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Industrial Services of America, Inc. (IDSA) Reports Second Quarter Net Income Doubles

Industrial Services of America, Inc. (IDSA), a recycler of scrap metals based in Louisville, Kentucky, announced second quarter financial results today during regular trading hours. Revenues increased 77% to $34.5 million compared to $19.5 million for the same period last year. Net income surged 102% year over year to $1.66 million, or 46 cents per share, vs. $822,000, or 22 cents per share. On a sequential basis, revenues rose 32% and net income rose 52% over Q1 2008. The company had projected on June 23 that second quarter earnings would be in a range of $0.42 – $0.44 per share.

“ISA is benefiting not only from the higher price of commodities, but we are also successfully maximizing the utilization of current assets while we invest in expanding our processing and shipping capacities,” said Brian Donaghy, ISA President and Chief Operating Officer. “This is evident from our second quarter performance, as shipments were up 67% and 32% for non-ferrous and ferrous materials from the same period a year ago.

“We are committed to improving our production methods and efficiencies as is evident in our recent ground breaking for a $10 million investment in a state-of-the-art shredding and non- ferrous recovery system,” said Donaghy. “This investment will allow us to increase production, provide lower production costs and open the door to many new markets. It is important to recognize the continuous commitment by our management and ISA employees toward achieving our goals.”

Shares of IDSA closed 8.4% lower today at $14.79 following the earnings report release, on a brutal trading day that was unforgiving to any equity levered to commodities. IDSA has traded in a 52-week range of $6 -$17.74. With 3.6 million shares outstanding, IDSA has a market cap of approximately $53 million. A low float of 2 million shares contributes to IDSA’s high beta of 2.5.

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