ATLANTA, April 30 /PRNewswire-FirstCall/ -- Perma-Fix Environmental
Services, Inc. (Nasdaq: PESI; BSE: PESI; Germany: PES.BE) today announced
financial results for the first quarter ended March 31, 2004. Revenues for
the first quarter were $17.5 million compared to $19.5 million for the same
period in 2003. Net loss applicable to common stock for the quarter was $2.0
million, or $.06 per share, compared to net loss applicable to common stock of
$431,000, or $.01 per share, for the same period in 2003.
The first quarter of fiscal 2004 included $506,000 in revenue resulting
from the acquisition of certain assets of USL Environmental Services, Inc.
d/b/a A&A Environmental ("A&A") of Baltimore, Md. and US Liquids of
Pennsylvania, Inc. d/b/a EMAX ("EMAX") of Pittsburgh, Pa. The first quarter
of fiscal 2003 included $560,000 in revenue from the Company's Newport
Hydrolysate Project with the Army.
Results for the quarter reflect a 13.0% increase in revenue of the Nuclear
Segment and a 29.1% decrease in revenue of the Industrial Segment. The
decrease in the Industrial Segment was largely attributable to the recent
restructuring, in which the company eliminated low-margin, high volume
services, and reduced its dependence on outside broker disposal services.
Also affecting the quarter was the exaggerated seasonal slowdown in the first
quarter, coupled with the ongoing disruption of our Michigan facility
resulting from a fire in the fourth quarter of 2003, and a reduction in
government revenue within our Industrial Segment, due in part to the
expiration of one of our contracts.
Dr. Louis F. Centofanti, Chairman and CEO, commented, "During the quarter,
we achieved a number of important developments, including the acquisition of
certain assets of A&A and EMAX. The acquisition enables us to expand the
Industrial Segment's presence within one of its most consistent and profitable
markets. Moreover, our Nuclear Segment continues to grow, and we are working
on several strategic initiatives to not only treat -- but also characterize
and handle radioactive and mixed waste, which should ultimately improve the
flow of waste into our facilities."
Dr. Centofanti continued, "We are disappointed with the Industrial
Segment's results for the quarter, which are largely due to a number of short-
term factors, as noted above. However, we are encouraged by the progress of
the restructuring process, the quality of our new management team, and the
refocus of the Segment from not only a sales perspective, but also cost
control and logistic efficiencies. Our strategy is beginning to pay-off, as
illustrated by the recent contract award from a leading North-American home-
improvement retail chain. The reconstruction of the Michigan facility is in
progress and when completed later this year should dramatically improve the
throughput and efficiency of this facility."
During the quarter, the Company completed a private placement of the
Company's common stock and warrants to purchase common stock, for net proceeds
of $9.9 million, which strengthened the Company's balance sheet and helped
fund the above acquisition. The Company intends to use a portion of the
proceeds to pay down higher interest debt, which will reduce interest
expenses.
Perma-Fix Environmental Services, Inc. is a national environmental
services company, providing unique mixed waste and industrial waste management
services. The Industrial Segment provides hazardous and non-hazardous waste
treatment services for a diverse group of customers including Fortune 500
companies, numerous federal, state and local agencies and thousands of smaller
clients. The Nuclear Segment provides radioactive and mixed waste treatment
services to hospitals, research laboratories and institutions, numerous
federal agencies including the Departments of Energy and Defense and nuclear
utilities. The Company operates eleven major waste treatment facilities
across the country.
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 include, but are not limited to, the information
concerning possible or assumed future results of operations of the Company,
continued growth in the Nuclear Segment, expansion of the Industrial Segment's
presence within our most consistent and profitable markets, to successfully
complete the strategic initiatives and improve the flow of waste into our
facilities and the dramatic improvement in throughput and efficiency of the
Michigan facility upon reconstruction. 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, neither the government
nor any party which has granted the Company a material contract terminates
their contract prior to expiration of the term of the contract, and the DOE's
failure to abide by or comply with its contracts or to deliver waste as
anticipated. 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 TABLE FOLLOWS
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
(Amounts in Thousands, Except for Per Share Amounts) 2004 2003
Net revenues $17,469 $19,518
Cost of goods sold 13,908 14,457
Gross profit 3,561 5,061
Selling, general and administrative expenses 4,390 4,380
Income (loss) from operations (829) 681
Other income (expense):
Interest income 1 2
Interest expense (670) (702)
Interest expense-financing fees (256) (301)
Other (244) (65)
Net loss (1,998) (385)
Preferred Stock dividends (47) (46)
Net loss applicable to Common Stock $(2,045) $(431)
Net loss per common share:
Basic $(.06) $(.01)
Diluted $(.06) $(.01)
Number of shares and potential common shares
used in net loss per common share:
Basic 37,040 34,605
Diluted 37,040 34,605
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands, Except for Share Amounts)
March 31, December 31,
2004 2003
(Unaudited)
ASSETS
Current assets:
Cash $517 $411
Restricted cash 61 30
Accounts receivable, net of allowance for
doubtful accounts of $863 and $703 23,526 24,622
Prepaid expenses and other 3,756 3,318
Total current assets 27,860 28,381
Net property and equipment 54,971 53,069
Permits 16,680 16,680
Goodwill 6,216 6,216
Finite Risk Sinking Fund 2,225 1,234
Other assets 4,377 4,635
Total assets $112,329 $110,215
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $7,553 $6,359
Accrued expenses and other 14,713 14,967
Current portion of long-term debt 2,570 2,896
Total current liabilities 24,836 24,222
Other long-term liabilities 8,686 8,074
Long-term debt, less current portion 18,281 26,192
Total long-term liabilities 26,967 34,266
Total liabilities 51,803 58,488
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, 2,500 shares
issued and outstanding -- --
Common Stock, $.001 par value;
75,000,000 shares authorized, 42,415,725 and
37,241,881 shares issued, including
988,000 shares held as treasury
stock, respectively 42 37
Additional paid-in capital 80,467 69,640
Accumulated deficit (19,288) (17,243)
Interest rate swap (118) (130)
61,103 52,304
Less Common Stock in treasury at cost;
988,000 shares (1,862) (1,862)
Total stockholders' equity 59,241 50,442
Total liabilities and stockholders' equity $112,329 $110,215
SOURCE Perma-Fix Environmental Services, Inc.
 back to top
Related links:
http://www.perma-fix.com
CONTACT:
Dr. Louis F. Centofanti, Chairman and CEO of
Perma-Fix Environmental Services, Inc., +1-404-847-9990; or David
Waldman or John Heilshorn, both of Lippert Heilshorn &
Associates, +1-212-838-3777, dwaldman@lhai.com; or Herbert
Strauss-European investor relations, +43-316-296-316,
herbert@eu-ir.com, all for Perma-Fix Environmental Services, Inc.
|
