Date: November 16, 2009
Source: Industrial Services of America, Inc.
Highlights:
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 third quarter ending September 30, 2009.
For the third quarter ending September 30, 2009, net income was $2,161,214 ($.55 per basic and diluted share), compared with $1,280,115 ($.36 per basic and diluted share) in the third quarter ending September 30, 2008. Total revenues for the third quarter of 2009 were $80.0 million compared to $28.8 million in 2008.
For the first nine months ending September 30, 2009, net income was $3,737,487 ($1.01 per basic and diluted share), compared with $4,029,298 ($1.12 per basic and diluted share) in the first nine months ending September 30, 2008. Total revenues for the first nine months of 2009 were $143.3 million compared to $89.4 million in 2008.
Harry Kletter, Chairman and Chief Executive Officer, commented, “Our recent growth initiatives were instrumental in helping ISA post its best quarter in its 25-year history. Our stainless steel recycling operation continues to show tremendous strength, even in this uncertain economic environment. In addition, our new shredder operation has scaled up nicely and is contributing to higher operating efficiencies and increased profits. These strategic growth initiatives have strengthened our company overall as we head into the seasonally soft fourth quarter.
Third Quarter 2009 Highlights:
First Nine Months of Fiscal 2009 Highlights:
Property Acquisition
On September 10, 2009, ISA acquired two tracts of land at 7124 Grade Lane and 7200 Grade Lane, Louisville, Kentucky, from Harry Kletter Family Limited Partnership. ISA acquired the properties due to their strategic location adjacent to 7100 Grade Lane, where ISA has its principal operations and headquarters. An independent, third-party appraisal company valued the land at approximately $3.2 million. As consideration for the purchase, ISA exchanged 500,000 newly-issued, unregistered shares of its $.005 par value common stock at an effective price of $6.40 per share, the approximate price of ISA’s common stock as of the effective date of the exchange agreement between ISA and Harry Kletter Family Limited Partnership. The shares have no registration rights.
Operational Highlights
The recent acquisition of Venture Metals is now fully integrated with ISA’s ferrous and non-ferrous operations at 7100 Grade Lane. Venture Metals’ former location at 3409 Camp Ground Road has been converted to a feeder yard. In addition, ISA’s new shredder has been operational since July 1. This operation expands ISA’s scrap processing capacity, allows ISA to produce specialty grades of scrap and improves end-product quality.
ISA’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, ISA 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 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.
| INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
| THREE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 | ||||||
| (UNAUDITED) | ||||||
| 2009 | 2008 | |||||
| Revenue from services | $ | 1,552,696 | $ | 4,875,379 | ||
| Revenue from product sales | 78,416,778 | 23,962,449 | ||||
| Total Revenue | 79,969,474 | 28,837,828 | ||||
| Cost of goods sold for services | 972,874 | 4,588,163 | ||||
| Cost of goods sold for product sales | 72,483,157 | 19,786,821 | ||||
| Total Cost of goods sold | 73,456,031 | 24,374,984 | ||||
| Selling, general and administrative expense | 2,606,476 | 2,522,428 | ||||
| Income before other income (expense) | 3,906,967 | 1,940,416 | ||||
| Other income (expense) | ||||||
| Interest expense | (350,589 | ) | (76,628 | ) | ||
| Interest income | 5,619 | 19,060 | ||||
| Gain on sale of assets | 42,137 | 14,133 | ||||
| Other income (expense) | (2,111 | ) | 158,884 | |||
| (304,944 | ) | 115,449 | ||||
| Income before income taxes | 3,602,023 | 2,055,865 | ||||
| Income tax provision | 1,440,809 | 775,750 | ||||
| Net income | $ | 2,161,214 | $ | 1,280,115 | ||
| Basic earnings per share | $ | 0.55 | $ | 0.36 | ||
| Diluted earnings per share | $ | 0.55 | $ | 0.36 | ||
| Weighted shares outstanding: | ||||||
| Basic | 3,900,422 | 3,593,966 | ||||
| Diluted | 3,909,723 | 3,593,966 | ||||
| INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
| NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 | ||||||
| (UNAUDITED) | ||||||
| 2009 | 2008 | |||||
| Revenue from service | $ | 5,720,398 | $ | 13,759,177 | ||
| Revenue from product sales | 137,623,313 | 75,673,131 | ||||
| Total Revenue | 143,343,711 | 89,432,308 | ||||
| Cost of goods sold for services | 4,388,861 | 12,855,591 | ||||
| Cost of goods sold for product sales | 124,305,531 | 62,235,557 | ||||
| Total Cost of goods sold | 128,694,392 | 75,091,148 | ||||
| Selling, general and administrative expense | 7,756,020 | 7,701,687 | ||||
| Income before other income (expense) | 6,893,299 | 6,639,473 | ||||
| Other income (expense) | ||||||
| Interest expense | (702,255 | ) | (305,197 | ) | ||
| Interest income | 27,779 | 63,057 | ||||
| Gain on sale of assets | 53,109 | 30,614 | ||||
| Other income (expense) | (42,787 | ) | 287,550 | |||
| (664,154 | ) | 76,024 | ||||
| Income before income taxes | 6,229,145 | 6,715,497 | ||||
| Income tax provision | 2,491,658 | 2,686,199 | ||||
| Net income | $ | 3,737,487 | $ | 4,029,298 | ||
| Basic earnings per share | $ | 1.01 | $ | 1.12 | ||
| Diluted earnings per share | $ | 1.01 | $ | 1.12 | ||
| Weighted shares outstanding: | ||||||
| Basic | 3,710,395 | 3,602,703 | ||||
| Diluted | 3,713,529 | 3,602,703 | ||||
| Industrial Services of America, Inc. Supplemental Financial Information | |||||||||||
| Reconciliation of EBITDA (1): | |||||||||||
| Three months ending Sept 30, | Nine Months ending Sept 30, | ||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||
| Net Income | 2,161,214 | 1,280,115 | 3,737,487 | 4,029,298 | |||||||
| Interest expense | 350,589 | 76,628 | 702,255 | 305,197 | |||||||
| Income taxes | 1,440,809 | 775,750 | 2,491,658 | 2,686,199 | |||||||
| Depreciation | 795,135 | 534,843 | 2,024,559 | 1,575,843 | |||||||
| Amortization | - | - | - | - | |||||||
| EBITDA (1) | 4,747,747 | 2,667,336 | 8,955,959 | 8,596,537 | |||||||
| (1) | EBITDA is calculated by ISA as net income before interest expense, income tax expense, depreciation and amortization. ISA 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 the judgment of ISA. 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. |
Industrial Services of America, Inc., Louisville
Harry Kletter or
Alan Schroering, 502-366-3452
hklet@isa-inc.com
or aschroering@isa-inc.com
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