Exhibit 99.2
PERMA-FIX ANNOUNCES RESULTS FOR THE FOURTH QUARTER AND FISCAL 2005
* 2005 Record Revenues Increase 10.2%
* 2005 Net Income Grows to a Record $3.6 million vs a Loss of
$19.6 million in 2004
ATLANTA, March 7 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services,
Inc. (Nasdaq: PESI) (BSE: PESI) (Germany: PES.BE) today announced financial
results for the fourth quarter and fiscal 2005. Revenues for the quarter ended
December 31, 2005, totaled $21.5 million, compared to $22.8 million for the same
period in 2004. Revenue for the Industrial Segment was $9.5 million, down
$704,000 principally due to the contract termination from a major home
improvement chain, which was announced in October 2005. Revenue for the Nuclear
Segment was $11.3 million, a $526,000 decrease from the 2004 fourth quarter. We
have continued to work with the government to smooth out the waste shipments and
as a result have experienced more consistent receipts throughout 2005. However,
from a comparative perspective, the fourth quarter of 2004 reflected the benefit
of several larger shipments and certain surcharges recorded during the period.
Although the fourth quarter of this year was down, the Nuclear Segment finished
overall higher in 2005, as noted below.
Net income, applicable to Common Stock, for the fourth quarter 2005 was
$541,000 or $.01 per share compared to $4,000 for the same period in 2004. In
the 2005 fourth quarter, the Company had income from discontinued operations of
$289,000 as a result of a gain of $510,000 from the final Michigan insurance
settlement. Discontinued operations includes the Michigan facility which was
shut down in 2004 and the Pittsburgh, Pennsylvania, facility which was shut down
in November 2005.
The table below presents certain financial information for the business
segments, excluding allocation of corporate expenses.
Quarter Ended Quarter Ended
December 31, 2005 December 31, 2004
---------------------------------------- ----------------------------------------
Industrial Nuclear Engineering Industrial Nuclear Engineering
----------- ----------- ----------- ----------- ----------- -----------
(In thousands)
Net revenues $ 9,475 $ 11,282 $ 708 $ 10,179 $ 11,808 $ 803
Gross profit 1,450 4,149 186 2,064 4,469 169
Segment profit
(loss) (1,064) 2,430 48 (3,022) 2,737 70
For the twelve months ended December 31, 2005, revenues increased by
approximately 10.2% to a record $90.9 million, compared to $82.5 million in
2004. Results for fiscal 2005 reflect a 10.7% increase in revenue from the
Nuclear Segment to $47.2 million, and an 11.4% increase in revenue from the
Industrial Segment to $40.8 million. The increase in the Nuclear Segment was
principally attributable to the Company's continued expansion within the mixed
waste market, including new government and commercial contract awards.
For the twelve months ended December 31, 2005, net income, applicable to
Common Stock, totaled $3.6 million or $.08 per share, compared to a loss of
$19.6 million or $.48 per share in 2004. Results for 2005 include income from
discontinued operations of $670,000.
The table below presents certain financial information for the business
segments, excluding allocation of corporate expenses.
Twelve Months Ended Twelve Months Ended
December 31, 2005 December 31, 2004
---------------------------------------- ----------------------------------------
Industrial Nuclear Engineering Industrial Nuclear Engineering
----------- ----------- ----------- ----------- ----------- -----------
(In thousands)
Net revenues $ 40,768 $ 47,245 $ 2,853 $ 36,600 $ 42,679 $ 3,204
Gross profit 6,627 18,100 669 6,160 16,741 812
Segment profit (1,762) 10,141 182 (12,900) 9,240 376
(loss)
Dr. Louis F. Centofanti, Chairman and CEO, commented, "We are pleased with
the progress that Perma-Fix has made over the past year. We have achieved
revenue increases in our two major segments, which resulted in record revenues
on a consolidated basis for 2005, record revenues for our Nuclear Segment for
2005, four profitable quarters from continuing operations and a very positive
change in our net income for the year. All the while, we have been executing our
plans to increase revenue, efficiency and profitability. We continue to
strengthen our balance sheet and have significantly improved our liquidity and
working capital position this year. We believe that 2006 will be a very exciting
year of growth for Perma-Fix."
