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Industrial Services of America, Inc. Announces First Quarter 2013 Results

  Industrial Services of America, Inc. Announces First Quarter 2013 Results

Business Wire

LOUISVILLE, Ky. -- May 15, 2013

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 waste, today announced financial results
for the first quarter ended March31, 2013.

Revenue for the first quarter of 2013 was $34.8 million compared with $61.7
million in the first quarter of 2012. Net loss for the first quarter of 2013
was $(114.8) thousand, or $(0.02) on a per diluted share basis, compared with
a net income of $8.5 thousand, or break-even on a per diluted share basis, for
the comparable period in 2012.

Key Highlights

  *The Company was in compliance with all bank covenants as of March31,
    2013;
  *Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA")
    for the quarter ended March31, 2013 was $1.3 million;
  *Current ratio at March31, 2013 was 2.9 to 1; and
  *Working capital as of March31, 2013 was $23.2 million.

The Company entered into a Management Services Agreement with Blue Equity, LLC
("Blue Equity") effective April 1, 2013. Under this arrangement, Blue Equity
is providing the Company with day-to-day senior executive level operating
management supervisory services. Blue Equity will also provide business,
financial, and organizational strategy and consulting services, as the
Company's Board of Directors may reasonably request from time to time.

On May 7, 2013, the Board of Directors appointed Jonathan S. Blue, age 46, to
the positions of director and Chief Executive Officer. The Board of Directors
and Mr. Blue continue to negotiate the terms and conditions of Mr. Blue's
service as a director and Chief Executive Officer, and Mr. Blue has not yet
accepted either position. The Company expects to file an amendment to the
Current Report on Form 8-K filed with the Securities and Exchange Commission
on May 13, 2013 when those negotiations are completed.

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.

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.






FINANCIAL RESULTS AND
SUPPLEMENTAL FINANCIAL INFORMATION
FOLLOW







Industrial Services of America, Inc. and Subsidiaries
Condensed Consolidated Statements of Income

                                              THREE MONTHS ENDED
                                               March 31, 2013  March 31, 2012
                                                                
Revenue from services                          $  945,443       $  1,284,581
Revenue from product sales                     33,812,227      60,393,731   
Total revenue                                  34,757,670       61,678,312
                                                                
Cost of goods sold for services                882,582          1,193,223
Cost of goods sold for product sales           31,835,126      56,981,693   
Total cost of goods sold                       32,717,708       58,174,916
                                                                
Provision for employee terminations and        —                211,323
severances
Other selling, general and administrative      2,447,503       2,760,684    
expense
Total selling, general and administrative      2,447,503        2,972,007
expense
                                                                
(Loss) income before other income (expense)    (407,541     )   531,389
                                                                
Other income (expense)
Interest expense                               (459,195     )   (538,754     )
Interest income                                1,102            3,183
Gain on sale of assets                         17,202           18,658
Gain on lawsuit settlement                     625,333          —
Other income (loss)                            8,546           (258         )
                                               192,988          (517,171     )
                                                                
(Loss) income before income taxes              (214,553     )   14,218
                                                                
Income tax (benefit) provision                 (99,793      )   5,687        
                                                                
Net (loss) income                              $  (114,760  )   $  8,531     
                                                                
Basic loss per share                           $  (0.02     )   $  —         
Diluted loss per share                         $  (0.02     )   $  —         
                                                                
Weighted shares outstanding:
Basic:                                         6,944,267        6,940,517
Diluted:                                       6,944,267        6,964,127
                                                                             
                                                                             
                                                                             
                                                                             
                                                                             
                                                                             

                     INDUSTRIAL SERVICES OF AMERICA, INC.
                      SUPPLEMENTAL FINANCIAL INFORMATION



Reconciliation of EBITDA ^(1):

                                Three Months ended
                                 March 31,
                                 2013           2012
                                                 
Net (loss) income                $ (114,760  )   $ 8,531
Interest expense                 459,195         538,754
Income tax (benefit) provision   (99,793     )   5,687
Depreciation                     859,263         931,797
Amortization                     182,333        187,500
EBITDA ^(1)                      $ 1,286,238    $ 1,672,269

^(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.

Contact:

Industrial Services of America, Inc.
Alan Gildenberg, 502-366-3452
http://www.isa-inc.com/