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Yes, Lou talked specifically about reaching 6 curies-- i recall him saying a few months needed to do that, including full analysis and compilation of data.
Had to miss the call, but wondered if they discussed if tests are still ongoing with their resin, or if 4 curie level was the highest they could attain? Sounds like 4 curies is sufficient to exceed industry requirements in emerging markets, but that 5 curies + may be needed to demonstrate superiority over traditional processes in the US / Europe.
I was hoping they'd push the envelope even further since they mentioned a couple of months ago that they had plans to scale up even further past the 4 curie level...
For me, the issue is one of timing. There are a number of steps to be taken before acquiring market share. That's why I don't see a rush to add shares here. But I sure like this company and where they're going.
Kind regards,
Minding
I forgot to mention on this board that Lou explicitly stated to the caller Robert Manning that PESI mgmt feel they can grab 40-60% of the Tc-99 market, somewhat more in Europe and somewhat less in N.America. That would be huge-- he kept using the figure "$500 million in revenues..."
I assume that at present ownership of 60% of Perma-Fix Medical, that's $300M for PESI, with obviously a chance for PESI to buy up more ownership before they are in a revenue-generating era from their Tc-99.
Agree. A good call following acceptable results. I'll consider adding more perhaps in December.
Kind regards,
Minding
PESI-- i agree, Cliff. Excellent conf. call with lots of extra color beyond the earnings PR; on that revenue delay from 2nd into 3rd quarter, it sounds from Lou's remarks that it's already been (or being) booked.
Lou was really excited talking extensively with one of the callers, Robert Manning, about the efficacy and market-size for the Tc-99 product. Lou also said ownership of Perma-Fix Medical is now around 60%... that seems higher than what i previously recall.
FDA submission probably around end of year-- Lou thought that THAT event is what could really move the shareprice, even well short of FDA approval down the road and actually getting product to market.
Also, Lou told the first caller that news on one of the big bids should be happening over the next 2-3 months... (that too should move the s/p up big).
I love the improved margins here on the treatment/services segment.
S.Alpha should have the full cc transcript later today.
Perma-Fix Announces Financial Results and Provides Business Update for the Second Quarter of 2015
ATLANTA, GA -- (Marketwired) -- 08/06/15 --
Perma-Fix Environmental Services, Inc. (NASDAQ: PESI)today announced results for the second quarter ended June 30, 2015.
Company Highlights
Revenue increased 29.2% to $16.4 million compared to Q2 2014
Treatment Segment revenue increased 18.0% compared to Q2 2014
Services Segment revenue increased 61.5% compared to Q2 2014
Gross profit increased 159.0% and gross margin increased to 24.7% compared to 12.3% for Q2 2014
Adjusted EBITDA (as defined below) of $2 million compared to a loss of $0.4 million for Q2 2014
Reaffirms adjusted EBITDA (as defined below) guidance of $6M to $7M for 2015
Achieves $2.8 million increase in net income from continuing operations, net of taxes, to $407,000 or $0.05 per share
Dr. Louis F. Centofanti, Chief Executive Officer, stated, "We are pleased to report continued improvement in our financial results, as evidenced by a 29% increase in revenue and a 159% increase in our gross profit. Revenue in our Treatment Segment increased 18% to $11.1 million due to higher waste volume, while revenue in our Services Segment increased 61.5% to $5.3 million due to new contracts that have been awarded. Moreover, Adjusted EBITDA in the second quarter was $2.0 million, compared to a loss for the same period last year. We attribute this improvement to a combination of top line growth and our successful initiatives to streamline operations. Our second quarter results were impacted by a scheduling change that moved a large shipment into the third quarter, which we have subsequently received. We continue to anticipate improvement in both revenue and profitability in the second half of the year, and reaffirm our prior guidance for adjusted EBITDA in the range of $6 million to $7 million."
Dr. Centofanti continued, "We are also pleased to report a number of important developments within Perma-Fix Medical S.A., our Polish subsidiary, including the expansion of our senior management team and the successful scale-up of our process to produce Technetium-99m ("Tc-99m") from Molybdenum-99 ("Mo-99"). The tests confirmed that the our proprietary resins could withstand higher levels of radiation, up to 4 curies, while producing clinically useful doses of Tc-99m. These results at the 4 curie level mark a major achievement, which has attracted significant interest from within the industry."
Financial Results
Revenue for the second quarter of 2015 was $16.4 million versus $12.7 million for the same period last year. Revenue for the Treatment Segment was $11.1 million compared to $9.4 million for the same period in 2014. Revenue from the Services Segment was $5.3 million versus $3.3 million for the same period in 2014.
Gross profit for the second quarter of 2015 was $4.0 million versus $1.6 million for the second quarter of 2014. Gross margin increased to 24.7% from 12.3% for the same period last year primarily due to increased revenue generated from both segments and a reduction in certain fixed costs.
Operating income for the second quarter of 2015 was $613,000 versus an operating loss of $2.1 million for the second quarter of 2014. Operating loss for the second quarter of 2014 included a non-cash goodwill impairment charge of approximately $380,000 for our Schreiber, Yonley and Associates ("SYA") reporting unit which was divested on July 29, 2014. Net loss attributable to common stockholders for the second quarter of 2015 was $154,000, or ($0.01) per share, versus net income of $11,000 or ($0.00) per share, for the same period in 2014. Net loss attributable to common stockholders for the second quarter of 2015 included a net loss of $713,000 from discontinued operations and net income attributable to common stockholders for the second quarter of 2014 included a net income from discontinued operations of $2.4 million. Loss from discontinued operations for the second quarter of 2015 included a non-cash asset impairment charge of $150,000 on our Perma-Fix Michigan, Inc. property and a penalty payment of approximately $201,200 in connection with certain alleged violations pertaining to our Perma-Fix of South Georgia, Inc. ("PFSG") subsidiary. Income from discontinued operations for the second quarter of 2014 included a gain on insurance settlement of approximately $3.5 million for our PFSG subsidiary.
The Company recorded Adjusted EBITDA of $2.0 million from continuing operations during the quarter ended June 30, 2015, as compared to Adjusted EBITDA loss of $426,000 for the same period of 2014. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before research and development costs related to the Medical Isotope project and impairment charges on goodwill. Both EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), and should not be considered in isolation of, or as a substitute for, earnings as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. The Company believes the presentation of EBITDA and Adjusted EBITDA is relevant and useful by enhancing the readers' ability to understand the Company's operating performance. The Company's management utilizes EBITDA and Adjusted EBITDA as a means to measure performance. The Company's measurements of EBITDA and Adjusted EBITDA may not be comparable to similar titled measures reported by other companies. The table below reconciles EBITDA and Adjusted EBITDA, both non-GAAP measures, to GAAP numbers for income (loss) from continuing operations for the three and six months ended June 30, 2015 and 2014.
You could either become a moderator for this board and delete it or you could ask Admin to do it. Anyway, it's no big deal to have posted on wrong board....
If only posts could be deleted when posted on the wrong board!
Minding
Not sure what MNOV has to do with this board for PESI?
Please explain....
MNOV having a nice morning.