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 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, the information
concerning possible or assumed future results of operations of the company, our
increased revenue, efficiency and profitability and 2006 being a very exciting
year of growth for Perma-Fix. 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 apply and market its technologies, 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, and satisfactory
resolution of the actions brought relating to air issues at our Dayton, Ohio and
Tulsa, Oklahoma facilities. 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
For the periods ended December 31
(Amounts in Thousands, Three Months Twelve Months
Except for Share ------------------------------------------------
Amounts) 2005 2004 2005 2004
--------- --------- --------- ---------
Net Revenues $ 21,465 $ 22,790 $ 90,866 $ 82,483
Cost of goods sold 15,680 16,088 65,470 58,770
Gross Profit 5,785 6,702 25,396 23,713
Selling, general and
administrative expenses 5,078 5,521 20,443 18,461
Loss (gain) on disposal
or impairment of fixed
assets (1) (2) (334) 994
Impairment loss on
intangible assets -- 1,901 -- 9,002
Income (loss) from
operations 708 (718) 5,287 (4,744)
Other income (expense):
Interest income 126 1 133 3
Interest expense (418) (486) (1,594) (2,020)
Interest expense -
financing fees (48) (112) (318) (2,191)
Other 8 (442) 7 (456)
Income (loss) from
continuing operations
before taxes 376 (1,757) 3,501 (9,408)
Income Taxes 108 6 432 169
Income (loss) from
continuing operations 268 (1,763) 3,069 (9,577)
Discontinued operations:
Income (loss) from
discontinued operations 289 1,158 670 (606)
Income (loss) on disposal
of discontinued
operations -- 657 -- (9,178)
Total income (loss)
from discontinued
operations 289 1,815 670 (9,784)
Net income (loss) 557 52 3,739 (19,361)
Preferred Stock dividends (16) (48) (156) (190)
Net income (loss)
applicable to Common Stock $ 541 $ 4 $ 3,583 $ (19,551)
Net income (loss) per
common share - basic:
Continuing operations $ .01 $ (.04) $ .07 $ (.24)
Discontinued operations -- .04 .01 (.24)
Net income (loss) per
common share $ .01 $-- $ .08 $ (.48)
Net income (loss) per
common share - diluted:
Continuing operations $ .01 $ (.04) $ .07 $ (.24)
Discontinued operations -- .04 .01 (.24)
Net income (loss) per
common share $ .01 $ -- $ .08 $ (.48)
Number of shares and
potential common shares
Used in computing net
income (loss) per share:
Basic 44,754 41,747 42,605 40,478
Diluted 47,512 43,947 44,804 40,478
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31
(Amounts in Thousands,
Except for Share Amounts) 2005 2004
- ------------------------------------------------------- ------------ ------------
ASSETS
Current assets
Cash $ 94 $ 215
Restricted cash 511 60
Accounts receivable, net of allowance for doubtful
accounts of $512 and $560 16,609 17,408
Unbilled receivables 11,948 9,518
Prepaid expenses and other 3,656 3,810
Current assets of discontinued operations 60 1,883
Total current assets 32,878 32,894
Net property and equipment 44,480 46,898
Net property and equipment of discontinued operations 806 963
Permits 13,188 12,895
Goodwill 1,330 1,330
Finite Risk Sinking Fund 3,339 2,225
Other assets 2,504 3,250
Total assets $ 98,525 $ 100,455
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,053 $ 6,361
Accrued expenses and other 17,603 17,857
Current liabilities of discontinued operations 628 2,797
Current portion of long-term debt 2,678 6,376
Total current liabilities 26,962 33,391
Other long-term liabilities 9,279 8,997
Long-term liabilities of discontinued operations 3,149 1,954
Long-term debt, less current portion 10,697 12,580
Total long-term liabilities 23,125 23,531
Total liabilities 50,087 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, respectively -- --
Common Stock, $.001 par value; 75,000,000 shares
authorized, 45,813,916 and 42,749,117 shares
issued, including 988,000 shares held as treasury
stock, respectively 46 43
Additional paid-in capital 82,180 80,902
Accumulated deficit (33,211) (36,794)
Interest rate swap -- (41)
49,015 44,110
Less Common Stock in treasury at cost; 988,000 shares (1,862) (1,862)
Total stockholders' equity 47,153 42,248
Total liabilities and stockholders' equity $ 98,525 $ 100,455
SOURCE Perma-Fix Environmental Services, Inc.
-0- 03/07/2006
/CONTACT: Dr. Louis F. Centofanti, Chairman and CEO, Perma-Fix Environmental
Services, Inc., +1-404-847-9990; or James Kautz or J. Todd Atenhan, both of
EPOCH Financial Group, Inc., +1-888-917-5105, or jkautz@epochfinancial.com, or
Herbert Strauss, European investor relations, +43-316-296-316, or
herbert@eu-ir.comherbert@eu-ir.com, all for Perma-Fix/
/Web site: http://www.perma-fix.com /