Industrial Services of America, Inc. Announces Revenue Increase and Improved Operating Performance
09 November 2017 - 8:31AM
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 September 30,
2017.
ISA reported a 59.4% revenue increase and a $2.2 million
improvement in net loss for the nine months ended September 30,
2017 compared to the same period in 2016.
The Company reported a net loss of $825 thousand for the nine
months ended September 30, 2017 compared to a net loss of $2,990
thousand for the nine months ended September 30, 2016. Further, the
Company reported positive Adjusted EBITDA of $1,554 thousand during
the nine months ended September 30, 2017, which marks a substantial
improvement compared to the Adjusted EBITDA loss of $813 thousand
during the nine months ended September 30, 2016. This improvement
in operating performance was due in part 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. (See Non-GAAP Measures below.)
The Company reported a net loss of $177 thousand for the three
months ended September 30, 2017 compared to a net loss of $938
thousand for the three months ended September 30, 2016. Further,
the Company reported positive Adjusted EBITDA of $647 thousand
during the three months ended September 30, 2017, which marks an
improvement compared to the Adjusted EBITDA loss of $416 thousand
during the three months ended September 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. (See Non-GAAP Measures below.)
Three months ended September 30,
Nine months ended September 30, 2017
2016 2017 2016 (in
thousands) (in thousands) Revenue $ 14,909 $ 9,896 $ 41,480 $
26,015 Net loss $ (177 ) $ (938 ) $ (825 ) $ (2,990 ) Adjusted
EBITDA $ 647 $ (416 ) $ 1,554 $ (813 )
Also, as recently announced, the Company entered into a new
lease which replaces the previous lease related to 7100 and 7020
Grade Lane. This new lease provides for an approximate 30%
decrease in the related future rent expense and includes payment of
certain deferred rent amounts.
Todd Phillips, President and Chief Financial Officer of ISA,
commented, “The Company continues to progress following our recent
turnaround efforts. We are pleased with the recent financial
results and are excited about the opportunities in front of
us.”
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, 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
September 30,
Nine Months Ended
September 30,
2017 2016 2017
2016 (in thousands) (in thousands)
Reconciliation from net loss to Adjusted EBITDA Net
loss $ (177 ) $ (938 ) $ (825 ) $ (2,990 ) Depreciation and
amortization 534 596 1,669 1,715 Share-based compensation expense
31 (3 ) 90 333 Interest expense, including loan fee amortization
240 129 625 302 Gain on sale of assets - - (28 ) - Other (income)
expense, net 17 (237 ) 14 (250 ) Income tax provision 2
37 9 77 Total net
adjustments 824 522 2,379
2,177 Adjusted EBITDA $ 647 $ (416 ) $ 1,554
$ (813 )
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/20171108006595/en/
Industrial Services of America, Inc.Todd Phillips,
502-366-3452President and Chief Financial Officer
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