Exhibit 99.1
Perma-Fix Reports Record Revenue and Net Income for the Third Quarter;
Net Income Increases 167 Percent
ATLANTA, Nov. 4 /PRNewswire-FirstCall/ -- Perma-Fix Environmental
Services, Inc. (Nasdaq: PESI; BSE) (Germany: PES.BE) today announced revenues
of $25.5 million for the quarter ended September 30, 2003, compared with
revenues of $24.2 million for the quarter ended September 30, 2002. Net income
for the quarter was approximately $4.0 million, or $.12 per share, compared
with net income of $1.5 million, or $.04 per share for the quarter ended
September 30, 2002.
Results reflect a change in accounting estimate within the nuclear
segment, whereby the percentage of completion methodology for revenue
recognition was refined. The impact of the new accounting estimate was a
deferral of approximately $3.8 million in revenue and $1.0 million in net
income or $.03 per share for the quarter. The change in estimate had no impact
on cash flow.
The increase in revenues for the quarter ended September 30, 2003, is due
to an increase in the industrial segment revenues of approximately
$2.3 million, to $12.2 million, compared with the same period of 2002.
Revenue in
the nuclear segment declined $1.1 million, to $12.5 million, from the same
period last year, reflecting the change in accounting estimates.
For the nine months ended September 30, 2003, consolidated revenues
increased to $64.9 million from $63.2 million for the period ended September
30, 2002. Net income for the nine months was $2.3 million, or $.07 per share,
compared with net income of $2.2 million, or $.07 per share for the same
period in 2002.
Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, commented,
"We experienced a significant improvement in earnings, which we attribute to
top-line growth, coupled with careful management of our expenses.
Importantly, our industrial segment showed continued improvement and our
nuclear services segment is back on track following the Department of Energy's
lockdowns earlier this year. In fact, the nuclear revenues for the quarter
would have exceeded the prior year, if not for the change in accounting
estimate. In September our facilities received especially strong shipments of
mixed waste, accounting for the increase in our accounts receivable, as well
as contributing to revenue and cash flow in the fourth quarter. These strong
results reinforce the need for investors to measure our performance on an
annual versus a quarterly basis."
Dr. Centofanti continued, "We remain optimistic about the long-term growth
opportunities. We are beginning to explore strategic opportunities that may
enable us to improve the flow of mixed waste to our facilities. More
importantly, we have barely scratched the surface of the untapped multi-
billion dollar mixed waste market. Additionally, we are continuing to pursue
emerging opportunities to treat chemical-weapon by-products with our new
biological water-treatment process."
Perma-Fix Environmental Services, Inc. is a national environmental
services company, providing unique mixed waste and industrial waste management
services. The Company has increased its focus on the nuclear services segment,
which 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 industrial
services 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
Company operates nine 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, long-term growth
opportunities and the improvement of the flow of mixed waste to our
facilities. 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, the ability of the company to successfully apply its
technologies and successfully treat mixed waste, the DOE's failure to abide by
or comply with the Oak Ridge 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 .
Perma-Fix Environmental Services, Inc.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
(Amounts in Thousands, 2003 2002 2003 2002
Except for Per
Share Amounts)
Net revenues $25,463 $24,232 $64,890 $63,168
Cost of goods sold 15,223 16,988 45,071 44,835
Gross profit 10,240 7,244 19,819 18,333
Selling, general and
administrative
expenses 4,971 4,422 14,137 12,697
Income from operations 5,269 2,822 5,682 5,636
Other income (expense):
Interest income 2 4 7 13
Interest expense (744) (723) (2,137) (2,150)
Interest expense-
financing fees (256) (262) (814) (779)
Other (198) (285) (253) (366)
Net income 4,073 1,556 2,485 2,354
Preferred Stock dividends (48) (48) (142) (111)
Net income applicable
to Common Stock $4,025 $1,508 $2,343 $2,243
Net income per common share:
Basic $.12 $.04 $.07 $.07
Diluted $.11 $.04 $.06 $.06
Number of shares and
potential common shares
used in net income per
common share:
Basic 34,885 34,275 34,764 34,181
Diluted 38,247 42,617 39,089 42,992
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2003 December 31,
(Unaudited) 2002
ASSETS
Current assets:
Cash $194 $212
Restricted cash 20 20
Accounts receivable, net of allowance
for doubtful accounts of $1,200 and $1,212 27,236 21,820
Prepaid expenses and other 4,230 3,517
Total current assets 31,680 25,569
Net property and equipment 53,778 49,925
Permits, net 16,666 20,759
Goodwill, net 6,216 6,525
Finite Risk Sinking Fund 1,234 --
Other assets 4,875 3,047
Total assets $114,449 $105,825
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $8,604 $9,759
Accrued expenses and unearned revenue 15,553 11,706
Current portion of long-term debt 3,118 3,373
Total current liabilities 27,275 24,838
Other long-term liabilities 8,070 7,975
Long-term debt, less current portion 29,492 27,142
Total long-term liabilities 37,562 35,117
Total liabilities 64,837 59,955
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, 36,274,209 and 35,326,734 shares
issued, including 988,000 shares held as treasury
stock, respectively 36 35
Additional paid-in capital 68,142 66,799
Accumulated deficit (17,829) (20,172)
Interest rate swap (160) (215)
50,189 46,447
Less Common Stock in treasury at cost;
988,000 shares (1,862) (1,862)
Total stockholders' equity 48,327 44,585
Total liabilities and stockholders' equity $114,449 $105,825
SOURCE Perma-Fix Environmental Services, Inc.
-0- 11/04/2003
/CONTACT: Dr. Louis F. Centofanti, Chairman and CEO of Perma-Fix
Environmental Services, +1-404-847-9990; or David Waldman or John Nesbett,
both of Lippert-Heilshorn & Associates, +1-212-838-3777, or email,
dwaldman@lhai.com; or European investor relations, Herbert Strauss,
+011-43-316-296-316, or email herbert@eu-ir.com, all for Perma-Fix
Environmental Services/
/Web site: http://www.perma-fix.com /
(PESI)
CO: Perma-Fix Environmental Services, Inc.
ST: Georgia
IN: ENV
SU: ERN