Remember however it performed this way back in April. This is a WIP.
Kind regards,
Minding
i think that the Digirad CEO's statement is huge:
>Matt Molchan, President and CEO of Digirad, commented, "Perma-Fix Medical S.A. has made significant progress since we began our relationship and we look forward to working closely with them to bring this transformation process to market. We believe the Perma-Fix Medical S.A. process can develop into the standard of production of Tc-99m for many years into the future."
"Standard of production" suggests at least 60-90% marketshare. That would be utterly amazing for the bottom line of PFM and, by extension, PESI (which hopefully will have bought up more ownership of PFM by that point).
Perma-Fix Announces That Its Subsidiary, Perma-Fix Medical S.A., Has Completed Its Strategic Partnership and Investment From Digirad Corporation
Marketwired Perma-Fix Environmental Services, Inc.
1 hour ago
From http://finance.yahoo.com/news/perma-fix-announces-subsidiary-perma-120000466.html
ATLANTA, GA--(Marketwired - July 27, 2015) - Perma-Fix Environmental Services, Inc. (PESI) today announced that its Polish subsidiary, Perma-Fix Medical, S.A., has completed its previously announced strategic partnership and investment from Digirad Corporation, one of the largest national providers of in-office nuclear cardiology imaging services. Digirad uses Technetium-99m (Tc-99m) in its nuclear imaging services business and provides imaging expertise to the medical community.
Under this partnership, Digirad invested $1 million into Perma-Fix Medical S.A., which is a publicly traded company listed on the NewConnect market of the Warsaw Stock Exchange. The investment constituted approximately 5.4% of the outstanding common shares of Perma-Fix Medical S.A. As part of the partnership and investment, Digirad appointed Matt Molchan, President and CEO of Digirad Corporation, to Perma-Fix Medical S.A.'s Supervisory Board. As part of the partnership, upon successful completion of development of the new Tc-99m resin, Digirad will purchase agreed upon quantities of Tc-99m for its nuclear imaging operations either directly or in conjunction with its preferred nuclear pharmacy supplier and Perma-Fix Medical S.A. will supply Digirad or its preferred nuclear pharmacy supplier with Tc-99m at a preferred rate.
Steve Belcher, CEO of Perma-Fix Medical S.A., commented, "We are pleased to have finalized our agreement with Digirad, which we believe will help accelerate development and commercialization of our new proprietary process to produce Tc-99m without the use of uranium. This new process does not use either highly enriched uranium (HEU) or low enriched uranium (LEU), and therefore addresses the major industry challenges of the current process, including waste production, proliferation risk, and a stable supply chain. As one of the leading users of Tc-99m, Digirad is an ideal partner with extensive industry knowledge and expertise to help finalize our development."
Dr. Centofanti, President and CEO of Perma-Fix Environmental Services, Inc. continued, "We are pleased to move forward with our strategic partnership with Digirad, especially in light of our recent tests at the 4 curie level, which confirmed that our proprietary resins could withstand higher levels of radiation. This milestone has gained significant attention within the industry and we are moving forward rapidly with plans to establish additional partners involved in the supply chain."
Matt Molchan, President and CEO of Digirad, commented, "Perma-Fix Medical S.A. has made significant progress since we began our relationship and we look forward to working closely with them to bring this transformation process to market. We believe the Perma-Fix Medical S.A. process can develop into the standard of production of Tc-99m for many years into the future."
About Tc-99m
Tc-99m is the most widely used medical isotope in the world. It allows medical practitioners to image internal body organs and is used in 80%-85% of the 25 million diagnostic nuclear medical procedures each year in the U.S. alone. Common procedures include: cardiac imaging; cancer detection; bone scans; gastrointestinal issues; imaging of the brain, kidney, spleen; and imaging for infections. The radioisotope market in Europe alone is expected to reach $1.6 billion in 2017, up from $1.1 billion in 2012.
Nearly all of the world's supply of Tc-99m comes from the thermal fission of HEU targets in a small number of highly specialized reactors. The current process is costly and from time to time, has experienced disruptions which has resulted in short-term shortages. The current process also raises serious proliferation concerns related to the threat associated with international production, transportation and/or use of HEU in the production of medical isotopes.
Perma-Fix Medical S.A.'s technology overcomes these issues by using neutron capture to activate natural molybdenum, a common metal, to produce Molybdenum 99 (Mo-99), which decays into Tc-99m. Unlike conventional processes, the Perma-Fix Medical S.A. process can be produced locally using standard research and commercial reactors, thereby eliminating the need for special purpose reactors. The new process encompasses the full production cycle, from reactor to final medical supply, and should be easily deployable around the world within the current industry infrastructure.
To overcome past issues with neutron activation of Mo-99, Perma-Fix Medical S.A. has developed a specialized resin that is radiation resistant and holds large quantities of Mo-99, but at the same time releases almost 90% of the Tc-99m as it forms from the decay of Mo-99. The resin, loaded with the activated Mo-99, is placed in a technetium generator and slowly washed with a saline based solution. The eluent solution containing Tc-99m has been shown to meet targeted United States Pharmacopeia (USP) standards for pertechnetate.
About Digirad
Digirad delivers convenient, effective, and efficient diagnostic solutions on an as needed, when needed, and where needed basis. Digirad is one of the largest national providers of in-office nuclear cardiology and ultrasound imaging services, and also provides cardiac event monitoring services. These services are provided to physician practices, hospitals and imaging centers through its Diagnostic Services business. Digirad also sells medical diagnostic imaging systems, including solid-state gamma cameras, for nuclear cardiology and general nuclear medicine applications, as well as provides service on the products sold through its Diagnostic Imaging business. For more information, please visit www.digirad.com. Digirad® and Cardius® are registered trademarks of Digirad Corporation.
About Perma-Fix Medical S.A.
Perma-Fix Medical S.A. is a subsidiary of Perma-Fix Environmental Services Inc., a NASDAQ listed company. It was formed to develop, obtain U.S. Food and Drug Administration (FDA) and other regulatory approvals and commercialize a new process to produce Tc-99m, the most widely used medical isotope in the world. The new process is expected to solve worldwide shortages of Tc-99m as it is less expensive, does not require the use of government-subsidized, weapons-grade materials and can be easily deployed around the world using standard research and commercial reactors, thereby eliminating the need for special purpose reactors. Please visit Perma Fix Medical S.A. at http://www.medical-isotope.com.
About Perma-Fix Environmental Services
Perma-Fix Environmental Services, Inc. is a nuclear services company and leading provider of nuclear and mixed waste management services. The Company's nuclear waste services include management and treatment of radioactive and mixed waste for hospitals, research labs and institutions, federal agencies, including the Department of Energy (DOE), the Department of Defense (DOD), and the commercial nuclear industry. The Company's nuclear services group provides project management, waste management, environmental restoration, decontamination and decommissioning, new build construction, and radiological protection, safety and industrial hygiene capability to our clients. The Company operates four nuclear waste treatment facilities and provides nuclear services at DOE, DOD, and commercial facilities nationwide. Please visit Perma Fix Environmental Service at http://www.perma-fix.com.
