Jeremy L. Dillon
RW Monitor
4/4/2014
Perma-Fix Environmental Services anticipates reporting a net loss for 2013, according to a filing with the Securities and Exchange Commission this week. Perma-Fix notified the SEC that it would be late filing its 2013 financial statements because the company “is engaged in discussions with certain parties, the result of which could affect our 2013 audited financial statements.” According to the company’s SEC filing, though, Perma-Fix anticipates reporting a net loss of approximately $34.5 million for 2013. “The registrant estimates that it will have revenues of approximately $74.4 million for fiscal year 2013 from our continuing operations, a decrease of $53.1 million from revenues of $127.5 million for fiscal year 2012,” the filing said. “Also, the registrant estimates it will have net losses of approximately $34.5 million and $3.1 million from our continuing operations for fiscal year 2013 and 2012, respectively. Our net loss for 2013 from our continuing operations includes a goodwill impairment charge of approximately $27.9 million recorded for three of our four reporting units. It also includes a charge to tax expense of approximately $3.3 million to provide a full valuation allowance on our net deferred tax assets.”
The information contained in the filing stands in stark contrast to the movement of Perma-Fix’s stock price this week. The company achieved a 52-week high stock price of $5.23 on April 2, although the stock dipped to $4.78 by the end of the day. As of the close of business April 3, Perma-Fix’s stock price was $4.98. One possible explanation for the rise could be the recent news that the company has received validation for its process to produce technetium-99m, a much-needed medical isotope. Perma-Fix declined to issue an official comment this week.
SBA Mentor/Protégé Agreement
Perma-Fix also announced this week that it had entered into a Small Business Administration (SBA) approved Mentor/Protégé Agreement with Aerostar SES LLC (ASL), a construction and environmental services company with work across several federal agencies. Perma-Fix will serve as the mentor in the agreement, offering to help apply ASL’s current capabilities to the radiological services arena in an effort to comply with the Department of Energy and prime contractor requirements. “Perma-Fix and its subsidiaries have a history of serving as a viable mentor through the SBA mentor/protégé program and we plan to greatly contribute and make this a true mutually beneficial partnership,” Perma-Fix CEO Lou Centofanti said in a statement. “We look forward to mentoring Aerostar SES LLC in the nuclear business and contributing to their future successes.”
The biggest advantage for ASL, according to the company’s CEO Basil Skelton, is the ability to expand to new markets. According to the release from Perma-Fix, the agreement will include “technical assistance and capability development necessary to expand ASL’s business base in radiological services; management assistance with business development including identifying and marketing new clients, such as DOE and commercial nuclear; developing security plans and obtaining security clearances; and subcontracting opportunities including assistance in performing prime contracts with the government through joint venture arrangements.” Skelton sees this agreement as a learning tool. “Small businesses must diversify and adapt to market changes and we see the mentor/protégé program as a tool to help ASL with that,” Skelton said in a statement. “We are especially excited to be working with Perma-Fix in this capacity and believe that we will complement each other’s strengths to create a successful relationship for all involved.”