ATLANTA, GA / ACCESSWIRE / November 7, 2019 / Perma-Fix Environmental Services, Inc. ('Perma-Fix' or the 'Company') (NASDAQ:PESI) today announced results for the third quarter and nine months ended September 30, 2019.

Third Quarter 2019 Financial Highlights:

• Revenue for the third quarter of 2019 increased 88.0% to $22.5 million versus $12.0 million for the same period last year
• Services Segment revenue for the third quarter of 2019 increased 332.3% to $12.4 million versus $2.9 million for the same period last year
• Treatment Segment revenue for the third quarter of 2019 increased 10.7% to $10.1 million versus $9.1 million for the same period last year
• Gross profit for the third quarter of 2019 increased to $5.2 million versus $1.8 million for the same period last year; gross profit for the third quarter of 2018 included $1.1 million of closure costs related to the M&EC facility
• Achieved net income attributable to common stockholders of $1.8 million, or $0.15 per share for the third quarter of 2019, compared to $221,000, or $0.02 per share for the same period last year
• Generated adjusted EBITDA (defined below) of $2.4 million compared to $510,000 for the same period last year (see reconciliation to GAAP below)

Mark Duff, President & CEO, stated, 'Perma-Fix achieved strong operational and financial performance during the third quarter of 2019. This performance is in line with the implementation of our corporate growth strategy over the past two years and the dedication of our management team and staff to adapt to new methodologies and initiatives to meet these objectives. Recent contract wins include several new projects within the Department of Energy ('DOE'), as well as commercial contracts, Department of Defense ('DOD') projects and rapid growth in Canada conducting contaminated soil remediation. Our success in managing these projects has resulted in additional prime and subcontractor opportunities that further positions Perma-Fix for growth through 2020.'

'In addition to our strong revenue growth, we are seeing the benefit of our initiatives to improve operational efficiency within the organization, including the consolidation of our waste treatment capabilities within our three treatment plants. As a result, I am pleased to report we achieved net income attributable to common stockholders of $1.8 million for the third quarter of 2019. Overall, we are extremely encouraged by the outlook for the business, as we continue to grow our services business, which we believe provides us good visibility into future quarters. At the same time, we are advancing a number of significant opportunities to leverage our fixed waste treatment facilities by providing innovative treatment options for a variety of nuclear waste streams. We continue to enhance our balance sheet and anticipate further year-over-year growth and strong cash flow in the fourth quarter of 2019 and heading into 2020.'

Financial Results

Revenue for the third quarter of 2019 was $22.5 million versus $12.0 million for the same period last year. Revenue from the Services Segment was $12.4 million versus $2.9 million for the same period in 2018. The increase in Services Segment revenues was attributed to the award of several contracts/task orders for project work since the latter part of the first quarter of 2019. Revenue for the Treatment Segment was $10.1 million for the third quarter of 2019, as compared to $9.1 million for the same period in 2018. The increase was primarily due to higher averaged price waste from waste mix.

Gross profit for the third quarter of 2019 was $5.2 million versus $1.8 million for the third quarter of 2018. Gross profit for the third quarter of 2018 included $1.1 million of closure costs recorded for the M&EC facility in connection with closure of the facility. Excluding the closure costs, gross profit for the third quarter of 2019 increased $2.2 million or 76.7% over the corresponding period of 2018. This improvement was primarily due to increased revenue in both Segments.

Operating income for the third quarter of 2019 was $2.0 million versus an operating loss of $1.0 million for the third quarter of 2018. Operating loss for the third quarter of 2018 included the closure costs of $1.1 million as discussed above. Net income attributable to common stockholders for the third quarter of 2019 was $1.8 million as compared to $221,000 for the third quarter of 2018. Net income attributable to common stockholders for the third quarter of 2018 included the $1.1 million in closure costs as discussed above and a tax benefit in the amount of approximately $1.4 million resulting from the release of a portion of the valuation allowance on deferred tax assets related to indefinite-lived net operating losses generated due to the closure of our M&EC facility. Net income per common share was $0.15 for the third quarter of 2019 versus $0.02 per common share for the third quarter of 2018.

