Perma Fix Environmental Services (PESI) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $1.56 million, or $ 0.13 a share in the quarter, against a net profit of $1.07 million, or $0.09 a share in the last year period.
Revenue during the quarter dropped 25.35 percent to $12.92 million from $17.31 million in the previous year period. Gross margin for the quarter contracted 1459 basis points over the previous year period to 13.98 percent. Operating margin for the quarter stood at negative 10.66 percent as compared to a positive 8.66 percent for the previous year period.
Operating loss for the quarter was $1.38 million, compared with an operating income of $1.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.15 million compared with $2.94 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1581 basis points in the quarter to 1.18 percent from 16.99 percent in the last year period.
Dr. Louis F. Centofanti, chief executive officer, stated, "We are disappointed with our results year-to-date, which reflect a large number of shipments that were delayed and unanticipated spending constraints at the federal level. We have, however, begun to see the waste that was delayed begin to ship and expect to see improvement in the fourth quarter. Adjusted EBITDA (as defined below) for the fourth quarter of 2016 is estimated to be $1 million. In addition, we continue to look at all aspects of our business from a cost standpoint and are proceeding with the planned shutdown of our M&EC facility, which we believe should save an estimated $2 to $3 million annually."
Working capital increases sharply
Perma Fix Environmental Services has recorded an increase in the working capital over the last year. It stood at $1.47 million as at Sep. 30, 2016, up 28.20 percent or $0.32 million from $1.15 million on Sep. 30, 2015. Current ratio was at 1.10 as on Sep. 30, 2016, up from 1.06 on Sep. 30, 2015.
Days sales outstanding went up to 102 days for the quarter compared with 79 days for the same period last year.
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