GlobeNewswire Inc | Mar 29, 2021 07:30AM EDT

March 29, 2021

ATLANTA, March 29, 2021 (GLOBE NEWSWIRE) -- 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 countrys largest environmental remediation challenges, and we look forward to playing a major role in addressing these national priorities.

COVID-19Similar 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 Companys 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 Companys 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 ResultsRevenue 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 ResultsRevenue 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 Companys 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 Companys 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 Companys operating performance. The Companys management utilizes EBITDA and Adjusted EBITDA as a means to measure performance. The Companys 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 tomedical Isotope project 91 87 311 314 Closure costs accrued for M& ? ? ? 330 ECsubsidiary 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 Treatment Services Medical Treatment Services Medicalthousands)Net $ 5,675 $ 22,672 $ ? $ 30,143 $ 75,283 $ ? revenues(Negativegrossprofit)/ (42 ) 3,235 ? 5,491 10,402 ? grossprofitSegment(loss) (983 ) 2,660 (91 ) 1,758 7,820 (311 )profit

Three Months Ended Twelve Months Ended December 31, 2019 December 31, 2019 (Unaudited) (Audited)(In Treatment Services Medical Treatment Services Medicalthousands)Net $ 10,285 $ 11,796 $ ? $ 40,364 $ 33,095 $ ? revenuesGross 3,326 1,329 ? 12,248 3,336 ? profitSegmentprofit 2,189 478 (87 ) 7,820 795 (314 )(loss)

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 Companys 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 Companys 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 Companys 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 DODs and DOEs 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 RelationsCrescendo Communications, LLC (212) 671-1021

Herbert Strauss-European Investor Relationsherbert@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, 2020 2019 2020 2019 (Amounts in Thousands, Except for (Unaudited) (Unaudited) (Audited)Per Share Amounts) 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 2,839 3,314 11,774 11,862 administrative expensesResearch and development 164 135 762 750 Loss on disposal of property and 2 ? 29 3 equipmentIncome 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 ? ? 27 ? debtIncome from continuing operations 39 1,072 2,960 2,889 before taxesIncome tax (benefit) expense (61 ) 58 (189 ) 157 Income from continuing 100 1,014 3,149 2,732 operations, net of taxes Loss from discontinued (146 ) (118 ) (412 ) (541 )operations, net of taxesNet (loss) income (46 ) 896 2,737 2,191 Net loss attributable to (36 ) (34 ) (123 ) (124 )non-controlling interest Net (loss) income attributable to Perma-Fix EnvironmentalServices, Inc. common $ (10 ) $ 930 $ 2,860 $ 2,315 stockholders Net income (loss) per common share attributable toPerma-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 toPerma-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 computingnet 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 (Unaudited) (Audited)Share Amounts) 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 22 104 current assetsTotal 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 898 994 operationsTotal current liabilities 32,963 25,100 Long-term liabilities 13,253 11,935 Long-term liabilities related to discontinued 252 244 operationsTotal 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, 12 12 respectivelyAdditional 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 (88 ) (88 )sharesTotal Perma-Fix Environmental Services, Inc. 34,193 30,855 stockholders' equityNon-controlling interest in subsidiary (1,742 ) (1,619 )Total stockholders' equity 32,451 29,236 Total liabilities and stockholders' equity $ 78,919 $ 66,515