
sequentially, while EBITDA rose nearly 16% compared to the third quarter of
2009. We believe these trends bode extremely well and expect to
benefit from improved operating leverage in 2010, although we do anticipate some
seasonality throughout the year.”
Dr.
Centofanti concluded, “Looking ahead, we continue to position Perma-Fix at the
forefront of the nuclear waste treatment and nuclear services
industry. In addition to the opportunities in our base nuclear waste
treatment business, we have identified sizeable opportunities treating higher
activity wastes, as evidenced by recent shipments in the third and fourth
quarters of these types of waste streams. We have also operated onsite at
Hanford for over a year and we have built a solid reputation for our work at the
site—reinforcing our capabilities to perform similar work at other DOE
facilities. Overall, we are extremely encouraged by the outlook for
the business as we continue to focus on growing revenue, increasing margins and
paying down debt. Moreover, we have strong cash flow with a clean
capital structure and no intention to raise additional capital for the
foreseeable future. As a result, we believe we are positioned to
continue the growth of our business.”
Financial
Results
Revenue
for the fourth quarter of 2009 increased 20.8% to $28.4 million compared with
$23.5 million for the same period last year. The increase in revenue was
primarily due to higher nuclear waste receipts and increased waste processing
during the quarter. Quarterly revenue for the Nuclear Segment increased to $25.6
million from $19.8 million for the same period last year, an increase of 29.2%.
Revenue for the Industrial Segment decreased to $2.1 million versus $3.0 million
for the same period last year due primarily to lower used oil prices and
deferred waste treatment projects due to the economy. Revenue from the
Engineering Segment increased to $711,000 from $658,000 for the same period last
year. Operating income for the fourth quarter was $3.9 million versus $1.3
million for the same period last year. Net income applicable to Common
Stockholders for the fourth quarter of 2009 was $5.7 million, or $0.10 per
share, versus $725,000 or $0.01 per share, for the same period last
year. Net income for the fourth quarter of 2009 included a gain of
$2.4 million from release of a portion of the Company’s valuation allowance
related to its deferred tax asset.
The
Company had EBITDA of $5.1 million from continuing operations during the quarter
ended December 31, 2009, as compared to EBITDA of approximately $2.4 million for
the same period of 2008, an increase of 116%. 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 in 2008, 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 twelve months ended December
31, 2009, and December 31, 2008, respectively.
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Quarter Ended
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Twelve Months Ended
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December 31,
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December 31,
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|||||||||||||||
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(In thousands)
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2009
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2008
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2009
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2008
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Net
Income
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$ | 5,696 | $ | 830 | $ | 9,572 | $ | 985 | ||||||||
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Adjustments:
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Depreciation
& Amortization
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1,177 | 1,049 | 4,746 | 4,866 | ||||||||||||
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Asset
Impairment Recovery
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–
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–
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–
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(507 | ) | |||||||||||
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Interest
Income
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(23 | ) | (56 | ) | (145 | ) | (226 | ) | ||||||||
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Interest
Expense
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311 | 508 | 1,657 | 1,540 | ||||||||||||
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Interest
Expense - Financing Fees
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102 | 14 | 283 | 137 | ||||||||||||
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Deferred
income tax
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(2,426 | ) |
–
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(2,426 | ) |
–
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||||||||||
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Income
tax expense
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240 | 8 | 504 | 10 | ||||||||||||
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EBITDA
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$ | 5,077 | $ | 2,353 | $ | 14,191 | $ | 6,805 | ||||||||
The
tables below present certain financial information for the business segments,
excluding allocation of corporate expenses:
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Quarter Ended December 31, 2009
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Quarter Ended December 31, 2008
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|||||||||||||||||||||||
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(In thousands)
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Nuclear
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Engineering
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Industrial
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Nuclear
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Engineering
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Industrial
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Net
revenues
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$ | 25,647 | $ | 711 | $ | 2,084 | $ | 19,849 | $ | 658 | $ | 3,036 | ||||||||||||
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Gross
profit
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8,097 | 215 | 274 | 4,242 | 142 | 1,296 | ||||||||||||||||||
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Segment
profit (loss)
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5,366 | 104 | (230 | ) | 1,391 | (15 | ) | 1,195 | ||||||||||||||||
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Twelve Months Ended December 31, 2009
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Twelve Months Ended December 31, 2008
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|||||||||||||||||||||||
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(In
thousands)
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Nuclear
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Engineering
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Industrial
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Nuclear
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Engineering
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Industrial
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||||||||||||||||||
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Net
revenues
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$ | 89,011 | $ | 3,382 | $ | 8,283 | $ | 61,359 | $ | 3,194 | $ | 10,951 | ||||||||||||
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Gross
profit
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24,129 | 1,013 | 1,997 | 15,258 | 1,072 | 3,512 | ||||||||||||||||||
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Segment
profit
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14,064 | 423 | (51 | ) | 4,973 | 418 | 1,803 | |||||||||||||||||
Conference
Call
Perma-Fix
will host a conference call at 11:00 A.M. ET on March 10, 2010. The call will be
available on the Company’s Web site 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 Web site
and a telephone replay of the call will be available approximately one hour
following the call, through midnight March 17, 2010, 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: 346355.
