Perma-Fix Reports $2.6 Million of Net Income for the Q3 of 2009
ATLANTA, Nov. 6 -- Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) today announced results for the third quarter ended September 30, 2009.
Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "Revenue for the third quarter of 2009 grew approximately 66% compared to the same period last year, due to several factors, including a sharp increase in nuclear waste receipts during the quarter and our new Hanford subcontract. The improved waste receipts not only contributed to revenue, but also had a favorable impact on our backlog. As a result of this growth, we generated EBITDA of $4.4 million in the third quarter of 2009, up from $1.0 million in the third quarter of last year. We also achieved net income of $2.6 million versus a loss of $341,000 for the same period last year."
Dr. Centofanti, continued, "Besides the growth in our base nuclear waste treatment business, we have had several successes over the last year that are now contributing to revenue and earnings. These include our Hanford subcontract, the new PCB destruction permit and our movement into treating more complex nuclear waste streams. Within our Industrial Segment, we continued to experience some weakness as industrial customers deferred waste treatment projects and as significantly lower oil prices versus last year negatively impacted our waste oil recovery business. Nevertheless, we continue to operate the industrial business profitably, and believe there are a number of growth opportunities ahead."
Financial Results
Revenue for the third quarter of 2009 was $26.5 million, versus $16.0 million for the same period last year. The increase in revenue was due to work that commenced on October 1, 2008, from the CH Plateau Remediation Company subcontract to clean up the DOE's Hanford nuclear waste site, as well as an increase in nuclear waste receipts during the quarter. Revenue for the Nuclear Segment increased to $23.5 million from $12.5 million for the same period last year. Revenue for the Industrial Segment decreased to $2.1 million versus $2.6 million for the same period last year due primarily to reduced waste oil sales. Revenue from the Engineering Segment increased to $888,000 versus $846,000 for the same period last year. Operating income for the third quarter was $3.2 million versus a loss of $34,000 for the same period the previous year. Net income for the third quarter of 2009 was $2.6 million, or $0.05 per share, versus a loss of $341,000 or $0.01 per share, for the same period last year. Net income in the third quarter of 2009 included a reduction of approximately $787,000 in disposal/transportation costs in our cost of goods sold resulting from a change in estimate related to accrued costs to dispose of legacy waste that were assumed as part of our acquisition of our Perma-Fix Northwest Richland (PFNWR) facility in June 2007. This change in estimate was necessary due to our accumulation of new information that has resulted in our identifying more efficient and cost effective ways to dispose of this waste.
The Company had EBITDA of $4.4 million from continuing operations during the quarter ended September 30, 2009, as compared to EBITDA of approximately $1.0 million for the same period of 2008. 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, 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 nine months ended September 30, 2009 and 2008.
Conference Call
Perma-Fix will host a conference call at 11:00 a.m. ET on Friday, November 6, 2009. The call will be available on the Company's website 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 website and a telephone replay of the call will be available approximately one hour following the call, through midnight November 13, 2009, 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: 336508.
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. Visit us on http://www.perma-fix.com/.