Waste Business Journal - Industry News

Industrial Services of America, Inc. (IDSA), a company that buys, processes and markets recyclable commodities and offers programs and equipment to help businesses manage wastes, today reported audited financial results for the first quarter ending March 31, 2008.

"ISA continued to benefit from building relationships with existing and potential customers, as well as from strong global demand and pricing for commodities," said Chairman and CEO Harry Kletter.

Revenue from product sales increased 50.9 percent to $21.2 million, and service revenue rose 26.7 percent to $4.9 million. "With this first quarter we have achieved a revenue run-rate of approximately $100 million," said Kletter. "As we progress through 2008, we will continue to focus on the fundamentals of profitably growing our business by investing in our processes and by serving our customers well."

Headquartered in Louisville, Kentucky, Industrial Services of America, Inc., is a publicly traded company whose core business is buying, processing and marketing scrap metals and recyclable materials for domestic users and export markets. Additionally, the company offers commercial, industrial and business customers a variety of programs and equipment to efficiently manage waste. More information about ISA is available at www.isa-inc.com.

This news release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ from predicted results. Specific risks include varying demand for waste managing systems, equipment and services, competitive pressures in the waste managing systems and equipment, competitive pressures in the waste managing business, loss of customers and fluctuations in the price of recycled materials. Further information on factors that could affect the Company's results is detailed in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to the forward-looking statements.

Key words: recycling, scrap, ferrous, non-ferrous materials, waste management, international markets, global markets.

                        FINANCIAL RESULTS AND
                  SUPPLEMENTAL FINANCIAL INFORMATION
                                FOLLOW




        INDUSTRIAL SERVICES OF AMERICA, INC. AND SUBSIDIARIES

           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              THREE MONTHS ENDED MARCH 31, 2008 AND 2007
                             (UNAUDITED)

                                                 2008         2007
                                             ------------ ------------

Revenue from services                        $ 4,872,542  $ 3,844,227
Revenue from product sales                    21,210,853   14,060,522
                                             ------------ ------------
Total revenue                                 26,083,395   17,904,749

Cost of goods sold for services                4,626,363    3,522,699
Cost of goods sold for product sales          17,762,532   11,754,347
Reduction of cost of goods sold                        -      (35,278)
                                             ------------ ------------
Total cost of goods sold                      22,388,895   15,241,768

Selling, general and administrative expenses   1,809,605    1,364,007
                                             ------------ ------------

Income before other income (expense)           1,884,895    1,298,974

Other income (expense)
    Interest expense                             (93,566)     (42,457)
    Interest income                               23,434       28,973
    Loss on sale of assets                        (5,142)      (5,775)
    Other income (expense), net                    1,297       22,053
                                             ------------ ------------
                                                 (73,977)       2,794
                                             ------------ ------------

Income before income taxes                     1,810,918    1,301,768

Income tax provision                             724,367      508,688
                                             ------------ ------------

Net income                                   $ 1,086,551  $   793,080
                                             ============ ============

Basic earnings per share                     $      0.30  $      0.22
                                             ============ ============

Diluted earnings per share                   $      0.30  $      0.22
                                             ============ ============

Weighted shares outstanding:
   Basic                                       3,617,872    3,640,899
                                             ============ ============

   Diluted                                     3,617,872    3,640,899
                                             ============ ============

                 Industrial Services of America, Inc.
                  Supplemental Financial Information

Reconciliation of EBITDA (1):

                                         Three months ending March 31,
----------------------------------------------------------------------
                                             2008             2007
-----------------------------------------=============----============
Net Income                                   1,086,551         793,080
----------------------------------------------------------------------
Interest expense                                93,566          42,457
----------------------------------------------------------------------
Income taxes                                   724,367         508,688
----------------------------------------------------------------------
Depreciation                                   519,336         456,497
----------------------------------------------------------------------
Amortization                                         -               -
----------------------------------------------------------------------
EBITDA (1)                                   2,423,820       1,800,722
----------------------------------------------------------------------

(1) EBITDA is calculated by the Company as net income before interest
 expense, income tax expense, depreciation and amortization. The
 Company uses EBITDA as a key performance measure of results of
 operations for purposes of evaluating performance internally. This
 non-GAAP measurement is not intended to replace the presentation of
 our financial results in accordance with GAAP. Rather, we believe the
 EBITDA calculation provides additional information to investors and
 debt holders due to the fact that tax credits, tax rates and other
 tax related items vary by company. Additionally, years of service for
 fixed assets and amortizable assets are based on company judgment.
 Finally, companies have several ways of raising capital which can
 affect interest expense. We believe the presentation of EBITDA
 provides a meaningful measure of performance exclusive of these
 unique items.

Industrial Services of America, Inc. Reports First Quarter 2008 Results