Services of America Inc. (ISA) is taking steps to repair its
financial results after falling deeper into the red last
The Louisville, Ky.-based scrap
metal processor has reduced its annual overhead costs by $3.4
millionincluding saving $1.1 million by trimming its
full-time head count to 155 workers from 176 in 2011to
align its capacity with the reduced material flow to its
facility, it said.
Earlier this week, ISA said it
had taken on private equity firm Blue Equity LLC as an investor
to help manage the company (
amm.com, April 1).
ISAs 2012 net loss of $6.6
million was up 70.6 percent from a year-earlier $3.9-million
loss, on revenue that fell 29.9 percent to $194.2 million. Its
fourth-quarter net loss of $4.5 million soared from $1.8
million in the 2011 period as revenue slid 26 percent to just
under $37 million.
Business conditions remain
challenging, and there has been no easing in the heated
competition to obtain feedstock, ISA said, noting ferrous scrap
shipments fell 30.5 percent last year and those of stainless
dropped 23 percent.
ISA said the self-service auto
salvage parts division that it opened last summer is showing
some benefit, noting that the vehicles it sends to the adjacent
shredder are increasing the quality of the yield.