Date: March 28, 2011
Source: Industrial Services of America
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 waste, today announced ISA will host a conference call on Monday, March 28, 2011 at 2:00 p.m. eastern time to discuss its earnings results for the fourth quarter and fiscal year ended December 31, 2010, and to provide an update on business developments.
Conference Call Information:
The conference call can be accessed by dialing:
U.S. and Canada Dial-in Number: 877-354-6067
Conference ID#: 52496068
Callers should identify the Industrial Services of America earnings results call.
A replay will be available one hour after the call through midnight March 30, 2011 by calling: 800-642-1687 or 706-645-9291.
ISA’s 2010 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.
For more information, contact:
Industrial Services of America, Inc.
Harry Kletter, 502-366-3452
hklet@isa-inc.com.
or
Alan Schroering, 502-366-3452
aschroering@isa-inc.com.
www.isa-inc.com.
Selected Financial Data
| (Amounts in Thousands, Except Per Share Data) |
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||
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| Year ended December 31: | ||||||||||||||||
| Total revenue | $ | 343,005 | $ | 181,052 | $ | 100,042 | $ | 76,956 | $ | 62,082 | ||||||
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| Net income | $ | 8,053 | $ | 5,285 | $ | 1,528 | $ | 2,564 | $ | 2,188 | ||||||
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| Earnings per common share: | ||||||||||||||||
| Basic | $ | 1.22 | $ | 0.91 | $ | 0.28 | $ | 0.47 | $ | 0.41 | ||||||
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| Diluted | $ | 1.21 | $ | 0.91 | $ | 0.28 | $ | 0.47 | $ | 0.40 | ||||||
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| Cash dividends declared per common share | $ | — | $ | — | $ | 0.0667 | $ | 0.0667 | $ | — | ||||||
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| At year end: | ||||||||||||||||
| Total assets | $ | 106,162 | $ | 66,674 | $ | 28,791 | $ | 26,285 | $ | 19,332 | ||||||
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| Long-term
debt and capital lease obligations, net of current maturities |
$ | 43,623 | $ | 16,654 | $ | 8,531 | $ | 8,495 | $ | 2,858 | ||||||
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| INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| December 31, 2010 and 2009 | |||||||
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| 2010 | 2009 | ||||||
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| ASSETS | |||||||
| Current assets | |||||||
| Cash | $ | 2,468,284 | $ | 713,062 | |||
| Accounts
receivable – trade (after allowance for doubtful accounts of $100,000 in 2010 and 2009) (Note 1) |
27,449,146 | 8,512,326 | |||||
| Net investment in sales-type leases (Note 5) | 33,387 | 27,928 | |||||
| Inventories (Note 1) | 34,310,631 | 26,426,611 | |||||
| Deferred income taxes (Note 4) | 941,813 | 538,045 | |||||
| Other | 398,488 | 322,847 | |||||
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| Total current assets | 65,601,749 | 36,540,819 | |||||
| Net property and equipment | 27,554,103 | 26,994,539 | |||||
| Other assets | |||||||
| Net investment in sales-type leases (Note 5) | 39,913 | 73,300 | |||||
| Notes receivable – related party (Note 6) | 88,391 | 129,079 | |||||
| Goodwill (Note 1) | 6,840,046 | 2,567,046 | |||||
| Intangible assets, net (Note 1) | 5,775,000 | — | |||||
| Other assets | 262,664 | 368,834 | |||||
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| 13,006,014 | 3,138,259 | ||||||
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| $ | 106,161,866 | $ | 66,673,617 | ||||
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| INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| December 31, 2010 and 2009 | |||||||
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| 2010 | 2009 | ||||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities | |||||||
| Current maturities of long-term debt (Note 3) | $ | 1,824,227 | $ | 12,539,889 | |||
| Current maturities of capital lease obligations (Note 8) | — | 20,798 | |||||
| Accounts payable | 11,405,534 | 4,684,386 | |||||