This press release contains "forward-looking statements" which are based largely on the each company's expectations and are subject to various business risks and uncertainties, certain of which are beyond each company's control. Forward-looking statements generally are identifiable by use of the words such as "believe", "expects", "intends", "anticipate", "plans to", "estimates", "projects", and similar expressions including, validation of the Perma-Fix Medical S.A. technology, development and commercialization of the Tc-99m process and the benefits of such process. These risks are detailed in Perma-Fix Environmental Services and Digirad Corporations' filings with the U.S. Securities and Exchange Commission, including the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports. Readers are cautioned to not place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and each company undertakes no obligation to revise or update the forward-looking statements contained herein.
Contact:
For Perma-Fix Environmental Services and Perma Fix Medical
David K. Waldman
US Investor Relations
Crescendo Communications, LLC
(212) 671-1021
Herbert Strauss
European Investor Relations
herbert@eu-ir.com
+43 316 296 316
For Digirad Corporation
Jeffry Keyes
Chief Financial Officer
(858) 726-1600
ir@digirad.com
That is from May 8th.
Maybe the co. will announce by then that they have successfully tested up to 5 or 6 curies. It took them such little time to get from 2 to 4, i'm hoping the next jump will also come sooner than later.
Good post, Cleverrox. If PESI can sooner than later get one of those big multi-year contracts (which in recent CCs they say they're close to getting a final decision on their bid), then they could probably take on some debt from a bank to fund at least some of the cost. In their PR they're explicitly talking about finding partnership(s)-- that's where i think most of the funding help will come from to get this through the FDA. Jmo.... I wouldn't even mind some dilution even at the parent-company level, given that the outstanding sharecounts for both PESI and its Perma-Fix Medical subsidiary are still very low....
HUGE news going from 2 curies to 4 curies in such a short time. I think it has only been a few weeks from when the Polish grant was accepted and POLATOM started work on this. They have already ramped from 1.5 curies to 4.0 curies in a few weeks. They only have to go to 5.0 curies to be commercial in the US, Europe and Canada. Things are looking very promising that they can file with the FDA before the year end!
That will give them an FDA filing 3-6 months before Chalk River is scheduled to shut down and disrupt 40% of the world's existing Tc-99 supply chain. IMO there is no way the FDA does not fast track this application. The only question in my mind is how they are going to raise the $6M-$20M to file with the FDA on this and are they going to do it in a timely fashion?
Wow! Getting up to 4 curies... that was quick, so soon after news of hitting 2 curies. I'll post this over at Sheff's big biotech board-- PESI deserves a lot more attention from biotech/healthcare investors.
$$$$$PESI$$$$$ KABOOOOOOOOOOOOOOOOMMMM!!!!!!!!!!
Perma-Fix Medical Confirms Successful Tests at 4 Curie Level; Achieves Another Major Milestone Towards Scale-Up of Non-Uranium Process to Produce Technetium-99m
New Process Eliminates Proliferation Risk and the Need for Either High or Low Enriched Uranium Targets
Marketwired Perma-Fix Environmental Services, Inc.
ATLANTA,GA--(Marketwired - June 08, 2015) - Perma-Fix Environmental Services, Inc. (PESI), today announced that Perma-Fix Medical SA, a subsidiary of the company, completed another successful scale-up of its process to produce Technetium-99m (Tc-99m) from Molybdenum-99 (Mo-99). The tests confirmed that the Company's proprietary resins could withstand higher levels of radiation, up to 4 curies, while producing clinically useful doses of Tc-99m. These results follow previously announced tests that verified success at the 2 curie level. Perma-Fix Medical plans to conduct additional demonstrations at higher curie levels in the near future, as part of its multi-step validation of its technology.
Perma-Fix Medical's process, now verified at the 4 curie level, has numerous benefits over traditional processes for producing Technetium-99m, the most widely used medical isotope in the world, including:
the new process is cost effective and does not require the use of government-subsidized, weapons-grade materials, including Highly Enriched Uranium (HEU) or Low Enriched Uranium (LEU) targets, which are frequently cited as proliferation risks;
the process eliminates many environmental concerns associated with Mo-99 production, including both HEU and LEU processes, both of which produce large quantities of high level waste containing enriched uranium;
it can be performed in most standard research reactors, which should help solve concerns regarding supply shortages of Tc-99m around the world.
Stephen Belcher, CEO of Perma-Fix Medical, commented, "Achieving these results at the 4 curie level marks a major achievement within the industry. We not only exceed industry requirements in many emerging markets that are in need of a decentralized and stable supply chain, but we are also moving rapidly to demonstrate our superiority over traditional processes in the North American and European markets. Based on these results, we remain convinced that our process has the potential to reshape the global supply chain of Tc-99m in the United States and around the world."
Dr. Louis F. Centofanti, CEO of Perma-Fix Environmental Services and Chairman of Perma-Fix Medical, commented, "Following our recent success at the 2 curie level, we have already attracted significant interest from within the industry -- further validating the significance of our process. Given our latest success at the 4 curie level, and near term plans to scale up even further, we are moving forward aggressively with our plans to formalize additional partnerships, prepare for regulatory submission, and, ultimately, commence commercialization of the process."
Tc-99m allows medical practitioners to image internal body organs and is used in 80-85% of the 25 million diagnostic nuclear medical procedures each year in the U.S. alone. Common procedures include: cardiac imaging; cancer detection bone scans; gastrointestinal issues; and imaging of the brain, kidney, spleen and infections. The radioisotope market in Europe alone is expected to reach $1.6 billion in 2017, up from $1.1 billion in 2012.
Nearly all of the world's supply of Tc-99m comes from the thermal fission of highly enriched uranium (HEU) targets in a small number of highly specialized reactors. The current process is costly and has proven an unreliable source of radioactive material leading to severe worldwide shortages. The scheduled closure of the NRU reactor in 2016 and the OSIRIS reactor in France in 2018 are expected to have a further impact on the manufacturing and supply of these isotopes. The current process also raises serious proliferation concerns related to the threat associated with international production, transportation and/or use of HEU in the production of medical isotopes.
Related Quotes
Perma-Fix's technology has the potential to overcome these issues by using neutron capture to activate natural Molybdenum, a common metal, to produce Mo-99, which decays into Tc-99m. Unlike conventional processes, the Perma-Fix Medical process can be produced locally using standard research and commercial reactors, thereby eliminating the need for special purpose reactors. The new process encompasses the full production cycle, from reactor to final medical supply, and should be easily deployable around the world.
To overcome past issues with neutron activation of Molybdenum, Perma-Fix has developed a specialized resin that is radiation resistant and holds large quantities of Molybdenum, but at the same time releases almost 90% of the Tc-99m as it forms from the decay of Mo-99. The resin, loaded with the activated Mo-99, is placed in a Technetium generator and slowly washed with a saline based solution. The eluent solution containing Tc-99m has been shown to meet targeted USP and EUP standards for Pertechnetate.
