updated 3/14/2011 8:49:24 AM ET 2011-03-14T12:49:24

ATLANTA, March 14, 2011 (GLOBE NEWSWIRE) -- Perma-Fix Environmental Services, Inc. (Nasdaq:PESI) today announced results for the fourth quarter and full year ended December 31, 2010.

Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "Revenue for calendar year 2010 from our Nuclear Segment increased by 7.1% to $95.3 million and comprised 97.5% of our overall revenue of $97.8 million. The increase resulted primarily from growth in our on-site services business. Our revenue mix has been increasingly weighted toward on-site services, where revenue streams are more consistent and longer term than project work on the treatment side of the business. We continue to allocate resources toward onsite work as we focus on growing this segment. Nevertheless, we anticipate additional growth in our treatment business with a major focus on higher activity waste.

"After a challenging third quarter caused by timing issues related to DOE remediation projects, we started to gain ground as we entered the fourth quarter of 2010 bringing us more in line with historical levels of business. Building on that momentum, we signed a $4.1 million contract with Energy Northwest in February 2011 for the treatment and disposition of low level radioactive wastes. This is an important contract as it expands the commercial side of our business."

Financial Results

Revenue for the fourth quarter of 2010 was $25.5 million versus $26.4 million for the same period last year. Overall revenue for the Nuclear Segment increased to $95.3 million from $89.0 million for the same period in 2009. Revenue generated from the DOE Hanford Site increased approximately $697,000 or 7.1% for the quarter. Revenue from the Engineering Segment decreased to $537,000 from $711,000 for the same period in 2009 primarily due to decrease in billable hours as our engineering business continues to be impacted by economic uncertainty.

Gross profit for the fourth quarter of 2010 was $5.9 million versus $8.3 million for the fourth quarter of 2009 primarily due to lower revenue and revenue mix. Higher on-site services revenue, which generally carries lower margins, replaced treatment revenue at the facilities.

Operating income for the fourth quarter of 2010 was $2.6 million versus operating income of $4.1 million for the fourth quarter of 2009. Net income for the fourth quarter of 2010 was $1.6 million, or $0.03 per share, versus net income of $5.7 million or $0.10 per share, for the same period in 2009.   Net income in 2009 included an adjustment related to our deferred tax asset that had a positive impact of $2.5 million.

The Company had an EBITDA of $3.8 million from continuing operations during the quarter ended December 31, 2010, as compared to EBITDA of approximately $5.2 million for the same period of 2009. 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 ("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.  The table below reconciles EBITDA, a non-GAAP measure, to net income for the three months and twelve months ended December 31, 2010 and 2009.

  Quarter Ended Twelve Months Ended
  December 31, December 31,
(In thousands) 2010 2009 2010 2009
Net Income   $ 1,545  $ 5,990  $ 3,271  $ 9,687
         
Adjustments:        
Depreciation & Amortization  1,155  1,073  4,530  4,321
Interest Income  (14)  (23)  (65)  (145)
Interest Expense  174  306  755  1,639
Interest Expense - Financing Fees  104  102  412  283
Deferred income tax expense (benefit)  996  (2,490)  1,820  (2,490)
Income Tax (benefit) expense   (179)  240  26  504
         
EBITDA  $ 3,781  $ 5,198  $ 10,749  $ 13,799

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

  Quarter Ended Quarter Ended
  December 31, 2010 December 31, 2009
(In thousands) Nuclear Engineering Nuclear Engineering
Net revenues  $ 24,976  $ 537  $ 25,647  $ 711
Gross profit  5,867  28  8,126  183
Segment profit (loss)  3,240  (96)  5,430  104
     
  Twelve Months Ended Twelve Months Ended
  December 31, 2010 December 31, 2009
(In thousands) Nuclear Engineering Nuclear Engineering
Net revenues  $ 95,332  $ 2,458  $ 89,011  $ 3,382
Gross profit  20,408  207  23,594  887
Segment profit (loss)  10,891  (279)  14,128  423

Conference Call

Perma-Fix will host a conference call at 11:00 a.m. ET on Monday, March 14, 2011. The call will be available on the Company's website at www.perma-fix.com, or by calling (877) 407-9210 for U.S. callers, or (201) 689-8049 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 March 18, 2011, 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: 368618.

