Company Overview - Perma-Fix Environmental Services, Inc (NASDAQ: PESI) is a nuclear service and waste management company based in Atlanta, Georgia, specializing in the treatment, processing, and disposal of nuclear and low-level radioactive waste [1] Business Segments - The company operates in two main segments: Treatment and Services, catering to a diverse customer base [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-11596 PERMA-FIX ENVIRONMENTAL SERVICES, INC. (Exact name of registrant as specified in its charter) Delaware 58-1954497 (State or other jurisdic ...

Perma-Fix Environmental Services (PESI) Q1 2025 Earnings Call May 08, 2025 10:00 AM ET Company Participants David Waldman - President & CEOMark Duff - President & CEOBen Naccarato - EVP & CFO Conference Call Participants Howard Brous - AnalystAaron Spychalla - Research AnalystAaron Warwick - Co-Founder & Stock AnalystNone - Analyst Operator Good morning, everyone, and welcome to the Perma Fix Fiscal First Quarter twenty twenty five Earnings Please note this conference is being recorded. I will now turn the ...

Perma-Fix Environmental Services (PESI) Q1 2025 Earnings Call May 08, 2025 10:00 AM ET Speaker0 Good morning, everyone, and welcome to the Perma Fix Fiscal First Quarter twenty twenty five Earnings Please note this conference is being recorded. I will now turn the conference over to your host David Waldman of Crescendo Communications. David, the floor is yours. Speaker1 Thank you, Jenny, and good morning, everyone. Welcome to Permafix Environmental Services First Quarter twenty twenty five Conference Call. ...

Improved gross margins and rising backlog driven by increased waste receipts Strategic investments expected to position the Company for stronger performance in the second half of 2025 ATLANTA, May 08, 2025 (GLOBE NEWSWIRE) -- Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) (the “Company”) today announced financial results and provided a business update for the first quarter ended March 31, 2025. "Our first quarter results reflect the impact of several transitional headwinds," said Mark Duff, President ...

Contacts: David K. Waldman-US Investor Relations Crescendo Communications, LLC (212) 671-1021 The 11th Annual Waste & Environmental Services Symposium draws companies with a focus on the themes of waste, water treatment, and the environment. This timely conference will feature presentations by senior management of leading companies, with an emphasis on industry dynamics, new technologies, and company fundamentals. To register to attend the symposium, please follow this link. About Perma-Fix Environmental Se ...

Contacts: David K. Waldman-US Investor Relations Crescendo Communications, LLC (212) 671-1021 Herbert Strauss-European Investor Relations herbert@eu-ir.com +43 316 296 31 The 11 Annual Waste & Environmental Services Symposium draws companies with a focus on the themes of waste, water treatment, and the environment. This timely conference will feature presentations by senior management of leading companies, with an emphasis on industry dynamics, new technologies, and company fundamentals. About Perma-Fix Env ...

Shares of Perma-Fix (NASDAQ: PESI ) have been pummeled lately, with the share price cut in half since November 2024. Part of that drop in share price is surely attributable to overall market conditions, most especially for small cap companies. But inI try to be ahead of the curve, looking for opportunities where the market has not yet figured out or appreciated a company's fundamental business or upcoming catalysts. I have an accounting degree from Creighton University and a Masters in Philanthropy and Nonp ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $14.7 million, a decrease of $8 million or 35.2% compared to Q4 2023's $22.7 million [25] - For the full year 2024, revenue was $59.1 million, down $30.6 million or 34.1% from $89.7 million in 2023 [27] - Net loss for Q4 2024 was $3.5 million compared to a net income of $81,000 in Q4 2023, and for the full year, the net loss was $20 million compared to a net income of $485,000 in 2023 [31][32] - EBITDA for Q4 2024 was a loss of $3 million compared to income of $434,000 in Q4 2023, and for the year, EBITDA loss was $13.8 million compared to income of $3.3 million in 2023 [32] Business Segment Data and Key Metrics Changes - Treatment segment revenue decreased by $1.4 million in Q4 and $8.5 million for the year, impacted by lower volumes and pricing [26][27] - Services segment revenue dropped by $6.6 million in Q4 and $22.1 million for the year, primarily due to a lack of large projects [26][27] - Gross profit for Q4 was $594,000, down from $4.3 million in Q4 2023, with both segments experiencing declines due to lower revenue and higher costs [28] Market Data and Key Metrics Changes - Treatment backlog as of December 2024 was $7.9 million, down from $10.7 million at the end of 2023 [35] - Cash on the balance sheet increased to $29 million from $7.5 million at year-end 2023, primarily due to equity raises [33] Company Strategy and Development Direction - The company aims to return to growth and profitability in 2025, driven by a solid backlog and improving project execution [22] - Expansion in the industrial waste market and pursuit of government contracts are key strategic focuses [13][14] - The company is diversifying revenue by expanding into international markets and developing PFAS destruction technology [18][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 2024 due to project delays and federal budget issues but remains optimistic about long-term growth [8][9] - The DF Law program at Hanford is expected to begin operations in August 2025, which is seen as a significant growth driver [11][12] - Management expressed confidence in the company's positioning for upcoming projects despite ongoing federal budget uncertainties [16][17] Other Important Information - The company appointed Troy Echeman as Chief Operating Officer, effective January 23, 2025, to enhance operational efficiency [22] - The second-generation PermaFAST unit is expected to triple processing capacity and is scheduled for deployment in late Q3 2025 [20] Q&A Session Summary Question: Impact of federal budget delays - Management indicated that a government shutdown would have limited impact if it lasts less than two weeks due to a strong backlog [42][44] - They expect limited impact from continuing resolutions, with most projects still moving forward [45][46] Question: Update on DF Law program - The DF Law facility is undergoing an operational readiness review, and initial waste treatment operations are expected to start in mid-Q3 [55][56] Question: Costs associated with PFAS initiatives - The company spent approximately $3 million on PFAS initiatives in 2024, with projections of around $5 million for 2025 [67] Question: Core business profitability - Management acknowledged the need to return to a breakeven base business of $80 million annually and is focused on cost reduction and revenue growth [101][102]