About Perma-Fix Environmental Services
Perma-Fix Environmental Services, Inc. is a nuclear services company and leading provider of nuclear and mixed waste management services. The Company's nuclear waste services include management and treatment of radioactive and mixed waste for hospitals, research labs and institutions, federal agencies, including the DOE, the Department of Defense ("DOD"), and the commercial nuclear industry. The Company's nuclear services group provides project management, waste management, environmental restoration, decontamination and decommissioning, new build construction, and radiological protection, safety and industrial hygiene capability to our clients. The Company operates four nuclear waste treatment facilities and provides nuclear services at DOE, DOD, and commercial facilities, nationwide.
Please visit us on the World Wide Web at http://www.perma-fix.com.
About Perma-Fix Medical
Perma-Fix Medical is a subsidiary of Perma-Fix Environmental Services Inc., a NASDAQ listed company. It was formed to develop, obtain FDA and other regulatory approval and commercialize a new process to produce Technetium-99 (Tc-99m), the most widely used medical isotope in the world. The new process is expected to solve worldwide shortages of Tc-99m as it is less expensive, does not require the use of government-subsidized, weapons-grade materials and can be easily deployed around the world using standard research and commercial reactors, thereby eliminating the need for special purpose reactors. Please visit us on the World Wide Web at http://www.medical-isotope.com
http://finance.yahoo.com/news/perma-fix-medical-confirms-successful-113000661.html
PESI is a screaming buy, IMO. Metrics look great. Would love to see a quick dip lower so I can scoop up some more.
Looks like one or two parties tried to take some profits, sold about 8k shares and trashed the s/price on the thin trading, then one or more other parties came in and bought a lot more.... like 50k or 60k shares. My plugin is disabled so i can't get ihub to show the actual trades. Maybe someone else can....
Perma-Fix Medical website: http://www.medical-isotope.com/
Thanks hweb2.
Kind regards,
Minding
yes sir. quite positive in my view.
This I presume: http://money.cnn.com/news/newsfeeds/articles/marketwire/11G043444-001.htm
Kind regards,
Minding
=============
Perma-Fix Medical Announces Important Milestone Towards Scale-Up of Non-Uranium Process to Produce Technetium-99m
Marketwired
Confirms Successful Tests at Higher Radiation Levels; New Process Eliminates Proliferation Risk and the Need for Either High or Low Enriched Uranium Targets
June 02, 2015: 07:30 AM ET
Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) today announced that Perma-Fix Medical SA, a Polish subsidiary of the company, completed a successful scale-up of its process to produce Technetium-99m (Tc-99m) from Molybdenum-99 (Mo-99). The tests confirmed that the Company's proprietary resins could withstand high levels of radiation, up to 2 curies, while producing usable doses of Tc-99m. We have also demonstrated the successful tagging of some of the more popular kits used to target organs. Perma-Fix Medical plans to conduct additional demonstrations at even higher curie levels in the near future, as part of its multi-step validation of its technology.
Dr. Louis F. Centofanti, CEO of Perma-Fix Environmental Services, commented, "Achieving these results at higher radiation levels is an important milestone for the company. At the 2 curie level, we now meet the industry requirements in many emerging markets that are in need of a decentralized and stable supply chain. Moreover, we are moving forward with additional demonstrations, which we believe will reinforce the strength of our groundbreaking technology at even higher radiation levels in order to accommodate North American and European customer preferences. Given these encouraging results, we believe our process has the potential to reshape the global supply chain of Tc-99m in the United States and around the world."
"Our process is both cost effective and does not require the use of government-subsidized, weapons-grade materials, including Highly Enriched Uranium (HEU) or Low Enriched Uranium (LEU) targets, which are frequently cited as proliferation risks. Moreover, it can be performed in most standard research reactors, which should help solve concerns regarding supply shortages of Tc-99m around the world. Lastly, we believe our process eliminates many environmental concerns associated with Mo-99 production, including both HEU and LEU processes, both of which produce large quantities of high level waste containing enriched uranium."
By way of background, Tc-99m is the most widely used medical isotope in the world. It allows medical practitioners to image internal body organs and is used in 80-85% of the 25 million diagnostic nuclear medical procedures each year in the U.S. alone. Common procedures include: cardiac imaging; cancer detection bone scans; gastrointestinal issues; and imaging of the brain, kidney, spleen and infections. The radioisotope market in Europe alone is expected to reach $1.6 billion in 2017, up from $1.1 billion in 2012.
Nearly all of the world's supply of Tc-99m comes from the thermal fission of highly enriched uranium (HEU) targets in a small number of highly specialized reactors. The current process is costly and has proven an unreliable source of radioactive material leading to severe worldwide shortages. The scheduled closure of the NRU reactor in 2016 and the OSIRIS reactor in France in 2018 are expected to have a further impact on the manufacturing and supply of these isotopes. The current process also raises serious proliferation concerns related to the threat associated with international production, transportation and/or use of HEU in the production of medical isotopes.
Perma-Fix's technology has the potential to overcome these issues by using neutron capture to activate natural Molybdenum, a common metal, to produce Mo-99, which decays into Tc-99m. Unlike conventional processes, the Perma-Fix Medical process can be produced locally using standard research and commercial reactors, thereby eliminating the need for special purpose reactors. The new process encompasses the full production cycle, from reactor to final medical supply, and should be easily deployable around the world.
To overcome past issues with neutron activation of Molybdenum, Perma-Fix has developed a specialized resin that is radiation resistant and holds large quantities of Molybdenum, but at the same time releases almost 90% of the Tc-99m as it forms from the decay of Mo-99. The resin, loaded with the activated Mo-99, is placed in a Technetium generator and slowly washed with a saline based solution. The eluent solution containing Tc-99m has been shown to meet targeted USP and EUP standards for Pertechnetate.
About Perma-Fix Environmental ServicesPerma-Fix Environmental Services, Inc. is a nuclear services company and leading provider of nuclear and mixed waste management services. The Company's nuclear waste services include management and treatment of radioactive and mixed waste for hospitals, research labs and institutions, federal agencies, including the DOE, the Department of Defense ("DOD"), and the commercial nuclear industry. The Company's nuclear services group provides project management, waste management, environmental restoration, decontamination and decommissioning, new build construction, and radiological protection, safety and industrial hygiene capability to our clients. The Company operates four nuclear waste treatment facilities and provides nuclear services at DOE, DOD, and commercial facilities, nationwide. Please visit us on the World Wide Web at http://www.perma-fix.com.
About Perma-Fix MedicalPerma-Fix Medical is a subsidiary of Perma-Fix Environmental Services Inc., a NASDAQ listed company. It was formed to develop, obtain FDA and other regulatory approval and commercialize a new process to produce Technetium-99 (Tc-99m), the most widely used medical isotope in the world. The new process is expected to solve worldwide shortages of Tc-99m as it is less expensive, does not require the use of government-subsidized, weapons-grade materials and can be easily deployed around the world using standard research and commercial reactors, thereby eliminating the need for special purpose reactors. Please visit us on the World Wide Web at http://www.medical-isotope.com.
