Exhibit
99.2
Perma-Fix
Reports Financial Results for the First Quarter of 2021
ATLANTA
– May 6, 2021 – 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, 2021.
Mark
Duff, President and CEO of the Company, commented, “As anticipated, we experienced weakness in our Treatment Segment due
to the ongoing effects of the COVID-19 pandemic, which resulted in delayed shipments. Partially offsetting this weakness, we achieved
modest growth in our Services Segment revenue despite delays throughout the industry in awarding procurements, also due to the
pandemic. Nevertheless, we remain optimistic, as we have begun to see a return to normalization. As a result, we anticipate a
stronger second half of 2021, given our robust pipeline within the Services Segment and significant pent-up demand within the
Treatment Segment. In terms of the Services Segment, we have an unprecedented number and combined value of bids currently submitted
and awaiting awards. We also expect to benefit from the government’s fiscal 2020 carryover funds, in addition to 2021 allocations
that have been delayed and should help fund an acceleration of projects within the Treatment Segment. Also, as previously disclosed,
we are rapidly advancing several initiatives within the Treatment Segment that we believe have the potential to enhance our revenues
at each of our treatment facilities. The foundation of our growth strategy is based on the addition of experienced technical talent
in waste management and health physics over the past two years. We believe this foundation, coupled with new technology launches
in both services and treatment will continue to provide our clients value and support our growth goals once COVID is behind us.”
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 the Company’s locations. However, the Company’s Treatment
Segment continues to see delays in waste shipments from key customers due to continued impacts of COVID-19 and the Services Segment
is realizing delays in procurement actions and contract awards. 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 and into Q2 2021.
Financial
Results
Revenue
was $23.1 million for the first quarter of 2021 as compared to $24.9 million for the corresponding period of 2020. The decrease
in revenue was entirely within our Treatment Segment where revenue decreased to $7.5 million for the first quarter of 2021 from
$9.6 million corresponding period of 2020. The revenue decrease in the Treatment segment was primarily the result of reduced volume
from waste shipment delays from the impact of COVID-19. Also, lower averaged price waste from revenue mix contributed to the decrease
in revenue within the Treatment Segment. Revenue for the Services Segment increased to $15.6 million for the first quarter of
2021 from $15.3 million for the same period in 2020. The Services Segment revenues are project based; as such, the scope, duration
and completion of each project vary. As a result, the Services Segment revenues are subject to differences relating to timing
and project value.
Gross
profit for the first quarter of 2021 was $2.4 million versus $4.6 million for the first quarter of 2020 primarily due to lower
revenue generated in the Treatment Segment and the impact of the fixed costs at our treatment plants.
Operating
loss for the first quarter of 2021 was $999,000 versus operating income of $1.4 million for the corresponding period of 2020.
Net loss attributable to common stockholders (both basic and diluted) for the first quarter of 2021 was $1.1 million or ($0.09)
per share versus net income attributable to common stockholders (both basic and diluted) of $1.2 million or $0.10 per share, for
the same period in 2020.
The
Company reported Adjusted EBITDA of ($522,000) from continuing operations at March 31, 2021, as compared to Adjusted EBITDA of
$1.9 million from continuing operations during the corresponding period of 2020. 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. Both EBITDA and Adjusted EBITDA are not measures 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 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 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 (loss) income from continuing operations for the three months ended March 31, 2021 and
2020.
