Perma-Fix Environmental Services, Inc.: Corporate Report.GAINESVILLE, Fla.--(BUSINESS WIRE)--Feb. 20, 1997-- -0- Shares Outstanding: 13 Million Est. Institutional Ownership: 10% Warrants Outstanding: 7 Million 1996 Est. Cash Flow (EBTDA): 2 Million Est. Float: 7.2 Million 1996 Est. EPS: ($0.04) Est. Insider Ownership: 25% 1997 Est. EPS: $0.15-$0.25 RATING: STRONG BUY Perma-Fix Environmental Services The various combinations of scientific, technical, and advisory activities (including modification processes, i.e., the influence of manmade and natural factors) required to acquire, produce, and supply information on the past, present, and future states of space, atmospheric, , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :PESI) provides hazardous, mixed and industrial waste management services, along with environmental engineering and consulting services. PESI has nine facilities located throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , each with technologies that offer economical treatment and reclamation options to generators of hazardous waste Hazardous waste Any solid, liquid, or gaseous waste materials that, if improperly managed or disposed of, may pose substantial hazards to human health and the environment. Every industrial country in the world has had problems with managing hazardous wastes. . Due to its permits and specialized technologies in two of the fastest growing markets (water treatment and radioactive mixed waste). Perma-Fix Environmental Services, Inc. is very well positioned to become at least a $100 million company over the next few years. In 1996, 90% of the company's $33 million in revenue came from its water treatment operations and only 10% of revenue came from government contracts (Department of Energy and Department of Defense) to clean up radioactive waste radioactive waste, material containing the unusable radioactive byproducts of the scientific, military, and industrial applications of nuclear energy. Since its radioactivity presents a serious health hazard (see radiation sickness), disposing of such material is a . Dramatic revenue growth for PESI is expected in 1997 and beyond mainly as a result of the US government's efforts to reduce the vast amount of radioactive wastes at a number of different sites throughout the country. To date, PESI's primary competition, Duratek (NASDAQ:DRTK) and Molten Metal Technology (NASDAQ:MLTN MLTN Maine Land Trust Network (Topsham, ME) ) have had the most visibility, both in Washington and Wall Street. PESI has essentially been operating below the radar screen. Perma-Fix Environmental Services, Inc.'s proprietary stabilization process is not unique. During the 1970's and 1980's, the DOE experimented with cement stabilization but was never able to successfully treat the mixed waste in an economical and efficient manner. However, over the past few years, with their team of highly qualified engineers and managers, and the company's experiences in treating similar waste in the commercial market, PESI has fine tuned the chemical treatment process making it much cheaper compared to the competition. In fact in 1996, PESI was one of the DOE's ONLY success stories. At the DOE's Fernald, Ohio facility, approximately 3,300 drums of waste was successfully treated and then sent to the Nevada Test Site The Nevada Test Site is a United States Department of Energy reservation located in Nye County, Nevada, about 65 miles (105 km) northwest of the City of Las Vegas, near . Facility. A new DOE report on the Fernald site has indicated that chemical treatment (such as PESI's process) can work faster than vitrification vit·ri·fi·ca·tion n. The process of using heat and fusion to convert dental porcelain to a glassy substance. vitrification (DRTK's process) at much lower cost and with no increased risk. The company's strategy with the DOE last year-- going after smaller contracts to get their foot in the door--now appears to be paying off. Currently, bids have been submitted at Mound Laboratory, Fernald, NTS NTS National Technical Systems NTS National Trust for Scotland NTS Nevada Test Site NTS NT Server (Microsoft Windows) nts Not the Same NTS National Traffic System (amateur radio) , Hanford and Oak Ridge Oak Ridge, city (1990 pop. 27,310), Anderson and Roane counties, E Tenn., on Black Oak Ridge and the Clinch River; founded by the U.S. government 1942, inc. as an independent city 1959. . Because of the company's success to date, PESI is pursuing much larger contracts with the DOE. In January, PESI submitted its first major bid for Silo silo, watertight and airtight structure for making and storing silage. Silos vary in form from a covered pit, such as was used by the early Romans, to the modern storage tower, dating from the 19th cent. 3 at the Fernald Nuclear Facility in Ohio. The