Revenue Performance - Overall revenue decreased by $30,618,000 or 34.1% to $59,117,000 for the twelve months ended December 31, 2024, from $89,735,000 for the corresponding period of 2023[139] - Treatment Segment revenue decreased by $8,524,000 or 19.6% to $34,953,000, while Services Segment revenue decreased by $22,094,000 or 47.8% to $24,164,000[139] - Total gross profit for the twelve months ended December 31, 2024, decreased by $16,367,000 or 100.0% due to decreased revenue generated in both segments[139] - Gross profit for the year ended December 31, 2024, was $16,367,000 lower than 2023, with a gross margin decrease from 18.2% to 0.0%[151] - The Services Segment gross margin decreased from 20.5% to 4.6% due to lower margin projects following the completion of two high-margin projects in late 2023[151] - The Treatment Segment backlog decreased to approximately $7,859,000 in 2024 from $8,702,000 in 2023[158] - The company reported that approximately $40,551,000, or 68.6%, of total revenue in 2024 was generated from federal government contracts, down from $68,595,000, or 76.4%, in 2023[200] Financial Position and Cash Flow - Cash used in operating activities of continuing operations was $(14,146,000) in 2024, compared to $7,069,000 in 2023[163] - Working capital improved to $28,283,000 in 2024 from $4,613,000 in 2023, primarily due to cash from stock sales[165] - Cash provided by financing activities totaled $40,955,000 in 2024, mainly from common stock sales[169] - The company expects to meet its quarterly financial covenant requirements for the next twelve months[173] - Future cash flow assumptions may be impacted by economic slowdowns, inability to scale operations, and significant declines in share price, potentially leading to asset impairment charges[194] - The company has no impairment charges related to its Treatment reporting unit as of October 1 for both 2023 and 2024[192] - The company is preparing for cash flow requirements and ensuring sufficient liquidity for operations over the next twelve months[207] Expenses and Cost Management - Cost of goods sold decreased by $14,251,000 for the year ended December 31, 2024, compared to the year ended December 31, 2023[150] - SG&A expenses decreased by $484,000 to $14,491,000 in 2024, representing 24.5% of revenue, compared to $14,975,000 in 2023, which was 16.7% of revenue[152] - R&D expenses increased by $611,000 in 2024, primarily due to costs associated with new PFAS technology[153] - The company is committed to reducing operating costs and non-essential expenditures[207] Financing Activities - The company completed two public equity raises, selling an aggregate of 4,581,282 shares of Common Stock in May 2024 and December 2024[140] - The company raised approximately $20,000,000 from the sale of 2,051,282 shares of Common Stock at $9.75 per share, with net proceeds used for R&D and business development[176] - The company incurred costs of approximately $1,544,000 related to the stock offering, resulting in net cash proceeds of approximately $18,456,000[178] - In December 2024, the company sold 2,200,000 shares of Common Stock at $10.00 per share, raising total gross proceeds of $25,300,000, including an over-allotment option[179] - The company paid approximately $1,771,000 in fees to the underwriter for the December offering, which represented 7.00% of the gross proceeds[181] - The company paid a total of $37,500 in fees related to the Loan Agreement amendments, which will be amortized as interest expense[171] Contracts and Projects - A contract for the cleanup operations at the West Valley Development Project was awarded, with a maximum value of up to $3 billion over a 10-year ordering period[141] - Revenue from the multi-year contract for the treatment of radioactive waste in Italy is expected to increase starting in 2026 when waste treatment phases begin[141] - The company has completed the fabrication and startup of its first full-scale commercial Perma-FAS system for PFAS destruction, successfully processing approximately 6,000 gallons of AFFF liquids[202] - The company anticipates deploying a second-generation unit of its PFAS technology in Q3 2025, aiming for revenue generation in Q4 2025[203] - The company is positioned for opportunities in Germany and aims to successfully bid on international contracts[207] Regulatory and Compliance Issues - The company is focused on compliance with environmental regulations and managing potential violations[209] - The company faces increased competitive pressures and the need to maintain required permits and approvals[209] - The company is addressing risks related to the non-acceptance of new technology and the expansion of service offerings[209] - Accrued closure costs represent estimated environmental liabilities, with costs calculated based on site-specific evaluations and regulatory requirements[195] Strategic Outlook - The company anticipates improvement in operational results in 2025 due to ongoing initiatives and project transitions[141] - The company anticipates improvements in its base business and operational results by 2025[207] - The company is focused on advancing its PFAS technology, which is expected to exceed current treatment options available[207] - The company is addressing potential reductions in government funding and changes in federal budgeting priorities[207] - The company faces uncertainties regarding future federal government budget decisions, which could negatively impact financial results and contract performance[201] - The company regularly reviews deferred tax assets to assess their potential realization, which could materially impact results if assumptions change[197]