Date: August 17, 2009
Source: Industrial Services of America, Inc.
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 wastes, today reported financial results for the second quarter ending June, 30 2009.
For the second quarter ending June 30, 2009, net income was $922,210 ($.26 per basic and diluted share), compared with $1,662,632 ($.46 per basic and diluted share) in the second quarter ending June 30, 2008. Total revenues for the quarter were $39.1M compared to $34.5M in 2008.
For the first six months ending June 30, 2009, net income was $1,576,273 ($.44 per basic and diluted share), compared with $2,749,183 ($.76 per basic and diluted share) in the first six months ending June 30, 2008. Total revenues for the first six months were $63.4M compared to $60.6M in 2008.
In an environment where many businesses have continued to suffer, ISA delivered another solid financial performance in the second quarter of 2009. “As the economy and asset markets stabilized throughout the quarter, we saw improved commodity pricing and a solid pick-up in domestic consumer demand for scrap metals,” said Harry Kletter, ISA’s Chairman and Chief Executive Officer. Throughout the second quarter of 2009, ISA continued making important and strategic investments in its operational capabilities. ISA completed its shredder installations, fully integrated its stainless steel and alloys business into its recycling division and expanded its banking facilities. “Our fully operational and integrated recycling operations give us a great competitive footprint in our markets.”
For the second quarter of fiscal 2009
For the first six months of fiscal 2009
ISA also recently announced that it has entered into an agreement to acquire two parcels of property adjacent to its facilities in Louisville, Kentucky from the Harry Kletter Family Partnership LLC. The transactions have been approved by the Audit Committee and the Board of Directors of the company. Mr. Harry Kletter, the Chairman of the Board and Chief Executive Officer of the Company, took no part in the Board’s deliberations or decision due to his interest in the transaction. This transaction is scheduled to close in early September of 2009. This deal represents another step in ISA’s long-term strategy to acquire key real property assets.
The Company’s 2009 SEC filings are available for review at the Securities and Exchange Commission web site at 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 fluctuations in the price of recycled materials, 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 and the loss of customers. 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.
| INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| THREE MONTHS ENDED JUNE 30, 2009 AND 2008 | ||||||||
| (UNAUDITED) | ||||||||
| 2009 | 2008 | |||||||
| Revenue from services | $ | 1,522,134 | $ | 4,011,256 | ||||
| Revenue from product sales | 37,602,180 | 30,499,829 | ||||||
| Total Revenue | 39,124,314 | 34,511,085 | ||||||
| Cost of goods sold for services | 1,153,059 | 4,284,501 | ||||||
| Cost of goods sold for product sales | 33,820,184 | 24,536,188 | ||||||
| Total Cost of goods sold | 34,973,243 | 28,820,689 | ||||||
| Selling, general and administrative expense | 2,439,883 | 2,876,234 | ||||||
| Income before other income (expense) | 1,711,188 | 2,814,162 | ||||||
| Other income (expense) | ||||||||
| Interest expense | (213,161 | ) | (135,003 | ) | ||||
| Interest income | 6,917 | 20,563 | ||||||
| Gain on sale of assets | 7,222 | 21,623 | ||||||
| Other income | 24,851 | 127,369 | ||||||
| 174,171 | ) | 34,552 | ||||||
| Income before income taxes | 1,537,017 | 2,848,714 | ||||||
| Income tax provision | 614,807 | 1,186,082 | ||||||
| Net income | $ | 922,210 | $ | 1,662,632 | ||||
| Basic earnings per share | $ | 0.26 | $ | 0.46 | ||||
| Diluted earnings per share | $ | 0.26 | $ | 0.46 | ||||
| Weighted shares outstanding: | ||||||||
| Basic | 3,651,896 | 3,596,368 | ||||||
| Diluted | 3,651,896 | 3,596,368 | ||||||
| INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| SIX MONTHS ENDED JUNE 30, 2009 AND 2008 | ||||||||
| (UNAUDITED) | ||||||||
| 2009 | 2008 | |||||||
| Revenue from services | $ | 4,167,702 | $ | 8,883,798 | ||||
| Revenue from product sales | 59,206,535 | 51,710,682 | ||||||
| Total Revenue | 63,374,237 | 60,594,480 | ||||||
| Cost of goods sold for services | 3,415,987 | 8,267,428 | ||||||
| Cost of goods sold for product sales | 51,822,374 | 42,448,736 | ||||||
| Total Cost of goods sold | 55,238,361 | 50,716,164 | ||||||
| Selling, general and administrative expense | 5,149,544 | 5,179,259 | ||||||
| Income before other income (expense) | 2,986,332 | 4,699,057 | ||||||
| Other income (expense) | ||||||||
| Interest expense | (351,666 | ) | (228,569 | ) | ||||
| Interest income | 22,160 | 43,997 | ||||||
| Gain on sale of assets | 10,972 | 16,481 | ||||||
| Other income (expense) | (40,676 | ) | 128,666 | |||||
| (359,210 | ) | (39,425 | ) | |||||
| Income before income taxes | 2,627,122 | 4,659,632 | ||||||
| Income tax provision | 1,050,849 | 1,910,449 | ||||||
| Net income | $ | 1,576,273 | $ | 2,749,183 | ||||
| Basic earnings per share | $ | 0.44 | $ | 0.76 | ||||
| Diluted earnings per share | $ | 0.44 | $ | 0.76 | ||||
| Weighted shares outstanding: | ||||||||
| Basic | 3,613,806 | 3,607,120 | ||||||
| Diluted | 3,613,806 | 3,607,120 | ||||||
| Industrial Services of America, Inc. Supplemental Financial Information | ||||||||
| Reconciliation of EBITDA (1): | ||||||||
| Three months ending June 30, | Six Months ending June 30, | |||||||
| 2009 | 2008 | 2009 | 2008 | |||||
| Net Income | 922,210 | 1,662,632 | 1,576,273 | 2,749,183 | ||||
| Interest expense | 213,161 | 135,003 | 351,666 | 228,569 | ||||
| Income taxes | 614,807 | 1,186,082 | 1,050,849 | 1,910,449 | ||||
| Depreciation | 615,798 | 521,664 | 1,229,425 | 1,041,000 | ||||
| Amortization | - | - | - | - | ||||
| EBITDA (1) | 2,365,976 | 3,505,381 | 4,208,212 | 5,929,201 | ||||
| (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, hklet@isa-inc.com or
Alan Schroering, aschroering@isa-inc.com.
502-366-3452
www.isa-inc.com.
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