first phase of the project is expected to cost $40 million, with the entire clean-up cost escalating to over $100 million. The contract should be awarded in the 2nd quarter of 1997. PESI is in an excellent position to win this contract. PESI is now being viewed as a strategic partner in a variety of high profile projects. On certain projects already submitted, the company has received tentative approval for financing from major institutions. PESI also has one of only a handful of facilities in the United States that has a permit to accept mixed radioactive waste (North Florida). The company hopes to receive additional permits in 1997 for its facilities. Additionally, the Perma-Fix Process has been modified to treat a variety of unique mixed wastes. The company recently announced that it had completed the treatment of 22,000 lbs. of radioactive Thorium thorium (thôr`ēəm) [from Thor], radioactive chemical element; symbol Th; at. no. 90; at. wt. 232.0381; m.p. about 1,750°C;; b.p. about 4,790°C;; sp. gr. 11.7 at 20°C;; valence +4. Nitrate stored at the DOE's Fernald facility. Using a modification of its existing process, the waste is chemically treated and converted into a concrete-like substance that is non-hazardous, and can be safely stored. Management believes that the market for treating Thorium waste is as high as $200 million and indicated that it expects to bid on a $40 million Army contract in 1997. One of the largest potential markets within the mixed waste market is the treatment of Uranium Hexafloride. PESI has been developing a new process to treat this waste. So far the results have been very promising. To date, DOE has not found a solution to treat this waste. The market potential for treating such waste could swell to over $1 billion. Dr. Louis Centofanti reassumed the role of President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. in January of 1996. (NOTE: Dr. Centofanti was Chief Administrator for the DOE's Southeast Region during the Carter Administration Noun 1. Carter administration - the executive under President Carter executive - persons who administer the law and his wife was Chief Administrator for the DOE's Southeast Region during Reagan's term). In 1988, Lou was a senior level executive at USPCI USPCI United States Personal Chef Institute , a waste management company, which was acquired by Union Pacific for $440 million. Perma-Fix Environmental Services, Inc. was founded in 1990. PESI's balance sheet has dramatically turned around from 1995. Through the sale of unprofitable facilities, streamlining operations and a 5.5 million dollar private equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , the Company is now in a much stronger position to achieve sustained growth and earnings. For fiscal year 1996, the company estimates $33 million in revenue with only ($0.04) EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. compared to ($1.15) EPS on $34.9 million revenue in 1995. Conservatively for fiscal year 1997, the company anticipates $40 million in revenue with EPS in the $0.15 to $0.20 range. Keep in mind these numbers for 1997 could increase dramatically based on the company receiving the Silo 3 project or any other sizable DOE contract. ADDITIONAL KEY POINTS: -- Institutional & Retail Interest Increasing -- Joint Venture/Partnership/Acquisition Deals Anticipated in 1997 and Beyond -- Very Favorable Political Climate -- Average Daily Volume Increasing -- Stock Rose Above 50 Day Moving Average -- Recent Insider Purchases -- SILO 3 or Any Other Sizeable DOE Award -- Very Low Market Valuation We remain very bullish and recommend the stock for both short and long-term portfolios. 6-9 month target: $3.00 - $4.00. 12-18 month target: $10.00 + -0- NOTE TO EDITORS: Search Group Capital, Inc. has obtained this information from what we believe to be reliable sources and cannot guarantee for its completeness or accuracy. Its employees or officers may from time to time buy or sell the securities discussed herein. This is not a solicitation of any order to buy or sell. The information in this report and update is subject to change without notice. Search Group Capital, Inc. assumes no responsibility to update this information. Search Group Capital, Inc. acts as a consultant to the Company being reported. CONTACT: Search Group Capital, Inc. 3131 Piedmont Road Piedmont Road, in Milpitas and San Jose, CA, is a primarily residential, two-lane, north-south avenue that runs between Calaveras Boulevard and Penitencia Creek. At its northern terminus, it continues with the name Evans Road. , Suite 205 Atlanta, Georgia 30305 404/233-6999 (Phone) 404/233-0440 (Fax) Email: searchgp@bellsouth.net or Perma-Fix Environmental Services, Inc. Dr. Louis Centofanti, 352/373-4200 |
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