| Income tax payable | 2,909,374 | 517,828 | |||||
| Note payable to BB&T (Note 3) | — | 5,000,000 | |||||
| Interest rate swap agreement liability (Note 1) | 650,202 | 564,715 | |||||
| Accrued bonuses | 1,174,825 | 1,513,800 | |||||
| Other current liabilities | 319,198 | 380,718 | |||||
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| Total current liabilities | 18,283,360 | 25,222,134 | |||||
| Long-term liabilities | |||||||
| Long-term debt (Note 3) | 43,622,659 | 16,654,481 | |||||
| Deferred income taxes (Note 4) | 3,373,642 | 2,879,509 | |||||
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| 46,996,301 | 19,533,990 | ||||||
| Shareholders’ equity | |||||||
| Common stock, $0.0033 par value: 10,000,000 shares authorized, | |||||||
| 7,192,500 shares issued in 2010 and 2009, 6,789,917 and | |||||||
| 6,429,438 shares outstanding in 2010 and 2009, respectively | 23,975 | 23,975 | |||||
| Additional paid-in capital | 17,852,630 | 7,442,346 | |||||
| Retained earnings | 23,938,423 | 15,885,814 | |||||
| Accumulated other comprehensive loss | (353,362 | ) | (338,829 | ) | |||
| Treasury
stock at cost, 402,583 and 763,062 shares in 2010 and 2009, respectively |
(579,461 | ) | (1,095,813 | ) | |||
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| 40,882,205 | 21,917,493 | ||||||
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| $ | 106,161,866 | 66,673,617 | |||||
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| INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
| Years ended December 31, 2010, 2009 and 2008 | ||||||||||
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| 2010 | 2009 | 2008 | ||||||||
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| Revenue from services | $ | 6,212,549 | $ | 7,094,755 | $ | 18,182,726 | ||||
| Revenue from product sales | 336,792,766 | 173,956,925 | 81,859,765 | |||||||
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| Total Revenue | 343,005,315 | 181,051,680 | 100,042,491 | |||||||
| Cost of goods sold for services | 5,401,521 | 5,514,290 | 16,550,253 | |||||||
| Cost of goods sold for product sales | 310,318,773 | 155,244,685 | 68,808,921 | |||||||
| Inventory adjustment for lower cost or market | — | — | 1,228,352 | |||||||
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| Total Cost of goods sold | 315,720,294 | 160,758,975 | 86,587,526 | |||||||
| Selling, general and administrative expenses | 13,736,685 | 10,487,665 | 9,998,530 | |||||||
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| Income before other income (expense) | 13,548,336 | 9,805,040 | 3,456,435 | |||||||
| Other income (expense) | ||||||||||
| Interest expense | (1,473,037 | ) | (1,096,227 | ) | (372,444 | ) | ||||
| Interest income | 29,255 | 32,147 | 85,598 | |||||||
| Gain (loss) on sale of assets | 281,241 | 73,754 | 34,842 | |||||||
| Provision for lawsuit settlement (Note 11) | — | — | (990,000 | ) | ||||||
| Other income (loss), net | 40,133 | (29,322 | ) | 336,802 | ||||||
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| (1,122,408 | ) | (1,019,648 | ) | (905,202 | ) | |||||
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| Income before income taxes | 12,425,928 | 8,785,392 | 2,551,233 | |||||||
| Income tax provision (Note 4) | 4,373,319 | 3,500,680 | 1,023,635 | |||||||
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| Net income | $ | 8,052,609 | $ | 5,284,712 | $ | 1,527,598 | ||||
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| Basic earnings per share | $ | 1.22 | $ | 0.91 | $ | 0.28 | ||||
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| Diluted earnings per share | $ | 1.21 | $ | 0.91 | $ | 0.28 | ||||
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| INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||
| Years ended December 31, 2010, 2009 and 2008 | |||||||||||||||||||||||||
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| Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Loss |
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| Common Stock | Treasury Stock | ||||||||||||||||||||||||
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| Shares | Amount | Shares | Cost | Total | |||||||||||||||||||||