| | |
Quarter
Ended | |
| | |
March
31, | |
| | |
(Unaudited) | | |
(Unaudited) | |
| (In
thousands) | |
2021 | | |
2020 | |
| (Loss)
income from continuing operations | |
$ | (1,038 | ) | |
$ | 1,308 | |
| | |
| | | |
| | |
| Adjustments: | |
| | | |
| | |
| Depreciation
& amortization | |
| 400 | | |
| 346 | |
| Interest
income | |
| (18 | ) | |
| (56 | ) |
| Interest
expense | |
| 67 | | |
| 120 | |
| Interest
expense - financing fees | |
| 8 | | |
| 68 | |
| Income
tax (benefit) expense | |
| (17 | ) | |
| 14 | |
| | |
| | | |
| | |
| EBITDA | |
| (598 | ) | |
| 1,800 | |
| | |
| | | |
| | |
| Research
and development costs related to Medical Isotope project | |
| 76 | | |
| 66 | |
| | |
| | | |
| | |
| Adjusted
EBITDA | |
$ | (522 | ) | |
$ | 1,866 | |
The
tables below present certain unaudited financial information for the business segments, which excludes allocation of corporate
expenses:
| | |
Quarter
Ended | | |
Quarter
Ended | |
| | |
March
31, 2021 | | |
March
31, 2020 | |
| | |
(Unaudited) | | |
(Unaudited) | |
| (In
thousands) | |
Treatment | | |
Services | | |
Medical | | |
Treatment | | |
Services | | |
Medical | |
| Revenues | |
$ | 7,495 | | |
$ | 15,638 | | |
$ | — | | |
$ | 9,563 | | |
$ | 15,297 | | |
$ | — | |
| Gross
profit | |
| 925 | | |
| 1,431 | | |
| — | | |
| 2,745 | | |
| 1,895 | | |
| — | |
| Segment
(loss) profit | |
| (102 | ) | |
| 555 | | |
| (76 | ) | |
| 1,533 | | |
| 1,318 | | |
| (66 | ) |
Conference
Call
Perma-Fix
will host a conference call at 11:00 a.m. ET on Thursday, May 6, 2021. The conference call will 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 of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2243/41236 or on the Company’s website
at www.perma-fix.com. 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 13, 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: 41236.
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: return to normalization; second half of 2021; award of contracts; benefit from the
government’s fiscal 2020 carryover funds, in addition to 2021 allocations that have been delayed; acceleration of projects
within our Treatment Segment; proposal requests; growth strategy; new technology launches; advancing initiatives; growth goals;
and impact of COVID-19. 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; inability to meet financial covenants; and the additional factors referred
to under “Risk Factors” and “Special Note Regarding Forward-Looking Statements” of our 2020 Form 10-K
and Form 10-Q for quarter ended March 31, 2021. 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 Relations
Crescendo
Communications, LLC
(212)
671-1021
Herbert
Strauss-European Investor Relations
herbert@eu-ir.com
+43
316 296 316
FINANCIAL
TABLES FOLLOW
PERMA-FIX
ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
| | |
Three
Months Ended March 31, | |
| (Amounts
in Thousands, Except for Per Share Amounts) | |
2021 | | |
2020 | |
| | |
| | |
| |
| Revenues | |
$ | 23,133 | | |
$ | 24,860 | |
| Cost
of goods sold | |
| 20,777 | | |
| 20,220 | |
| Gross
profit | |
| 2,356 | | |
| 4,640 | |
| | |
| | | |
| | |
| Selling,
general and administrative expenses | |
| 3,205 | | |
| 2,928 | |
| Research
and development | |
| 150 | | |
| 232 | |
| Loss
on disposal of property and equipment | |
| — | | |
| 31 | |
| (Loss)
income from operations | |
| (999 | ) | |
| 1,449 | |
| | |
| | | |
| | |
| Other
income (expense): | |
| | | |
| | |
| Interest
income | |
| 18 | | |
| 56 | |
| Interest
expense | |
| (67 | ) | |
| (120 | ) |
| Interest
expense-financing fees | |
| (8 | ) | |
| (68 | ) |
| Other | |
| 1 | | |
| 5 | |
| (Loss)
