Perma-Fix Environmental Services takes on the dirty job of handling radioactive waste

Provides nuclear and waste-management services Treats radioactive and mixed waste for hospitals, research labs and institutions and top federal agencies Expanded low-level radioactive waste treatment capacity with addition of new facility in Tennessee What Perma-Fix Environmental does: Perma-Fix Environmental Services Inc (NASDAQ:PESI) is a nuclear services company and a leading provider of nuclear and waste-management services. Based in Atlanta, the company also offers engineering-consulting services to the industrial and commercial sectors. Perma-Fix’s core nuclear waste services business manages and treats radioactive and mixed waste for hospitals, research labs and institutions, and federal agencies, including the Department of Energy (DoE) and the Department of Defense (DoD). The company recently expanded its low-level radioactive waste treatment capacity with the addition of a 8.7-acre facility in Tennessee. The division serves the commercial nuclear industry as well.  Its nuclear services group handles the heavy work of environmental restoration, decontamination and decommissioning while providing radiological protection, safety and industrial hygiene services. The company can also construct new buildings. How is it doing: The last few months have brought Perma-Fix a series of contracts.  In May, the company was awarded two federal contracts valued at $3.7 million to separate and treat radioactive materials from over 100,000 tons of soils, debris and dredged materials. At the same time, the company said it had achieved a milestone target by completing the development of its new Perma-SortSM material sorting and segregation process system. It is a customized, conveyor-based radiological assay system designed to provide 100% characterization of material efficiently with industry-leading measurement quality.  In June, Perma-Fix inked a new contract in its Services Segment valued at about $7 million over the following eight months. A month later, the company was selected by the US DoE as part of a team to participate in a 10-year waste management contract, making it eligible to compete for up to $3 billion in task orders. The work under this multi-award contract vehicle supports sites across the US, including at the office of Environmental Management, the National Nuclear Security Administration, the office of Naval Reactors and the office of Science. On the financial side, Perma-Fix announced in August that its second-quarter revenue was $22 million, a 28% year-over-year increase from $17.1 million in the same period of 2019. The growth was due in large part to strong growth in its environmental services industry, despite the restrictions imposed by the coronavirus. Breaking it down, revenue from its services segment more than doubled to $14.2 million from $7 million, while revenue from its treatment segment declined to $7.8 million from $10.1 million.  Like most companies, Perma-Fix has had to grapple with the effects of the coronavirus pandemic. The company in March and April had to curtail operations and initiate layoffs as well as work-from-home policies. Perma-Fix secured $5.6 million under the Paycheck Protection Program created by the Coronavirus Aid, Relief and Economic Security Act. The money has helped the company recall staff and avoid future furloughs and layoffs.  One high profile addition to the company has been former Commanding General of the US Army Corps of Engineers, Lieutenant General (Ret.) Thomas P. Bostick, who joined its board of directors in August. Inflection points: Compete for and win waste management jobs from its DoE contract  Seek EPA certification for the Tennessee processing facility  Resume waste shipments as its clients reopen What the boss says:  Perma-Fix CEO Mike Duff believes the company is in a good place despite the economic impact of the coronavirus. "Most, but not all, of the projects within our services segment are back to normal operation and our sales pipeline is quite robust,” Duff said in a statement covering the company’s second-quarter results. “Within our treatment segment, we experienced delays in waste shipments as certain customers were restricted or in full shelter in place mode for much of the quarter, due to the pandemic,” Duff added. “Most of these customers have reopened, and as a result, we have seen a modest increase in receipts through July, with the potential, subject to the impact due to COVID-19, for further improvement during the third quarter." Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com Follow him on Twitter @andrew_kessel