Industrial Services of America, Inc. Reports Second Quarter 2010 Results
August 09, 2010 08:00 AM Eastern Daylight Time
LOUISVILLE, Ky.--(BUSINESS WIRE)--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, 2010.
“We need the increased credit facilities in place for opportunities in our overall recycling business.”
Highlights:
* Total revenue for the second quarter 2010 increased 137% to $92.8 million from last year second quarter
* Net income for the second quarter 2010 increased 155% to $2.3 million from last year second quarter
* New credit facilities of $48.8 million to accommodate continued growth
Harry Kletter, Chairman and Chief Executive Officer commented, “The quarter ended with much stronger than expected orders, but we continue to be cautious as certain economic indicators suggest that the current recovery may be slowing.” The company recently announced that its credit facilities had been increased to $48.8 million from $28.8 million. Brian Donaghy, President stated, “We need the increased credit facilities in place for opportunities in our overall recycling business.”
For the second quarter of 2010:
* Total revenue was $92.8 million in 2010, compared with $39.1 million in 2009 primarily due to an increase in the volume of ferrous shipments of 164.0%. (Shredder operations began July 1, 2009.)
* Net income was $2,347,200 (basic and diluted earnings of $0.36 per share) in 2010, compared with $922,210 (basic and diluted earnings of $0.17 per share) in 2009. Basic and diluted weighted average shares outstanding were 6,462,513 and 6,489,908 in 2010 and 5,477,844 for both in 2009 (adjusted for split).
* Earnings before interest, taxes, depreciation and amortization (EBITDA) for 2010 was $5,117,653 compared with EBITDA of $2,365,976 for 2009. (See attached reconciliation.)
For the first six months of fiscal 2010:
* Total revenue was $167.0 million, compared with $63.4 million in 2009 primarily due to an increase in the volume of ferrous shipments of 175.3%. (Shredder operations began July 1, 2009.)
* Net income was $4,110,464 (basic earnings of $0.64 per share and diluted earnings of $0.63 per share), compared with net income of $1,576,273 (basic and diluted earnings of $0.29 per share) in 2009. Basic and diluted weighted average shares outstanding were 6,456,053 and 6,474,903 in 2010 and 5,420,709 for both in 2009 (adjusted for split).
* Earnings before interest, taxes, depreciation and amortization (EBITDA) for 2010 were $9,249,654 compared with EBITDA of $4,208,212 for 2009. (See attached reconciliation.)
Other Information:
ISA will host a conference call on Monday, August 9, 2010 at 2:00 p.m. Eastern Daylight Time to discuss its earnings results for the quarter ended June 30, 2010 and to provide an update on business developments.
The conference call can be accessed by dialing:
U.S. and Canada Dial-in Number: 877-354-6067
International Dial-in Number: 706-758-1711
Conference ID# 90249476
Callers should identify the Industrial Services of America earnings results call.
Harry Kletter, the Company’s 83 year old founder and Chairman of the Board, through his various holdings, for estate and tax purposes, has sold a small portion of his shares and may from time to time sell additional shares. He also pays certain advisors with shares of his ISA stock. Mr. Kletter stated, "I am fully committed to the future of ISA as the Company continues to seek out additional strategic growth opportunities to invest in."
ISA’s 2010 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 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.
FINANCIAL RESULTS AND
SUPPLEMENTAL FINANCIAL INFORMATION
FOLLOW
INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2010 AND 2009
(UNAUDITED)
2010 2009
Revenue from services $ 1,534,517 $ 1,522,134
Revenue from product sales 91,280,445 37,602,180
Total revenue 92,814,962 39,124,314
Cost of goods sold for services 1,436,049 1,153,059
Cost of goods sold for product sales 83,625,249 33,820,184
Total cost of goods sold 85,061,298 34,973,243
Selling, general and administrative expense 3,564,271 2,439,883
Income before other income (expense) 4,189,393 1,711,188
Other income (expense)
Interest expense (339,642 ) (213,161 )
Interest income 9,478 6,917
Gain on sale of assets 49,500 7,222
Other income 3,270 24,851
(277,394 ) (174,171 )
Income before income taxes 3,911,999 1,537,017
Income tax provision 1,564,799 614,807
Net income $ 2,347,200 $ 922,210
Basic earnings per share $ 0.36 $ 0.17
Diluted earnings per share $ 0.36 $ 0.17
Weighted shares outstanding:
Basic 6,462,513 5,477,844
Diluted 6,489,908 5,477,844
INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2010 AND 2009
(UNAUDITED)
2010 2009
Revenue from services $ 3,069,650 $ 4,167,702
Revenue from product sales 163,914,278 59,206,535
Total revenue 166,983,928 63,374,237
Cost of goods sold for services 2,786,452 3,415,987
Cost of goods sold for product sales 150,160,354 51,822,374
Total cost of goods sold 152,946,806 55,238,361
Selling, general and administrative expense 6,765,293 5,149,544
Income before other income (expense) 7,271,829 2,986,332
Other income (expense)
Interest expense (668,611 ) (351,666 )
Interest income 17,307 22,160
Gain on sale of assets 234,148 10,972
Other expense (3,899 ) (40,676 )
(421,055 ) (359,210 )
Income before income taxes 6,850,774 2,627,122
Income tax provision 2,740,310 1,050,849
Net income $ 4,110,464 $ 1,576,273
Basic earnings per share $ 0.64 $ 0.29
Diluted earnings per share $ 0.63 $ 0.29
Weighted shares outstanding:
Basic 6,456,053 5,420,709
Diluted 6,474,903 5,420,709
Industrial Services of America, Inc.
Supplemental Financial Information
Reconciliation of EBITDA (1):
Three Months ending
June 30,
Six Months ending
June 30,
2010
2009
2010
2009
Net Income 2,347,200 922,210 4,110,464 1,576,273
Interest expense 339,642 213,161 668,611 351,666
Income taxes 1,564,799 614,807 2,740,310 1,050,849
Depreciation 866,012 615,798 1,730,269 1,229,425
Amortization - - - -
EBITDA (1) 5,117,653 2,365,976 9,249,654 4,208,212
(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.
Contacts
Industrial Services of America, Inc.
Harry Kletter, 502-366-3452
hklet@isa-inc.com
or
Alan Schroering, 502-366-3452
aschroering@isa-inc.com
http://www.isa-inc.com/