This press release contains "forward-looking statements" which are based largely on the Company's expectations and are subject to various business risks and uncertainties, certain of which are beyond the Company's control. Forward-looking statements generally are identifiable by use of the words such as "believe", "expects", "intends", "anticipate", "plans to", "estimates", "projects", and similar expressions. Forward-looking statements include, but are not limited to: Perma-Fix Medical plans to conduct additional demonstrations at even higher curie levels in the near future, as part of its multi-step validation of its technology; we are moving forward with additional demonstrations, which we believe will reinforce the strength of our groundbreaking technology at even higher radiation levels in order to accommodate North American and European customer preferences; we believe our process has the potential to reshape the global supply chain of Tc-99m in the United States and around the world; our process should help solve concerns regarding supply shortages of Tc-99m around the world; we believe our process eliminates many environmental concerns associated with Mo-99 production, including both HEU and LEU processes, both of which produce large quantities of high level waste containing enriched uranium; the scheduled closure of the NRU reactor in 2016 and the OSIRIS reactor in France in 2018 are expected to have a further impact on the manufacturing and supply of these isotopes; and Perma-Fix's technology has the potential to overcome issues by using neutron capture to activate natural Molybdenum, a common metal, to produce Mo-99, which decays into Tc-99m. These forward-looking statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. While the Company believes the expectations reflected in this news release are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this release, including, without limitation, future economic conditions; industry conditions; U.S. and state governmental laws and regulations adopted from time to time; and the additional factors referred to under "Special Note Regarding Forward-Looking Statements" of our 2014 Form 10-K and Form 10-Q for the quarter ended March 31, 2015. The Company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements.
Please visit us on the World Wide Web at http://www.perma-fix.com.
PESI earnings news-- upbeat guidance for 2015 ($6-7M EBITDA on 11.486 million shares) and they beat 2014's Q1 by significant amounts, though still a net loss of 0.16 EPS (beating last year's comp qtr of -0.35). Revenues for both treatment and services, as well as profit margins, etc., all up compared to comp qtr '14. Costs down, except slight increase for medical isotopes research. No shares sold thus far pre-mkt. I assume/hope most shareholders, knowing PESI's seasonality, will be looking forward to next qtr and yearly results, not backward to qtr just passed.
http://perma-fix.com/news.aspx?newsframe=http://ir.stockpr.com/perma-fix/company-news/detail/4717/perma-fix-announces-financial-results-and-provides-business-update-for-the-first-quarter-of-2015?iframe=true&logo=false
Perma-Fix Announces Financial Results and Provides Business Update for the First Quarter of 2015
ATLANTA, GA -- (Marketwired) -- 05/08/15 -- Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) today announced financial results for the first quarter ended March 31, 2015 and provided guidance for fiscal 2015.
Company Highlights
• Treatment Segment revenue increases 27.1% compared to Q1 2014
• Services Segment Q1 2015 revenue increases 34.1% compared to Q1 2014
• Gross margin increases to 10.9% compared to 0.9% for Q1 2014
• Projects Adjusted EBITDA (as defined below) of $6-$7M in 2015
Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, stated, "As is typical in our industry, the first quarter of 2015 was a seasonally slow period, but we are pleased to report that we experienced a significant improvement over the comparable period last year. Revenue within both the Treatment and Services Segments increased 27.1% and 34.1%, respectively and we did dramatically reduce our infrastructure costs. Looking ahead to the second quarter of 2015, we believe that we should have continued revenue and gross profit improvement compared to the second quarter of 2014 and first quarter of 2015. As a result, we anticipate improvement in our adjusted EBITDA for both the first half of 2015 and the full year. Based on our improved visibility, we believe our adjusted EBITDA should be in the range of $6 to $7 million for 2015."
Dr. Centofanti continued, "We continue to make progress within our Perma-Fix Medical S.A. subsidiary. First, we are pleased to report that the previously announced grant funding of $2.8 million under a consortium we formed, led by Perma-Fix Medical S.A., to develop a next generation Technetium-99m ("Tc-99m") generator has been formally accepted. Secondly, at the upcoming shareholder meeting of Perma-Fix Medical S.A., on May 27, 2015, the new senior management team for that subsidiary will be finalized, pending shareholder approval. We believe that Perma-Fix Medical S.A. has assembled an impressive team with strong industry knowledge and experience. Lastly, Perma-Fix Medical S.A. is continuing its efforts to advance the Tc-99m production process towards commercialization and is working closely with its partners. We look forward to announcing additional developments as to Perma-Fix Medical S.A. as they unfold."
Financial Results
Revenue for the first quarter of 2015 was $13.6 million versus $10.5 million for the same period last year. Revenue for the Treatment Segment increased to $9.7 million from $7.6 million for the same period in 2014. Revenue from the Services Segment was $3.9 million versus $2.9 million for the same period in 2014.
Gross profit for the first quarter of 2015 was $1.5 million versus $94,000 for the first quarter of 2014 primarily due to higher revenue in both Treatment and Services Segments. Gross margin increased to 10.9% from 0.9% for the same period last year primarily due to higher revenue and reduction in certain of our fixed costs.
Operating loss for the first quarter of 2015 was $1.8 million versus operating loss of $3.5 million for the first quarter of 2014. Net loss attributable to common stockholders for the first quarter of 2015 was $2.1 million or ($0.18) per share, versus net loss of $4.0 million or ($0.35) per share, for the same period in 2014. Both operating loss and net loss include research and development costs related to the Medical Isotope project totaling approximately $395,000 in Q1 2015 and $134,000 in Q1 2014.
The Company reported Adjusted EBITDA loss of $441,000 from continuing operations during the quarter ended March 31, 2015, as compared to an Adjusted EBITDA loss of $2.1 million from continuing operations during the same period of 2014. The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before research and development costs related to the Medical Isotope project. Both EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), and should not be considered in isolation of, or as a substitute for, earnings as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. The Company believes the presentation of EBITDA and Adjusted EBITDA is relevant and useful by enhancing the readers' ability to understand the Company's operating performance. The Company's management utilizes EBITDA and Adjusted EBITDA as means to measure performance. The Company's measurements of EBITDA and Adjusted EBITDA may not be comparable to similar titled measures reported by other companies. The table below reconciles EBITDA and Adjusted EBITDA, both non-GAAP measures, to GAAP numbers for loss from continuing operations for the three months ended March 31, 2015 and 2014.
Quarter Ended
March 31,
(In thousands) 2015 2014
Loss from continuing operations $ (2,014 ) $ (3,703 )
Adjustments:
Depreciation & amortization 966 1,211
Interest income (8 ) (7 )
Interest expense 126 153
Interest expense - financing fees 58 45
Income tax expense 36 30
EBITDA $ (836 ) $ (2,271 )
Research and development costs related to Medical Isotope project 395 134
Adjusted EBITDA $ (441 ) $ (2,137 )
The tables below present certain unaudited financial information for the business segments, excluding allocation of corporate expenses and research and development costs related to our Medical Isotope project:
March 31, 2015
March 31, 2014
(In thousands) Treatment Services Treatment Services
Net revenues $ 9,749 $ 3,851 $ 7,673 $ 2,871
Gross profit (loss) 1,235 243 111 (17 )
Segment profit (loss) 185 (303 ) (1,174 ) (1,048 )
Conference Call
Perma-Fix will host a conference call at 11:00 a.m. ET on Friday, May 8, 2015. The call will be available on the Company's website at www.perma-fix.com, or by calling (877)-407-0778 for U.S. callers, or +1-201-689-8565 for international callers. The conference call will be led by Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, and Ben Naccarato, Vice President and Chief Financial Officer, of Perma-Fix Environmental Services, Inc.
