Industrial Services of America, Inc. Announces $2.1 Million Improvement in Operating Performance
March 26 2018 - 4:37PM
Business Wire
Industrial Services of America, Inc. (NASDAQ: IDSA), (the
“Company” or “ISA”), a company that buys, processes and markets
ferrous and non-ferrous metals and other recyclable commodities,
and buys used autos in order to sell used auto parts, today
announced the filing with the U.S. Securities and Exchange
Commission of its Form 10-K for the year ended December 31,
2017.
ISA reported a 50.5% revenue increase and a $2.1 million
improvement in net loss for the year ended December 31,
2017 compared to the same period in 2016.
The Company reported a net loss of $1.1 million for the
year ended December 31, 2017 compared to a net loss of
$3.2 million for the year ended December 31, 2016.
Further, the Company reported positive Adjusted EBITDA of
$2.0 million during the year ended December 31, 2017,
which marks a substantial improvement compared to the Adjusted
EBITDA loss of $402 thousand during the year ended December
31, 2016. This improvement in operating performance was due in part
to the successful start-up of the Company’s shredder as well
as improvements in pricing and volumes in the scrap metal commodity
markets from 2016 to 2017. The start-up of the Company’s shredder
led to favorable sales mix and improved margins, but was partially
offset by costs incurred related to the shredder start-up. (See
Non-GAAP Measures below.)
The Company reported a net loss of $306 thousand for the three
months ended December 31, 2017 compared to a net loss of $240
thousand for the three months ended December 31, 2016. Further, the
Company reported positive Adjusted EBITDA of $471 thousand during
the three months ended December 31, 2017 compared to the
positive Adjusted EBITDA of $411 thousand during the three months
ended December 31, 2016. This improvement in operating performance
was primarily due to improvements in pricing and volumes in
the scrap metal commodity markets from 2016 to 2017. (See Non-GAAP
Measures below.)
Three months ended December
31, Year ended December 31,
2017 2016 2017
2016 (in thousands) (in thousands) Revenue $ 13,455
$ 10,490 $ 54,935 $
36,505 Net loss $ (306 ) $ (240 ) $ (1,131 ) $
(3,230 ) Adjusted EBITDA $ 471 $ 411 $ 2,025 $ (402 )
ISA is also pleased to announce that the Board has appointed
Vince Tyra as Chairman of the Board and Todd L. Phillips as Chief
Executive Officer. Orson Oliver has resigned his positions as
Interim Chief Executive Officer and Chairman of the Board, while
retaining his seat on the Board. Mr. Tyra is a current board
member, while Mr. Phillips is the current President and Chief
Financial Officer. Mr. Phillips will retain his current roles. Mr.
Phillips stated, “On behalf of the Company, I would like to thank
Orson for his many years of dedicated service. I look forward to
continuing to work with him in his role as a board member. I also
want to congratulate and thank Vince for his assumption of the
Chairman role.” Mr. Phillips further added, “I’m excited to lead
the Company as its next CEO. The Company is well positioned for the
future. I look forward to continuing the progress that we’ve made
so far.”
Non-GAAP Measures
The information provided above in this release includes certain
non-GAAP financial measures as defined under SEC rules. In
accordance with SEC rules, the Company has provided, in the
supplemental information below, a reconciliation of those measures
to the most directly comparable GAAP measures. To provide
additional information regarding the Company’s results, the Company
has disclosed in this press release Adjusted EBITDA. Adjusted
EBITDA is not a measure of financial performance under accounting
principles generally accepted in the United States of America. The
Company defines Adjusted EBITDA as net income (loss) excluding
depreciation and amortization, non-cash share-based compensation
expense, interest expense, including loan fee amortization, gain
(loss) on sale of assets, other income (expense), net, and income
tax provision. The Company has included Adjusted EBITDA as a
supplemental financial measure in this press release as it is a key
measure used by management and the board of directors to understand
and evaluate the core operating performance of the Company, to
prepare budgets and operating plans, and because management
believes such measure provides useful information in understanding
and evaluating the Company’s operating results. Adjusted EBITDA is
also used in certain covenants contained in the Company’s credit
agreement. However, use of Adjusted EBITDA as an analytic tool has
its limitations and you should not consider this measure in
isolation or as a substitute for analysis of the Company’s
financial results as reported under GAAP, including net income
(loss), gross profit, cash flows from operating, investing or
financing activities, or any other measure calculated in accordance
with GAAP. The following table presents the reconciliation between
net loss and Adjusted EBITDA.
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2017 2016 2017
2016 (in thousands) (in thousands)
Reconciliation from net loss to Adjusted EBITDA Net loss $ (306 ) $
(240 ) $ (1,131 ) $ (3,230 ) Depreciation and amortization 522 582
2,191 2,297 Share-based compensation expense 26 24 116 357 Interest
expense, including loan fee amortization 223 207 848 509 Gain
(loss) on sale of assets 1 - (27 ) - Gain on insurance proceeds -
(399 ) - (399 ) Other (income) expense, net 2 234 16 (16 ) Income
tax provision 3 3 12
80 Total net adjustments 777 651
3,156 2,828 Adjusted EBITDA $
471 $ 411 $ 2,025 $ (402 )
About ISA
Headquartered in Louisville, Kentucky, Industrial Services of
America, Inc., is a publicly traded company that buys, processes
and markets ferrous and non-ferrous metals and other recyclable
commodities, and buys used autos in order to sell used auto parts.
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 commodity prices, varying demand for metal recycling,
competitive pressures in metal recycling markets, the failure to
operate the shredder successfully, competitive pressures in the
used auto parts market, availability of liquidity 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. Except as required by law, ISA undertakes no
obligation to publicly release the results of any revisions to the
forward-looking statements.
ISA’s SEC filings are available for review at the Securities and
Exchange Commission web site at
http://www.sec.gov/edgar/searchedgar/companysearch.html.
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version on businesswire.com: https://www.businesswire.com/news/home/20180326006109/en/
Industrial Services of America, Inc.Todd Phillips,
502-366-3452Chief Executive Officer, President, and Chief Financial
Officer
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