INDUSTRIAL SERVICES OF AMERICA INC

CIK:0000004187|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue from product sales
Total revenue from product sales	$ 12,966,000	$ 16,798,000	$ 41,558,000	$ 48,056,000
Inventory write-down	113,000.0	0	288,000	0
Cost of sales for product sales	13,003,000	16,114,000	40,994,000	44,662,000
Gross (loss) profit	(150,000)	684,000	276,000	3,394,000
Selling, general and administrative expenses	1,067,000	891,000	3,070,000	2,710,000
(Loss) income before other income (expense)	(1,217,000)	(207,000)	(2,794,000)	684,000
Other income (expense)
Interest expense, including loan fee amortization	(147,000)	(292,000)	(470,000)	(817,000)
Gain on sale of assets	3,000	0	3,000	0
Gain on insurance proceeds	0	0	38,000	487,000
Other income, net	1,000	15,000	1,000	15,000
Total other expense, net	(143,000)	(277,000)	(428,000)	(315,000)
(Loss) income before income taxes	(1,360,000)	(484,000)	(3,222,000)	369,000
Income tax provision	0	(7,000)	6,000	13,000
Net (loss) income	$ (1,360,000)	$ (477,000)	$ (3,228,000)	$ 356,000
Basic (loss) earnings per share (in dollars per share)	$ (0.17)	$ (0.06)	$ (0.40)	$ 0.04
Diluted (loss) earnings per share (in dollars per share)	$ (0.17)	$ (0.06)	$ (0.40)	$ 0.04
Weighted average shares outstanding:
Basic (in Shares)	8,156	8,108	8,124	8,100
Diluted (in Shares)	8,156	8,108	8,124	8,166
Ferrous operations [Member]
Revenue from product sales
Total revenue from product sales	$ 5,065,000	$ 7,738,000	$ 18,683,000	$ 22,786,000
Non-ferrous operations [Member]
Revenue from product sales
Total revenue from product sales	7,738,000	8,806,000	22,347,000	24,413,000
Auto parts operations and other [Member]
Revenue from product sales
Total revenue from product sales	$ 163,000	$ 254,000	$ 528,000	$ 857,000

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net (loss) income	$ (3,228,000)	$ 356,000
Adjustments to reconcile net (loss) income to net cash from (used in) operating activities:
Inventory write-down	288,000	0
Depreciation and amortization	1,228,000	1,571,000
Share-based compensation expense	130,000	64,000
Gain on sale of assets	(3,000)	0
Gain from insurance proceeds	(38,000)	(487,000)
Amortization of loan fees included in interest expense	50,000	113,000
Change in assets and liabilities
Receivables	(46,000)	(2,282,000)
Receivables from related parties	8,000	44,000
Inventories	2,656,000	(669,000)
Income tax receivable/payable	(3,000)	(15,000)
Prepaid expenses and other assets	10,000	(82,000)
Accounts payable	(326,000)	622,000
Payables and accrued expenses to related parties	(2,000)	(160,000)
Other current liabilities	191,000	(145,000)
Net cash from (used in) operating activities	915,000	(1,070,000)
Cash flows from investing activities
Proceeds from insurance claim, net	38,000	487,000
Proceeds from sale of assets	3,000	0
Purchases of property and equipment	(331,000)	(203,000)
Net cash (used in) from investing activities	(290,000)	284,000
Cash flows from financing activities
Loan fees capitalized	(32,800)	(136,000)
Change in checks in excess of bank	0	(7,000)
Payments on related party debt	(532,000)	(48,000)
Payments on finance lease obligations	(274,000)	(229,000)
Payments on long-term debt	(285,000)	0
Proceeds from revolving line of credit, net	567,000	1,101,000
Net cash (used in) from financing activities	(557,000)	681,000
Net change in cash and cash equivalents	68,000	(105,000)
Cash and cash equivalents at beginning of period	1,044,000	841,000
Cash and cash equivalents at end of period	1,112,000	736,000
Supplemental disclosure of cash flow information:
Cash paid for interest	418,000	690,000
Cash paid for taxes	9,000	29,000
Tax refunds received	0	1,000
Supplemental disclosure of noncash investing and financing activities:
Equipment additions financed by debt	88,000	69,000
Equipment additions financed by finance lease obligations	$ 299,000	$ 134,000

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 1,112	$ 1,044
Income tax receivable	19	16
Accounts receivable – trade after allowance for doubtful accounts of $60.0 thousand in 2019 and 2018	4,415	4,369
Receivables and other assets from related parties (Note 6)	83	91
Inventories (Note 2)	3,990	6,934
Prepaid expenses and other current assets	158	159
Total current assets	9,777	12,613
Net property and equipment	9,276	9,786
Operating lease right-of-use assets (Note 4)	580	0
Operating lease right-of-use assets, related parties (Note 4 and 6)	4,842	0
Other assets
Deferred income taxes	27	27
Other non-current assets	45	54
Total other assets	72	81
Total assets	24,547	22,480
Current liabilities
Current maturities of long-term debt (Note 3)	4,547	3,909
Current maturities of long-term debt, related parties (Notes 3 and 6)	0	32
Current maturities of finance lease liabilities (Note 4)	422	352
Current maturities of operating lease liabilities (Note 4)	70	0
Current maturities of operating lease liabilities, related parties (Note 4 and 6)	164	0
Accounts payable	2,061	2,387
Payables and accrued expenses to related parties (Note 6)	0	2
Other current liabilities	757	566
Total current liabilities	8,021	7,248
Long-term liabilities
Long-term debt, net of current maturities	1,874	2,125
Long-term debt, net of current maturities, related parties (Notes 3 and 6)	1,004	1,504
Finance lease liabilities, net of current maturities (Note 4)	544	589
Operating lease liabilities, net of current maturities (Note 4 and 6)	510	0
Operating lease liabilities, net of current maturities, related parties (Note 4)	4,678	0
Total long-term liabilities	8,610	4,218
Shareholders' equity
Common stock, $0.0033 par value: 20.0 million shares authorized in 2019 and 2018; 8,160,777 and 8,107,865 shares issued and outstanding in 2019 and 2018, respectively	27	27
Additional paid-in capital	25,288	24,133
Stock warrants outstanding	0	1,025
Retained losses	(17,355)	(14,127)
Treasury stock at cost, 30,690 shares in 2019 and 2018	(44)	(44)
Total shareholders’ equity	7,916	11,014
Total liabilities and shareholders’ equity	$ 24,547	$ 22,480