Perma-Fix Announces Positive 4Q, Predicts ‘Lumpy’ 2015

Amid announcing an operating loss for 2014, Perma-Fix Environmental Services CEO Lou Centofanti indicated revenue in 2015 would be a little “lumpy,” according to remarks made during the company’s earnings call yesterday. Perma-Fix announced an operating loss of $2.99 million for 2014, better than the $34.4 million operating loss in 2013, but the company did have a net income of $741,000 for the fourth quarter of 2014, up from an operating loss of $30 million in the same period of 2013. Perma-Fix suffered some setbacks in the beginning of 2014 that put the company in a deep hole to begin the year, but an increase in treatment and service business in the second half of the year helped reduce the operating loss for the year.

 

Centofanti, though, said delays in waste shipments will affect the 2015 first quarter results, which could lead to the same “lumpiness” in revenue that occurred in 2014. “We continue to see our largest client, DOE, continue to be linked with several large projects, which are siphoning off waste dollars,” Centofanti said. “We have partially offset this weakness by focusing on other markets, including commercial and international. The strategy is working, but it is a slow process. It takes time to develop these markets, and in the meantime, our revenue continues to be a little bit lumpy.” He later added, “We are encouraged with the outlook for 2015, given our sales pipeline within our service segment and our backlog within our treatment segment.” Centofanti’s optimism, though, did not seem to impress investors. Perma-Fix stock dropped 9.39 percent yesterday after the company’s financial results announcement.