Industrial Services of America, Inc. Announces Revenue Increase and Improved Operating Performance

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 June 30, 2018.

ISA reported a 17.6% revenue increase and a $1.5 million improvement in net income for the six months ended June 30, 2018 compared to the same period in 2017.

The Company reported a net income of $833 thousand for the six months ended June 30, 2018 compared to a net loss of $648 thousand for the six months ended June 30, 2017. Further, the Company reported Adjusted EBITDA of $2.0 million during the six months ended June 30, 2018, which marks a substantial improvement compared to Adjusted EBITDA of $907 thousand during the six months ended June 30, 2017. This improvement in operating performance was due in part to the successful restart of the Company’s shredder in May 2017 as well as improvements in the Company’s ferrous volumes and margins from 2017 to 2018. The restart of the Company’s shredder led to favorable sales mix and improved margins. Net income was further strengthened by a non-recurring insurance settlement gain in the amount of $487 thousand during the second quarter of 2018. This amount is excluded from Adjusted EBITDA. (See Non-GAAP Measures below.)

The Company reported a net income of $797 thousand for the three months ended June 30, 2018 compared to a net loss of $377 thousand for the three months ended June 30, 2017. Further, the Company reported Adjusted EBITDA of $1.1 million during the three months ended June 30, 2018, which marks an improvement compared to Adjusted EBITDA of $411 thousand during the three months ended June 30, 2017. This improvement in operating performance was primarily due in part to the successful restart of the Company’s shredder in May 2017 as well as improvements in the Company’s ferrous volumes and margins from 2017 to 2018. The restart of the Company’s shredder led to favorable sales mix and improved margins. Net income was further strengthened by a non-recurring insurance settlement gain in the amount of $487 thousand during the second quarter of 2018. This amount is excluded from Adjusted EBITDA. (See Non-GAAP Measures below.)