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 the Department of Energy ("DOE"), the Department of Defense ("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.

The Perma-Fix Environmental Services, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7172

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", "plans to", "estimates", "projects", and similar expressions. Forward‑looking statements include, but are not limited to: additional growth in our treatment business with a major focus on higher activity waste.  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; 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 DOD's and DOE's remediation projects; and the additional factors referred to under "Special Note Regarding Forward-Looking Statements" of our 2010 Form 10-K. 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 .

PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
         
  Three Months Ended Twelve Months Ended
  December 31,  December 31,
(Amounts in Thousands, Except for Per Share Amounts) 2010 2009 2010 2009
         
Net revenues  $ 25,513  $ 26,358  $ 97,790  $ 92,393
Cost of goods sold  19,618  18,049  77,175  67,912
Gross profit  5,895  8,309  20,615  24,481
         
Selling, general and administrative expenses  3,108  4,051  13,361  14,422
Research and development  186  148  921  609
(Gain) loss on disposal of property and equipment (7)  —   138  (7)
Income from operations  2,608  4,110  6,195  9,457
         
Other income (expense):        
Interest income  14  23  65  145
Interest expense  (174)  (306)  (755)  (1,639)
Interest expense-financing fees  (104)  (102)  (412)  (283)
Other  18  15  24  21
Income from continuing operations before taxes  2,362  3,740  5,117  7,701
Income tax expense (benefit)   817  (2,250)  1,846  (1,986)
Income from continuing operations  1,545  5,990  3,271  9,687
         
Income (loss) from discontinued operations, net of taxes  45  (289)  (663)  (65)
Net income   $ 1,590  $ 5,701  $ 2,608  $ 9,622
         
Net income (loss) per common share – basic        
Continuing operations $ .03  $ .11  $ .06  $ .18 
Discontinued operations  —  (.01) (.01)  — 
Net income per common share $ .03  $ .10  $ .05  $ .18 
         
Net income (loss) per common share – diluted        
Continuing operations $ .03  $ .11  $ .06  $ .18 
Discontinued operations  —  (.01) (.01)  — 
Net income per common share $ .03  $ .10  $ .05  $ .18 
         
Number of common shares used in computing        
net income (loss) per share:        
Basic  55,068  54,559  54,947  54,238
Diluted  55,090  54,990  55,030  54,526
 
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED BALANCE SHEET
     
  December 31, December 31,
(Amounts in Thousands, Except for Share and Per Share Amounts) 2010 2009
     
ASSETS    
Current assets:    
Cash & equivalents  $ 136  $ 101
Account receivable, net of allowance for doubtful    
accounts of $215 and $226  8,541  11,815
Unbilled receivables   9,436  9,769
Other current assets  3,335  3,290
Deferred tax assets - current  1,734  1,920
Assets of discontinued operations included in current assets, net of allowance     
for doubtful accounts of $97 and $70  2,034  1,702
Total current assets  25,216  28,597
     
Net property and equipment  40,443  42,918
Property and equipment of discontinued operations, net of accumulated     
depreciation of $755 and $580, respectively  4,209  3,460
Deferred tax asset, net of liabilities  —   272
Intangibles and other assets  54,257  49,563
Intangibles and other assets related to discontinued operations  1,190  1,190
Total assets  $ 125,315  $ 126,000
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities  20,214  24,877
Current liabilities related to discontinued operations  2,673  2,230
Total current liabilities  22,887  27,107
     
Long-term liabilities  20,850  21,479
Long-term liabilities related to discontinued operations  3,074  2,610
Total liabilities  46,811  51,196
Commitments and Contingencies    
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  1,285 1,285 
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, 55,106,180 and    
54,628,904 shares issued, respectively; 55,067,970 and 54,628,904    
outstanding, respectively  55  55
Additional paid-in capital  100,821  99,641
Accumulated deficit (23,569) (26,177)
Less Common Stock in treasury at cost: 38,210 shares (88)  — 
Total stockholders' equity  77,219  73,519
   
Total liabilities and stockholders' equity  $ 125,315  $ 126,000
CONTACT: David K. Waldman-US Investor Relations
         Crescendo Communications, LLC
         (212) 671-1021
         
         Herbert Strauss-European Investor Relations
         herbert@eu-ir.com
         +43 316 296 316

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