Industrial Services of America, Inc. Reports First Quarter 2011 Results
LOUISVILLE, Ky., May 02, 2011 (BUSINESS WIRE) -- Industrial Services of America,
Inc. (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 first quarter ending March 31, 2011.
For the three months ending March 31, 2011:
-- Total revenue was $106.2 million in the first quarter of 2011, compared with
$74.2 million in the first quarter of 2010.
-- Net income was $2,166,782 (basic and diluted earnings of $0.31 per share) in
the first quarter of 2011, compared with $1,763,264 (basic and diluted earnings
of $0.27 per share) in the first quarter of 2010. Basic and diluted weighted
average shares outstanding were 6,885,170 and 6,928,448 respectively in the first
quarter of 2011 and were 6,449,522 and 6,487,650 respectively (split-adjusted)
for basic and diluted shares in the first quarter of 2010.
-- Earnings before interest, taxes, depreciation and amortization (EBITDA) for
the first quarter of 2011 was $5,229,971 compared with EBITDA of $4,132,001 for
the first quarter of 2010. (See attached reconciliation.)
Key Highlights for the First Quarter Ending March 31, 2011
-- Revenue up 43% year-over-year
-- Net Income up 23% year-over-year
-- Diluted EPS up 15% year-over-year, despite a 7% increase in diluted shares
outstanding
-- EBITDA up 27% year-over-year
Chairman of the Board Harry Kletter commented, "ISA had another record quarter,
with revenue up 43% over last year's first quarter. Even though some of this
increase was from higher commodity prices, our unit volume was up 37% over the
first quarter of 2010. Our earnings also posted strong growth, increasing 23%
over the first quarter of 2010. These results are particularly impressive when
you consider that they surpass the record results we posted in the first quarter
of last year."
Mr. Kletter continued, "We remain focused on improving margins in 2011, and we
will work hard to improve margins to that we can increase earnings growth even
without substantial growth on the top-line. Our Chief Operating Officer is
implementing a number of process improvements and other operating efficiencies
designed to expand margins.
"Our balance sheet also continued to strengthen during the first quarter, with
our current ratio improving to 3.8x and our leverage ratios decreasing. We expect
these trends to continue throughout the remainder of the year."
ISA also reports that Terry Hancock resigned from the Company last month. Brian
Donaghy, ISA's President & Chief Operating Officer, is overseeing the operation
of ISA Alloys, along with the other 30 members of the Alloys team.
Conference Call to Discuss First Quarter 2011 Results
ISA will host a conference call on Monday, May 2, 2011 at 2:00 PM Eastern time to
discuss first quarter results. Participants can access the call by dialing:
U.S. and Canada Dial-in Number: 877-354-6067
Conference ID #62760248
Callers should identify the Industrial Services of America earnings results call.
A replay will be available one hour after the call through midnight May 4, 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 sec.gov.
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 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.
FINANCIAL RESULTS AND SUPPLEMENTAL FINANCIAL INFORMATION FOLLOW
INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 2011 AND 2010
(UNAUDITED)
20112010
----------------- ---------------------------
(in thousands, except per share information)
Revenue from services$1,371$1,535
Revenue from product sales104,81672,634
-------------
Total Revenue106,18774,169
Cost of goods sold for services1,2771,351
Cost of goods sold for product sales97,07566,535
-------------
Total Cost of goods sold98,35267,886
Selling, general and administrative expenses3,7803,201
-------------
Income before other income (expense)4,0553,082
Other income (expense)
Interest expense(671)(329)
Interest income68
Gain on sale of assets49185
Other income (loss), net-(7)
------------- ------------
Total other income (expense)(616)(143)
------- ------- ------------
Income before income taxes3,4392,939
Income tax provision1,2721,176
-------------
Net income$2,167$1,763
====== ============= ======
Basic earnings per share$0.31$0.27
====== ============= ======
Diluted earnings per share$0.31$0.27
====== ============= ======
Weighted shares outstanding:
Basic6,8856,450
Diluted6,9286,488
INDUSTRIAL SERVICES OF AMERICA, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
Reconciliation of EBITDA (1):
Three Months Ending
March 31,
------------------
20112010
------------------
Net Income2,166,7821,763,264
----------------------------------
Interest expense671,682328,969
----------------------------------
Income taxes1,272,5551,175,511
----------------------------------
Depreciation931,452864,257
----------------------------------
Amortization187,500-
----------------------------------
EBITDA (1)5,229,9714,132,001
----------------------------------
(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.
SOURCE: Industrial Services of America, Inc.
Industrial Services of America, Inc.
Harry Kletter, 502-366-3452
hklet@isa-inc.com
or
Alan Schroering, 502-366-3452
aschroering@isa-inc.com
isa-inc.com |
