ISA Reports Financials

Industrial Services of America Inc. (ISA), Louisville, a provider of logistics management services, equipment and processing for waste and recyclables has announced preliminary unaudited financial results for the forth quarter and year ending Dec. 31, 2005.

ISA’s income for the forth quarter was nearly $700,000 before taxes, an increase from the $400,000 the company recorded in the fourth quarter of 2004. Net income for the quarter was $415,500 compared to net income of $254,600 in the fourth quarter of 2004.

The company has recorded $117.4 million in total revenues for the year compared with $139.6 million for the fiscal year 2004. ISA’s net income before taxes for fiscal year 2005 was $1.8 million compared to $2.5 million in 2004.

ISA says it has recorded 11 consecutive profitable quarters, allowing the company to pay down it s long-term debt in full. “This sustained profitability continues to place us in a stronger financial position, allowing greater flexibility to adjust to changing economic market conditions,” according to a press release from ISA. “Our goal is to remain dedicated to the recycling, management services and equipment industry while sustaining steady growth and acceptable profit, adding to the net work of the company and providing positive returns for our stockholders.”

ISA says that record production levels in the company’s ferrous operations for 2004 were based on high demand worldwide. As demand declined during 2005, ISA says its goal shifted to purchasing, upgrading and selling its recycled products to maximize profitability based on market conditions.

Demand for nonferrous materials increased in 2005. Earnings doubled in ISA’s Louisville nonferrous division in 2005 compared to 2004, and the company says it believes it will maintain this momentum throughout 2006.

ISA’s Computerized Waste Services Department and its Waste Equipment Sales and Services Department are working more closely together to more efficiently provide waste equipment and management services to the company’s customers, helping ISA to lower its operating expenses without sacrificing its ability to accept new business.   

Home Depot’s allowed its service contract with ISA to expire Oct. 30, 2005, though the company has yet to feel any negative effects related to the end of the contract. “We anticipate some decrease in earnings in the future due to the termination of the agreement with Home Depot, although it did not have a significant effect on our earnings for the fourth quarter of 2005, as we continued to receive income on recyclables through the end of the year,” ISA states in a press release.