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

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

Business Wire

LOUISVILLE, Ky. -- August 19, 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 second quarter ended June30, 2013.

Revenue for the second quarter of 2013 was $40.1 million compared with $49.9
million in the second quarter of 2012. Net loss for the second quarter of 2013
was $(1.2) million, or $(0.18) on a per diluted share basis, compared with a
net loss of $(1.2) million, or $(0.18) on a per diluted share basis, for the
comparable period in 2012.

Key Highlights

  *Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA")
    for the six months ended June30, 2013 was $969.5 thousand;
  *Current ratio at June30, 2013 was 1.1 to 1; and
  *Working capital as of June30, 2013 was $1.6 million.

The Company's credit facility with Fifth Third Bank is scheduled to mature in
April 2014. The Company is actively in the process of restructuring its debt.
This debt restructuring process includes the Company's existing bank as well
as other banks. Management plans to complete this debt restructuring as soon
as practicable.

At the annual meeting of shareholders of the Company on July16, 2013 (the
"Annual Meeting"), the shareholders of the Company approved the amendment of
the Company's Articles of Incorporation (the "Amendment") pursuant to which
the Company's authorized common stock increased by 10.0 million shares, from
10.0 million to 20.0 million shares. The Amendment is discussed in the proxy
statement dated June 6, 2013.

On June 14, 2013, the Board of Directors appointed the Chairman of the Board,
Orson Oliver, to act as the Company's Interim President and Interim Chief
Executive Officer.

On July 15, 2013, the Company's board of directors appointed the Vice
President of Recycling, Jim Wiseman, as General Manager of the Company,
reporting to Mr. Oliver, with the primary responsibility of overseeing the
day-to-day operation of the Company.

On July 26, 2013, the Company's Board of Directors authorized an increase in
the number of directors which constitute the entire Board of Directors from
four to five.

On July 26, 2013, the Board of Directors appointed Ronald W. Strecker to fill
the vacancy created and also appointed Mr. Strecker to serve on the Audit
Committee of the Board of Directors.

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               SIX MONTHS ENDED
                    June 30, 2013   June 30,       June 30,     June 30,
                                      2012           2013           2012
                    (in thousands)
Revenue from        $  1,366          $ 1,023        $ 2,311        $ 2,308
services
Revenue from        38,757           48,829        72,570        109,222  
product sales
Total revenue       40,123            49,852         74,881         111,530
                                                                    
Cost of goods
sold for            1,302             944            2,184          2,137
services
Cost of goods
sold for            37,474           47,548        69,309        104,530  
product sales
Total cost of       38,776            48,492         71,493         106,667
goods sold
                                                                    
Provision for
employee            —                 17             —              228
terminations
and severances
Other selling,
general and         2,698            2,682         5,145         5,443    
administrative
expense
Total selling,
general and         2,698             2,699          5,145          5,671
administrative
expense
                                                                    
Loss before
other income        (1,351     )      (1,339   )     (1,757   )     (808     )
(expense)
                                                                    
Other income
(expense)
Interest            (609       )      (515     )     (1,068   )     (1,054   )
expense
Interest income     1                 3              2              6
Gain on sale of     21                16             38             35
assets
Gain on lawsuit     —                 —              625            —
settlement
Other income        —                —             9             —        
(expense)
                    (587       )      (496     )     (394     )     (1,013   )
                                                                    
Loss before         (1,938     )      (1,835   )     (2,151   )     (1,821   )
income taxes
                                                                    
Income tax          (700       )      (596     )     (799     )     (590     )
benefit
                                                                    
Net loss            $  (1,238  )      $ (1,239 )     $ (1,352 )     $ (1,231 )
                                                                    
Basic loss per      $  (0.18   )      $ (0.18  )     $ (0.19  )     $ (0.18  )
share
Diluted loss        $  (0.18   )      $ (0.18  )     $ (0.19  )     $ (0.18  )
per share
                                                                    
Weighted shares
outstanding (in
thousands):
Basic:              7,069             6,944          7,007          6,942
Diluted:            7,069             6,944          7,007          6,942

                                                
INDUSTRIAL SERVICES OF AMERICA, INC.

SUPPLEMENTAL FINANCIAL INFORMATION
                                                     
Reconciliation of EBITDA (1):
                                                     
                       Three Months Ended            Six Months Ended
                       June 30,                      June 30,
                       2013         2012           2013         2012
                       (in thousands)
Net loss               $ (1,238 )     $ (1,239 )     $ (1,352 )     $ (1,231 )
Interest expense       609            515            1,068          1,054
Income tax benefit     (700     )     (596     )     (799     )     (590     )
Depreciation           839            929            1,699          1,861
Amortization           172           188           354           375      
EBITDA ^ (1)           $ (318   )     $ (203   )     $ 970         $ 1,469  
                                                                             

(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., Louisville, Kentucky
Alan Gildenberg, 502-366-3452
http://www.isa-inc.com/
 
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