Exhibit 99.1
Perma-Fix Announces Restructuring Of Its Industrial Services Segment
- Company Implements Cost Reductions of $3.2 Million -
ATLANTA, Dec. 10 /PRNewswire-FirstCall/ -- Perma-Fix Environmental
Services, Inc. (Nasdaq: PESI; BSE) (Germany: PES.BE) today announced a
restructuring and reduction in force within its Industrial Services Segment to
improve margins and increase this Segment's profitability. These changes are
the culmination of five months of business and financial analysis of all
aspects of the Segment by new Segment management and are necessary to prepare
the Segment for future profitability and growth. This reduction in force,
which was applied at all levels within the Industrial Segment, eliminated
approximately 50 jobs. Additionally, the Segment has changed its strategic
direction away from low-margin broker disposal services, to a more customer-
direct regional sales and operations strategy. The restructuring will be
completed in the fourth quarter of 2003 and will result in a charge of
approximately $200,000. The Company expects the workforce reduction will
result in annual savings of approximately $3.2 million. This reduction did not
affect the Nuclear or Engineering Services Segments.
Dr. Louis Centofanti, Chairman and Chief Executive Officer, said, "The
decision to reduce our headcount was difficult and painful. However, this
reorganization was necessary to facilitate the Industrial Segment's future
growth and improved profitability. Additionally, we are striving to eliminate
low-margin, high volume services and reduce our dependence on outside broker
disposal services in order to focus on higher-quality, higher-margin generator
direct disposal revenue."
Dr. Centofanti also stated that, "The Company's Industrial Services
facility located in Wyandotte, Michigan, recently had a fire requiring this
facility to suspend its bulking activity and the reduction of six jobs which
is included in the total reduction. This incident has not affected any of the
other operations at this facility. The Company's insurance company has been
placed on notice as a result of this incident. The bulking activity of this
facility is being handled by other facilities of the Company."
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 certain statements which constitute forward-
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1996, including statements that the Company expects the
workforce reduction will result in an annual savings of $3.2 million; the
reduction in force is to improve margins and to increase this Segment's
profitability and was necessary for the Industrial Segment's future growth and
improved profitability; and striving to eliminate low-margin, high-volume
services and focus on higher-quality, higher-margin generator direct disposal
revenue. Investors are cautioned that these forward-looking statements are
not guarantees of future performance and involve risks and uncertainties, and
that actual results may differ materiality from those in the forward-looking
statements due to numerous factors, including, but not limited to, general
economic conditions, future environmental regulatory restrictions,
requirements or orders, loss of significant customer or customers and
reduction in the market for the Company's industrial services.
Please visit us on the World Wide Web at http://www.perma-fix.com.
SOURCE Perma-Fix Environmental Services, Inc.
-0- 12/10/2003
/CONTACT: Dr. Louis F. Centofanti, Chairman and CEO, Perma-Fix
Environmental Services, Inc., +1-404-847-9990; or David Waldman,
dwaldman@lhai.com, or John Heilshorn, both of Lippert-Heilshorn & Associates,
+1-212-838-3777; or Herbert Strauss, European investor relations,
+011-43-316-296-316, or herbert@eu-ir.com, for Perma-Fix Environmental
Services/
/Web site: http://www.perma-fix.com/
(PESI)
CO: Perma-Fix Environmental Services, Inc.
ST: Georgia
IN: ENV
SU: