Perma-Fix Environmental Services Inc (NASDAQ:PESI) swung to a profit in its latest quarterly results as the nuclear services company nearly doubled revenue thanks to triple-digit growth from its services segment.
The Atlanta-based firm posted revenue of $22.1 million during the fourth-quarter, an 88.1% increase from the $11.7 million figure it posted in the same period a year earlier.
Its services segment saw revenue increase by 341% to $11.8 million compared to $2.7 million over the same period a year prior.
Net income attributable to shareholders came in at $930,000 or $0.08 per share, swinging from the $2.4 million or $0.20 per share loss it posted in 4Q 2018.
CEO Mark Duff called 2019 a “transformational year” for the company, which closely aligned its nuclear services and waste treatment capabilities to produce a more integrated offering for its customers.
At the same time, Duff told shareholders, Perma-Fix is “realizing the benefits of our recently implemented strategic plan and business development initiatives."
“This is best illustrated by the fact we've been awarded over $65 million in new contracts since the beginning of 2019. We achieved this revenue growth despite the federal government's continuing resolutions, which temporarily reduced spending. Moreover, we have increased our sales pipeline and our Services Segment backlog," he added.
In late December 2019, the federal government awarded Perma-Fix's services segment, via a joint venture, a $15 million contract. The company and its partner will support Lawrence Berkeley National Laboratory through the Department of Energy with remediation, construction, and waste management services. The contract runs for the next 18 months but could be expanded to nearly $20 million.
Treatment segment revenue also increased by 13.5% to $10.3 million versus $9 million in 4Q 2018.
Perma-Fix’s operating income turned the corner to move higher, climbing to $1.2 million, up from a loss of $2.1 million in the same period last year.
The company also updated shareholders on the impact of the coronavirus pandemic on its operations, saying that certain field projects are temporarily suspended and waste shipments delayed until the second quarter.
“We continue to monitor the situation carefully, but believe we are well-positioned to weather such disruptions given our current backlog and balance sheet,” Duff said. “Most importantly, Perma-Fix is a safety-driven organization, committed to our employees, and we will keep investors apprised of any developments."
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