Date: April 25, 2007
Source: Industrial Services of America, Inc.
* First quarter net income of $793,080
* First quarter EPS of $0.22 per diluted share
Industrial Services of America, Inc. IDSA, a leading provider of logistics management services, equipment and processes for waste, recyclable commodities and other materials, announced preliminary un-audited financial results for the first quarter ending March 31, 2007.
Financial Highlights
Total revenues for the first quarter of 2007 were $17.9 million compared with total revenues for the first quarter of 2006 of $14.5 million.
Income before income taxes for the first quarter of 2007 was $1,301,768 compared to $694,211 for the first quarter of 2006.
Net income for the first quarter of 2007 was $793,080 (basic and diluted earnings of 22 cents per share) compared with net income of $416,526 (basic and diluted earnings of 12 cents per share) for the first quarter of 2006.
EBITDA for the first quarter of 2007 was $1,800,722 compared with EBITDA of $1,152,894 for the first quarter of 2006.
Industrial Services of America, Inc., is a Louisville, Ky.-based logistics management services company servicing commercial, industrial and logistics customers nationwide. Industrial Services of America, Inc. provides scrap processing, waste and recycling management services, and equipment sales and service. Industrial Services of America, Inc. also actively participates in international markets, exporting non-ferrous metals and other recyclable materials. Additional information 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 varying demand for waste managing systems, equipment and services, competitive pressures in the waste managing systems and equipment, competitive pressures in the waste managing business, loss of customers and fluctuations in the price of recycled materials. Further information on factors that could affect the Company's results is detailed in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to the forward-looking statements.
INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2007 AND 2006
(UNAUDITED)
2007 2006
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Revenue from services $3,844,227 $3,944,919
Revenue from product sales 14,060,522 10,539,101
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Total Revenue 17,904,749 14,484,020
Cost of goods sold for services 3,452,143 3,349,481
Cost of goods sold for product sales 11,754,347 8,945,993
Reduction of cost of goods sold 35,278 150,000
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Total Cost of goods sold 15,241,768 12,445,474
Selling, general and administrative expenses 1,364,007 1,349,853
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Income before other income (expense) 1,298,974 688,693
Other income (expense)
Interest expense (42,457) (27,385)
Interest income 28,973 28,222
Loss on sale of assets (5,775) (2,281)
Other income (expense), net 22,053 6,962
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2,794 5,518
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Income before income taxes 1,301,768 694,211
Income tax provision 508,688 277,685
----------- -----------
Net income $793,080 $416,526
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Basic earnings per share $0.22 $0.12
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Diluted earnings per share $0.22 $0.12
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Weighted shares outstanding:
Basic 3,640,899 3,560,899
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Diluted 3,640,899 3,574,328
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Industrial Services of America, Inc.
Supplemental Financial Information
Reconciliation of EBITDA (1):
Three months ending March 31,
---------------------------------------- -----------------------------
2007 2006
---------------------------------------- ================== ==========
Net Income 793,080 416,526
---------------------------------------- ------------------ ----------
Interest expense 42,457 27,385
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Income taxes 508,688 277,685
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Depreciation 456,497 431,298
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Amortization - -
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EBITDA (1) 1,800,722 1,152,894
---------------------------------------- ------------------ ----------
(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.
For more information, contact:
Industrial Services of America, Inc., Louisville
Harry Kletter, 502-366-3452
hklet@isa-inc.com.
or
Alan Schroering, 502-366-3452
aschroering@isa-inc.com
www.isa-inc.com.
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