LOUISVILLE, Ky.--(BUSINESS WIRE)--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 wastes, today reported financial results for the fourth quarter and fiscal year ending December 31, 2010.
For the twelve months ending December 31, 2010
- Total revenue was $343.0 million in 2010, compared with $181.1 million for the same period in 2009.
- Net income was $8,052,609 (basic and diluted earnings of $1.22 and $1.21 per share respectively) in 2010, compared with net income of $5,284,712 (basic and diluted earnings of $0.91 per share) in 2009.
|Basic and diluted weighted average shares outstanding were 6,622,480 and 6,666,480 in 2010 and were 5,783,328 and 5,801,459 respectively (split-adjusted) for basic and diluted weighted average shares outstanding in 2009.|
- Earnings before interest, taxes, depreciation and amortization (EBITDA) for 2010 was $17,785,839 compared with EBITDA of $12,680,811 for 2009. (See attached reconciliation.)
For the fourth quarter ending December 31, 2010:
- Total revenue was $99.5 million in the fourth quarter of 2010, compared with $37.7 million in the fourth quarter 2009.
- Net income was $2,019,524 (basic and diluted earnings of $0.30 and $0.29 per share, respectively) in the fourth quarter of 2010, compared with $1,547,225 (basic and diluted earnings of $0.24 per share) in the fourth quarter of 2009. Basic and diluted weighted average shares outstanding were 6,790,026 and 6,837,185 respectively in the fourth quarter of 2010 and were 6,429,438 and 6,460,428 respectively (split-adjusted) for basic and diluted shares in the fourth quarter of 2009.
- Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter of 2010 was $4,027,670 compared with EBITDA of $3,724,852 for the fourth quarter of 2009. (See attached reconciliation.)
Key Highlights for the Fiscal Year Ending December 31, 2010
- Revenues up 89% year-over-year
- Net Income up 52% year-over-year
- Diluted EPS up 33% year-over-year, despite a 15% increase in diluted shares outstanding
Key Highlights for the Fourth Quarter Ending December 31, 2010
- Revenues up 164% year-over-year
- Net Income up 31% year-over-year
- Diluted EPS up 24% year-over-year, despite a 6% increase in diluted shares outstanding
Chairman of the Board Harry Kletter commented, “2010 was another great year. Our sales have grown at a compound annual rate of 85% per year for each of the last two years, increasing from $100 million in 2008 to $181 million in 2009 to $343 million in 2010. This has occurred during one of the most difficult economic times since the 1930’s. We ended 2010 with a strong balance sheet, including a current ratio of 3.6-to-1 and low leverage.
“In 2011 we will focus on increasing our profit margins. We are in a position for continued growth in 2011 and will be looking forward to the new equipment that we invested in during the year to help us become more profitable and efficient.”
In addition to investing in profit-enhancing equipment, management also continues to scrutinize operating costs. Both initiatives should help ISA expand its profit margins in 2011 and beyond.
We also increased our credit facility during 2010, enabling us to continue our rapid pace of growth. We anticipate increasing our credit facility commensurate with the growth in our equity base and profits. More availability under the credit facility, combined with our continued focus on efficiently turning our inventory, should allow us to generate incremental sales and profitability.
- Increased scrap shipments 56% over 2009 levels
- Upgraded the non-ferrous separation system at our shredding operation
- Moved the Alloys division into a 150,000-square foot building that we own but had previously rented to an independent third party.
Conference Call to Discuss 2010 Results
ISA will host a conference call on Monday, March 28, 2011 at 2:00 PM Eastern time to discuss fourth quarter results. Participants can access the call by dialing:
U.S. and Canada Dial-in Number: 877-354-6067
Callers should identify the Industrial Services of America earnings results call.
A replay will be available one hour after the call through midnight March 30, 2011 by calling:
800-642-1687 or 706-645-9291.
ISA’s 2010 SEC filings are available for review at the Securities and Exchange Commission web site at http://www.sec.gov/edgar/searchedgar/companysearch.html.
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 efficiently 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 the 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
Industrial Services of America, Inc. and Subsidiaries
Consolidated Statements of Income
|YEAR ENDED||THREE MONTHS ENDED|
|Dec. 31, 2010||Dec. 31, 2009||Dec. 31, 2010||Dec. 31, 2009|
|Revenue from services||$6,212,549||$7,094,755||$1,381,310||$1,374,357|
|Revenue from product sales||336,792,766||173,956,925||98,089,777||36,333,612|
|Cost of goods sold for services||5,401,521||5,514,290||927,481||1,125,429|
|Cost of goods sold for product sales||310,318,773||155,244,685||92,664,680||30,939,154|
|Total cost of goods sold||315,720,294||160,758,975||93,592,161||32,064,583|
|Income before other income (expense)||13,548,336||9,805,040||2,791,593||2,911,741|
|Other income (expense)|
|Gain/(loss) on sale of assets||281,241||73,754||25,200||20,645|
Other income, net
|Income before income taxes||12,425,928||8,785,392||2,370,786||2,556,247|
|Provision for (reduction of) income taxes||4,373,319||3,500,680||351,262||1,009,022|
|Basic earnings per share||$1.22||$.91||0.30||0.24|
|Diluted earnings per share||$1.21||$.91||0.29||0.24|
|Weighted average shares outstanding:|
INDUSTRIAL SERVICES OF AMERICA, INC.
|Reconciliation of EBITDA( (1)):|
Three Months Ending
Twelve Months Ending
(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.