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| Balance as of January 1, 2008 | 6,442,500 | $ | 21,475 | $ | 3,599,624 | $ | 9,434,733 | $ | — | (1,011,152 | ) | $ | (1,036,394 | ) | $ | 12,019,438 | |||||||||
| Net unrealized loss on derivative instruments, net of tax | — | — | — | — | (475,342 | ) | — | — | (475,342 | ) | |||||||||||||||
| Stock repurchase | — | — | — | 2,961 | — | (83,410 | ) | (530,648 | ) | (527,687 | ) | ||||||||||||||
| Stock bonuses | — | — | 142,749 | — | — | 15,000 | 18,651 | 161,400 | |||||||||||||||||
| Cash dividend | — | — | — | (364,190 | ) | — | — | — | (364,190 | ) | |||||||||||||||
| Net income | — | — | — | 1,527,598 | — | — | — | 1,527,598 | |||||||||||||||||
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| Balance as of December 31, 2008 | 6,442,500 | 21,475 | 3,742,373 | 10,601,102 | (475,342 | ) | (1,079,562 | ) | (1,548,391 | ) | 12,341,217 | ||||||||||||||
| Net unrealized income on derivative instruments, net of tax | — | — | — | — | 136,513 | — | — | 136,513 | |||||||||||||||||
| Stock bonuses | — | — | 37,402 | — | — | 16,500 | 22,578 | 59,980 | |||||||||||||||||
| Purchase of real estate (3409 Camp Ground Road) | — | — | 370,000 | — | — | 300,000 | 430,000 | 800,000 | |||||||||||||||||
| Purchase of real estate (7124 & 7200 Grade Lane) | 750,000 | 2,500 | 3,197,500 | — | — | — | — | 3,200,000 | |||||||||||||||||
| Stock option distribution to Directors | — | — | 95,071 | — | — | — | — | 95,071 | |||||||||||||||||
| Net Income | — | — | — | 5,284,712 | — | — | — | 5,284,712 | |||||||||||||||||
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| Balance as of December 31, 2009 | 7,192,500 | 23,975 | 7,442,346 | 15,885,814 | (338,829 | ) | (763,062 | ) | (1,095,813 | ) | 21,917,493 | ||||||||||||||
| Net unrealized loss on derivative instruments, net of tax | — | — | — | — | (14,533 | ) | — | — | (14,533 | ) | |||||||||||||||
| Stock bonuses | — | — | 417,184 | — | — | 60,479 | 86,452 | 503,636 | |||||||||||||||||
| Purchase of intangibles | — | — | 2,693,100 | — | — | 300,000 | 429,900 | 3,123,000 | |||||||||||||||||
| Contingent consideration (Note 13) | — | — | 7,300,000 | — | — | — | — | 7,300,000 | |||||||||||||||||
| Net income | — | — | — | 8,052,609 | — | — | — | 8,052,609 | |||||||||||||||||
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| Balance as of December 31, 2010 | 7,192,500 | $ | 23,975 | $ | 17,852,630 | $ | 23,938,423 | $ | (353,362 | ) | (402,583 | ) | $ | (579,461 | ) | $ | 40,882,205 | ||||||||
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| INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| Years ended December 31, 2010, 2009 and 2008 | ||||||||||
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| 2010 | 2009 | 2008 | ||||||||
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| Cash flows from operating activities | ||||||||||
| Net income | $ | 8,052,609 | $ | 5,284,712 | $ | 1,527,598 | ||||
| Adjustments
to reconcile net income to net cash from operating activities: |
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| Depreciation and amortization | 3,886,874 | 2,799,192 | 2,122,167 | |||||||
| Inventory write-down | — | — | 1,228,352 | |||||||
| Stock bonus to employees | 503,636 | 59,980 | 161,400 | |||||||
| Stock options to Directors | — | 95,071 | — | |||||||
| Deferred income taxes | (196,346 | ) | 2,898,599 | (156,813 | ) | |||||
| Provision for doubtful accounts | — | (390,000 | ) | 390,000 | ||||||
| (Gain)/loss on sale of property and equipment | (281,241 | ) | (73,754 | ) | (34,842 | ) | ||||
| Change in assets and liability | ||||||||||
| Receivables | (18,936,820 | ) | (4,310,842 | ) | 2,563,367 | |||||
| Net investment in sales-type leases | 27,928 | 24,623 | 60,364 | |||||||
| Inventories | (7,884,020 | ) | (12,946,204 | ) | (972,419 | ) | ||||
| Other assets | (66,822 | ) | (166,247 | ) | 291,659 | |||||
| Accounts payable | 6,721,148 | 982,491 | (963,736 | ) | ||||||
| Accrued bonuses | (338,975 | ) | 1,459,300 | 54,500 | ||||||
| Accrued legal | 29,337 | (987,828 | ) | 1,027,165 | ||||||
| Income tax payable | 2,749,210 | (48,197 | ) | 566,025 | ||||||