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
“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. 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. Forward-looking statements include, but
are not limited to: we believe that current trends bode extremely well for
2010 and expect to benefit from improved
operating leverage in 2010, although we do anticipate some seasonality
throughout the year; sizeable opportunities treating higher activity wastes;
capacities to perform similar work at other DOE facilities; encouraged by the
outlook for business as we attempt to continue revenue growth, increase margins
and pay down debt; we have no intention to raise additional capital for the
foreseeable future; and we believe we are positioned to continue the growth of
our business. These forward-looking 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 Forms 10-Q for periods ended March 31, 2009, June 30,
2009, and September 2009. 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.
Please
visit us on the World Wide Web at http://www.perma-fix.com.
FINANCIAL
TABLES FOLLOW
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Contacts:
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Dr.
Louis F. Centofanti, Chairman and CEO
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David
K. Waldman-US Investor Relations
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|
Perma-Fix
Environmental Services, Inc.
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Crescendo
Communications, LLC
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(770)
587-9898
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(212)
671-1021
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Herbert
Strauss-European Investor Relations
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herbert@eu-ir.com
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+43
316 296 316
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PERMA-FIX
ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
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Three Months Ended
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Twelve Months Ended
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December 31,
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December 31,
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(Amounts in Thousands, Except for Per Share
Amounts)
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2009
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2008
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2009
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2008
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Net
revenues
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$ | 28,442 | $ | 23,543 | $ | 100,676 | $ | 75,504 | ||||||||
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Cost
of goods sold
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19,856 | 17,863 | 73,537 | 55,662 | ||||||||||||
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Gross
profit
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8,586 | 5,680 | 27,139 | 19,842 | ||||||||||||
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Selling,
general and administrative expenses
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4,702 | 4,811 | 17,728 | 18,192 | ||||||||||||
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Asset
impairment recovery
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¾ | ¾ | ¾ | (507 | ) | |||||||||||
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Gain
on disposal of property and equipment
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(1 | ) | (435 | ) | (15 | ) | (295 | ) | ||||||||
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Income
from operations
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3,885 | 1,304 | 9,426 | 2,452 | ||||||||||||
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Other
income (expense):
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||||||||||||||||
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Interest
income
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23 | 56 | 145 | 226 | ||||||||||||
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Interest
expense
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(311 | ) | (508 | ) | (1,657 | ) | (1,540 | ) | ||||||||
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Interest
expense-financing fees
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(102 | ) | (14 | ) | (283 | ) | (137 | ) | ||||||||
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Other
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14 | ¾ | 19 | (6 | ) | |||||||||||
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Income
from continuing operations before taxes
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3,509 | 838 | 7,650 | 995 | ||||||||||||
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Income
tax (benefit) expense
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(2,186 | ) | 8 | (1,922 | ) | 10 | ||||||||||
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Income
from continuing operations
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5,695 | 830 | 9,572 | 985 | ||||||||||||
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Income
(loss) from discontinued operations, net of taxes
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6 | (119 | ) | 50 | (1,397 | ) | ||||||||||
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Gain
on disposal of discontinued operations, net of taxes
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¾ | 14 | ¾ | 2,323 | ||||||||||||
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Net
income applicable to Common Stockholders
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$ | 5,701 | $ | 725 | $ | 9,622 | $ | 1,911 | ||||||||
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Net
income (loss) per common share – basic
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||||||||||||||||
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Continuing
operations
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$ | .10 | $ | .01 | $ | .18 | $ | .02 | ||||||||
