PITTSBURGH — Industrial Services of America Inc. (ISA) dramatically narrowed its loss by 75.7 percent last year and lowered its debt following the sale of non-core assets and the warm idling of its auto shredder.
“Although 2015 was a challenging year, I’m proud of the progress that the company made during this unprecedented time. During 2015, we paid down substantially all of the company’s debt, improved liquidity and focused our team on the core business,” ISA president Sean Garber said in a statement March 25.
However, revenue decreased by 58.1 percent amid a steep drop in scrap metal selling prices. Average nonferrous scrap selling prices fell by 28 cents per pound (24.9 percent) for the year, and ferrous scrap selling prices decreased by $179.63 per gross ton (49.4 percent).
Nonferrous scrap shipments decreased by 9.2 million pounds (22 percent), while ferrous scrap shipments increased by 11,410 tons (30.2 percent) as material that was formerly designated for the shredder was sold as ferrous scrap.
The warm idling of the shredder also played a role in reducing revenue, having contributed $53.6 million in 2014 revenue and $11.9 million in 2015 revenue before going offline. The company powered down the shredder in May (amm.com, May 13), which resulted in working capital savings and a cash infusion through the sale of real estate and most of the assets of the waste services segment.
ISA also paid down $16.3 million in debt during the year, and reduced its work force to 74 full-time employees as of March 3 from 96 full-time employees as of March 19, 2015. The reduction allowed for a $1.5-million decrease in labor costs, employment taxes and fees, as well as insurance.