Industrial Services of America, Inc. Announces Revenue Increase and Improved Operating Performance
August 08 2018 - 4:19PM
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-Q for the quarter ended June 30,
2018.
ISA reported a 17.6% revenue increase and a $1.5 million
improvement in net income for the six months ended June 30,
2018 compared to the same period in 2017.
The Company reported a net income of $833 thousand for the six
months ended June 30, 2018 compared to a net loss of $648 thousand
for the six months ended June 30, 2017. Further, the Company
reported Adjusted EBITDA of $2.0 million during the six months
ended June 30, 2018, which marks a substantial improvement compared
to Adjusted EBITDA of $907 thousand during the six months ended
June 30, 2017. This improvement in operating performance was due in
part to the successful restart of the Company’s shredder in
May 2017 as well as improvements in the Company’s
ferrous volumes and margins from 2017 to 2018. The restart of
the Company’s shredder led to favorable sales mix and improved
margins. Net income was further strengthened by a
non-recurring insurance settlement gain in the amount of
$487 thousand during the second quarter of 2018. This amount
is excluded from Adjusted EBITDA. (See Non-GAAP Measures
below.)
The Company reported a net income of $797 thousand for the three
months ended June 30, 2018 compared to a net loss of $377 thousand
for the three months ended June 30, 2017. Further, the Company
reported Adjusted EBITDA of $1.1 million during the three
months ended June 30, 2018, which marks an improvement compared to
Adjusted EBITDA of $411 thousand during the three months ended June
30, 2017. This improvement in operating performance was
primarily due in part to the successful restart of the
Company’s shredder in May 2017 as well as improvements in the
Company’s ferrous volumes and margins from 2017 to 2018.
The restart of the Company’s shredder led to favorable sales mix
and improved margins. Net income was further strengthened by a
non-recurring insurance settlement gain in the amount of
$487 thousand during the second quarter of 2018. This amount
is excluded from Adjusted EBITDA. (See Non-GAAP Measures
below.)
Three months ended June 30,
Six months ended June 30, 2018
2017 2018 2017 (in thousands)
(in thousands) Revenue $ 16,600 $ 13,560 $ 31,257 $ 26,571 Net
income (loss) $ 797 $ (377 ) $ 833 $ (648 ) Adjusted EBITDA $ 1,139
$ 411 $ 1,955 $ 907
Todd L. Phillips, Chief Executive Officer, President and Chief
Financial Officer of ISA, commented, “I am very pleased with our
overall financial performance during the first half of 2018, in
particular the volumes and margins associated with the Company’s
shredder.”
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, share-based compensation expense,
interest expense, including loan fee amortization, gain on sale of
assets, gain on insurance proceeds, 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 income (loss) and Adjusted EBITDA.
Three Months EndedJune
30,
Six Months EndedJune 30,
2018 2017 2018
2017 (in thousands) (in thousands)
Reconciliation from net income (loss) to Adjusted EBITDA Net income
(loss) $ 797 $ (377 ) $ 833 $ (648 ) Depreciation and
amortization 521 560 1,042 1,135 Share-based compensation expense
14 27 23 59 Interest expense, including loan fee amortization 282
202 524 385 Gain on sale of assets - - - (28 ) Gain on insurance
proceeds (487 ) - (487 ) - Other (income) expense, net - (1 ) - (3
) Income tax provision 12 - 20
7 Total net adjustments 342
788 1,122 1,555
Adjusted EBITDA $ 1,139 $ 411 $ 1,955 $
907
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/20180808005790/en/
Industrial Services of America, Inc.Todd Phillips,
502-366-3452Chief Executive Officer, President and Chief Financial
Officer
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