Perma-Fix Environmental Services Inc (NASDAQ:PESI) announced Tuesday it achieved a profit during the first quarter of 2020 as revenue jumped by triple digits thanks to explosive growth in its Services Segment.
In a statement, the company said net income attributable to common stockholders was $1.2 million, or $0.10 per share, compared to a loss of $672,000, or ($0.06) per share for the same period last year.
Revenue increased by 112.3% year-over-year to $24.9 million, led by Services Segment revenue which spiked by 748% year-over-year to $15.3 million due to the award of several contracts and task orders. Treatment Segment revenue fell slightly to $9.6 million from $9.9 million in the year-ago period on lower waste volume as a result of the coronavirus (COVID-19) pandemic.
READ: Perma-Fix Environmental Services wins two federal contracts valued at $3.7M to treat radioactive materials
Gross profit increased to $4.6 million, versus $2.5 million for the same period last year and Perma-Fix generated adjusted EBITDA of $1.9 million compared to $67,000 for the same period in 2019.
In addition, the company said it has extended a credit facility with PNC Bank through to May 15, 2024, and increased its revolver capacity from $12 million to $18 million
Perma-Fix CEO Mark Duff praised the Atlanta-based company's quarterly financials, noting that 1Q is “historically a seasonally weak period” for it.
“We attribute this improvement to implementation of our strategic plan resulting in growth in our Services Segment, which increased more than eight-fold versus the same period last year,” Duff said.
“Not only have we been awarded a number of new contracts within the Services Segment, but our sales pipeline remains robust with a number of ongoing bidding opportunities. Despite some delays in shipments related to the impact of COVID-19 in mid-March, our Treatment Segment was able to work off the backlog and continues to diversify waste streams and waste receipts within the commercial sector."
Perma-Fix also gave an update on how it is dealing with the coronavirus pandemic, which forced the company in March and April to curtail operations and initiate layoffs as well as work-from-home policies.
The provider of nuclear and waste-management services said it is beginning to remobilize on certain projects as field crews are being reactivated, and it believes it has sufficient backlog to address the recent slowdown and that shipments will resume in June
Perma-Fix also said it has secured $5.6 million under the Paycheck Protection Program that was established under the recently enacted Coronavirus Aid, Relief and Economic Security Act.
“These funds have allowed Perma-Fix to recall all staff and currently expects to avoid future furloughs and layoffs for eligible employees, however, the situation remains fluid and the company is continuing to carefully monitor the situation,” it said.
The company's stock recently traded 8.4% higher to $6.20 a share in New York.
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