Perma-Fix Environmental Services Inc (NASDAQ:PESI) revealed second quarter revenue gains in results posted before the open on Friday thanks to major growth in its environmental services operations despite delays imposed by the coronavirus.
Overall, revenue for the three months ended June 30 jumped more than 28% year-over-year to $22 million from $17.1 million in the same period of 2019.
Breaking it down, revenue from its services segment more than doubled to $14.2 million from $7 million, while revenue from its treatment segment declined to $7.8 million from $10.1 million.
Gross profit for the quarter was $3.3 million, unchanged year-over-year, and net income was $204,000, $0.02 per share, compared to $289,000, $0.02 per share, last year.
"I am pleased to report that we doubled our services segment revenue versus the same period last year, despite the temporary shutdown of certain projects related to the COVID-19 pandemic,” CEO Mark Duff said. “Nevertheless, most, but not all, of the projects within our services segment are back to normal operation and our sales pipeline is quite robust.”
In July, Perma-Fix was selected by the US Department of Energy (DOE) as part of a team to participate in a 10-year waste management contract, making it eligible to compete for up to $3 billion in task orders.
“Within our treatment segment, we experienced delays in waste shipments as certain customers were restricted or in full shelter in place mode for much of the quarter, due to the pandemic,” Duff added.
“Most of these customers have reopened, and as a result, we have seen a modest increase in receipts through July, with the potential, subject to the impact due to COVID-19, for further improvement during the third quarter."
Based in Atlanta, Perma-Fix is a leading provider of nuclear and waste-management services and also offers engineering-consulting services to the industrial and commercial sectors.
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