PERMA-FIX ENVIRONMENTAL SERVICES, INC.
1940 N.W. 67th Place, Suite A
Gainesville, Florida 32653
Supplement to the Proxy Statement dated November 8, 1996
for the
1996 Annual Meeting of Shareholders
to be held on Thursday, December 12, 1996
To the Stockholders of Perma-Fix Environmental Services, Inc.:
You recently received a copy of the Proxy Statement, dated
November 8, 1996 ("Proxy Statement"), of Perma-Fix Environmental
Services, Inc. (the "Company") in connection with the solicitation
of proxies by the Board of Directors of the Company for the 1996
Annual Meeting of Stockholders to be held Thursday, December 12,
1996, and any adjournment thereof ("Annual Meeting"). Subsequent
to the mailing of the Proxy Statement, Arthur Andersen LLP
("Andersen"), the outside independent auditor of the Company,
notified the Company on November 15, 1996, that it was resigning,
effective immediately, as the Company's independent auditor.
Because the Andersen resignation occurred after the mailing of the
Proxy Statement, we are sending you this Supplement to the Proxy
Statement which provides information regarding the resignation of
Andersen. As previously disclosed, on January 5, 1995, the Company
changed its independent auditors from Coopers & Lybrand ("Coopers")
to Andersen. Andersen examined and reported on the Company's
financial statements for the years ended December 31, 1994, and
1995.
The report on the Company's financial statements for either of the
two most recent fiscal years contained no adverse opinion (other
than a going concern modification relating to the report for the
year ended December 31, 1995) or a disclaimer of opinions, and was
not qualified or modified as to uncertainty, audit scope or
accounting principles.
The going concern modification contained in the auditor's report for
the year ended December 31, 1995, was due to the Company having
suffered recurring losses from operations, having a net working
capital deficiency and being in violation of financial covenants
under its loan agreements with two major lenders as of the date of
the report.
Andersen's resignation was not approved or recommended by the
Company's Board of Directors, audit committee or similar committee
of the Company's Board of Directors. The Company's change in
auditors from Coopers to Andersen in January, 1995, was recommended
by the Audit Committee of the Company's Board of Directors and
approved by the Company's Board of Directors.
<PAGE>
During the Company's two most recent fiscal years and any subsequent
interim period preceding such resignation by Andersen, there were
no disagreements between the Company and Andersen on any matters of
accounting principles or practices, financial statement disclosure,
or auditing scope or procedure, which disagreements, if not resolved
to the satisfaction of Andersen, would have caused Andersen to make
a reference to the subject matter of the disagreement(s) in
connection with its reports. Furthermore, there are no "reportable
events" required to be reported under Item 304(a)(1)(v) of
Regulation S-K during the Company's two most recent fiscal years and
any subsequent interim periods preceding such resignation by
Andersen. Further, there were no such disagreements or "reportable
events" between the Company and Coopers during the last two fiscal
years and any subsequent interim period preceding the change in
auditors from Coopers to Andersen in January, 1995.
Because of Andersen's resignation, no vote will be taken at the
Annual Meeting regarding the ratification of Andersen as the outside
independent auditors of the Company. Additionally, representatives
of Andersen will not be at the Annual Meeting and available to
answer questions. As of the date of this Supplement to the Proxy
Statement, the Company has not engaged a new independent auditor to
replace Andersen.
A correction which should be noted is that the cover letter
accompanying the Proxy Statement inaccurately describes the date of
the Annual Meeting as being held on Tuesday, December 12, 1996, when
December 12, 1996 is actually Thursday. As a reminder, the Annual
Meeting will be held at the offices of the Company 1940 N.W. 67th
Place, Gainesville, Florida 32653, Thursday, December 12, 1996, at
2:00 p.m.
In the event you have already returned your Proxy Card and you wish
to change your vote as a result of this Supplement to the Proxy
Statement, please call the undersigned at (352) 373-4200 and you
will be provided with another Proxy Card. Proxy Cards will also be
available at the Annual Meeting.
Sincerely,
PERMA-FIX ENVIRONMENTAL
SERVICES, INC.
By: /s/ Richard T. Kelecy
_________________________
Richard T. Kelecy
Secretary
Gainesville, Florida
November 22, 1996
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