By a News Reporter-Staff News Editor at Investment Weekly News -- Industrial Services of America, Inc. (NASDAQ: IDSA), a company that buys, processes and markets ferrous and non-ferrous metals and other recyclable commodities, and offers waste management programs and equipment to commercial customers, reported financial results for the three and six months ended June 30, 2014. Key Highlights for the Second Quarter ending June 30, 2014, as compared to same period in 2013 Ferrous revenue increased 25%, on 23% higher unit volume
Non-Ferrous revenue increased 10% on 12% higher unit volume
Gross Profit improved 113% to $1.5 million
Gross Margin improved from 1.8% to 5.3%
EBITDA improved to $415,000 vs. EBITDA of ($336,000)
Total revenue declined 29%, from $40 million to $29 million, marking the completion of ISA's exit from stainless steel recycling
ISA raised $3 million of equity from Recycling Capital Partners, LLC
The Company refinanced its credit facility with a $17.8 million loan from Wells Fargo Bank, National Association
Commenting on the Company's second quarter results, Sean Garber, President of ISA stated, "We are extremely pleased to have been able to increase both revenue and unit volume in our core Ferrous and Non-Ferrous business units, in spite of the challenging scrap market. Since the beginning of 2014 we have expanded our customer base from whom we purchase scrap and increased the number of consumers to whom we sell scrap. Not only has this reduced risk in our business, it has helped us generate higher metal margins." Key Highlights for the Six Months ending June 30, 2014, as compared to same period in 2013 Year-to-date, Ferrous and Non-Ferrous revenue collectively increased 9% on 15% higher Ferrous unit volume and 5% higher Non-Ferrous unit volume
Selling, general and administrative expenses decreased $798,000, a 20% reduction from operating expense levels in the first half of 2013
Interest expense declined by 52% as a result of more favorable financing terms and the elimination of factoring fees
EBITDA for the first six months of 2014 was $833,000
Reflecting on ISA's year-to-date results, Mr. Garber commented, "It is truly energizing to see the results that our team has produced in such a short period of time. Everyone at ISA remains committed to finding better, more profitable ways of conducting our business. As a result of the team's intense focus on our business processes, we continue to find new ways to reduce costs and operate more efficiently.
"In addition to the operating improvements we have made, we are much better capitalized than we were at the beginning of 2014. The $3 million equity investment by Recycling Capital Partners and the new Wells Fargo credit facility have strengthened our financial position. These parties have expressed their commitment to facilitating ISA's growth.
"Finally, we believe our Board will benefit from the recent addition of William Yarmuth and Vince Tyra as independent directors. William and Vince bring relevant operating expertise and Board experience to ISA. Each has a proven track record of leadership in growing his business both organically and through acquisitions. This experience can benefit ISA as it analyzes similar opportunities."
ISA's 2014 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 that buys, processes and markets ferrous and non-ferrous metals and other recyclable commodities, and offers waste management programs and equipment to commercial customers. More information about ISA is available at www.isa-inc.com.
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