Date: November 15, 2011
Source: Industrial Services of America, Inc.
Industrial Services of America, Inc., 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, November 14, 2011 at 2:00 p.m. eastern time to discuss its earnings results for the third quarter ended September 30, 2011, 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#: 26901129
Callers should identify the Industrial Services of America earnings results call.
A replay will be available November 14, 2011 at 2:45 EST through midnight November 16, 2011 by calling: (855) 859-2056 or (404) 537-3406.
ISA's 2011 SEC filings are available for review at the Securities and Exchange Commission web site at 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, ISA offers commercial, industrial and business customers a variety of programs and equipment to 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 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.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
| September 30, 2011 (Unaudited) |
December 31, 2010 |
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| (in thousands) | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 3,037 | $ | 2,468 | |||
| Income tax receivable | 3,177 | — | |||||
| Accounts receivable – trade (after allowance for doubtful accounts ofe $100 thousand in 2011 and 2010) |
28,409 | 27,449 | |||||
| Net investment in sales-type leases | 38 | 33 | |||||
| Inventories | 21,027 | 34,311 | |||||
| Deferred income taxes | 511 | 942 | |||||
| Prepaid expenses | 535 | 392 | |||||
| Employee loans | 5 | 6 | |||||
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| Total current assets | 56,739 | 65,601 | |||||
| Net property and equipment | 26,555 | 27,554 | |||||
| Other assets | |||||||
| Net investment in sales-type leases | 11 | 40 | |||||
| Notes receivable – related party | 56 | 88 | |||||
| Goodwill | 6,840 | 6,840 | |||||
| Intangible assets, net | 5,213 | 5,775 | |||||
| Deposits | 626 | 263 | |||||
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| Total other assets | 12,746 | 13,006 | |||||
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| Total assets | $ | 96,040 | $ | 106,161 | |||
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INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS CONTINUED
LIABILITIES AND STOCKHOLDERS’ EQUITY
| September 30, 2011 (Unaudited) |
December 31, 2010 |
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| (in thousands) | |||||||
| Current liabilities | |||||||
| Current maturities of long-term debt (Note 4) | $ | 1,872 | $ | 1,824 | |||
| Accounts payable | 5,646 | 11,406 | |||||
| Income tax payable | — | 2,909 | |||||
| Interest rate swap agreement liability (Note 4) | 558 | 650 | |||||
| Accrued bonuses | — | 1,175 | |||||
| Other current liabilities | 509 | 319 | |||||
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| Total current liabilities | 8,585 | 18,283 | |||||
| Long-term liabilities | |||||||
| Long-term debt (Note 4) | 44,729 | 43,623 | |||||
| Deferred income taxes | 3,390 | 3,373 | |||||
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| Total long-term liabilities | 48,119 | 46,996 | |||||
| Shareholders’ equity | |||||||
| Common stock, $0.0033 par value: 10,000,000 shares authorized, 7,192,500 shares issued in 2011 and 2010, 6,940,517 and 6,789,917 shares outstanding in 2011 and 2010, respectively |
24 | 24 | |||||
| Additional paid-in capital | 18,282 | 17,852 | |||||
| Retained earnings | 21,882 | 23,938 | |||||
| Accumulated other comprehensive loss | (338 | ) | (353 | ) | |||
| Treasury stock at cost, 251,983 and 407,583 shares in 2011 and 2010, respectively | (514 | ) | (579 | ) | |||
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| Total shareholders’ equity | 39,336 | 40,882 | |||||
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| Total liabilities and shareholders’ equity | $ | 96,040 | $ | 106,161 | |||
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INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(UNAUDITED)
| 2011 | 2010 | ||||||
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| (in thousands, except per share information) | |||||||
| Revenue from services | $ | 1,403 | $ | 1,761 | |||
| Revenue from product sales | 54,363 | 74,789 | |||||
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| Total Revenue | 55,766 | 76,550 | |||||
| Cost of goods sold for services | 1,300 | 1,687 | |||||
| Cost of goods sold for product sales | 55,496 | 67,494 | |||||
| Inventory adjustment for lower of cost or market | 3,441 | — | |||||
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| Total Cost of goods sold | 60,237 | 69,181 | |||||
| Selling, general and administrative expenses | 2,694 | 3,884 | |||||
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| (Loss) income before other income (expense) | (7,165 | ) | 3,485 | ||||
| Other income (expense) | |||||||
| Interest expense | (426 | ) | (353 | ) | |||
| Interest income | 5 | 6 | |||||
| Gain (loss) on sale of assets | (30 | ) | 22 | ||||
| Other income (loss), net | 19 | 44 | |||||
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| Total other expense | (432 | ) | (281 | ) | |||
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| (Loss) income before income taxes | (7,597 | ) | 3,204 | ||||
| Income tax provision (benefit) | (3,061 | ) | 1,281 | ||||
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| Net (loss) income | $ | (4,536 | ) | $ | 1,923 | ||
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| Basic (loss) earnings per share | $ | (0.67 | ) | $ | 0.28 | ||
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| Diluted (loss) earnings per share | $ | (0.67 | ) | $ | 0.28 | ||
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| Weighted shares outstanding: | |||||||
