Exhibit 99.2
PERMA-FIX REPORTS RECORD YTD REVENUES AND PROFITABILITY
* Income increases for quarter and YTD
* Record YTD Nuclear Revenues
ATLANTA, Nov. 1 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services,
Inc. (Nasdaq: PESI; BSE: PESI) (Germany: PES.BE) today announced that its income
from continuing operations for the third quarter of 2005 was $1.2 million,
compared to a loss from continuing operations of $7.0 million in the third
quarter of 2004. Net income applicable to common stock for the quarter was $2.0
million, or $0.05 per share, compared to net loss applicable to common stock of
$17.6 million, or $0.42 per share, for the same period in 2004. Net income for
the third quarter of 2005 included $860,000 of income related to discontinued
operations at the Detroit facility, which was closed in the third quarter of
2004.
Revenue for the third quarter ended September 30, 2005, was $23.0 million
compared to $24.3 million for the third quarter of 2004. The 5.3% decrease was
due primarily to a more even distribution of mixed waste shipments under the
Company's government contracts. This resulted in a dramatic increase in second
quarter 2005 shipments and a decrease in the third quarter. Due to this shift,
the Nuclear Segment reported revenue of $11.3 million, a 12.6% decrease when
compared with the 2004 third quarter. The short-term effect of the more
efficient distribution schedule was somewhat offset by the Industrial Segment's
revenue, which increased 4.6% to $11.1 million for the third quarter.
The table below presents certain financial information for the business
segments, excluding allocation of corporate expenses.
Quarter Ended Quarter Ended
September 30, 2005 September 30, 2004
------------------------------------- -------------------------------------
(In thousands) Industrial Nuclear Engineering Industrial Nuclear Engineering
- -------------- ---------- ---------- ----------- ---------- ---------- -----------
Net revenues $ 11,098 $ 11,260 $ 683 $ 10,606 $ 12,886 $ 845
Gross profit 2,350 4,164 185 1,573 5,749 207
Segment profit
(loss) 361 2,061 61 (8,648) 3,904 113
Revenue for the nine months of 2005 increased 16.1% to a record $70.0
million compared to $60.3 million for the nine months of 2004. Revenue for the
Nuclear Segment increased 16.5% to $36.0 million, also a record for the segment.
Revenue for the Industrial Segment increased 18.1% to $31.9 million for the nine
months.
Income from continuing operations for the nine months reached a record $2.6
million, compared to a loss from continuing operations of $7.8 million in 2004.
Net income applicable to common stock for the nine months was $3.0 million, or
$0.07 per share, compared to net loss applicable to common stock of $19.6
million or $0.49 per share, for the same period in 2004. Net income for the 2005
period included $571,000 of income related to discontinued operations at the
Detroit facility, which was closed in the third quarter of 2004.
The table below presents certain financial information for the business
segments, excluding allocation of corporate expenses.
Nine Months Ended Nine Months Ended
September 30, 2005 September 30, 2004
------------------------------------- -------------------------------------
(In thousands) Industrial Nuclear Engineering Industrial Nuclear Engineering
- -------------- ---------- ---------- ----------- ---------- ---------- -----------
Net revenues $ 31,900 $ 35,963 $ 2,145 $ 27,005 $ 30,871 $ 2,401
Gross profit 5,109 13,951 483 4,167 12,272 643
Segment profit
(loss) (887) 7,711 134 (9,876) 6,503 306
Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, commented,
"We are pleased by the progress Perma-Fix has made so far this year. This
progress is most obvious in our record year-to-date revenue and income, which,
for comparison purposes, are not affected by the quarter-by-quarter changes in
waste shipment distribution. The smoothing of shipments, which we have worked
hard to achieve, while making it difficult to make 'apples-to-apples' quarterly
comparisons this year, gives us the long-term benefit of much greater processing
efficiency that benefits both Perma-Fix and its customers.
"In addition, we are very encouraged by our Industrial Segment, which
enjoyed not only increased commercial sales, but also higher margins resulting
from certain operational and processing changes implemented during the quarter,"
Dr. Centofanti said.
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 the smoothing of government-related Nuclear shipments giving our
Nuclear Segment the long-term benefit of much greater processing efficiency that
benefits both Perma-Fix and its customers. This forward-looking statement is
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 or failure to abide by
or comply with contracts or to deliver waste as anticipated, and the Nuclear
Segment's ability to process waste in a manner consistent with current
operations. 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 .
Contacts:
Dr. Louis F. Centofanti, Chairman and CEO
Perma-Fix Environmental Services, Inc.
