The scrap metal recycling firm Industrial Services of America Inc. (ISA), Louisville, Kentucky, has reported an increase in its revenue and its volume for the second quarter ending June 30, 2014, compared with the same eriod in 2013.
In comments made following the release of its quarterly numbers, Sean Garber, president of ISA, said, “We are extremely pleased to have been able to increase both revenue and unit volume in our core ferrous and nonferrous 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 [also] has helped us generate higher metal margins.”
As part of its strategy to strengthen its operations, ISA also removed its stainless steel recycling division.
Highlights for the quarter include:
In comments made following the release of its quarterly numbers, Sean Garber, president of ISA, said, “We are extremely pleased to have been able to increase both revenue and unit volume in our core ferrous and nonferrous 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 [also] has helped us generate higher metal margins.”
As part of its strategy to strengthen its operations, ISA also removed its stainless steel recycling division.
Highlights for the quarter include:
- ferrous revenue increased 25 percent, on 23 percent higher unit volume;
- nonferrous revenue increased 10 percent on 12 percent higher unit volume;
- gross profit improved 113 percent to $1.5 million;
- gross margin advanced from 1.8 percent to 5.3 percent;
- EBITDA (earnings before interest, taxes, depreciation and amortization) improved to $415,000 versus a loss of $336,000 for the same time in 2013;
- total revenue declined 29 percent, from $40 million to $29 million, marking the completion of ISA’s exit from stainless steel recycling;
- $3 million in equity was raised from Recycling Capital Partners LLC; and
- refinancing of ISA’s credit facility with a $17.8 million loan from Wells Fargo Bank, National Association.
Concerning the first six months of the year, Garber said, “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.”
Several highlights for the first six months of 2014 include:
- year-to-date ferrous and nonferrous revenue collectively increased 9 percent on 15 percent higher ferrous unit volume and 5 percent higher nonferrous unit volume;
- selling, general and administrative expenses decreased $798,000, a 20 percent reduction from operating expense levels in the first half of 2013;
- interest expense declined by 52 percent as a result of more favorable financing terms and the elimination of factoring fees; and
- EBITDA for the first six months of 2014 was $833,000.
ISA buys, processes and markets ferrous and nonferrous metals and other recyclable commodities, as well as offers waste management programs and equipment to commercial customers.
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