Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $13.9 million, a slight increase of 2.2% from $13.6 million in Q1 2024 [16] - Gross profit for the quarter was $657,000, compared to a gross loss of $620,000 in Q1 2024 [17] - Net loss for the quarter remained consistent at $3.6 million, with a loss per share of $0.19 compared to $0.26 in the prior year [17] - EBITDA from continuing operations was a negative $3.3 million, an improvement from a negative $4.0 million last year [18] Business Segment Data and Key Metrics Changes - Treatment Segment revenue increased by $477,000 or 5.5% year over year, driven by higher waste volumes received and processed [16] - Services Segment revenue decreased by $175,000 due to delays in federal procurement activity [17] - Gross profit in the Treatment Segment increased by $302,000, while gross profit in the Services Segment increased by $975,000 due to lower variable costs [17] Market Data and Key Metrics Changes - Waste backlog grew to over $10 million by quarter end, up approximately 30% from 2024 [6] - International waste receipts improved, with approximately $7 million worth of waste received from Canada, Mexico, and Germany [11] Company Strategy and Development Direction - The company is focusing on expanding its PFAS program, with significant advancements and commercial shipments from the federal government [9] - Strategic partnerships are being developed to enhance capabilities in PFAS destruction technology [9] - The company aims to diversify revenue through international expansion and strategic partnerships, particularly in Europe and Latin America [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stronger performance in the second half of 2025, supported by key growth drivers including waste treatment backlog and federal procurement visibility [14] - The company is encouraged by the proposed federal budget, which is expected to favorably impact revenue from the DOE [22][23] - Management noted that the operational readiness for the DF Law program at Hanford is on track for an August 1 start, which could lead to significant high-margin recurring revenue [10] Other Important Information - The company is making targeted investments to support new waste receipt capabilities, including staffing and facility readiness [6] - The new EPA Administrator's focus on PFAS remediation is seen as a positive development for the company's future prospects [10] Q&A Session Summary Question: Impact of the 2026 federal budget on 2025 and 2026 - Management indicated that the proposed budget is favorable, with no reduction in Hanford funding and a significant increase in the NNSA side, which could lead to more remediation projects [22][23] Question: Current waste receipts from Hanford - Management confirmed receiving $2 million to $3 million a month from Hanford, significantly higher than in the past [25] Question: Margins from Hanford contracts - Management did not disclose specific margins but emphasized a focus on cost management and operational efficiency [26] Question: Update on grouting and near-term priorities - Management stated that DOE is expected to inform the state of their strategy by December 2025, with optimism about the company's role in the grouting program [34] Question: Contribution from the second-generation PFAS unit - Management expects initial revenue from the new unit to be around $1 million a month, with long-term goals of $20 million a year [39] Question: Update on services and project opportunities - Management noted an increase in project opportunities, particularly in the $20 million to $40 million range, and a positive outlook for upcoming bids [43] Question: CapEx priorities for the next quarters - Management anticipates CapEx in the range of $5 million to $6 million, focusing on sustaining operations and the second-generation reactor [47] Question: Commentary on competition and market dynamics - Management acknowledged competition but expressed confidence in securing a significant portion of the waste due to local operations and community ties [86]

Core Insights - The company reported improved gross margins and a rising backlog driven by increased waste receipts, with a backlog exceeding $10 million, marking a 30% increase from year-end 2024 [2][3] - Strategic investments are expected to enhance performance in the second half of 2025, particularly in the PFAS initiatives and operational readiness for new waste streams [2][3] Financial Performance - Revenue for Q1 2025 was $13.9 million, a slight increase from $13.6 million in Q1 2024, primarily driven by the Treatment Segment which saw revenue rise to approximately $9.2 million from $8.7 million [4] - Gross profit for Q1 2025 was $657,000, compared to a gross loss of $620,000 in Q1 2024, with significant improvements in gross margins for both Treatment and Services segments [5][6] - Operating loss for Q1 2025 was $3.7 million, an improvement from a loss of $4.5 million in Q1 2024, with net loss remaining approximately the same at $3.6 million for both periods [7][8] Segment Analysis - The Treatment Segment's gross profit increased by $302,000, with gross margin improving to 2.7% from (0.6)%, attributed to higher waste volume despite lower average prices [5] - The Services Segment experienced a revenue decrease to $4.7 million from $4.9 million, primarily due to a lack of projects linked to procurement delays [4][5] Strategic Initiatives - The PFAS program is gaining momentum, with the first commercial shipments received from the Federal Government and key upgrades completed to enhance processing efficiency [3] - The company is optimistic about the hot commissioning program for the U.S. Department of Energy's DFLAW facility, which is expected to commence on August 1, 2025, representing a potential long-term revenue catalyst [3]

Core Viewpoint - Perma-Fix Environmental Services, Inc. will host a conference call on May 8, 2025, to discuss company updates and performance [1]. Company Information - Perma-Fix Environmental Services, Inc. is a nuclear services company specializing in nuclear and mixed waste management services, catering to hospitals, research labs, federal agencies, and the commercial nuclear industry [4]. - The company provides a range of services including project management, waste management, environmental restoration, decontamination and decommissioning, and radiological protection [4]. - Perma-Fix operates four nuclear waste treatment facilities and offers services at various Department of Energy (DOE), Department of Defense (DOD), and commercial facilities across the United States [4]. Conference Call Details - The conference call will be accessible via telephone for U.S. callers at 888-506-0062 and for international callers at +1 973-528-0011, with an access code of 146674 [2]. - A webcast of the call can be accessed through the company's investor section on their website [2]. - An archived version of the webcast will be available on the company's website, and a telephone replay will be accessible until May 15, 2025, using the numbers 877-481-4010 for U.S. callers and +1 919-882-2331 for international callers, with access code 52435 [3].

