PermaFix Environmental Services Inc. Reports Operating Results (10-Q)
Permafix Environmental Services Inc. has a market cap of $100.1 million; its shares were traded at around $1.82 with a P/E ratio of 10.1 and P/S ratio of 1.
Highlight of Business Operations:The second quarter of 2010 reflected a revenue increase of $4,398,000 to $28,096,000 or 18.6% from revenue of $23,698,000 for the same period of 2009. Within our Nuclear Segment, we generated revenue of $25,181,000 in the second quarter of 2010, an increase of $4,449,000 or 21.5% from the corresponding period of 2009. Of the $4,449,000 increase in revenue, approximately $2,471,000 was attributed to the increase in revenue generated from the subcontract awarded to our M&EC subsidiary by CH Plateau Remediation Company (“CHPRC”), a general contractor to the Department of Energy (“DOE”), in the second quarter of 2008, to perform a portion of facility operations and waste management activities for the DOE Hanford Site. The remaining increase was attributed to higher activity waste streams. Our Industrial Segment generated $2,249,000 in revenue in the second quarter of 2010, as compared to $1,962,000 for the corresponding period of 2009, or 14.6% increase. The increase was primarily the result of higher volume and increased pricing in certain waste streams as well as increased average pricing per gallon in used oil sales. Revenue from the Engineering Segment decreased $338,000 or 33.7% to $666,000 from $1,004,000 for the same period of 2009.
The second quarter 2010 gross profit increased $1,286,000 or 23.6% from the corresponding period of 2009 due primarily to higher priced wastes and the CHPRC subcontract at M&EC. The gross profit for the quarter also included an increase to the environmental reserve of approximately $844,000 for remediation expenditure for our Perma-Fix of South Georgia, Inc. facility (“PFSG”).
SG&A for the second quarter of 2010 decreased 1.5% to $3,829,000 from $3,889,000 in the corresponding period of 2009.
Our income from continuing operations was $1,515,000 for the second quarter 2010, as compared to $993,000 for the corresponding period of 2009. Our income from continuing operations for the second quarter of 2010 included income tax expense of $1,101,000 as compared to income tax expense of $91,000 for the corresponding period of 2009.
We had a working capital deficit of $663,000 (which includes working capital of our discontinued operations) as of June 30, 2010, as compared to a working capital of $1,490,000 as of December 31, 2009. Our working capital deficit was primarily the result of $2,885,000 in earn-out amount payable recorded in connection with the acquisition of our PFNWR facility in June 2007.
Read the The complete Report