(404) 847-9990
James Kautz or J. Todd Atenhan
EPOCH Financial Group, Inc.
jkautz@epochfinancial.com
888-917-5105
Herbert Strauss-European investor relations
herbert@eu-ir.com
+43 316 296 316
FINANCIAL TABLES FOLLOW
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
(Amounts in Thousands, Except ----------------------- -----------------------
for Per Share Amounts) 2005 2004 2005 2004
- ------------------------------ ---------- ---------- ---------- ----------
Net revenues $ 23,041 $ 24,337 $ 70,008 $ 60,277
Cost of goods sold 16,342 16,808 50,465 43,195
Gross profit 6,699 7,529 19,543 17,082
Selling, general and
administrative expenses 4,965 4,443 15,342 12,975
Loss (gain) on disposal/
impairment of property
and equipment 4 1,014 (333) 996
Impairment loss on
intangible assets -- 7,101 -- 7,101
Income (loss) from
operations 1,730 (5,029) 4,534 (3,990)
Other income (expense):
Interest income 5 -- 7 2
Interest expense (385) (294) (1,178) (1,535)
Interest expense-
financing fees (48) (1,566) (269) (2,079)
Other (100) (31) (159) (48)
Income (loss) from
continuing operations
before taxes 1,202 (6,920) 2,935 (7,650)
Income tax expense 41 37 324 163
Income (loss) from
continuing operations 1,161 (6,957) 2,611 (7,813)
Discontinued operations:
Income (loss) from
discontinued operations 860 (740) 571 (1,765)
Loss on disposals from
discontinued operations -- (9,835) -- (9,835)
Total income (loss)
from discontinued
operations 860 (10,575) 571 (11,600)
Net income (loss) 2,021 (17,532) 3,182 (19,413)
Preferred Stock dividends 46 48 140 142
Net income (loss)
applicable to Common
Stock $ 1,975 $ (17,580) $ 3,042 $ (19,555)
Net income (loss) per
common share - basic
Continuing operations $ .03 $ (.17) $ .06 $ (.20)
Discontinued operations .02 (.25) .01 (.29)
Net income (loss) per
common share $ .05 $ (.42) $ .07 $ (.49)
Net income (loss) per
common share - diluted
Continuing operations $ .03 $ (.17) $ .06 $ (.20)
Discontinued operations .02 (.25) .01 (.29)
Net income (loss) per
common share $ .05 $ (.42) $ .07 $ (.49)
Number of shares and potential
common shares used in net
income (loss) per common
share:
Basic 42,055 41,648 41,881 40,051
Diluted 44,152 41,648 43,138 40,051
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Sept. 30, Dec. 31,
(Amounts in Thousands, Except for Share Amounts) 2005 2004
- ------------------------------------------------- ---------- ----------
(Unaudited)
ASSETS
Current assets
Cash $ 119 $ 215
Restricted cash 40 60
Accounts receivable, net of allowance for
doubtful accounts of $438 and $570 14,995 17,674
Unbilled Receivables 14,096 9,518
Prepaid expenses and other 4,702 3,818
Current assets of discontinued operations,
net of allowance for doubtful accounts of
$86 and $125 -- 1,609
Total current assets 33,952 32,894
Net property and equipment 45,527 47,261
Property and equipment of discontinued
operations 603 600
Permits 13,186 12,895
Goodwill 1,330 1,330
Finite Risk Sinking Fund 3,216 2,225
Other assets 3,095 3,250
Total assets $ 100,909 $ 100,455
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,753 $ 6,529
Accrued expenses and other 17,809 17,936
Current liabilities of discontinued
operations 2,119 2,550
Current portion of long-term debt 2,766 6,376
Total current liabilities 28,447 33,391
Other long-term liabilities 9,209 9,147
Long-term liabilities of discontinued
operations 1,574 1,804
Long-term debt, less current portion 13,909 12,580
Total long-term liabilities 24,692 23,531
Total liabilities 53,139 56,922
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, 0 and 2,500 shares
issued and outstanding -- --
Common Stock, $.001 par value; 75,000,000
shares authorized, 45,673,537 and 42,749,117
shares issued, including 988,000 shares held
as treasury stock, respectively 46 43
Additional paid-in capital 82,059 80,902
Accumulated deficit (33,752) (36,794)
Interest rate swap (6) (41)
48,347 44,110
Less: Common Stock in treasury at cost;
988,000 shares (1,862) (1,862)
Total stockholders' equity 46,485 42,248
Total liabilities and stockholders' equity $ 100,909 $ 100,455
SOURCE Perma-Fix Environmental Services, Inc.
-0- 11/01/2005
/CONTACT: Dr. Louis F. Centofanti, Chairman and CEO, Perma-Fix
Environmental Services, Inc., +1-404-847-9990; or James Kautz,
jkautz@epochfinancial.com, or J. Todd Atenhan, both of EPOCH Financial Group,
Inc., +1-888-917-5105; or Herbert Strauss-European investor relations,
+011-43-316-296-316, or herbert@eu-ir.com, all for Perma-Fix/
/Web site: http://www.perma-fix.com /