The Company recorded Adjusted EBITDA of $2.4 million from continuing operations during the quarter ended September 30, 2019, as compared to Adjusted EBITDA of $510,000 for the same period of 2018. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before research and development costs related to the Medical Isotope project, closure costs accrued for M&EC subsidiary and net gain on exchange offer of Series B Preferred Stock of M&EC. Both EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with Generally Accepted Accounting Principles in the United States of America ('GAAP'), and should not be considered in isolation of, or as a substitute for, earnings as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. The Company believes the presentation of EBITDA and Adjusted EBITDA is relevant and useful by enhancing the readers' ability to understand the Company's operating performance. The Company's management utilizes EBITDA and Adjusted EBITDA as a means to measure performance. The Company's measurements of EBITDA and Adjusted EBITDA may not be comparable to similar titled measures reported by other companies. The table below reconciles EBITDA and Adjusted EBITDA, both non-GAAP measures, to GAAP numbers for income from continuing operations for the three and nine months ended September 30, 2019 and 2018.

The tables below present certain unaudited financial information for the business segments, excluding allocation of corporate expenses:

		Three Months Ended												Nine Months Ended
		September 30, 2018												September 30, 2018
						(Unaudited)								(Unaudited)
(In thousands)		Treatment				Services				Medical				Treatment				Services				Medical
Net revenues		$	9,103			$	2,881			$	-			$	27,207			$	10,594			$	-
Gross profit			1,564				261				-				5,867 #				1,322				-	Share article: Watch latest videos Subscribe and Follow Get a daily dose of Cleveland Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well. Subscribe Now News RELEASES Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Cleveland Star. More Information 79 ℉ Mostly Cloudy in Cleveland/Burke Business Section Record-breaking Nasdaq leads Wall street higher NEW YORK, New York - U.S. stocks roared on Friday, shrugging off concern about the burgeoning coronavirus in the United ... Pakistani pilots suspect qualifications lead to PIA ban from U.S. LAHORE, Pakistan - The US Department of Transportation on Thursday (local time) suspended Pakistan International Airlines' (PIA) special permit into ... Asian shares end week with a tumble, Hong Kong leads the way SYDNEY, Australia - Stocks in Hong Kong fell sharply on Friday, dragging the rest of the region lower as well.The ... The Asia Pacific region leads global 5G adoption SHANGHAI, China July 9 (Xinhua) -- The Asia Pacific region is leading the world's 5G adoption, said John Hoffman, CEO ... Interceptor 650 becomes second-bestselling two-wheeler in UK CHENNAI, India - Chennai-based motorcycle manufacturer Royal Enfield launched the 650 Twins, Interceptor and Continental GT back in 2018 at ... Bangko Sentral ng Pilipinas governor confident of Philippines economy QUEZON CITY, Philippines (PIA) -- Despite the global economic recession brought about by the COVID-19 pandemic, the Philippine economy remains ... Ohio Section Atlanta United set for showdown with Red Bulls Atlanta United FC might be undefeated thus far in 2020, but they've yet to beat the New York Red Bulls ... Pac-12 opts to hold conference-only season The Pac-12 announced Friday that it will hold a conference-only football season in the wake of the coronavirus pandemic. The ... Indians' Reyes apologizes for not being safe at party Cleveland Indians outfielder Franmil Reyes apologized Thursday for his recent actions at a Fourth of July party. Reyes was spotted ... Big Ten to play only conference games in fall Teams in the fall sports in the Big Ten, including football, will play a conference-only schedule in 2020, the league ... Federal executions to resume, posing a new test for lethal injection Now that the U.S. Supreme Court has refused to hear four inmates' challenge to the specifics of the lethal injection ... Tiger Woods to return next week at Memorial Tiger Woods plans to return to tournament play next week at the Memorial Tournament at Muirfield Village in Dublin, Ohio. ... Movie Review Knives Out