Perma-Fix Environmental Services’ future is likely to be a topic of discussion when the company discusses its third quarter 2013 financial results with investors today in a call scheduled for 10 a.m. Eastern. Perma-Fix saw a net revenue of $19.1 million in the third quarter, compared to $29.2 million for the same period last year, while net loss for the quarter was $808,000 compared to $554,000 in 2012. “The Company is continually reviewing operating costs and is committed to further reducing operating costs to bring them in line with revenue levels,” the company wrote in a filing with the Securities and Exchange Commission. “If we are unable to improve our revenue and working capital during the remainder of 2013, such could result in a material adverse impact on our results and liquidity, including potential impairment of our goodwill and long-lived assets balances. Continued adverse financial conditions could result in our independent auditors expressing substantial doubt about the Company’s ability to continue as a going concern,” the filing states.
Perma-Fix blamed the government’s recent downturn in spending as a major reason for its poor performance. Sequestration has affected budgets of government contracts that use Perma-Fix’s treatment facilities by reducing waste shipments and availability of cleanup jobs, Perma-Fix claimed. In an attempt to off-set the uncertainty within the U.S. market, the company plans to seek more work in the international market. “The Company continues to focus on expansion into both commercial and international markets to help offset the uncertainties of government spending in the USA,” the company wrote in its SEC filing. “This includes new services, new customers and increased market share in our current markets. Although no assurances can be given, we believe we will be able to successfully implement this plan.”
