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 reported financial results for the fiscal year ending December 31, 2013.
Summary of 2013 Operating Results:
- Total revenue decreased $57.4 million or 29.6% to $136.8 million in 2013, compared to $194.2 million in 2012
- Recycling segment revenue decreased $57.6 million or 30.8% to $129.4 million in 2013, compared to $187.0 million in 2012
- Stainless steel shipments decreased by 31.6 million pounds, or 38.0%, relative to stainless steel shipments in 2012
- Shipments of ferrous material decreased by 11,500 gross tons, or 8.0%, and shipments of nonferrous material decreased 2.3 million pounds, or 6.8%
- Net loss increased to ($13.8) million from a net loss of ($6.6) million in 2012, or a decline of $7.2 million
- Basic and diluted loss per share was ($1.96), compared with a loss per basic and diluted share of ($0.95) in 2012.
In the fourth quarter of 2013, ISA underwent a series of dramatic changes in an effort to right-size the business, overhaul operations, streamline the balance sheet and position the Company to significantly improve its profitability in 2014. Among the more significant milestones ISA achieved during the fourth quarter were:
- Entered into a Management Services Agreement (“MSA”) with Algar, Inc. whereby Algar will provide day-to-day senior executive level operating management supervisory services to ISA
- Appointed Sean Garber, CEO of Algar, to the position of President of ISA
Also during the fourth quarter, as a result of continued pressure on the prices of stainless steel materials, ISA’s management decided to discontinue production of stainless steel blends. This action accomplishes two primary objectives: It increases the amount of capital the Company can reallocate to its core ferrous and nonferrous processing businesses, and it reduces the Company’s reliance on a single customer for a large percentage of its sales. Management believes this action will reduce the overall risk profile of ISA’s business, as well as the volatility of the Company’s revenue and profit.