income from continuing operatrions before taxes | |
| (1,055 | ) | |
| 1,322 | |
| Income
tax (benefit) expense | |
| (17 | ) | |
| 14 | |
| (Loss)
income from continuing operations, net of taxes | |
| (1,038 | ) | |
| 1,308 | |
| | |
| | | |
| | |
| Loss
from discontinued operations (net of taxes of $0) | |
| (115 | ) | |
| (114 | ) |
| Net
(loss) income | |
| (1,153 | ) | |
| 1,194 | |
| | |
| | | |
| | |
| Net
loss attributable to non-controlling interest | |
| (30 | ) | |
| (26 | ) |
| | |
| | | |
| | |
| Net
(loss) income attributable to Perma-Fix Environmental Services, Inc. common stockholders | |
$ | (1,123 | ) | |
$ | 1,220 | |
| | |
| | | |
| | |
| Net
(loss) income per common share attributable to Perma-Fix Environmental Services, Inc. stockholders - basic and diluted: | |
| | | |
| | |
| | |
| | | |
| | |
| Continuing
operations | |
$ | (.08 | ) | |
$ | .11 | |
| Discontinued
operations | |
| (.01 | ) | |
| (.01 | ) |
| Net
(loss) income per common share | |
$ | (.09 | ) | |
$ | .10 | |
| | |
| | | |
| | |
| Number
of common shares used in computing net (loss) income per share: | |
| | | |
| | |
| Basic | |
| 12,165 | | |
| 12,122 | |
| Diluted | |
| 12,165 | | |
| 12,346 | |
PERMA-FIX
ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED
BALANCE SHEET
| | |
March
31, | | |
December
31, | |
| | |
2021 | | |
2020 | |
| (Amounts
in Thousands, Except for Share and Per Share Amounts) | |
(Unaudited) | | |
(Audited) | |
| | |
| | |
| |
| ASSETS | |
| | | |
| | |
| Current
assets: | |
| | | |
| | |
| Cash | |
$ | 713 | | |
$ | 7,924 | |
| Account
receivable, net of allowance for doubtful accounts of $387 and $404, respectively | |
| 20,121 | | |
| 9,659 | |
| Unbilled
receivables | |
| 9,229 | | |
| 14,453 | |
| Other
current assets | |
| 4,403 | | |
| 4,577 | |
| Assets
of discontinued operations included in current assets | |
| 20 | | |
| 22 | |
| Total
current assets | |
| 34,486 | | |
| 36,635 | |
| | |
| | | |
| | |
| Net
property and equipment | |
| 17,822 | | |
| 17,783 | |
| Property
and equipment of discontinued operations | |
| 81 | | |
| 81 | |
| | |
| | | |
| | |
| Operating
lease right-of-use assets | |
| 2,220 | | |
| 2,287 | |
| | |
| | | |
| | |
| Intangibles
and other assets | |
| 22,201 | | |
| 22,133 | |
| Total
assets | |
$ | 76,810 | | |
$ | 78,919 | |
| | |
| | | |
| | |
| LIABILITIES
AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
| Current
liabilities | |
$ | 32,666 | | |
$ | 32,065 | |
| Current
liabilities related to discontinued operations | |
| 817 | | |
| 898 | |
| Total
current liabilities | |
| 33,483 | | |
| 32,963 | |
| | |
| | | |
| | |
| Long-term
liabilities | |
| 11,589 | | |
| 13,253 | |
| Long-term
liabilities related to discontinued operations | |
| 296 | | |
| 252 | |
| Total
liabilities | |
| 45,368 | | |
| 46,468 | |
| 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, 12,173,376 and 12,161,539 shares issued, respectively; 12,165,734 and
12,153,897 shares outstanding, respectively | |
| 12 | | |
| 12 | |
| Additional
paid-in capital | |
| 109,055 | | |
| 108,931 | |
| Accumulated
deficit | |
| (75,578 | ) | |
| (74,455 | ) |
| Accumulated
other comprehensive loss | |
| (187 | ) | |
| (207 | ) |
| Less
Common Stock held in treasury, at cost: 7,642 shares | |
| (88 | ) | |
| (88 | ) |
| Total
Perma-Fix Environmental Services, Inc. stockholders’ equity | |
| 33,214 | | |
| 34,193 | |
| Non-controlling
interest in subsidiary | |
| (1,772 | ) | |
| (1,742 | ) |
| Total
stockholders’ equity | |
| 31,442 | | |
| 32,451 | |
| | |
| | | |
| | |
| Total
liabilities and stockholders’ equity | |
$ | 76,810 | | |
$ | 78,919 | |