A webcast will also be archived on the Company's website and a telephone replay of the call will be available approximately one hour following the call, through midnight Friday, May 15, 2015, and can be accessed by calling: (877)-660-6853 (U.S. callers) or +1-201-612-7415 (international callers) and entering conference ID: 13609066.
About Perma-Fix Environmental Services
Perma-Fix Environmental Services, Inc. is a nuclear services company and leading provider of nuclear and mixed waste management services. The Company's nuclear waste services include management and treatment of radioactive and mixed waste for hospitals, research labs and institutions, federal agencies, including the DOE, the Department of Defense ("DOD"), and the commercial nuclear industry. The Company's nuclear services group provides project management, waste management, environmental restoration, decontamination and decommissioning, new build construction, and radiological protection, safety and industrial hygiene capability to our clients. The Company operates four nuclear waste treatment facilities and provides nuclear services at DOE, DOD, and commercial facilities, nationwide. Please visit us on the World Wide Web at http://www.perma-fix.com.
This press release contains "forward-looking statements" […]. Forward-looking statements include, but are not limited to: continued revenue and gross profit improvement compared to the second quarter of 2014 and first quarter of 2015; adjusted EBITDA for both the first half of 2015 and the full year; adjusted EBITDA in the range of $6 to $7 million for 2015; new senior management team at Perma-Fix Medical S.A., pending shareholder approval; and Perma-Fix Medical S.A.'s commercialization of Tc-99m production process. These forward-looking statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. While the Company believes the expectations reflected in this news release are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this release, including, without limitation, future economic conditions; industry conditions; competitive pressures; our ability to apply and market our new technologies; the government or such other party to a contract granted to us fails to abide by or comply with the contract or to deliver waste as anticipated under the contract; that Congress provides continuing funding for the DOD's and DOE's remediation projects; ability to obtain new foreign and domestic remediation contracts; our ability to fund the commercialization of our technology; approvals by required Polish authorities and shareholders of Perma-Fix Medical S.A.; and the "Risk Factors" discussed in, and the additional factors referred to under "Special Note Regarding Forward-Looking Statements" of our 2014 Form 10-K and Form 10-Q for quarter ended March 31, 2015. The Company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements.
Please visit us on the World Wide Web at http://www.perma-fix.com.
FINANCIAL TABLES FOLLOW
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended March 31,
(Amounts in Thousands, Except for Per Share Amounts) 2015 2014
Net revenues $ 13,600 $ 10,544
Cost of goods sold 12,122 10,450
Gross profit 1,478 94
Selling, general and administrative expenses 2,871 3,212
Research and development 404 371
Loss from operations (1,797 ) (3,489 )
Other income (expense):
Interest income 8 7
Interest expense (126 ) (153 )
Interest expense-financing fees (58 ) (45 )
Foreign currency loss (5 ) -
Other - 7
Loss from continuing operations before taxes (1,978 ) (3,673 )
Income tax expense 36 30
Loss from continuing operations, net of taxes (2,014 ) (3,703 )
Loss from discontinued operations, net of taxes (223 ) (266 )
Net loss (2,237 ) (3,969 )
Net loss attributable to non-controlling interest 172 -
Net loss attributable to Perma-Fix Environmental Services, Inc.common stockholders
$
(2,065 )
$
(3,969 )
Net loss per common share attributable to Pema-Fix Environmental Services, Inc. stockholders - basic and diluted:
Continuing operations $ (.16 ) $ (.33 )
Discontinued operations (.02 ) (.02 )
Net loss per common share $ (.18 ) $ (.35 )
Number of common shares used in computing net loss per share:
Basic 11,486 11,419
Diluted 11,486 11,419
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
(Amounts in Thousands, Except for Share and Per Share Amounts) March 31,
2015 December 31,
2014
ASSETS
Current assets:
Cash and equivalents $ 1,280 $ 3,765
Account receivable, net of allowance for doubtful accounts of $2,135 and $2,170
8,573
8,272
Unbilled receivables 7,169 7,177
Other current assets 3,673 3,508
Deferred tax assets – current 385 385
Assets of discontinued operations included in current assets, net of allowance for doubtful accounts of $0 for each period
18
20
Total current assets 21,098 23,127
Net property and equipment 21,945 22,824
Property and equipment of discontinued operations, net of accumulated depreciation of $10 for each period
681
681
Intangibles and other assets 42,064 42,004
Total assets $ 85,788 $ 88,636
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 19,096 $ 20,233
Current liabilities related to discontinued operations 2,127 2,137
Total current liabilities 21,223 22,370
Long-term liabilities 19,792 19,341
Long-term liabilities related to discontinued operations 590 590
Total liabilities 41,605 42,301
Commitments and Contingencies
Series B Preferred Stock of subsidiary, $1.00 par value; 1,467,396 shares authorized, 1,284,730 shares issued and oustanding, liquidation value $1.00 per share plus accrued and unpaid dividends of $818 and $803, respectively
1,285
1,285
Stockholders' equity:
Preferred Stock, $.001 par value; 2,000,000 shares authorized, no shares
issued and outstanding - -
Common Stock, $.001 par value; 30,000,000 shares authorized; 11.493,817 and 11,476,485 shares issued, respectively; 11,486,175 and 11,468,843 shares outstanding, respectively
11
11
Additional paid-in capital 103,871 103,765
Accumulated deficit (61,823 ) (59,758 )
Accumulated other comprehensive (loss) income (77 ) 11
Less Common Stock in treasury at cost: 7,642 shares (88 ) (88 )
Total Perma-Fix Environmental Services, Inc. stockholders' equity 41,894 43,941
Non-controlling interest 1,004 1,109
Total stockholders' equity 42,898 45,050
Total liabilities and stockholders' equity $ 85,788 $ 88,636
Contacts:
David K. Waldman
US Investor Relations
Crescendo Communications, LLC
(212) 671-1021
Herbert Strauss
European Investor Relations
herbert@eu-ir.com
+43 316 296 316
Source: Perma-Fix Environmental Services, Inc.
Released May 8, 2015
Perma-Fix Schedules Fourth Quarter 2014 Earnings Conference Call
Marketwired Perma-Fix Environmental Services, Inc.
ATLANTA, GA--(Marketwired - March 27, 2015) - Perma-Fix Environmental Services, Inc. (PESI) today announced that it will host a conference call at 2:00 PM ET on Tuesday, March 31, 2015. The call will be available on the Company's website at www.perma-fix.com, or by calling 877-407-0778 for U.S. callers, or +1-201-689-8565 for international callers. The conference call will be led by Dr. Louis F. Centofanti, Chairman and Chief Executive Officer, and Ben Naccarato, Vice President and Chief Financial Officer, of Perma-Fix Environmental Services, Inc.
