Exhibit
99.2
Perma-Fix
Reports 44% Increase in Revenue for 2020
ATLANTA
– March 29, 2021 – Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) (the “Company”) today announced
results for the fourth quarter and full year ended December 31, 2020.
2020
Financial Highlights:
| |
● |
Revenue
for 2020 increased 43.5% to $105.4 million versus $73.5 million for the same period last year |
| |
● |
Services
Segment revenue increased 127.5% to $75.3 million for 2020 versus $33.1 million for 2019 |
| |
● |
Treatment
Segment revenue decreased to $30.1 million versus $40.4 million for 2019 |
| |
● |
Gross
profit for 2020 increased to $15.9 million versus $15.6 million for 2019 |
| |
● |
Net
income attributable to common stockholders increased to $2.9 million, or $0.24 per share (basic) for 2020, compared to net
income of $2.3 million or $0.19 per share (basic) for 2019 |
| |
● |
Generated
adjusted EBITDA (defined below) of $5.4 million compared to $5.2 million for 2019 (see reconciliation to GAAP below) |
Mark
Duff, Chief Executive Officer, stated, “We achieved year-over-year growth of 28% and 44% for the fourth quarter and 2020,
respectively, reflecting steady expansion of our Services Segment as we continued to execute on our strategic plan and business
development initiatives. The growth in our Services Segment was offset by weakness in our Treatment Segment, as previously disclosed,
due in large part to the impact of the COVID-19 pandemic. Although we continue to face some pandemic-related challenges in the
first half of 2021, we remain optimistic about the outlook for the full year.”
“Looking
ahead, we are actively bidding on a number of very large service projects. Moreover, we are rapidly advancing several initiatives
within the Treatment Segment that we believe have the potential to significantly enhance our revenues, while establishing increased
market share and large backlog for waste processing. In particular, we are making continued progress at Hanford regarding opportunities
to leverage our advanced capabilities to solve large-scale waste management problems at the site. We believe our technologies
and off-site processing capabilities provide a unique and cost-effective solution to addressing some of the country’s largest
environmental remediation challenges, and we look forward to playing a major role in addressing these national priorities.”
COVID-19
Similar
to most of the US, Perma-Fix is beginning to relax the COVID-19-related precautions associated with ongoing operations as more
staff is vaccinated and the new cases continue to decline in our locations. However, the Company’s Treatment Segment continues
to see delays in waste shipments from certain customers due to continued impacts of COVID-19 and the Services Segment is realizing
delays in procurement actions which will push out funded backlog. As the situations surrounding COVID-19 remain fluid, the full
impact and extent of the pandemic on the Company’s financial results cannot be estimated with any degree of certainty but
appear to be subsiding towards the end of the second quarter of 2021. The Company is realizing pent-up demand in both segments,
which has been reflected in the large increase in proposal requests throughout Q1 2021.
Financial
Results
Fourth-Quarter
2020 Results
Revenue
for the fourth quarter of 2020 was $28.3 million versus $22.1 million for the same period last year. Revenue from the Services
Segment increased by $10.8 million to $22.6 million from $11.8 million for the same period in 2019. The increase in Services Segment
revenues was attributed to more project work. Revenue for the Treatment Segment decreased approximately $4.6 million to $5.7 million
in the fourth quarter of 2020 from $10.3 million for the corresponding period of 2019. The revenue decrease in the Treatment segment
was the result of reduced volume from waste shipment delays from the impact of COVID-19 as well as lower average price which was
impacted by waste mix.
Gross
profit for the fourth quarter of 2020 was $3.2 million and $4.7 million for the fourth quarter of 2019.
Operating
income for the fourth quarter of 2020 was $188,000 versus $1.2 million for the fourth quarter of 2019. Income from continuing
operations for the fourth quarter of 2020 was approximately $100,000 as compared to income from continuing operations of $1.0
million for the corresponding period of 2019. Net loss attributable to common stockholders for the fourth quarter of 2020 was
$10,000 as compared to net income attributable to common stockholders of $930,000 for the fourth quarter of 2019. Earnings per
share (basic) attributable to common stockholders was $0.00 for the fourth quarter of 2020 as compared to income per share (basic)
of $0.08 for the corresponding period of 2019.
2020
Financial Results
Revenue
in 2020 was $105.4 million versus $73.5 million in 2019. Revenue from the Services Segment increased by $42.2 million to $75.3
million from $33.1 million in 2019. The increase in Services Segment revenues was attributed to more project work. Revenue for
the Treatment Segment decreased approximately $10.3 million to $30.1 million in 2020 from $40.4 million in 2019. The revenue decrease
in the Treatment segment was primarily the result of reduced volume from waste shipment delays from the impact of COVID-19.
