PESI Reports Strong Revenue Growth in Latest Quarter
Segments of revenue
PESI experienced significant revenue growth in both its Treatment and Services Segments in the latest quarter. Treatment Segment revenue increased by $1,918,000 or 21.6% to $10,795,000, while Services Segment revenue increased by $1,487,000 or 15.5% to $11,082,000.
The increase in revenue in the Treatment Segment was primarily driven by higher waste volume, although this was partially offset by lower average waste prices due to revenue mix. The Services Segment revenue growth was attributed to the continuation of operations and improved productivity on certain projects that had been delayed or curtailed in 2022 due to the lingering effects of the COVID-19 pandemic. Additionally, both segments benefited from contracts won in the first half of 2023. These factors contributed to a total gross profit increase of $1,479,000 or 48.2% for the quarter.
While PESI experienced strong revenue growth in the latest quarter, it is important to note that the company faced challenges in 2022 due to the negative impact of COVID-19 on its revenue. Work under projects and waste shipments were delayed by certain customers, and procurement and planning on behalf of government clients were also delayed until the second half of 2022. These delays affected the company's revenue performance in 2022.
PESI's revenue for the nine months ended September 30, 2023, increased by $13,174,000 or 24.5% compared to the corresponding period of 2022. The company's total gross profit for the nine months also increased by $4,484,000 or 59.1% due to the growth in revenue generated in both segments. Furthermore, selling, general, and administrative expenses remained flat for the three months ended September 30, 2023, compared to the corresponding period of 2022.
PESI demonstrated strong revenue growth in both its Treatment and Services Segments in the latest quarter. The increase in revenue was driven by higher waste volume in the Treatment Segment and the continuation of operations and improved productivity in the Services Segment. The company's revenue performance in 2022 was negatively impacted by delays caused by the COVID-19 pandemic, but it has since rebounded. PESI's ability to secure contracts and its steady improvements in waste receipts and project work are positive indicators for its future performance.