Industrial Services of America, Inc. Announces Substantial Improvement in Financial Performance
10 August 2017 - 6:21AM
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,
2017.
The Company reported a net loss of $648 thousand for the six
months ended June 30, 2017 compared to a net loss of $2,052
thousand for the six months ended June 30, 2016. Further, the
Company reported positive Adjusted EBITDA of $907 thousand during
the six months ended June 30, 2017, which marks a substantial
improvement compared to the Adjusted EBITDA loss of $397 thousand
during the six months ended June 30, 2016. This improvement in
operating performance was due in part to the successful start-up of
the Company’s auto shredder and largely due to improvements in
pricing and volumes in the scrap metal commodity markets from 2016
to 2017.
The Company reported a net loss of $377 thousand for the three
months ended June 30, 2017 compared to a net loss of $627 thousand
for the three months ended June 30, 2016. Further, the Company
reported positive Adjusted EBITDA of $411 thousand during the three
months ended June 30, 2017, which marks an improvement compared to
the positive Adjusted EBITDA of $293 thousand during the three
months ended June 30, 2016. This improvement in operating
performance was primarily due to the successful start-up of the
Company’s auto shredder as well as improvements in pricing and
volumes in the scrap metal commodity markets from 2016 to 2017.
Three Months Ended June 30,
Six Months Ended June 30, 2017
2016 2017 2016 (in
thousands) (in thousands) Revenue $ 13,560
$ 10,121 $ 26,571 $ 16,119 Net loss $ (377 ) $
(627 ) $ (648 ) $ (2,052 ) Adjusted EBITDA $ 411 $ 293 $ 907 $ (397
)
Todd Phillips, President and Chief Financial Officer of ISA
commented, “We restarted the Company’s auto shredder in late May
and are very pleased with the initial financial results from the
shredder. Additionally, Adjusted EBITDA for the three months ended
June 30, 2017 as compared to the same period for 2016 improved by
40% despite costs associated with the shredder start up and the
limited time period in which the shredder operated.”
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, and 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
June 30,
Six Months Ended
June 30,
2017 2016 2017
2016 (in thousands)
(in thousands) Reconciliation from net loss to Adjusted
EBITDA Net loss $ (377 ) $ (627 ) $
(648 ) $ (2,052 ) Depreciation and amortization 560 569 1,135 1,119
Share-based compensation expense 27 200 59 336 Interest expense,
including loan fee amortization 202 114 385 173 Gain on sale of
assets - - (28 ) - Other (income) expense, net (1 ) (2 ) (3 ) (13 )
Income tax provision - 39
7 40 Total
net adjustments 788 920
1,555 1,655
Adjusted EBITDA $ 411 $ 293
$ 907 $ (397 )
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: http://www.businesswire.com/news/home/20170809006146/en/
Industrial Services of America, Inc.Todd Phillips,
502-366-3452President and Chief Financial Officer
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