Industrial Services of America, Inc. Announces First Quarter 2014 Results

  Industrial Services of America, Inc. Announces First Quarter 2014 Results

Business Wire

LOUISVILLE, Ky. -- May 14, 2014

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 reported financial results
for the first quarter ended March31, 2014.

Revenue for the first quarter of 2014 was $25.7 million compared with $34.8
million in the first quarter of 2013. Net loss for the first quarter of 2014
was $(0.6) million, or $(0.09) on a per share basis, compared with a net loss
of $(0.1) million, or $(0.02) on a per share basis, for the comparable period
in 2013.

Key Highlights:

  *Extended debt maturity date to July 31, 2015
  *Reduced total debt by $2.9 million, or 16.2%, to $15.0 million from $17.9
    million
  *In compliance with all bank financial covenants
  *Current ratio at March31, 2014 was 2.08 to 1
  *Working capital at March31, 2014 was $9.6 million.

Commentary:

In February 2014, the ISA entered into an amendment with Fifth Third Bank to
extend the maturity date of both the revolving credit facility and the term
loan to July 31, 2015, temporarily reduces the interest rate on both loans,
lowers the monthly principal payment on the term loan and increases the
advance rate on inventory. These benefits enhance ISA’s near-term liquidity,
which the Company is using to grow operations.

Cash Flow Highlights:

ISA concluded the first quarter with cash of $1.2 million, a $0.4 million
reduction from the cash balance at the end of 2013. During the first quarter,
the Company:

  *Generated $2.3 million of cash from operations
  *Used $0.1 million of cash for investing activities; and
  *Repaid $2.9 million of debt

“ISA like most businesses in the United States found the first two months of
the first quarter very challenging due to weather conditions.” Sean Garber,
President of ISA said,“The first quarter was a new beginning for ISA. There
have been many challenging tasks that were dealt with head on in order to
position the Company for profitability and new growth. We are seeing the
results of these efforts through the reduction of costs by 35% compared to the
increase in volume of 24%. Most importantly ISA was able to exceed the bank
financial covenants for the first quarter. These results continue to be a
direct correlation with the commitment, dedication and contributions from the
entire ISA team.”

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.

Contact:

Industrial Services of America, Inc.
Alan Schroering, 502-214-3710
Vice-President of Finance and Interim Chief Financial Officer
aschroering@isa-inc.com
 
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