Perma-Fix Environmental Services Reports Significant Financial Challenges in Q3 and Nine-Month Results

Perma-Fix Environmental Services, Inc. reported significant financial challenges in its third quarter and nine-month results for 2024, reflecting a notable decline in revenue and profitability compared to the same periods in 2023. For the three months ended September 30, 2024, the company generated net revenues of $16.8 million, a decrease of 23.2% from $21.9 million in Q3 2023. The gross profit for the quarter fell to $1.3 million, down 70.7% from $4.5 million in the prior year. The company recorded a net loss of $8.98 million for Q3 2024, compared to a net income of $341,000 in Q3 2023.

For the nine months ended September 30, 2024, total revenues were $44.4 million, down 33.7% from $67.0 million in the same period in 2023. The gross loss for this period was $592,000, contrasting sharply with a gross profit of $12.1 million in 2023. The net loss for the nine months was $16.5 million, compared to a net income of $404,000 in the previous year.

The decline in revenue was attributed to several factors, including delays in waste shipments, unexpected equipment breakdowns, and adverse weather conditions from Hurricane Helene. Additionally, the company faced reduced project-based revenue in its Services Segment, which saw a 30.1% decrease in revenue compared to Q3 2023. The Treatment Segment also experienced a 16.0% revenue decline due to lower waste volumes.

Strategically, Perma-Fix made significant investments in new PFAS technology, which required substantial management support and caused production delays. The company completed the purchase of the Oak Ridge Environmental Waste Operations property in July 2024 for $425,000, financing a portion of the cost through a promissory note. Furthermore, in May 2024, Perma-Fix raised approximately $20 million through a stock offering, which is intended to fund R&D related to PFAS destruction and support capital expenditures.

As of September 30, 2024, the company reported total assets of $78.2 million, with total liabilities decreasing to $35.8 million from $39.4 million at the end of 2023. Stockholders' equity increased to $42.4 million, up from $39.4 million at the end of the previous fiscal year. The company also noted a material weakness in internal control over financial reporting, which management plans to address through enhanced review activities.

Overall, Perma-Fix's financial performance in 2024 has been adversely affected by operational challenges and market conditions, leading to significant losses and a strategic focus on technology advancements and capital management.