Date: May 5, 2008
Source: Industrial Services of America, Inc.
Industrial Services of America, Inc. (IDSA), a company that buys, processes and markets recyclable commodities and offers programs and equipment to help businesses manage wastes, today reported audited financial results for the first quarter ending March 31, 2008.
For the first quarter of fiscal 2008
Total revenues increased 46% to $26.1 million, compared with $17.9 million in 2007.
Income before income taxes rose to $1,810,918 compared with $1,301,768 in 2007.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for 2008 were $2,423,820, compared with EBITDA of $1,800,722 for 2007. (See attached reconciliation.)
Net income was $1,086,551 (basic and diluted earnings of $0.30 per share), compared with net income of $793,080 (basic and diluted earnings of $0.22 per share) in 2007. Basic and diluted shares outstanding were 3,617,872 in 2008 and 3,640,899 in 2007.
"ISA continued to benefit from building relationships with existing and potential customers, as well as from strong global demand and pricing for commodities," said Chairman and CEO Harry Kletter.
Revenue from product sales increased 50.9 percent to $21.2 million, and service revenue rose 26.7 percent to $4.9 million. "With this first quarter we have achieved a revenue run-rate of approximately $100 million," said Kletter. "As we progress through 2008, we will continue to focus on the fundamentals of profitably growing our business by investing in our processes and by serving our customers well."
The Company's 2008 Form 10-Q filing is available for review at the Securities and Exchange Commission web site, 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, the company offers commercial, industrial and business customers a variety of programs and equipment to efficiently 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 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.
Key words: recycling, scrap, ferrous, non-ferrous materials, waste management, international markets, global markets.
FINANCIAL RESULTS AND
SUPPLEMENTAL FINANCIAL INFORMATION
FOLLOW
INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(UNAUDITED)
2008 2007
------------ ------------
Revenue from services $ 4,872,542 $ 3,844,227
Revenue from product sales 21,210,853 14,060,522
------------ ------------
Total revenue 26,083,395 17,904,749
Cost of goods sold for services 4,626,363 3,522,699
Cost of goods sold for product sales 17,762,532 11,754,347
Reduction of cost of goods sold - (35,278)
------------ ------------
Total cost of goods sold 22,388,895 15,241,768
Selling, general and administrative expenses 1,809,605 1,364,007
------------ ------------
Income before other income (expense) 1,884,895 1,298,974
Other income (expense)
Interest expense (93,566) (42,457)
Interest income 23,434 28,973
Loss on sale of assets (5,142) (5,775)
Other income (expense), net 1,297 22,053
------------ ------------
(73,977) 2,794
------------ ------------
Income before income taxes 1,810,918 1,301,768
Income tax provision 724,367 508,688
------------ ------------
Net income $ 1,086,551 $ 793,080
============ ============
Basic earnings per share $ 0.30 $ 0.22
============ ============
Diluted earnings per share $ 0.30 $ 0.22
============ ============
Weighted shares outstanding:
Basic 3,617,872 3,640,899
============ ============
Diluted 3,617,872 3,640,899
============ ============
Industrial Services of America, Inc.
Supplemental Financial Information
Reconciliation of EBITDA (1):
Three months ending March 31,
----------------------------------------------------------------------
2008 2007
-----------------------------------------=============----============
Net Income 1,086,551 793,080
----------------------------------------------------------------------
Interest expense 93,566 42,457
----------------------------------------------------------------------
Income taxes 724,367 508,688
----------------------------------------------------------------------
Depreciation 519,336 456,497
----------------------------------------------------------------------
Amortization - -
----------------------------------------------------------------------
EBITDA (1) 2,423,820 1,800,722
----------------------------------------------------------------------
(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 or Alan Schroering, 502-366-3452
hklet@isa-inc.com or aschroering@isa-inc.com
www.isa-inc.com.
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