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

Business Wire, Nov 5, 2008

LOUISVILLE, Ky. -- Industrial Services of America, Inc. (NASDAQ: IDSA):

* Net income was a third quarter record $1.3 million ($0.36 per share)

* Non-ferrous shipment volumes up 42%

* Company reports 22nd consecutive profitable quarter

Industrial Services of America, Inc. (NASDAQ: IDSA), a company that buys, processes and markets recyclable commodities and offers programs and equipment to help businesses manage wastes, today reported higher revenues and earnings for the third quarter and nine months ending September 30, 2008.

For the third quarter of fiscal 2008

* Total revenues increased 61% to $28.8 million, compared with $17.9 million in the similar 2007 period.

* Earnings before interest, taxes, depreciation and amortization (EBITDA) were $2.7 million, compared with EBITDA of $1.2 million for the 2007 quarter. (See attached reconciliation.)

* Net income grew 234 percent to $1,280,115 (basic and diluted earnings of $0.36 per share), a third quarter record. That compares with net income of $383,159 (basic and diluted earnings of $0.11 per share) in the third quarter of 2007. Basic and diluted shares outstanding were 3,593,966 in the third quarter of 2008 and 3,640,899 in 2007.

* Non-ferrous shipment volumes increased 42.2% over the third quarter of 2007, and ferrous shipment volumes rose 2.4% over the same period.

"Our third quarter results reflected a strong company operating performance that took place prior to the volatility in the commodities markets," said Brian Donaghy, ISA President and Chief Operating Officer. "Revenue from product sales for the period increased by 76 percent over year-ago product sales revenue, driven by a 42.2% increase in non-ferrous shipment volumes, 2.4% more ferrous shipment volumes and higher year-over-year pricing."

"Additionally," said Donaghy, "our management services division provided a solid contribution to ISA, with service revenue up by 13% over the year-ago quarter."

For the first nine months of fiscal 2008

* Total revenues increased 62% to $89.4 million, compared with $55.4 million in the first half of 2007.

* Earnings before interest, taxes, depreciation and amortization (EBITDA) were $8.6 million, compared with EBITDA of $4.9 million for the 2007 period. (See attached reconciliation.)

* Net income increased 102 percent to $4,029,298 (basic and diluted earnings of $1.12 per share), compared with net income of $1,997,538 (basic and diluted earnings of $0.55 per share) in the first nine months of 2007. Basic and diluted shares outstanding were 3,602,703 in 2008 and 3,640,899 in 2007.

* Year-to-date non-ferrous shipment volumes increased 52.6% over the first nine months of 2007, and ferrous shipment volumes rose 12.2% over the same period.

Outlook

"While both lowering manufacturing activity and commodity prices retreating dramatically at the end of the third quarter and into the fourth quarter, we have successfully managed our business. Our inventory quantities are extremely lean and we are looking forward to the opportunity that this market is presenting to us to build our inventories at attractive prices," said Harry Kletter, ISA Chairman.

As the company heads into the final months of fiscal 2008, Kletter said ISA is positioned well with a healthy balance sheet, ample credit facilities and the diversity of its management services operations. With the improved performance of Waste Equipment Sales & Service, the company has allocated additional sales staff to the division to boost equipment sales and rentals.

The Company's 2008 Form 10-Q filing is available for review at the Securities and Exchange Commission web site, http://www.sec.gov/edgar/searchedgar/companysearch.html.> About ISA

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.

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