A webcast will also be archived on the Company's website and a telephone replay of the call will be available approximately one hour following the call, through midnight April 7, 2015, and can be accessed by calling: (877)-660-6853 (U.S. callers) or +1-201-612-7415 (international callers) and entering conference ID: 13605647.
About Perma-Fix Environmental Services
Perma-Fix Environmental Services, Inc. is a nuclear services company and leading provider of nuclear and mixed waste management services. The Company's nuclear waste services include management and treatment of radioactive and mixed waste for hospitals, research labs and institutions, federal agencies, including the DOE, the Department of Defense ("DOD"), and the commercial nuclear industry. The Company's nuclear services group provides project management, waste management, environmental restoration, decontamination and decommissioning, new build construction, and radiological protection, safety and industrial hygiene capability to our clients. The Company operates four nuclear waste treatment facilities and provides nuclear services at DOE, DOD, and commercial facilities nationwide. Please visit us at http://www.perma-fix.com.
Posted by Guy on the Value Microcaps Motherboard.
Kiind regards,
Minding
============
PESI - Perma-Fix Environmental: A Comeback In The Making
http://seekingalpha.com/article/3024066-perma-fix-environmental-a-comeback-in-the-making
Lindsay Leeds
Value, growth at reasonable price, micro-cap
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Perma-Fix Environmental: A Comeback In The Making
Mar. 24, 2015 9:38 AM ET | About: Perma-Fix Environmental Services, Inc. (PESI)
Disclosure: The author is long PESI. (More...)
Summary
The funding for the DoE and DoD where PESI gets a lot of its business has dramatically improved in 2014 and 2015.
PESI is now running leaner and can make more money at lower revenue levels.
PESI is putting together a string a good quarters that could drives the stock price higher.
PESI has a bonus of owning 61% of a spin-off that has a straight shot to enter the $450M Tc-99 market.
PESI is a bargain in the low $4's.
Company Description
Perma-Fix Environmental Services Inc. (NASDAQ:PESI) is a provider of both nuclear services and the management of nuclear and mixed waste. The revenue is broken into two main components, treatment and services. Services can include project management, waste management, environmental restoration, decontamination and decommissioning, new build construction, radiological protection, safety and industrial hygiene. Treatment would normally be processing nuclear waste at one of PESI's four nuclear waste treatment facilities.
Historically roughly 70% of PESI's revenue comes from branches of government and 30% from commercial sources. The waste treatment side of the business has amazing margins once fixed facility and personnel costs are met and PESI has a lot of spare capacity in the waste treatment side of the business. So typically PESI will only bid on services projects where there is a waste treatment component. Waste treatment is their bread and butter.
In addition to this PESI has a subsidiary, Perma-Fix Medical, that is traded on the Warsaw exchange under the symbol PFM. PESI owns approximately 61% of PFM. The value of that 61% is roughly $7.2M. Perma-Fix Medical is engaged in a new process for producing the radioactive isotope Technetium-99m (Tc-99) which is used in a variety of medical tests and applications.
Market Opportunity
The market for PESI is looking very good for 2015. Government spending on remediation projects has picked up after the budget sequestration of 2013 really put a stranglehold on remediation projects which hurt PESI bad in late 2013 and early 2014. In addition some of the government projects that were monopolizing Department of Energy clean-up funds are winding down. PESI is currently bidding on a very large number of projects that is larger than they have historically bid on. They could easily grow their revenue from the $17M a Q level to something much higher. The Department of Energy has 1000 legacy nuclear facilities and an annual $17B budget, of which $5.8B was assigned to environmental management in 2014, a $300M increase over 2013. The Department of Defense can also issue contracts based on the closing or transition of military bases. The commercial nuclear industry has 104 reactors in the US and 423 worldwide. That 423 number will increase by 90-230 reactors by 2020.
On the commercial side of waste treatment PESI treats waste from corporations, utilities, hospitals, and research facilities. It has four facilities for the treatment of waste. One in two in TN, one in FL, and one in WA. This business has a tremendous barrier to entry as new participants have to be approved by the Nuclear Regulatory Commission, the EPA and finally the state government they operate in. PESI has been in this business for 30+ years.
In addition to this PESI has recently developed technologies that will let them bid on projects involving higher-level waste in the nuclear services market. In the past they had not been able to bid on jobs involving high activity enriched uranium and plutonium as well as other more dangerous waste products such as transuranic waste. Going forward they will be able to bid on those jobs.
PESI subsidiary Perma-Fix Medical (PFM) has the opportunity to gain a foothold into the Technetium-99m market which is a $450M a year market. 80%+ of the 45 million diagnostic nuclear medical procedures that are done each year involve Tc-99. PFM has developed a proprietary, patented process for producing Tc-99 without the need for the original source to be highly enriched uranium. The NRU reactor at Chalk River Laboratories, which accounts for 40% of the world's Tc-99 production, is scheduled to stop producing Tc-99 in 2016. There is a chance it will still continue producing Tc-99 in a market shortage until it closes for good in 2018.
PFM's process for producing the Tc-99 involves Mo-98 that is easier to deal with than the weapons grade uranium that is traditionally involved in making Mo-99 that is processed into Tc-99. This should allow PFM to produce Tc-99 at a lower cost than its competitors in the space and without the toxic waste that occurs when uranium is used. Because two large Tc-99 suppliers are exiting the market in the near future there will be an expected shortage of Tc-99. This includes Chalk River in Canada that was supplying 100% of the North American Tc-99. Not only does this make for a favorable entry for PFM into this new market, but it almost guarantees a speedy evaluation of PFM's Tc-99 production process by the FDA once the larger prototype Tc-99 generator is built in 2015. The current expectation is that PFM will be ready to file for FDA approval on a commercially viable Tc-99 generator by the end of 2015.
Share Structure
Of the 11.43 million shares outstanding, 7.78% are owned by insiders.
From the executive stock compensation plan there are 362,800 shares with a weighted average exercise price of $9.53 - so these options are way out of the money and unlikely to be exercised unless the stock goes on a tear or they are amended.
There are 70,000 warrants issued that can be redeemed at $2.23 a share that were part of a 2013 financing. The total dilution if they are exercised would be 70,000 shares.
Competition
There is one medium sized competitor in the waste treatment side of the business where PESI is the market leader. On the services side it is a highly fragmented market.
The Tc-99 generation industry PFM hopes to enter is dominated by five plants that produce 80% of the world's Mo-99 supply that the source material for deriving Tc-99. As I covered earlier in this article, Chalk River Laboratories, which produces 40% of the world's Mo-99 and all the Mo-99 used by to produce Tc-99 for the US is closing in 2016. There are several new players trying to enter the market to fill that void. The most significant is NorthStar which is currently filing for FDA approval on its process for producing Tc-99 from low enriched uranium. That process will produce toxic waste and be more expensive than PFM's method of producing Tc-99.
Management
CEO Lou Centofanti has been at the helm of the company 1991. His whole career he has been involved in the hazardous waste industry including a stint as Regional Administrator of the U.S. Department of Energy for the southeastern region of the United States. At 70 years of age there could be succession concerns about how long he will continue to lead the company. He was recently appointed to the U.S. Department of Commerce's Civil Nuclear Trade Advisory Committee (CINTAC) as a representative of U.S. entities involved in the export of civil nuclear products and services.
