Perma-Fix Environmental Services on Thursday reported a 30.2% spike in its second-quarter revenue, from $13.2 million in 2018 to $17.1 million in 2019.
That encompassed a 75.4% sales boost in the Atlanta-based company’s services business, from $4 million last year to $7 million in the latest reporting period, along with a more modest 10.4% revenue bump for the treatment business, from $9.1 million to $10.1 million.
“I am pleased to report we achieved solid revenue growth in both our Treatment and Services Segment, as well as $1.0 million of Adjusted EBITDA and positive net income for the second quarter of 2019,” Perma-Fix President and CEO Mark Duff said in a press release issued before market open. “We believe that this improvement reflects the success of our strategic business development initiatives as well as our efforts to further streamline the business.”
Perma-Fix recorded a major turnaround in operating income for the quarter, from a $799,000 loss last year to being $344,000 in the black in 2019. That came on a steep year-over-year reduction in closure costs for its M&EC waste treatment plant in Tennessee, from $1.2 million to $165,000. Duff announced completion of closure on July 25.
However, net income fell to $289,000, or $0.02 per share, in the latest quarter from $610,000, or $0.05 per share, in 2018. The earlier numbers were assisted by a $1.6 million gain from a May 2018 stock exchange.
A number of new contracts contributed to quarterly revenue growth in the services business, Duff said. They should also generate higher sequential revenue in the current third quarter, according to the CEO. Perma-Fix is “aggressively” pursuing new contracts, now with support from three recently hired executives with a deep background in the nuclear and environmental sectors, he added.
Completion of closure of the M&EC facility focuses the company’s treatment operations at three other sites. “At the same time, we continue to upgrade our facilities and deploy new technologies that we believe position us to support new procurements within the U.S Department of Energy (DOE),” Duff said.
Perma-Fix executives will discuss the latest earnings during an 11 a.m. conference call.
