Perma-Fix Environmental Services’ net income for the second quarter of 2018 outstripped the number for both the preceding earnings period and the same quarter of last year.
The Atlanta-based waste management company on Wednesday reported $610,000 ($0.05 per share) in net income attributable to common stockholders for the period ended June 30. It was the second consecutive positive showing, rising from $136,000 ($0.01 per share) in the first quarter and posting a significant turnaround from a $1.2 million ($0.10 per share) net loss in second-quarter 2017.
The year-over-year improvement was driven by “a net gain of approximately $1.6 million resulting from the exchange of the Series B Preferred Stock of the Company’s M&EC subsidiary for the Company’s Common Stock in a private placement exchange offer, which was consummated on May 30, 2018,” according to Perma-Fix’s earnings release.
Company-wide revenue also rose, from $12.7 million in second-quarter 2017 to $13.2 million this year. Quarterly gross profit was impaired by $1.2 million in expenses connected to the forthcoming closure of Perma-Fix’s Materials and Energy Corp. facility in Oak Ridge, Tenn.: dropping from $2.4 million last year to an even $2 million in 2018.
Perma-Fix’s services business, which encompasses operations ranging from radiological safety to radioactive materials management, recorded $4 million in revenue, up from $3.1 million in the prior year. Revenue in the treatment segment, covering four waste processing plants, dropped from $9.6 million to $9.2 million. That was largely the result of reduced waste volume and pressure on pricing due to the mix of waste being treated, management said.
“We have worked hard to increase our bidding activity and proposal quality within the Services Segment and we expect to see the results of these initiatives in the next two quarters. Heading into the second half of the year, we remain optimistic for the balance of 2018 based on our current sales pipeline and the improved Department of Energy (DOE) budget,” Perma-Fix President and CEO Mark Duff said in the release. “Through several recent facility upgrades and technology deployments, we believe Perma-Fix is positioned in the future to support new procurements within the DOE as well as providing continued support to the Test Bed Initiative at Hanford.”