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Industrial Services of America, Inc. Announces First Quarter 2012 Results
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LOUISVILLE, Ky.--(BUSINESS WIRE)--Industrial Services of America, Inc. (NASDAQ: IDSA), a company that
buys, processes and markets ferrous and non-ferrous metals and other
recyclable commodities for domestic users and export markets and offers
programs and equipment to help businesses manage waste, today announced
financial results for the first quarter ended March 31, 2012.
Revenue for the quarter was $61.7 million compared with $106.4 million
in the first quarter of 2011. Net income for the quarter was $8.5
thousand, or break-even on a per diluted share basis, compared with net
income of $2.2 million, or $0.31 per diluted share, for the comparable
period in 2011.
Sequentially, revenue for the quarter showed an increase of $11.7
million compared to revenue of $50.0 million for the fourth quarter of
2011. Net income for the quarter was $1.8 million higher compared to a
net loss of $(1.8) million for the fourth quarter of 2011.
Key Highlights
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Shipments of stainless steel products increased 29.7% over the fourth
quarter of 2011
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Non-ferrous shipments increased 6.1% over the fourth quarter of 2011
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The Company was in compliance with all bank covenants as of March 31,
2012
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EBITDA for the quarter was $1.6 million
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Current ratio at March 31, 2012, was 2.6 to 1
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Working capital as of March 31, 2012 was $28.8 million
Brian Donaghy, President and Chief Operating Officer of ISA, stated,
???Our stainless steel and non-ferrous businesses showed improvement
during the first quarter of 2012. The ferrous environment continues to
be a challenge, with a tight scrap supply that continues to squeeze
margins. While the second half of 2011 was a particularly difficult
environment for us, we have now shown two consecutive quarters of
improving operating results. Adjusting for the impact of a one-time
charge related to an employee severance, earnings would have been $0.02
per share on a fully dilutive basis. During the first quarter, our
stainless steel and non-ferrous businesses showed sequential
improvements in volume and margin. While we are pleased to report
improving operating results, we recognize that we still have a way to go
to get back to historic levels of profitability.???
Harry Kletter, founder and Chairman of ISA, stated, ???The operational
improvements that we have undertaken over the past six months have
allowed us to get back to a break-even net profit and positive EBITDA.
We have some exciting projects underway to decrease our supply chain
risk and to capture more of the scrap value chain. The management team
continues to aggressively seek opportunities to increase sales
profitably, and we will keep our ???foot on the gas??? to improve
shareholder value. We will continue to execute to our strategic plan, as
we seek to increase shareholder value through profitable growth and
continued focus on mitigating our operating risks.???
ISA???s SEC filings are available for review at the Securities and
Exchange Commission web site at http://www.sec.gov/edgar/searchedgar/companysearch.html.
About ISA
Headquartered in Louisville, Kentucky, Industrial Services of America,
Inc., is a publicly traded company whose core business is buying,
processing and marketing scrap metals and recyclable materials for
domestic users and export markets. Additionally, ISA offers commercial,
industrial and business customers a variety of programs and equipment to
manage waste. More information about ISA is available at www.isa-inc.com.
This news release contains forward-looking statements that involve risks
and uncertainties that could cause actual results to differ from
predicted results. Specific risks include fluctuations in the price of
recycled materials, varying demand for waste managing systems, equipment
and services, competitive pressures in waste managing systems and
equipment, competitive pressures in the waste managing business, and
loss of customers. Further information on factors that could affect
ISA???s results is detailed in ISA???s filings with the Securities and
Exchange Commission. ISA undertakes no obligation to publicly release
the results of any revisions to the forward-looking statements.
Key words: recycling, scrap, ferrous, non-ferrous materials, waste
management, international markets, global markets.
FINANCIAL RESULTS AND
SUPPLEMENTAL FINANCIAL INFORMATION
FOLLOW
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Industrial Services of America, Inc. and Subsidiaries
Consolidated Statements of Income
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THREE MONTHS ENDED
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March 31, 2012
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March 31, 2011
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Revenue from services
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$
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1,284,581
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$
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1,371,519
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Revenue from product sales
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60,393,731
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105,029,790
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Total revenue
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61,678,312
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106,401,309
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Cost of goods sold for services
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1,193,223
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1,277,305
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Cost of goods sold for product sales
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56,797,344
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96,915,494
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Total cost of goods sold
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57,990,567
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98,192,799
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Provision for employee terminations and severances
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211,323
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???
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Other selling, general and administrative expense
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2,999,653
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3,938,630
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Total selling, general and administrative expense
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3,210,976
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3,938,630
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Income before other income (expense)
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476,769
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4,269,880
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Other income (expense)
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Interest expense
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(484,134
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(885,835
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Interest income
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3,183
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5,940
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Gain on sale of assets
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18,658
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49,289
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Other (loss) income
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(258
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63
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(462,551
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(830,543
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Income before income taxes
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14,218
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3,439,337
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Income tax provision
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5,687
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1,272,555
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Net income
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$
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8,531
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$
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2,166,782
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Basic earnings per share
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$
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???
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$
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0.31
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Diluted earnings per share
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$
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???
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$
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0.31
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Weighted shares outstanding:
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Basic:
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6,940,517
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6,885,170
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Diluted:
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6,964,127
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6,928,448
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INDUSTRIAL SERVICES OF AMERICA, INC.
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SUPPLEMENTAL FINANCIAL INFORMATION
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Reconciliation of EBITDA (1):
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Three Months ending
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March 31,
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2012
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2011
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Net Income
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$
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8,531
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$
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2,166,872
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Interest expense
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484,134
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885,835
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Income taxes
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5,687
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1,272,555
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Depreciation
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931,797
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931,452
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Amortization
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187,500
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187,500
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EBITDA (1)
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$
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1,617,649
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$
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5,444,124
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(1) EBITDA is calculated by the Company as net income before interest
expense, income tax expense, depreciation and amortization. The Company
uses EBITDA as a key performance measure of results of operations for
purposes of evaluating performance internally. This non-GAAP measurement
is not intended to replace the presentation of our financial results in
accordance with GAAP. Rather, we believe the EBITDA calculation provides
additional information to investors and debt holders due to the fact
that tax credits, tax rates and other tax related items vary by company.
Additionally, years of service for fixed assets and amortizable assets
are based on company judgment. Finally, companies have several ways of
raising capital which can affect interest expense. We believe the
presentation of EBITDA provides a meaningful measure of performance
exclusive of these unique items.
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