Company Overview - Perma-Fix Environmental Services, Inc. is a nuclear services company specializing in environmental remediation and mixed waste management services [3] - The company provides management and treatment of radioactive and mixed waste for various clients, including hospitals, research labs, federal agencies, and the commercial nuclear industry [3] - Perma-Fix operates four nuclear waste treatment facilities and offers a range of services including project management, environmental remediation, decontamination, and radiological protection [3] Upcoming Event - The company will present at Gabelli Funds' 11th Annual Waste & Environmental Services Symposium on April 3rd, 2025, at the Harvard Club in New York City [1] - Mark Duff, CEO, and Ben Naccarato, CFO, are scheduled to present at 1:15 PM ET and will also engage in one-on-one meetings with qualified investors during the conference [1][2] - The symposium focuses on waste, water treatment, and environmental themes, featuring presentations from senior management of leading companies [2]

Core Insights - Perma-Fix Environmental Services, Inc. will present at Gabelli Funds' 11th Annual Waste & Environmental Services Symposium on April 3rd, 2025, at 1:15 PM ET [1] - The symposium focuses on waste, water treatment, and environmental themes, featuring presentations from senior management of leading companies [2] Company Overview - Perma-Fix Environmental Services is a nuclear services company specializing in environmental remediation and mixed waste management services [3] - The company provides management and treatment of radioactive and mixed waste for various clients, including hospitals, research labs, federal agencies, and the commercial nuclear industry [3] - Perma-Fix operates four nuclear waste treatment facilities and offers a range of services including project management, environmental remediation, and radiological protection [3]

Core Insights - Perma-Fix (NASDAQ: PESI) has experienced a significant decline in share price, losing half of its value since November 2024, which is partly attributed to adverse market conditions affecting small-cap companies [1] Company Analysis - The decline in Perma-Fix's share price may present an opportunity for investors who can identify discrepancies between the company's fundamental value and its current market price [1] - The company is being monitored for potential upcoming catalysts that could positively impact its valuation [1] Market Context - The overall market conditions, particularly for small-cap companies, have contributed to the recent downturn in Perma-Fix's stock price [1]

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]

Perma-Fix Environmental Services (PESI) Q4 2024 Earnings Call March 13, 2025 11:00 AM ET Company Participants David Waldman - Investor RelationsMark Duff - President & CEOBen Naccarato - CFO, Executive VP & SecretaryRoss Taylor - Partner and Portfolio ManagerBob Goodwin - Managing DirectorLouis Centofanti - Founder, Executive VP of Strategic Initiatives & Executive DirectorSteve Fine - Owner Conference Call Participants Aaron Spychalla - Research AnalystNone - Analyst Operator Greetings. Welcome to the Perm ...

Core Insights - Perma-Fix Environmental Services, Inc. reported a significant decline in financial performance for the fourth quarter and full year of 2024, with total revenue dropping to $14.7 million in Q4 2024 from $22.7 million in Q4 2023, and annual revenue decreasing to $59.1 million from $89.7 million in 2023 [3][7][11] - The company is optimistic about a return to growth and profitability in 2025, driven by improving waste volume receipts, a solid backlog, and advancements in PFAS treatment and nuclear services [2][10] Financial Performance - Q4 2024 revenue was $14.7 million, down from $22.7 million in Q4 2023, with a notable decrease in the Services Segment by approximately $6.6 million and in the Treatment Segment by approximately $1.4 million [3][4] - Gross profit for Q4 2024 was $594,000, a decrease from $4.3 million in Q4 2023, with gross margin dropping to 14.7% from 21.3% [4][6] - The company reported an operating loss of approximately $3.6 million in Q4 2024 compared to a loss of $9,000 in Q4 2023, and a net loss of approximately $3.5 million compared to net income of $81,000 in the same period last year [5][6] Annual Results - For the full year 2024, revenue was $59.1 million, down from $89.7 million in 2023, attributed to various factors including poor weather, delays in government procurement, and significant investment in PFAS technology [7][8] - Gross profit for 2024 was $2,000, a sharp decline from $16.4 million in 2023, with gross margin decreasing to approximately (3.2)% from 15.8% [9][11] - The company experienced an operating loss of $15.7 million in 2024, compared to operating income of $756,000 in 2023, and a net loss of approximately $20.0 million compared to net income of $485,000 in 2023 [10][11] Strategic Outlook - The company is focusing on the development of its Perma-FAS technology for PFAS destruction, with expectations to triple processing capacity and incorporate chemical recycling capabilities [2] - Perma-Fix has been awarded a role in the DOE's West Valley Demonstration Project, which aligns with its expertise in radiological protection and waste management [2] - International expansion efforts, particularly in Italy, are on track, with waste treatment operations expected to commence in 2026 [2]