Exhibit 99.2
PERMA-FIX REPORTS RECORD PROFIT FOR FIRST QUARTER, ENDED MARCH 31, 2006
- Revenue for Nuclear Segment Climbs 11.6 Percent -
ATLANTA, May 9 /PRNewswire-FirstCall/ -- Perma-Fix Environmental Services,
Inc. (Nasdaq: PESI; BSE: PESI; Germany: PES.BE) today announced financial
results for the first quarter ended March 31, 2006. Revenues for the first
quarter of 2006 were $21.1 million versus $21.4 million for the first quarter of
2005, a decrease of 1.5%.
Income from continuing operations for the quarter rose to $1.1 million, from
$109,000 in the same period a year ago. Net income applicable to common stock
for the quarter grew to a record $678,000, or $0.02 per share, from a net loss
applicable to common stock of $168,000 or $0.00 per share, for the same period a
year ago. The 2006 net income applicable to common stock included a loss from
discontinued operations of $450,000 from expenses incurred at the Company's
discontinued operations in Detroit and Pittsburgh.
Dr. Louis F. Centofanti, Perma-Fix chairman and chief executive officer,
said, "This was Perma-fix's best first quarter. In addition to achieving record
first quarter net income, the Nuclear segment is now on a dynamic track."
"Going forward, we envision continued growth in the Nuclear segment. The
segment's continued growth is allowing it to handle new mixed waste streams
which we have not previously handled, as evidenced by a new government contract
that our Nuclear segment entered into during the first quarter of 2006. This
contract has a potential value of approximately $9.4 million over the term of
the contract. In addition, we believe that the recently announced certification
received by our Nuclear segment to dispose of certain types of nuclear related
waste at the Nevada Test site will also assist in its growth.
"Moreover," Centofanti added, "we are anticipating a good year as a whole.
The performance of the Industrial segment is improving as demonstrated by the
increase in gross profit percentage from 18.8% in 2005 to 21.6% in 2006; we are
now near completion of lower margin contracts and we have discontinued our
unprofitable operations in Michigan and Pittsburgh.
Revenues for the Nuclear segment rose 11.6% to $12.2 million, reflecting
growing sales and new contracts in the mixed waste market. Revenue for the
Industrial segment was $8.2 million versus $9.8 million in the same quarter of
the previous year.
The table below presents certain financial information for the business
segments, excluding allocation of corporate expenses.
Quarter Ended March 31, 2006
----------------------------------------
(In thousands) Industrial Nuclear Engineering
------------------------ ----------- ----------- -----------
Net revenues $ 8,222 $ 12,158 $ 738
Gross profit 1,777 4,821 232
Segment profit (loss) (89) 2,706 91
Quarter Ended March 31, 2005
----------------------------------------
Industrial Nuclear Engineering
----------- ----------- -----------
Net revenues $ 9,771 $ 10,896 $ 763
Gross profit 1,836 3,546 155
Segment profit (loss) (166) 1,631 31
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 DOE and the
U.S. Department of 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, the information
concerning continued growth in the Nuclear segment, handling new mixed waste
streams as evidenced by a new government contract having a potential value of
approximately $9.4 million; potential growth as a result of a recently received
certification that our Nuclear segment received to dispose of certain types of
nuclear waste at the Nevada Test site; and anticipating a good year as a whole.
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; our ability to apply and market our technologies, that neither the
federal government nor any other party to a subcontract involving the federal
government terminates or renegotiates any contract granted to us prior to
expiration of the term of the contract as such contracts are generally
terminable or renegotiable on 30 day notice, at the government's option; or the
government or such other party to a contract granted to us fails to abide by or
comply with the contract or to deliver waste as anticipated under the contract;
that pending or future litigation or administrative proceeding (including, but
not limited to, the pending proceedings brought by the U.S. Environmental
Protection Agency against Perma-Fix of Dayton, Inc. ("PFD") alleging that PFD's
operations require it to operate under a title V Air permit and a citizens' suit
against PFD alleging similar matters) is resolved unfavorably to us, and the
additional factors referred to under "Special Note Regarding Forward-Looking
Statements" of our 2005 Form 10-K and the "Forward-Looking Statements" discussed
in our Form 10-Q for the first quarter of 2006. 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
March 31,
(Amounts in Thousands, Except for Per Share ----------------------------
Amounts) 2006 2005
- ------------------------------------------------ ------------ ------------
Net revenues $ 21,118 $ 21,430
Cost of goods sold 14,288 15,893
Gross profit 6,830 5,537
Selling, general and administrative expenses 5,241 4,665
Gain on disposal of property and equipment 3 -
Income from operations 1,586 872
Other income (expense):
Interest income 33 1
Interest expense (357) (412)
Interest expense-financing fees (49) (111)
Other (13) (28)
Income from continuing operations before taxes 1,200 322
Income tax expense 72 213
Income from continuing operations 1,128 109
Loss from discontinued operations (450) (246)
Net income (loss) 678 (137)
Preferred Stock dividends - (31)
Net income (loss) applicable to Common Stock $ 678 $ (168)
Net income (loss) per common share - basic
Continuing operations $ .03 $ -
Discontinued operations (.01) -
Net income per common share $ .02 $ -
Net income (loss) per common share - diluted
Continuing operations $ .03 $ -
Discontinued operations (.01) -
Net income per common share $ .02 $ -
Number of shares and potential common shares
used in net income (loss) per common share:
Basic 44,831 41,778
Diluted 45,349 44,539
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
(Amounts in Thousands, Except for Share Amounts) 2006 2005
- ------------------------------------------------ ------------ ------------
(Unaudited)
ASSETS
Current assets
Cash $ 68 $ 94
Restricted cash 501 511
Accounts receivable, net of allowance for
doubtful accounts of $467 and $512 13,562 16,609
Unbilled receivables 13,975 11,948
Prepaid expenses and other 3,302 3,656
Current assets of discontinued operations - 60
Total current assets 31,408 32,878
Net property and equipment 43,778 44,480
Net property and equipment of discontinued
operations 716 806
Permits 13,246 13,188
Goodwill 1,330 1,330
Finite Risk Sinking Fund 4,361 3,339
Other assets 2,297 2,504
Total assets $ 97,136 $ 98,525
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,842 $ 6,053
Accrued expenses and other 15,818 17,603
Current liabilities of discontinued operations 302 628
Current portion of long-term debt 2,512 2,678
Total current liabilities 23,474 26,962
Other long-term liabilities 9,452 9,279
Long-term liabilities of discontinued operations 3,149 3,149
Long-term debt, less current portion 11,906 10,697
Total long-term liabilities 24,507 23,125
Total liabilities 47,981 50,087
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:
Common Stock, $.001 par value;
75,000,000 shares authorized,
45,824,926 and 45,813,916 shares
issued, including 988,000 shares held
as treasury stock, respectively 46 46
Additional paid-in capital 82,219 82,180
Accumulated deficit (32,533) (33,211)
49,732 49,015
Less Common Stock in treasury at cost;
988,000 shares (1,862) (1,862)
Total stockholders' equity 47,870 47,153
Total liabilities and stockholders' equity $ 97,136 $ 98,525
SOURCE Perma-Fix Environmental Services, Inc.
-0- 05/09/2006
/CONTACT: Dr. Louis F. Centofanti, Chairman and CEO, Perma-Fix Environmental
Services, Inc., +1-770-587-5155; 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,
+43-316-296-316, herbert@eu-ir.com; or Stephanie Stern of Stern & Co.,
+1-212-888-0044 /
/Web site: http://www.perma-fix.com /