Gross
profit in 2020 was $15.9 million and $15.6 million in 2019.
Operating
income in 2020 was $3.3 million versus $3.0 million in 2019. Income from continuing operations in 2020 was approximately $3.1
million as compared to income from continuing operations of $2.7 million in 2019. Net income attributable to common stockholders
in 2020 was $2.9 million as compared to net income attributable to common stockholders of $2.3 million in 2019. Earnings per share
(basic) attributable to common stockholders was $0.24 in 2020 as compared to income per share (basic) of $0.19 in 2019.
The
Company’s Adjusted EBITDA at December 31, 2020 was approximately $5.4 million from continuing operations as compared to
approximately $5.2 million for the corresponding period of 2019. The Company defines EBITDA as earnings before interest, taxes,
depreciation and amortization. Adjusted EBITDA is defined as EBITDA before research and development costs related to the Medical
Isotope project and closure costs accrued for the Company’s East Tennessee Materials and Energy Corporation (“M&EC”)
facility. Both EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with Accounting Principles
Generally Accepted 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 and Adjusted EBITDA is relevant and useful by enhancing the readers’ ability
to understand the Company’s operating performance. The Company’s management utilizes EBITDA and Adjusted EBITDA as
a means to measure performance. The Company’s measurements of EBITDA and Adjusted EBITDA may not be comparable to similar
titled measures reported by other companies. The table below reconciles EBITDA and Adjusted EBITDA, both non-GAAP measures, to
GAAP numbers for income from continuing operations for the three and twelve months ended December 31, 2020 and 2019.
| | |
Quarter Ended | | |
Twelve Months Ended | |
| | |
December 31, | | |
December 31, | |
| | |
(Unaudited) | | |
(Unaudited) | |
| (In thousands) | |
2020 | | |
2019 | | |
2020 | | |
2019 | |
| Income from continuing operations | |
$ | 100 | | |
$ | 1,014 | | |
$ | 3,149 | | |
$ | 2,732 | |
| | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
| Adjustments: | |
| | | |
| | | |
| | | |
| | |
| Depreciation & amortization | |
| 408 | | |
| 373 | | |
| 1,596 | | |
| 1,342 | |
| Interest income | |
| (28 | ) | |
| (72 | ) | |
| (140 | ) | |
| (337 | ) |
| Interest expense | |
| 92 | | |
| 139 | | |
| 398 | | |
| 432 | |
| Interest expense - financing fees | |
| 107 | | |
| 69 | | |
| 294 | | |
| 208 | |
| Income tax (benefit) expense | |
| (61 | ) | |
| 58 | | |
| (189 | ) | |
| 157 | |
| Loss on extinguishment of debt | |
| — | | |
| — | | |
| 27 | | |
| — | |
| | |
| | | |
| | | |
| | | |
| | |
| EBITDA | |
| 618 | | |
| 1,581 | | |
| 5,135 | | |
| 4,534 | |
| | |
| | | |
| | | |
| | | |
| | |
| Research and development costs related to medical Isotope project | |
| 91 | | |
| 87 | | |
| 311 | | |
| 314 | |
| Closure costs accrued for M&EC subsididary | |
| — | | |
| — | | |
| — | | |
| 330 | |
| | |
| | | |
| | | |
| | | |
| | |
| Adjusted EBITDA | |
$ | 709 | | |
$ | 1,668 | | |
$ | 5,446 | | |
$ | 5,178 | |
The
tables below present certain financial information for the business segments, which exclude allocation of corporate expenses:
| | |
Three Months Ended | | |
Twelve Months Ended | |
| | |
December 31, 2020 | | |
December 31, 2020 | |
| | |
(Unaudited) | | |
(Unaudited) | |
| (In thousands) | |
Treatment | | |
Services | | |
Medical | | |
Treatment | | |
Services | | |
Medical | |
| Net revenues | |
$ | 5,675 | | |
$ | 22,672 | | |
$ | — | | |
$ | 30,143 | | |
$ | 75,283 | | |
$ | — | |
| (Negative gross profit)/gross profit | |
| (42 | ) | |
| 3,235 | | |
| — | | |
| 5,491 | | |
| 10,402 | | |
| — | |
| Segment (loss) profit | |
| (983 | ) | |
| 2,660 | | |
| (91 | ) | |
| 1,758 | | |
| 7,820 | | |
| (311 | ) |
| | |
Three Months Ended | | |
Twelve Months Ended | |
| | |
December 31, 2019 | | |
December 31, 2019 | |
| | |
(Unaudited) | | |
(Audited) | |
| (In thousands) | |
