Perma-Fix Environmental Services(US:PESI)2024-11-14 06:34Financial Data and Key Metrics Changes - The company reported revenue of $16.8 million for Q3 2024, a decrease of $5.1 million or 23.2% compared to $21.9 million in Q3 2023 [26][28] - Gross profit for the quarter was $1.3 million, down from $4.5 million in the same quarter last year [28] - The net loss from continuing operations was $8.8 million, compared to a net income of $246,000 in the previous year [30] - Total basic loss per share was approximately $0.57, compared to a basic income per share of $0.03 last year [31] Business Segment Data and Key Metrics Changes - In the Treatment segment, revenue decreased by $1.7 million due to lower volume and average price, impacted by reduced waste receipts and operational disruptions [27] - The Services segment revenue fell by $3.4 million, primarily due to the completion of two large projects replaced by smaller ones [26][28] - Gross profit in the Treatment segment dropped by $1.1 million, while the Services segment saw a decrease of $2.1 million [28] Market Data and Key Metrics Changes - The company anticipates receiving several larger waste streams from international sources, including Canada, Mexico, and Germany, expected to generate nearly $7 million in revenue [16] - The company is progressing with a €50 million contract in Italy, with remediation activities expected to start in late 2025 or early 2026 [17] Company Strategy and Development Direction - The company is focused on penetrating the PFAS market, with significant investments in PFAS technology deployment totaling $930,000 for the quarter and $1.6 million year-to-date [13] - The company aims to enhance operational capabilities through the acquisition of the Environmental Waste Operations Center, which will allow for higher productivity and larger waste volumes [15] - The company is pursuing new government and commercial opportunities, targeting several new procurements expected to bring in over $100 million in annual revenues by 2025 [23] Management's Comments on Operating Environment and Future Outlook - Management noted that while market softness has been experienced, trends are beginning to improve, and they are optimistic about revenue generation and productivity improvements [25] - The company is confident in its ability to handle increased capacity as the Hanford facility ramps up operations in 2025 [59] - Management expressed optimism regarding the new administration's focus on commercialization of waste treatment, which aligns with the company's offerings [68] Other Important Information - The company has a treatment backlog of $7.8 million as of September 30, 2024, down from $8.7 million at the end of December 2023 [33] - The company is positioned to receive DFLAW affluent based on anticipated volumes, with expansion programs being designed to support full-scale operations [22] Q&A Session Summary Question: Can you discuss the transformative opportunities for 2025 and 2026? - Management projected revenues from PFAS in 2025 to be in the $3 million to $5 million range, assuming operational optimization and additional units [36] Question: How is the company preparing for the near-term challenges in Q4 and 2025? - Management indicated that Q4 is showing improvement in waste receipts and operational stability, with a good backlog at all plants [53] Question: What is the status of the partnerships related to PFAS treatment? - Management is exploring partnerships with firms that have developed concentrators for PFAS, aiming to treat high concentration PFAS waste [75] Question: What are the prospects for the Hanford facility and grouting opportunities? - Management noted that the DFLAW facility is designed to treat about 1 million gallons a year, and there are plans for a grouting program for the West area tank farms [90] Question: What is the reasoning behind the write-off of the deferred tax asset? - Management did not provide a detailed response to this question during the call [93]