Industrial Services of America, Inc. Announces Second Quarter 2013 Results

Industrial Services of America, Inc. Announces Second Quarter 2013 Results

LOUISVILLE, Ky.--(BUSINESS WIRE)-- Industrial Services of America, Inc. (NAS: 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 second quarter ended June 30, 2013.

Revenue for the second quarter of 2013 was $40.1 million compared with $49.9 million in the second quarter of 2012. Net loss for the second quarter of 2013 was $(1.2) million, or $(0.18) on a per diluted share basis, compared with a net loss of $(1.2) million, or $(0.18) on a per diluted share basis, for the comparable period in 2012.


Key Highlights

  • Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") for the six months ended June 30, 2013 was $969.5 thousand;
  • Current ratio at June 30, 2013 was 1.1 to 1; and
  • Working capital as of June 30, 2013 was $1.6 million.

The Company's credit facility with Fifth Third Bank is scheduled to mature in April 2014. The Company is actively in the process of restructuring its debt. This debt restructuring process includes the Company's existing bank as well as other banks. Management plans to complete this debt restructuring as soon as practicable.

At the annual meeting of shareholders of the Company on July 16, 2013 (the "Annual Meeting"), the shareholders of the Company approved the amendment of the Company's Articles of Incorporation (the "Amendment") pursuant to which the Company's authorized common stock increased by 10.0 million shares, from 10.0 million to 20.0 million shares. The Amendment is discussed in the proxy statement dated June 6, 2013.

On June 14, 2013, the Board of Directors appointed the Chairman of the Board, Orson Oliver, to act as the Company's Interim President and Interim Chief Executive Officer.

On July 15, 2013, the Company's board of directors appointed the Vice President of Recycling, Jim Wiseman, as General Manager of the Company, reporting to Mr. Oliver, with the primary responsibility of overseeing the day-to-day operation of the Company.

On July 26, 2013, the Company's Board of Directors authorized an increase in the number of directors which constitute the entire Board of Directors from four to five.

On July 26, 2013, the Board of Directors appointed Ronald W. Strecker to fill the vacancy created and also appointed Mr. Strecker to serve on the Audit Committee of the Board of Directors.

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.

FINANCIAL RESULTS AND
SUPPLEMENTAL FINANCIAL INFORMATION
FOLLOW

    

Industrial Services of America, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

 
THREE MONTHS ENDEDSIX MONTHS ENDED
June 30, 2013  June 30, 2012June 30, 2013  June 30, 2012
(in thousands)
Revenue from services$1,366$1,023$2,311$2,308
Revenue from product sales38,757 48,829 72,570 109,222 
Total revenue40,12349,85274,881111,530
 
Cost of goods sold for services1,3029442,1842,137
Cost of goods sold for product sales37,474 47,548 69,309 104,530 
Total cost of goods sold38,77648,49271,493106,667
 
Provision for employee terminations and severances17228
Other selling, general and administrative expense2,698 2,682 5,145 5,443 
Total selling, general and administrative expense2,6982,6995,1455,671
 
Loss before other income (expense)(1,351)(1,339)(1,757)(808)
 
Other income (expense)
Interest expense(609)(515)(1,068)(1,054)
Interest income1326
Gain on sale of assets21163835
Gain on lawsuit settlement625
Other income (expense)  9  
(587)(496)(394)(1,013)
 
Loss before income taxes(1,938)(1,835)(2,151)(1,821)
 
Income tax benefit(700)(596)(799)(590)
 
Net loss$(1,238)$(1,239)$(1,352)$(1,231)
 
Basic loss per share$(0.18)$(0.18)$(0.19)$(0.18)
Diluted loss per share$(0.18)$(0.18)$(0.19)$(0.18)
 
Weighted shares outstanding (in thousands):
Basic:7,0696,9447,0076,942
Diluted:7,0696,9447,0076,942
    

INDUSTRIAL SERVICES OF AMERICA, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

 

Reconciliation of EBITDA (1):

 
Three Months EndedSix Months Ended
June 30,June 30,
2013  20122013  2012
(in thousands)
Net loss$(1,238)$(1,239)$(1,352)$(1,231)
Interest expense6095151,0681,054
Income tax benefit(700)(596)(799)(590)
Depreciation8399291,6991,861
Amortization172 188 354 375 
EBITDA (1)$(318)$(203)$970 $1,469 
 

(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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Industrial Services of America, Inc., Louisville, Kentucky
Alan Gildenberg, 502-366-3452
http://www.isa-inc.com/

KEYWORDS:   United States  North America  Kentucky

INDUSTRY KEYWORDS:

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