Exhibit 99.2
Perma-Fix Announces Second Quarter Results
ATLANTA, Aug. 2 /PRNewswire-FirstCall/ -- Perma-Fix Environmental
Services, Inc. (Nasdaq: PESI; BSE)(Germany: PES.BE) today announced financial
results for the quarter ended June 30, 2004. Revenues for the quarter were $19.9
million compared to $19.9 million for the same period in 2003. Net income
applicable to common stock for the quarter was $70,000, compared to net loss
applicable to common stock of $1.3 million, or $.04 per share, for the same
period in 2003.
The second quarter of 2004 included $2.7 million in revenue resulting from
sales by our new subsidiaries created 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 second quarter of fiscal 2003 included $625,000 in revenue from the
Company's Newport Hydrolysate Project with the Army.
Results for the quarter reflect an 8.0% increase in revenue from the
Nuclear Segment and a 6.5% decrease in revenue from 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 brokers. Also affecting the Industrial
Segment during the quarter was the ongoing disruption at the Michigan facility
resulting from a fire in the fourth quarter of 2003.
For the six months ended June 30, 2004, consolidated revenues were $37.3
million compared to $39.4 million for the period ended June 30, 2003. Net loss
applicable to common stock for the six months was $2.0 million, or $.05 per
share, compared with net loss applicable to common stock of $1.7 million, or
$.05 per share for the same period in 2003.
Dr. Louis F. Centofanti, Chairman and CEO, commented, "Our recent
restructuring efforts are now beginning to have a very positive effect on the
Industrial Segment. As anticipated, our revenues were down slightly, as the
Industrial Segment eliminated low-margin brokered customers. However, we are now
seeing improved revenues as our new sales efforts take effect. As we analyze the
results of the Industrial Segment for the quarter, the major contributor to its
loss was the operating losses sustained at the Michigan facility, as a result of
its ongoing disruption. Looking ahead, we remain focused on increasing revenues
and achieving sustained profitability within the Industrial Segment, as we
strengthen our dominant position in the Southeast."
Dr. Centofanti continued, "Within the Nuclear Segment, we increased
revenues and achieved profitability during the second quarter. We also
demonstrated a new PCB treatment process for contaminated soils to the U.S.
Environmental Protection Agency. We believe such demonstrations are an important
element to our long-term growth, and this particular technology addresses a
sizeable untapped market. However, as important as this is, the demonstration
also utilized capacity at the M&EC facility, which limited our revenue growth
during the quarter. Nevertheless, as we enter the third quarter, our pipeline is
stronger than ever, and we are encouraged by the outlook for both revenue growth
and improved cash flow in the second half of 2004."
Perma-Fix Environmental Services, Inc. is a national environmental
services company, providing unique mixed waste and industrial waste management
services. 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 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
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 increasing revenue and achieving sustained profitability within
Industrial Segment, strengthening our dominant position in the Southeast, the
Nuclear Segment pipeline being stronger than ever and the outlook for both
revenue growth and improved cash flow in the second half of 2004. 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, changes
in environmental laws, continued disruption at the Michigan facility, and
neither the government nor any party delivering 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 Six Months Ended
June 30, June 30,
(Amounts in Thousands,
Except for Per
Share Amounts) 2004 2003 2004 2003
Net revenues $ 19,868 $ 19,909 $ 37,337 $ 39,427
Cost of goods sold 14,438 15,391 28,346 29,848
Gross profit 5,430 4,518 8,991 9,579
Selling, general and
administrative
expenses 4,417 4,786 8,807 9,166
Income (loss) from
operations 1,013 (268) 184 413
Other income (expense):
Interest income 1 3 2 5
Interest expense (579) (691) (1,249) (1,393)
Interest expense-
financing fees (257) (257) (513) (558)
Other (61) 10 (305) (55)
Net income (loss) 117 (1,203) (1,881) (1,588)
Preferred Stock dividends (47) (48) (94) (94)
Net income (loss)
applicable to
Common Stock $ 70 $ (1,251) $ (1,975) $ (1,682)
Net income (loss)
per common share:
Basic $ -- $ (.04) $ (.05) $ (.05)
Diluted $ -- $ (.04) $ (.05) $ (.05)
Number of shares and
potential common shares
used in net income (loss)
per common share:
Basic 41,448 34,798 39,244 34,702
Diluted 45,210 34,798 39,244 34,702
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands, Except for Share Amounts)
June 30, 2004 December 31, 2003
(Unaudited)
ASSETS
Current assets:
Cash $ 190 $ 411
Restricted cash 61 30
Accounts receivable, net of allowance
for doubtful accounts of $711 and $703 27,347 24,622
Prepaid expenses and other 3,085 3,318
Total current assets 30,683 28,381
Net property and equipment 54,545 53,069
Permits 16,680 16,680
Goodwill 6,216 6,216
Finite Risk Sinking Fund 2,225 1,234
Other assets 4,128 4,635
Total assets $ 114,477 $ 110,215
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,245 $ 6,359
Accrued expenses and other 13,904 14,967
Current portion of long-term debt 2,296 2,896
Total current liabilities 23,445 24,222
Other long-term liabilities 8,809 8,074
Long-term debt, less current portion 21,478 26,192
Total long-term liabilities 30,287 34,266
Total liabilities 53,732 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,
42,545,331 and 37,241,881 shares
issued, including 988,000 shares held
as treasury stock, respectively 43 37
Additional paid-in capital 80,573 69,640
Accumulated deficit (19,218) (17,243)
Interest rate swap (76) (130)
61,322 52,304
Less Common Stock in treasury at cost;
988,000 shares (1,862) (1,862)
Total stockholders' equity 59,460 50,442
Total liabilities and stockholders'
equity $ 114,477 $ 110,215
SOURCE Perma-Fix Environmental Services, Inc.
-0- 08/02/2004
/CONTACT: Dr. Louis F. Centofanti, Chairman and CEO of
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, all for Perma-Fix
Environmental Services, Inc./
/FCMN Contact: pittah@perma-fix.com /
/Web site: http://www.perma-fix.com/
(PESI)
CO: Perma-Fix Environmental Services, Inc.
ST: Georgia, Maryland
IN: ENV
SU: ERN