Treatment | | |
Services | | |
Medical | | |
Treatment | | |
Services | | |
Medical | |
| Net revenues | |
$ | 10,285 | | |
$ | 11,796 | | |
$ | — | | |
$ | 40,364 | | |
$ | 33,095 | | |
$ | — | |
| Gross profit | |
| 3,326 | | |
| 1,329 | | |
| — | | |
| 12,248 | | |
| 3,336 | | |
| — | |
| Segment profit (loss) | |
| 2,189 | | |
| 478 | | |
| (87 | ) | |
| 7,820 | | |
| 795 | | |
| (314 | ) |
Conference
Call
Perma-Fix
will host a conference call at 1:00 p.m. ET on Monday, March 29, 2021. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2243/40535
or on the Company’s website at www.perma-fix.com. The conference call will also be available via telephone by
dialing toll free 877-876-9173 for U.S. callers, or +1 785-424-1667 for international callers. 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 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 Monday, April 05, 2021, and can be accessed by calling: 877-481-4010 for U.S. callers, or
919-882-2331 for international callers and entering conference ID: 40535
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”, “plans to”, “estimates”, “projects”, and similar expressions. Forward-looking
statements include, but are not limited to: strategic plan and business development initiatives; impact of COVID-19 pandemic;
demand for our services; outlook for the full year; enhance revenues; increase market share and large backlog for waste processing;
our technologies and off-site processing capabilities; and end of second quarter of 2021. 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 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; inability to win bid projects; Congress fails
to provides continuing funding for the DOD’s and DOE’s remediation projects; inability to obtain new foreign and domestic
remediation contracts; inability to meet financial covenants; impact of the COVID-19; and the “Risk Factors” discussed
in, and the additional factors referred to under “Special Note Regarding Forward-Looking Statements” of, our 2020
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.
FINANCIAL
TABLES FOLLOW
Contacts:
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
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 | |
2020 | | |
2019 | | |
2020 | | |
2019 | |
| Share Amounts) | |
(Unaudited) | | |
(Unaudited) | | |
(Audited) | |
| | |
| | |
| | |
| | |
| |
| Net revenues | |
$ | 28,347 | | |
$ | 22,081 | | |
$ | 105,426 | | |
$ | 73,459 | |
| Cost of goods sold | |
| 25,154 | | |
| 17,426 | | |
| 89,533 | | |
| 57,875 | |
| Gross profit | |
| 3,193 | | |
| 4,655 | | |
| 15,893 | | |
| 15,584 | |
| | |
| | | |
| | | |
| | | |
| | |
| Selling, general and administrative expenses | |
| 2,839 | | |
| 3,314 | | |
| 11,774 | | |
| 11,862 | |
| Research and development | |
| 164 | | |
| 135 | | |
| 762 | | |
| 750 | |
| Loss on disposal of property and equipment | |
| 2 | | |
| — | | |
| 29 | | |
| 3 | |
| Income from operations | |
| 188 | | |
| 1,206 | | |
| 3,328 | | |
| 2,969 | |
| | |
| | | |
| | | |
| | | |
| | |
| Other income (expense): | |
| | | |
| | | |
| | | |
| | |
| Interest income | |
| 28 | | |
| 72 | | |
| 140 | | |
| 337 | |
| Interest expense | |
| (92 | ) | |
| (139 | ) | |
| (398 | ) | |
| (432 | ) |
| Interest expense-financing fees | |
| (107 | ) | |
| (69 | ) | |
| (294 | ) | |
| (208 | ) |
| Other | |
| 22 | | |
| 2 | | |
| 211 | | |
| 223 | |
| Loss on debt extinguishment of debt | |
| — | | |
| — | | |
| 27 | | |
| — | |
| Income from continuing operations before taxes | |
| 39 | | |
| 1,072 | | |
| 2,960 | | |
| 2,889 | |
| Income tax (benefit) expense | |
| (61 | ) | |
| 58 | | |
| (189 | ) | |
| 157 | |
| Income from continuing operations, net of taxes | |
| 100 | | |
| 1,014 | | |
| 3,149 | | |
| 2,732 | |
| | |
| | | |
| | | |
| | | |
| | |
| Loss from discontinued operations, net of taxes | |
| (146 | ) | |
| (118 | ) | |
| (412 | ) | |
| (541 | ) |
| Net (loss) income | |
| (46 | ) | |
| 896 | | |
| 2,737 | | |
| 2,191 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net loss attributable to non-controlling interest | |
| (36 | ) | |
| (34 | ) | |
| (123 | ) | |
| (124 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Net (loss) income attributable to Perma-Fix Environmental Services, Inc. common stockholders | |
$ | (10 | ) | |
$ | 930 | | |
$ | 2,860 | | |
$ | 2,315 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net income (loss) per common share attributable to Perma-Fix Environmental Services, Inc. stockholders - basic: | |
| | | |
| | | |
| | | |
| | |
| Continuing operations | |
$ | .01 | | |
$ | .09 | | |
$ | .27 | | |
$ | .24 | |
| Discontinued operations | |
| (.01 | ) | |
| (.01 | ) | |
| (.03 | ) | |
| (.05 | ) |
| Net income per common share | |
$ | — | | |
$ | .08 | | |
$ | .24 | | |
$ | .19 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net income (loss) per common share attributable to Perma-Fix Environmental Services, Inc. stockholders - diluted: | |
| | | |
| | | |
| | | |
| | |
| Continuing operations | |
$ | .01 | | |
$ | .09 | | |
$ | .26 | | |
$ | .24 | |
| Discontinued operations | |
| (.01 | ) | |
| (.01 | ) | |
| (.03 | ) | |
| (.05 | ) |
| Net income per common share | |
$ | — | | |
$ | .08 | | |
$ | .23 | | |
$ | .19 | |
| | |
| | | |
| | | |
| | | |
| | |
| Number of common shares used in computing net income (loss) per share: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 12,154 | | |
| 12,094 | | |
| 12,139 | | |
| 12,046 | |
| Diluted | |
| 12,370 | | |
| 12,273 | | |
| 12,347 | | |
| 12,060 | |
PERMA-FIX
ENVIRONMENTAL SERVICES, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
| | |
December 31, | | |
December 31, | |
| | |
2020 | | |
2019 | |
| (Amounts in Thousands, Except for Share and Per Share Amounts) | |
(Unaudited) | | |
(Audited) | |
| | |
| | |
| |
| ASSETS | |
| | | |
| | |
| Current assets: | |
| | | |
| | |
| Cash | |
$ | 7,924 | | |
$ | 390 | |
| Account receivable, net of allowance for doubtful accounts of $404 and $487, respectively | |
| 9,659 | | |
| 13,178 | |
| Unbilled receivables | |
| 14,453 | | |
| 7,984 | |
| Other current assets | |
| 4,577 | | |
| 3,470 | |
| Assets of discontinued operations included in current assets | |
| 22 | | |
| 104 | |
| Total current assets | |
| 36,635 | | |
| 25,126 | |
| | |
| | | |
| | |
| Net property and equipment | |
| 17,783 | | |
| 16,576 | |
| Property and equipment of discontinued operations | |
| 81 | | |
| 81 | |
| | |
| | | |
| | |
| Operating lease right-of-use assets | |
| 2,287 | | |
| 2,545 | |
| | |
| | | |
| | |
| Intangibles and other assets | |
| 22,133 | | |
| 22,151 | |
| Other assets related to discontinued operations | |
| — | | |
| 36 | |
| Total assets | |
$ | 78,919 | | |
$ | 66,515 | |
| | |
| | | |
| | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
| Current liabilities | |
$ | 32,065 | | |
$ | 24,106 | |
| Current liabilities related to discontinued operations | |
| 898 | | |
| 994 | |
| Total current liabilities | |
| 32,963 | | |
| 25,100 | |
| | |
| | | |
| | |
| Long-term liabilities | |
| 13,253 | | |
| 11,935 | |
| Long-term liabilities related to discontinued operations | |
| 252 | | |
| 244 | |
| Total liabilities | |
| 46,468 | | |
| 37,279 | |
| 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, 12,161,539 and 12,123,520 shares issued, respectively; 12,153,897 and 12,115,878 shares outstanding, respectively | |
| 12 | | |
| 12 | |
| Additional paid-in capital | |
| 108,931 | | |
| 108,457 | |
| Accumulated deficit | |
| (74,455 | ) | |
| (77,315 | ) |
| Accumulated other comprehensive loss | |
| (207 | ) | |
| (211 | ) |
| Less Common Stock held in treasury, at cost: 7,642 shares | |
| (88 | ) | |
| (88 | ) |
| Total Perma-Fix Environmental Services, Inc. stockholders’ equity | |
| 34,193 | | |
| 30,855 | |
| Non-controlling interest in subsidiary | |
| (1,742 | ) | |
| (1,619 | ) |
| Total stockholders’ equity | |
| 32,451 | | |
| 29,236 | |
| | |
| | | |
| | |
| Total liabilities and stockholders’ equity | |
$ | 78,919 | | |
$ | 66,515 | |