| Basic | 6,790 | 6,785 | |||||
| Diluted | 6,790 | 6,835 | |||||
INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(UNAUDITED)
| 2011 | 2010 | ||||||
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| (in thousands, except per share information) | |||||||
| Revenue from services | $ | 4,064 | $ | 4,831 | |||
| Revenue from product sales | 222,852 | 238,703 | |||||
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| Total Revenue | 226,916 | 243,534 | |||||
| Cost of goods sold for services | 3,758 | 4,474 | |||||
| Cost of goods sold for product sales | 212,345 | 217,654 | |||||
| Inventory adjustment for lower of cost or market | 3,441 | — | |||||
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| Total Cost of goods sold | 219,544 | 222,128 | |||||
| Selling, general and administrative expenses | 9,045 | 10,649 | |||||
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| (Loss) income before other income (expense) | (1,673 | ) | 10,757 | ||||
| Other income (expense) | |||||||
| Interest expense | (1,632 | ) | (1,022 | ) | |||
| Interest income | 16 | 24 | |||||
| Gain on sale of assets | 111 | 256 | |||||
| Other income (loss), net | (483 | ) | 40 | ||||
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| Total other expense | (1,988 | ) | (702 | ) | |||
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| (Loss) income before income taxes | (3,661 | ) | 10,055 | ||||
| Income tax provision (benefit) | (1,605 | ) | 4,022 | ||||
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| Net (loss) income | $ | (2,056 | ) | $ | 6,033 | ||
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| Basic (loss) earnings per share | $ | (0.30 | ) | $ | 0.92 | ||
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| Diluted (loss) earnings per share | $ | (0.30 | ) | $ | 0.91 | ||
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| Weighted shares outstanding: | |||||||
| Basic | 6,922 | 6,567 | |||||
| Diluted | 6,922 | 6,611 | |||||
INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
NINE MONTHS ENDED SEPTEMBER 30, 2011
(UNAUDITED)
| Accumulated Other Comprehensive Loss |
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| Common Stock | Additional Paid-in Capital |
Retained Earnings |
Treasury Stock | Total Shareholders’ Equity |
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| Shares | Amount | Shares | Cost | ||||||||||||||||||||||
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| (in thousands, except share information) | |||||||||||||||||||||||||
| Balance as of December 31, 2010 | 7,192,500 | $ | 24 | $ | 17,852 | $ | 23,938 | $ | (353 | ) | (402,583 | ) | $ | (579 | ) | $ | 40,882 | ||||||||
| Net unrealized income on derivative instruments, net of tax | — | — | — | — | 15 | — | — | 15 | |||||||||||||||||
| Stock bonuses | — | — | 430 | — | — | 150,600 | 65 | 495 | |||||||||||||||||
| Net loss | — | — | — | (2,056 | ) | — | — | — | (2,056 | ) | |||||||||||||||
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| Balance as of September 30, 2011 | 7,192,500 | $ | 24 | $ | 18,282 | $ | 21,882 | $ | (338 | ) | (251,983 | ) | $ | (514 | ) | $ | 39,336 | ||||||||
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INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
(UNAUDITED)
| 2011 | 2010 | ||||||
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| (in thousands) | |||||||
| Cash flows from operating activities | |||||||
| Net (loss) income | $ | (2,056 | ) | $ | 6,033 | ||
| Adjustments to reconcile net income to net cash from operating activities: |
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| Depreciation and amortization | 3,387 | 2,681 | |||||
| Inventory write-down | 3,441 | — | |||||
| Stock bonus to employees | 495 | 452 | |||||
| Deferred income taxes | 371 | ||||||
| Gain on sale of property and equipment | (111 | ) | (256 | ) | |||
| Change in assets and liability | |||||||
| Receivables | (960 | ) | (27,658 | ) | |||
| Net investment in sales-type leases | 24 | 20 | |||||
| Inventories | 9,842 | (4,446 | ) | ||||
| Income tax receivable | (3,177 | ) | — | ||||
| Other assets | (170 | ) | (722 | ) | |||
| Accounts payable | (5,759 | ) | 10,023 | ||||
| Accrued bonuses | (1,175 | ) | 290 | ||||
| Income tax payable | (2,909 | ) | 2,076 | ||||
| Other current liabilities | 190 | 113 | |||||
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| Net cash from (used in) operating activities | 1,433 | (11,394 | ) | ||||
| Cash flows from investing activities | |||||||
| Proceeds from sale of property and equipment | 173 | 351 | |||||
| Purchases of property and equipment | (1,856 | ) | (1,871 | ) | |||
| Deposits on equipment | (367 | ) | (605 | ) | |||
| Payments from related party | 32 | 30 | |||||
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| Net cash used in investing activities | (2,018 | ) | (2,095 | ) | |||
| Cash flows from financing activities | |||||||
| Payments on capital lease obligation | — | (21 | ) | ||||
| Payments on long-term debt | (4,026 | ) | (33,934 | ) | |||
| Proceeds from long-term debt | 5,180 | 48,800 | |||||
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| Net cash from financing activities | 1,154 | 14,845 | |||||
| Net increase in cash | 569 | 1,356 | |||||
| Cash at beginning of year | 2,468 | 713 | |||||
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| Cash at end of year | $ | 3,037 | $ | 2,069 | |||
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| Supplemental disclosure of cash flow information: | |||||||
| Cash paid for interest | 1,632 | 1,022 | |||||
| Cash paid for taxes | 4,120 | 1,946 | |||||
| Supplemental disclosure of noncash investing and financing activities | |||||||
| Common stock issued to acquire intangibles | — | 2,260 | |||||
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