Perma-Fix Environmental Services (NASDAQ:PESI) Inc has told investors that the global pandemic hit revenue in the first quarter of 2022 but that it saw an improvement in March, and expected revenue expansion to continue in the following quarter amid new contracts and a return to normal business.
In the three months ended March 31, 2022, the Atlanta-based nuclear services company saw revenue of $15.9 million, down from $23.1 million in the same quarter of 2021.
The company, which provides nuclear and mixed waste management services, said the decrease was mainly due to its services segment, where revenue was $8.4 million compared to $15.6 million in the corresponding period a year earlier. In the meantime, Treatment Segment revenue held steady at roughly $7.5 million.
In a statement accompanying the numbers, Perma-Fix CEO Mark Duff said: “We continued to experience the impacts of the pandemic in the first couple of months of the first quarter, which directly resulted in delays for both service and treatment projects.”
“However, we started to realize improved results in March, which we believe will continue in the second quarter of 2022. Specifically, we have completed the transition and startup of several service projects that are close to full operations and contributing to meaningful revenue growth within our Service Segment in the second quarter,” he added.
The Perma-Fix boss said he expects the positive trend to be reflected in “improved financial performance” in the 2Q.
“While the federal government clients have been slow to procure new task orders in 2022, we anticipate a number of these opportunities will be awarded during the second and third quarters,” Duff noted. “Within our Treatment Segment, we are seeing increased demand for waste treatment capacity within both the government and commercial sectors, which we believe bodes well for the balance of 2022.”
In the latest quarter, gross profit was $1.6 million versus $2.4 million for 1Q 2021 due to overall lower revenue and the impact of the firm’s fixed costs at its Treatment Segment plants.
The company reported a net loss of $1.3 million or $0.10 per basic and diluted share for the 1Q compared to $1.1 million or $0.09 per share for the corresponding period in 2021.
However, the company said it is seeing "improvement in activities" from certain new projects.
“Perma-Fix remains well-positioned to resume and exceed the performance levels attained prior to the pandemic through increased bidding activities, waste treatment capability expansion, and rising federal budgets that directly support our core competencies,” noted Duff.
Perma-Fix’s 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 Uttara Choudhury at uttara@proactiveinvestors.com
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