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Discontinued
operations
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¾ | ¾ | ¾ | (.02 | ) | |||||||||||
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Disposal
of discontinued operations
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¾ | ¾ | ¾ | .04 | ||||||||||||
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Net
income per common share
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$ | .10 | $ | .01 | $ | .18 | $ | .04 | ||||||||
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Net
income (loss) per common share – diluted
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||||||||||||||||
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Continuing
operations
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$ | .10 | $ | .01 | $ | .18 | $ | .02 | ||||||||
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Discontinued
operations
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¾ | ¾ | ¾ | (.02 | ) | |||||||||||
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Disposal
of discontinued operations
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¾ | ¾ | ¾ | .04 | ||||||||||||
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Net
income per common share
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$ | .10 | $ | .01 | $ | .18 | $ | .04 | ||||||||
|
Number
of common shares used in computing net income (loss) per
share:
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||||||||||||||||
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Basic
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54,559 | 53,934 | 54,238 | 53,803 | ||||||||||||
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Diluted
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54,990 | 53,934 | 54,526 | 54,003 | ||||||||||||
PERMA-FIX
ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED
BALANCE SHEET
|
(Amounts in Thousands, Except for Share
Amounts)
|
2009
|
2008
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||||||
|
ASSETS
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
& equivalents
|
$ | 196 | $ | 184 | ||||
|
Account
receivable, net of allowance for doubtful accounts of $296 and
$333
|
13,141 | 13,416 | ||||||
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Unbilled
receivables
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9,858 | 13,104 | ||||||
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Other
current assets
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3,448 | 2,909 | ||||||
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Deferred
tax assets - current
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1,856 |
—
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||||||
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Assets
of discontinued operations included in current assets
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174 | 110 | ||||||
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Total
current assets
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28,673 | 29,723 | ||||||
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Net
property and equipment
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45,727 | 46,628 | ||||||
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Property
and equipment of discontinued operations, net of accumulated depreciation
of $13 for each year
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651 | 651 | ||||||
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Deferred
tax asset, net of liabilites
|
272 |
—
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||||||
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Intangibles
and other assets
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50,752 | 46,710 | ||||||
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Total
assets
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$ | 126,075 | $ | 123,712 | ||||
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LIABILITIES
AND STOCKHOLDERS’ EQUITY
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||||||||
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Current
liabilities
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26,190 | 32,324 | ||||||
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Current
liabilities related to discontinued operations
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993 | 1,285 | ||||||
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Total
current liabilities
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27,183 | 33,609 | ||||||
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Long-term
liabilities
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22,655 | 24,936 | ||||||
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Long-term
liabilities related to discontinued operations
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1,433 | 2,246 | ||||||
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Total
liabilities
|
51,271 | 60,791 | ||||||
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Commitments
and Contingencies
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||||||||
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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
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1,285 | 1,285 | ||||||
|
Stockholders’
equity:
|
||||||||
|
Preferred
Stock, $.001 par value; 2,000,000 shares authorized, no shares issued and
outstanding
|
—
|
—
|
||||||
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Common
Stock, $.001 par value; 75,000,000 shares authorized, 54,628,904 and
53,934,560 shares issued and outstanding, respectively
|
55 | 54 | ||||||
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Additional
paid-in capital
|
99,641 | 97,381 | ||||||
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Accumulated
deficit
|
(26,177 | ) | (35,799 | ) | ||||
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Total
stockholders' equity
|
73,519 | 61,636 | ||||||
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Total
liabilities and stockholders' equity
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$ | 126,075 | $ | 123,712 | ||||