Perma-Fix Environmental Services(US:PESI)2023-05-13 18:40Financial Data and Key Metrics Changes - The company reported a revenue increase of 26.3% in Q1 2023, reaching $20.1 million compared to $15.9 million in Q1 2022 [75] - Gross profit improved by 83.9%, totaling $3 million compared to $1.6 million in the previous year [66][48] - EBITDA for Q1 2023 was $171,000, a significant improvement from a loss of $1.4 million in Q1 2022 [45][49] - The net loss for the quarter was reduced to $411,000 from $1.3 million year-over-year, with a basic loss per share of $0.03 compared to $0.10 [49] Business Line Data and Key Metrics Changes - The Treatment segment saw increased waste shipments from the DOE, contributing to revenue growth [47] - The Services segment also experienced revenue growth due to new project initiations [47] - Incremental expenses in the Services segment decreased to 74% of revenue from 77% in the previous year, indicating improved cost management [48] Market Data and Key Metrics Changes - The company is actively pursuing international waste opportunities, particularly in Germany, Croatia, and Italy, which are expected to provide sustainable revenue [44][32] - The backlog at the end of March 2023 was $9.4 million, consistent with the previous quarter and up from $6.1 million in March 2022 [50] Company Strategy and Development Direction - The company is focused on expanding its waste treatment capabilities and pursuing large-scale contracts with the DOE and other federal agencies [40][69] - The Test Bed Initiative (TBI) is seen as a potential supplement to the vitrification mission, with expectations for operational advancements in 2024 [70][54] - The company aims to leverage its technologies and core competencies to capitalize on increased market potential in various regions [44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued revenue growth and improvement in waste receipts as the impacts of the COVID-19 pandemic subside [41][73] - The company anticipates a significant increase in project work and bidding activities, particularly in the DOE remediation programs [40][72] - Management highlighted the importance of federal budgets and a solid backlog of demand for future growth [73] Other Important Information - The company has been awarded eight new contracts totaling approximately $15 million, expected to be recognized in 2023 [67] - The company is also exploring opportunities in the decommissioning of nuclear facilities, particularly in Germany, which presents lucrative prospects [32][91] Q&A Session Summary Question: What is the expected timeline for the DFLAW facility to become operational? - Management confirmed that the DFLAW facility is expected to be operational in the second half of 2024 [54][96] Question: How does the TBI program relate to DFLAW? - Management clarified that while the TBI program is strategically tied to DFLAW, they are separate programs with different objectives [11][12] Question: What are the prospects for the company's contracts in Europe? - Management indicated strong opportunities in Germany and Italy, with ongoing discussions about contracts that could significantly enhance revenue [32][71] Question: What is the company's competitive position in the market? - Management emphasized that the company's facility has a high barrier to entry for competitors, making it well-positioned in the market [86][102] Question: Is the company expecting to achieve meaningful profitability soon? - Management projected that Q2 2023 would likely show meaningful profitability, building on the positive trajectory from Q1 [115]