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Industrial Services of America Inc. (IDSA) filed Quarterly Report for the period ended 2011-09-30.
Industrial Services Of America Inc. has a market cap of $37.83 million; its shares were traded at around $5.45 with a P/E ratio of 5.4 and P/S ratio of 0.11. Industrial Services Of America Inc. had an annual average earning growth of 38.5% over the past 5 years.
This is the annual revenues and earnings per share of IDSA over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of IDSA.
Highlight of Business Operations:
Total revenue decreased $16.6 million or 6.8% to $226.9 million in 2011 compared to $243.5 million in 2010. Recycling revenue decreased $15.9 million or 6.7% to $221.2 million in 2011 compared to $237.1 million in 2010. This is primarily due to a decrease of 63.2 million pounds, or 41.7%, in the volume of stainless steel materials shipments due to a decrease in worldwide stainless steel demand beginning in the second quarter. Substantially all of our stainless steel sales are to one customer. In response to the overall decrease in demand for stainless steel, this customer decreased our sales orders received in both the second and third quarters. The volume of other nonferrous materials shipments also decreased by 1.9 million pounds, or 8.1%. In 2011, sales to existing Recycling dealers decreased by approximately $25.2 million, or 17.9%. New dealer sales totaled approximately $25.7 million, while lost dealer sales totaled only $7.3 million in 2010. In addition to the reduction in volume, total revenue was also affected by the decrease in overall average price for all commodities shipped by $5.04 per gross ton, or 0.6%. Specifically in September, nickel prices on the London Metal Exchange decreased 40% since the first quarter, falling to their lowest level since December 2009. Nickel is a key commodity used in stainless steel blends. These decreases were partially offset by an increase of 25.2 thousand gross tons, or 17.9%, in the volume of ferrous materials shipments. Waste Services revenue decreased $0.7 million or 11.3% to $5.7 million in 2011 compared to $6.4 million in 2010 primarily due to the loss of several large customers in the first and second quarters. The decrease was partially offset by the gain of one large customer in the third quarter.Total revenue decreased $20.8 million or 27.2% to $55.8 million for the three month period ending September 30, 2011 as compared to $76.6 million during the same period in 2010. Recycling revenue decreased $20.4 million or 27.5% to $53.9 million during this period in 2011 compared to $74.3 million during the same period in 2010. This was primarily due to the drop in worldwide demand in stainless steel beginning in the second quarter, causing a decrease of 31.8 million pounds, or 70.9%, in the volume of stainless steel materials shipments in the third quarter as compared to the same period in 2010. Substantially all of our stainless steel sales are to one customer. In response to the overall decrease in demand for stainless steel, this customer decreased sales orders in the third quarter. The volume of other nonferrous materials shipments also decreased
by 1.4 million pounds, or 16.2%. In the third quarter of 2011, sales to existing Recycling dealers decreased by approximately $20.4 million, or 33.7%. New dealer sales in the third quarter of 2011 totaled approximately $11.5 million, while lost dealer sales totaled only $7.9 million in the third quarter of 2010. Overall average price for commodities shipped also decreased by $64.42 per gross ton, or 7.7%, in the third quarter of 2011 as compared to the third quarter of 2010. These decreases were partially offset by an increase in the volume of ferrous materials shipments of 4.5 thousand gross tons, or 8.7%. Waste Services revenue decreased $0.4 million or 16.5% to $1.9 million in 2011 compared to $2.3 million in 2010 primarily due to the loss of several large customers in the first and second quarters of 2011, partially offset by the gain of one large customer at the beginning of the third quarter in 2011.
Selling, general and administrative expenses decreased $1.2 million or 30.6% to $2.7 million for the three month period ending September 30, 2011 compared to $3.9 million for the same period in 2010. As a percentage of revenue, selling, general and administrative expenses were 4.8% in 2011 compared to 5.1% in 2010. The primary driver of the decrease in total expense was a decrease in labor and bonus expense of $1.5 million. This decrease was partially offset by an increase in legal expense of $0.1 million.
We used net cash from investing activities of $2.0 million and $2.1 million for the nine month periods ended September 30, 2011 and 2010, respectively. In 2011, we used $0.2 million for road and building improvements. We purchased recycling and rental fleet equipment, shredder system equipment, and office equipment of $1.4 million. The rental fleet equipment consists of solid waste handling and recycling equipment such as compactors, waste edge monitors, and balers. It is our intention to continue to pursue this market. We also purchased two trucks and upgraded two others for $0.2 million. We received $0.2 million from sales of our rental fleet compactors, balers, and containers. We paid deposits of $0.4 million on machinery and equipment.
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