Waste management company Perma-Fix Environmental Services is projecting a net loss of about $8.1 million from continuing operations for the second quarter of 2016, a steep drop from the $407,000 in net income recorded for the same period in 2015, according to preliminary quarterly results the company released Tuesday.
The company has requested an extension to file its full second-quarter financial results, citing unexpected delays in “receiving a waiver from its lender for the company’s failure to meet its second quarter fixed charge coverage ratio requirement pursuant to the company’s Amended and Restated Revolving Credit, Term Loan and Security Agreement.”
The company says it plans to issue its final financial results within five business days of Tuesday’s response.
CEO Louis F. Centofanti in the announcement also expressed disappointment that delays of certain waste shipments spread from the first quarter to the second quarter.
“These waste shipments are still scheduled and are expected to occur in the second half of 2016,” Centofani said. “Despite these delays in our Treatment Segment, we continued to see growth in our Services Segment. Importantly, we anticipate improvement in revenue and cash flow in the second half of 2016.”
The company estimated a net loss attributable to common stockholders of about $8.2 million, or $0.71 per share, for the quarter, which compares to a $154,000 loss, or $0.01 per share, for the same quarter in 2015.
Perma-Fix’s services include decommissioning and decontamination and environmental remediation of nuclear facilities, along with managment and treatment of radioactive and mixed waste. The company focuses on activities with the Department of Energy, the Department of Defense, and the commercial nuclear industry.
The company’s preliminary results project revenue from continuing operations of about $14.8 million for the second quarter of 2016, a decrease of about $1.6 million from the same period in 2015.
The $8.1 million loss projected for the second quarter of 2016 includes “non-cash impairment losses recorded for tangible (property and equipment) and intangible (permit) assets of approximately $1.8 million and $8.3 million, respectively, resulting from the pending shut down of the registrant’s M&EC facility in Oak Ridge, Tennessee.” The net loss also includes a $600,000 write-off in prepaid fees associated with certain permits at the M&EC facility, which is used to treat a variety of mixed low-level waste. Perma-Fix recorded a tax benefit of about $3.2 million, resulting from impairment loss incurred on intangible assets for its M&EC facility, the company said.
