Atlanta-based Perma-Fix Environmental Services reported a fall in revenue for the second quarter, which the company attributed to a decrease in revenue in its treatment segment.
The revenue for the second quarter, which ended June 30, was nearly $12.9 million, down from nearly $14.6 million in the year-ago quarter. Factoring in the company’s operating expenses and gross costs, Perma-Fix reported a net loss of about $6.2 million, or a $0.32 loss per basic share, this quarter in comparison to last year’s second quarter when the net loss was $2.7 million or a loss per basic share of $0.15.
Revenue for Perma-Fix’s treatment segment, which manages and processes low-level radioactive, hazardous and non-hazardous waste for the Department of Energy, was at $8.3 million, dropping from $11.4 million in the same quarter of last year. According to Perma-Fix’s Aug. 12 second quarter earnings report, the decline was driven by “lower waste volume and a less favorable revenue mix.”
However, the company’s services segment revenue, which involves technical and onsite nuclear field environmental services, was $4.6 million, up from $3.2 million in the year-ago period. This increase was driven by a higher volume of project work, Perma-Fix said.
Perma-Fix’s President and CEO Mark Duff said the overall financials of the second quarter were not up to par but the company is forecasting some increases in the near future.
“The second quarter did not deliver the financial results we expected, but it did deliver several key operational milestones we have been working toward for years,” Duff said.
“Customer-directed changes in treatment protocols required us to delay processing of certain Hanford-related waste streams received during the quarter, shifting the associated revenue into the second half of the year while the personnel and operating costs we had added in anticipation of those receipts were incurred in the quarter,” Duff continued. “We expect to commence treatment of these wastes during the third quarter.
While occurring outside the second quarter scope of June 30, Perma-Fix was one of three companies awarded a grout subcontract by the Department of Energy’s contractor Hanford Tank Waste Operations & Closure at its Hanford Site on Aug. 11.