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Perma-Fix Environmental Services looks to 2022 with project backlog of over $66M in Services Segment

Published: 09:23 31 Mar 2022 EDT

Perma-Fix Environmental Services -
"Despite the challenges faced in 2021, we achieved a number of important milestones," the company's CEO said

Perma-Fix Environmental Services (NASDAQ:PESI) Inc said it has over $66 million in project backlog after being awarded strategic projects within its Services Segment.

The nuclear services company is looking ahead to 2022 after taking pandemic-related hits to its bottom line in 2021.

During 4Q, Perma-Fix reported revenue of $17.1 million versus $28.3 million for the same period last year, with an Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) loss of $1.7 million.

The firm’s Treatment Segment was a bright spot, however, with a 57% increase in revenue at $8.9 million versus the same year-ago period, as customers ramped up waste shipments.

READ: Perma-Fix inks term sheet with Westinghouse Electric to build nuclear materials treatment facility in UK

For the 2021 financial year ended December 31, Perma-Fix generated $72.2 million versus $105.4 million in 2020. The company said that the decrease came entirely from its Services Segment, thanks to delays in procurement action and contract awards due to the pandemic.

That should change in 2022, with the $66 million order backlog, CEO Mark Duff told shareholders.

"Despite the challenges faced in 2021, we achieved a number of important milestones. Specifically, we were awarded strategic and high-profile projects within our Services Segment resulting in over $66 million in project backlog, which provides us a solid foundation for 2022 as these projects ramp up,” Duff said in a statement.

“We are encouraged by the approved federal budgets that will directly support our portfolio of Indefinite Delivery/Indefinite Quantity (IDIQ) contracts or multi-award task order contracts (MATOCs). In turn, this is expected to result in the release of a significant backlog of task orders over the next few quarters.”

Duff told shareholders that the company is hopeful that the impacts of the pandemic are behind them. The CEO said that Perma-Fix is in the early phases of defining the opportunities associated with the recently approved 2022 federal spending bill, which allocates $900 million of incremental funding within US Department of Energy's (DOE) Office of Environmental Management, including $7 million for low level waste off-site disposition at Hanford to support the Test Bed Initiative program.

“This budget increase, along with additional potential carryover funding from 2021 provides us the opportunities needed to support increased waste treatment and new projects this year,” Duff added.

“Overall, we remain encouraged by the outlook for the business, with improved visibility, which we believe will allow us to restore the momentum we had prior to the pandemic."

Perma-Fix ended its 2021 financial year with $4.4 million in cash.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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