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PermaFix Environmental Services Inc. Reports Operating Results (10-Q)

November 06, 2009 | About:

PermaFix Environmental Services Inc. (NASDAQ:PESI) filed Quarterly Report for the period ended 2009-09-30.

PERMA-FIX ENVIR is a professional waste management company which provides hazardous mixed and industrial waste management services and environmental engineering and consulting services to industrial and commercial customers and the U.S. Government. The Company is active in the research and development of technologies that allow it to address its customer's needs. To date the Company's R&D efforts have resulted in the granting of two patents and the filing of an additional eleven pending patent applications. Permafix Environmental Services Inc. has a market cap of $124.2 million; its shares were traded at around $2.29 with a P/E ratio of 114.5 and P/S ratio of 1.6.

Highlight of Business Operations:

The third quarter of 2009 reflected a revenue increase of $10,545,000 to $26,534,000 or 66.0% from revenue of $15,989,000 for the same period of 2008. Within our Nuclear Segment, we generated revenue of $23,518,000 in the third quarter of 2009, an increase of $10,999,000 or 87.9% from the corresponding period of 2008. The increase in revenue within our Nuclear Segment was primarily due to $9,083,000 in revenue generated from the subcontract awarded to our East Tennessee Materials and Energy Corporation (“M&EC”) subsidiary by CH Plateau Remediation Company (“CHPRC”), a general contractor to the Department of Energy (“DOE”), in the second quarter of 2008. This subcontract officially commenced on October 1, 2008. The remaining increase in revenue in our Nuclear Segment was due to higher priced waste which offset the impact of lower volume of waste. Our Industrial Segment generated $2,128,000 in revenue in the third quarter of 2009, as compared to $2,624,000 for the corresponding period of 2008, or 18.9% decrease. This decrease was primarily the result of lower oil sales revenue resulting from both decreased volume and lower average price per gallon. Revenue for the third quarter of 2009 from the Engineering Segment increased $42,000 or 5.0% to $888,000 from $846,000 for the same period of 2008.

SG&A for the third quarter of 2009 decreased 3.5% to $4,486,000 from $4,648,000 in the corresponding period of 2008.

Net income applicable to Common Stockholders for the quarter ended September 30, 2009 was $2,622,000 or $.05 per share as compared to net loss applicable to Common Stockholders of $341,000 or ($.01) per share for the corresponding period of 2008. Our net income applicable to Common Stockholders for the quarter ended September 30, 2009 included a reduction of approximately $787,000 in costs of goods sold in our Nuclear Segment resulting from a change in estimate related to accrued costs to dispose of legacy waste that were assumed as part of the acquisition of our PFNWR facility in June 2007 (see “Cost of Goods Sold” in this section for further information regarding this reduction). In addition, our loss from discontinued operations for the quarter ended September 30, 2009 included approximately $115,000 in abated interest that was previously expensed in the second quarter of 2009 in connection with an excise tax audit for fiscal years 1999 to 2006 (see “Discontinued Operations” in this section for further information on the abated interest).

Our working capital position at September 30, 2009 was $2,694,000, which includes working capital of our discontinued operations, as compared to a negative working capital of $3,886,000 as of December 31, 2008. The improvement in our working capital was attributed by the reduction of our account payables using funds generated by our operations.

Read the The complete Report

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