Perma-Fix Environmental Services (NASDAQ:PESI) Inc CEO Mark Duff said that while revenues in the second quarter were impacted by the effects of the coronavirus (COVID-19) pandemic the company has begun to see "activity pick up in the third quarter” and it expects "an improved second half of 2021.”
In a statement accompanying the company's second-quarter numbers, Duff noted: “Despite the challenging environment, we reported net income of $3 million and maintained over $7 million of cash on the balance sheet.”
“We experienced weakness in our Services Segment due to delays throughout the industry in evaluating bids and awarding procurements, also primarily due to the pandemic. Nevertheless, as we look at our bidding pipeline we are encouraged as these bids are collectively valued in the hundreds of millions of dollars," he added.
READ: Perma-Fix wins multi-million dollar service contract for Tritium Systems Demolition and Disposal project
In July this year, Perma-Fix was awarded a new multi-million dollar service contract for the Tritium Systems Demolition and Disposal project, which is expected to be completed over the next 18 months.
“Revenue for the Treatment Segment remained relatively flat, and we are beginning to realize increases in waste treatment activity both in bidding opportunities, receipts and plant production, which we believe illustrates the improving nature of the market,” said Duff.
“We have also been focusing on advancing our technology offering and were pleased to announce that we have completed design and begun fabrication and construction of our new Therma-Fix Gen3, a third-generation vacuum thermal desorption system. The Therma-Fix Gen3 unit offers a treatment solution for problematic waste streams while providing increased efficiency and productivity," the CEO added.
The Perma-Fix boss said that with initial sales launched in June 2021, and even before the unit has commenced operations, the company has already “secured an existing, on-site waste treatment inventory and sales pipeline, which underscores the “demand for this capability” in both commercial and government sectors.
“This is just another example how we continue to develop new technologies to treat some of the world's most challenging waste streams,” said Duff. “Overall, while we are disappointed in our Q2 performance, we believe Perma-Fix is well-positioned for growth and I am proud of the business development efforts our team has initiated and completed, which highlights our ability to adapt to the market.”
For the second quarter ended June 30, 2021, the Atlanta-based nuclear services company reported revenue of $16.1 million, compared to $22 million in the second quarter of 2020. The company said the decrease was within the Services Segment where revenue fell to $8.4 million in the 2Q from $14.2 million in the same period a year earlier due to “delays in procurement actions and contract awards primarily from the impact of COVID-19.”
The firm added that the completion of “a certain large project within the Services Segment in the second quarter of 2021 exacerbated the revenue decrease.”
Meanwhile, the company said revenue for the Treatment Segment was around $7.7 million which was negatively impacted by “waste shipment delays from certain key customers due primarily to impact of COVID-19.”
Gross profit for 2Q was $966,000, compared to $3.3 million for 2Q 2020 primarily due to lower revenue generated by the Services Segment.
Perma-Fix’s Treatment Segment handles a magnitude of contaminated wastes for economic and compliant disposal in its permitted and licensed operating facilities. The division also serves the commercial nuclear industry. The Services Segment, meanwhile, employs innovative technology professionals that are trained to provide radiological protection and environmental remediation services.
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