| Other current liabilities | (90,857 | ) | (233,371 | ) | (89,560 | ) | ||||
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| Net cash from (used in) operating activities | (5,824,339 | ) | (5,552,475 | ) | 7,775,227 | |||||
| Cash flows from investing activities | ||||||||||
| Proceeds from sale of property and equipment | 376,308 | 111,469 | 126,283 | |||||||
| Purchases of property and equipment | (3,876,053 | ) | (1,042,019 | ) | (3,510,006 | ) | ||||
| Deposits on equipment | (193,101 | ) | (290,452 | ) | (60,608 | ) | ||||
| Payments for shredder system | — | (6,526,555 | ) | (4,374,826 | ) | |||||
| Acquisition from Venture Metals | — | (11,874,985 | ) | — | ||||||
| Payments from related party | 40,688 | 38,515 | 36,459 | |||||||
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| Net cash used in investing activities | (3,652,158 | ) | (19,584,027 | ) | (7,782,698 | ) | ||||
| Cash flows from financing activities | ||||||||||
| Payments on capital lease obligation | (20,798 | ) | (80,771 | ) | (133,675 | ) | ||||
| Proceeds from other long-term debt | — | 1,498,885 | 163,655 | |||||||
| Net proceeds from Fifth Third Bank | 45,034,384 | — | — | |||||||
| (Payments on) Proceeds from note payable to BB&T | (5,000,000 | ) | 5,000,000 | — | ||||||
| Payments on other BB&T debt | (28,499,373 | ) | (625,230 | ) | (6,169,653 | ) | ||||
| Payment of cash dividend | — | — | (364,190 | ) | ||||||
| Payments on other long-term debt | (282,494 | ) | (1,731,517 | ) | (1,968,722 | ) | ||||
| Proceeds from BB&T | — | 20,684,355 | 8,609,900 | |||||||
| Purchases of common stock | — | — | (527,687 | ) | ||||||
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| Net cash from (used in) financing activities | 11,231,719 | 24,745,722 | (390,372 | ) | ||||||
| Net change in cash | 1,755,222 | (390,780 | ) | (397,843 | ) | |||||
| Cash at beginning of year | 713,062 | 1,103,842 | 1,501,685 | |||||||
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| Cash at end of year | $ | 2,468,284 | $ | 713,062 | $ | 1,103,842 | ||||
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| Supplemental disclosure of cash flow information: | ||||||||||
| Cash paid for interest | $ | 1,473,037 | $ | 1,096,227 | $ | 372,444 | ||||
| Cash paid for taxes | 1,946,341 | 748,722 | 617,675 | |||||||
| Supplemental
disclosure of noncash investing and financing activities: |
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| Common stock issued to acquire real estate | $ | — | $ | 4,000,000 | $ | — | ||||
| Common stock issued to acquire intangibles | 3,123,000 | — | — | |||||||
| Contingent consideration (Note 13) | 7,300,000 | — | — | |||||||
| 2010 | 2009 | 2008 | ||||||||
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| Net income (loss) | ||||||||||
| Net income, as reported | $ | 8,052,609 | $ | 5,284,712 | $ | 1,527,598 | ||||
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| Basic earnings (loss) per share | ||||||||||
| As reported | $ | 1.22 | $ | 0.91 | $ | 0.28 | ||||
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| Diluted earnings (loss) per share | ||||||||||
| As reported | $ | 1.21 | $ | 0.91 | $ | 0.28 | ||||
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Following is a summary of stock option activity and number of shares reserved for outstanding options for the years ended December 31, 2010, 2009, and 2008.
| Number of Shares |
Weighted Average Exercise Price Per Share |
Exercise Price Per Share |
Maximum Remaining Term of Options Granted |
Weighted Average Grant Date Fair Value of Options |
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| Balance as of January 1, 2008 | — | — | — | — | — | |||||||||||
| Balance as of December 31, 2008 | — | — | — | — | — | |||||||||||
| Granted | 90,000 | $ | 4.23 | $ | 4.23 | 3.5 Years | $ | 1.05 | ||||||||
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| Balance as of December 31, 2009 | 90,000 | $ | 4.23 | $ | 4.23 | 3.5 Years | $ | 1.05 | ||||||||
| Granted | — | — | — | — | — | |||||||||||
| Balance as of December 31, 2010 | 90,000 | $ | 4.23 | $ | 4.23 | 3.5 Years | $ | 1.05 | ||||||||
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