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 announced financial results for the second quarter ended June 30, 2012.
Revenue for the quarter was $49.9 million compared with $65.1 million in the second quarter of 2011. Net loss for the quarter was ($1.2) million, or $(0.18) on a per diluted share basis, compared with net income of $0.3 million, or $0.05 per diluted share, for the comparable period in 2011.
- EBITDA for the six months of 2012 was $1.4 million
- Current ratio at June 30, 2012, was 2.7 to 1
- Working capital as of June 30, 2012 was $28.6 million
- Opened ISA Pick.Pull.Save effective July 2
Brian Donaghy, President and Chief Operating Officer of ISA, stated, “Contracting margins and lower volumes contributed to a weak second quarter within our recycling segment. As prices in the base metals complex fell during the quarter, we reduced our purchase prices accordingly. However, average inventory costs did not fall as quickly. Results for the quarter were also negatively impacted $0.01 per share for start-up costs related to our ISA Pick.Pull.Save retail initiative, as well as a $0.01 per share tax adjustment. Also, as noted in the notes to our financial statements, we changed our estimation methodology related to the residual value of our shredder material in inventory. This change in estimate resulted in an after-tax increase in our net loss of $0.03 per share. Our efforts continue to be focused on increasing our margins and reducing our cost of operation.”
Harry Kletter, founder and Chairman of ISA, stated, “The second quarter of 2012 was a particularly difficult one for scrap metals companies, as declining prices paid by buyers resulted in declining margins and lower scrap brought to the market. We have seen shredded scrap prices drop by approximately $100/GT from January to June, with another drop in July. Likewise, nickel, aluminum and copper all dropped during the quarter. In the face of these difficult conditions, we remain committed to our businesses and continue to position ISA to best take advantage of market opportunities as they arise. In fact, ferrous scrap prices show signs of considerable improvement thus far in August.”