Perma-Fix Environmental Services (NASDAQ:PESI) Inc told investors that the global pandemic had hit revenue in the third quarter but that it was seeing an improvement in 4Q amid new contracts and a return to normal business.
In the three months to September 30, revenue at the nuclear and mixed waste management group came in at $15.8 million, down from $30.2 million in the year-ago quarter.
The company said the decrease was mainly due to its services segment where revenue was $6.9 million, compared to $23.1 million in 3Q, 2020.
Meanwhile, revenue in the group's treatment division was around US$8.9 million, compared to US$7.1 million in the same period last year.
"We have started to see an improvement in the business following the pandemic-related decline," said Mark Duff, CEO in a statement.
"Specifically, our Treatment Segment revenues have begun to increase, which has continued to build heading into the fourth quarter. Importantly, we hope to capitalize on the pent-up demand as the industry returns to normal."
READ: Perma-Fix wins about $50 million in contract awards during 3Q 2021
He added that at the services segment, the government had now begun issuing contract awards, and the firm was starting to see the positive impact. These include a fixed price contract awarded at the end of 3Q worth around $40 million for decommissioning a navy ship.
"I’m pleased to report we have already won a number of service contracts, adding approximately $50 million of project backlog since the start of the third quarter, which we believe should have a positive impact on our results beginning in the fourth quarter and into 2022," said Duff.
"We continue to maintain a solid balance sheet, with cash on hand of more than $7.2 million as of September 30, 2021. As a result, we believe that we are capitalized to execute on our business strategy. We feel our recent funding will allow us to accelerate facility upgrades to support potential new revenue streams from Hanford and other government sites that could be a benefit to our Treatment Segment," he added.
In the latest quarter, gross profit was $2.2 million versus $4.8 million for the third quarter of 2020, while the net income attributable to common shareholders was $1.402 million, almost unchanged from the $1.414 million posted in 3Q, 2020.
Perma-Fix is a nuclear services company and leading provider of nuclear and mixed waste management services. Its nuclear waste services include management and treatment of radioactive and mixed waste for hospitals, research labs, institutions and federal agencies. It operates four nuclear waste treatment facilities.
Contact the author at giles@proactiveinvestors.com