Financials
In the latest quarter PESI earned $1.87M of net income / 11.4M shares = $0.164 EPS per share. If you removed a one time expense it would have been $0.20 EPS in Q3. The company has cut out a lot of their fixed costs in early to mid 2014 so they expect to be profitable at lower levels of revenue. Before the fixed cost cutting they would lose money at lower revenue levels.
The large $31M loss in the Dec 2013 Q was from a write down of goodwill - not an operational loss. They don't have any excess goodwill to write down so this should not be a recurring theme.
The Q4 of 2014 is expected to match or exceed the Q3 in results in net income per the last conference call. The Q1 of 2015 is looking better than the Q1 of 2014 due to the backlog of waste at the treatment facility. The backlog for Q3 improved to $10.7 million, an increase of over 75% from the end of Q2. Beyond Q1 of 2015 there isn't enough information to make a projection, but the government branches PESI largely gets its contracts from have good funding scenarios for 2015.
Government spending on remediation (70% of PESI's revenue) is coming alive again after a slow late 2013 and early 2014 due to the government sequestration of spending. Large projects within the DOE that were taking away money from the treatment of nuclear waste are winding down - leaving more money in the DOE budget for waste treatment where PESI is the market leader. The government has a huge stockpile of waste to treat and treats it as funds are available.
On the PFM Tc-99 project a larger scale generator is hopefully going to be completed by the end of July 2015 and the process of FDA approval for the generator started by the end of the year. A CE Mark approval could be filed for before or simultaneously with the FDA approval.
Price Target
If PESI can put together $0.20 EPS Q's in their strong quarters (Q2, Q3 and Q4) and break even in Q1 - they could earn $0.60 trailing EPS in a few quarters. With a recovering industry it is quite plausible they can earn more than $0.20 a Q in 2015's strong quarters.
I believe that a P/E of 10x times that $6.00 gives you a reasonable price target of $6. A more aggressive P/E of 15 would give us a higher target of $9 a share.
They appear to have some NOL's. I don't know how they will proceed on taxation in future Q's. They paid no taxes in Q3.
I believe that a good value for the PFM Tc-99 business if successful would be $100M. If PESI can hang on to 50% of that business PESI's share would be worth about $50M. It is my belief this PFM spin-off is not being properly valued as part of PESI's market cap. PESI is very confident PFM will bring their Tc-99 generator to market as they already have a working prototype and just need to scale it larger.
In closing I feel like PESI is a bargain at today's price of $4.35 a share.
Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.
PESI: Of note in the short term, short interest rises
Kind regards
Minding
============
From http://candlestrips.com/perma-fix-environmental-services-inc-short-interest-climbs-by-30-8/330661/
Perma-Fix Environmental Services, Inc. Short Interest Climbs by 30.8%
Mathew Donald · Feb 12th, 2015 · 0 Comment
Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) reported a rise of 5,846 shares or 30.8% in the short interest. The remaining shorts are 0.2% of the total floated shares. The net short interest, as on January 30,2015, stood at 24,823 shares and the stocks days to cover will be 2 by factoring in the average per day volume of 15,791 shares. On January 15,2015, 18,977 shares were shorted.
PESI witnessed volatile trading session. Investors in Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) discarded the counter and the shares fell 2.19% or 0.1 points in todays trading session. Upon opening the transactions at $4.44, the counter maintained a trading range between $4.44 and $4.6089 before the day culminated at $4.46. Even as the price action was dull, the volume figure touched 48,287 shares. The previous close of the share price was $4.56. The shares have a 52-week peak value of $5.86 while the yearly price nadir is registered at $3.22. With around 11,469,000 shares in outstanding, the current market cap of the company is $51 million.
Shares of Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) appreciated by 1.69% during the past week but lost 2.54% on a 4-week basis. The shares are however, marginally negative as compared to the S&P 500 for the past week with a loss of 1.31%. Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) has underperformed the index by 3.05% in the past 4 weeks. Investors should watch out for further signals and trade with caution.
Perma-Fix Environmental Services, Inc. is an international environmental and technology know-how company. The Company operates in two segments: The Treatment Segment (Treatment) and the Services Segment (Services). The Company service research institutions, commercial companies, public utilities, and governmental agencies nationwide, including the United States Department of Energy (DOE) and the United States Department of Defense (DOD). The Treatment Segment consists of treatment, processing, and disposal services of nuclear, low-level radioactive, mixed, hazardous and non-hazardous waste. The Services Segment consists of on-site waste management, technical, and consulting services. On August 12, 2011, it completed the sale of Perma-Fix of Fort Lauderdale, Inc. On October 14, 2011, it completed the sale of Perma-Fix of Orlando, Inc. On October 31, 2011, it completed the acquisition of Safety & Ecology Holdings Corporation and its subsidiary, Safety & Ecology Corporation.
PESI Contract
The following is from zenvesting.
Kind regards,
Minding
==============
From http://investorshub.advfn.com/boards/read_msg.aspx?message_id=110750706
PESI contract, hey cleverox, I also found this contract announcement that shows the contract is an ID/IQ contract for $9.6M:
http://www.defense.gov/Contracts/Contract.aspx?ContractID=5474
Did you speak to someone that confirmed the $48M listed on the FBO website?
....now I found this contracting outlook for USACE Huntsville which would seam to confirm the $48M amount......and also shows there might be two more of these regional "Facilities Reduction" contracts being awarded later this year (pg. 3): http://www.hnc.usace.army.mil/Portals/65/docs/PAO/Fact%20Sheets/ProposedContracts6Feb2015.pdf
These seam to be what's considered a "contract vehicle" or basically a pre-qualification of contractors that will be allowed to bid on each individual task order.
While not as exciting as originally anticipated, it's definitely a step in the right direction for their Technical Services division and shows the reason for bringing on the new hire they announced in January with experience managing decontamination, decommissioning, and demolition contracts:
http://finance.yahoo.com/news/perma-fix-environmental-services-hires-123000170.html
STT, I suspect you're right about that.
Kind regards,
Minding
I doubt that the whole contract will go to them, so they probably won't put anything out until they can determine what to expect from this deal.
Interesting indeed. Why unannounced at Brewers or a PR?
Kind regards,
Minding
I just bought 10k shares, mostly at $4.50.
This is huge news for PESI.
Whoa awesome find!! No wonder the stock is up today!
Lol wrong link post from my phone http://investorshub.advfn.com/boards/read_msg.aspx?message_id=110675995
I went to the Brewer Event yesterday and tried to get some info on PESI but had my hands full with the Company I mainly went there for.
Just letting everyone here know there were about a hundred or more people there, ranging from football players, to hedge fund owners and I even saw someone with a name tag that had JP Morgan on it.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=11067599
That's Jack Brewer on the left, there were people to the left, right and back of me as well as people inside at the bar.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=110711947
I'll tell you. But first I must trust you.
I don't understand why people are selling off their shares for cheap????
Where are they getting their information, what do they know I don't?
This company is seemingly doing very well!!!!
Perma Fix
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