SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company’s operations include two primary segments: Recycling and Waste Services. The Recycling segment provides products and services to meet the needs of its customers related to ferrous, non-ferrous and fiber recycling in two locations in the Midwest. Waste Services provides waste disposal services including contract negotiations with service providers, centralized billing, invoice auditing, and centralized dispatching. Waste Services also sells, leases, and services waste handling and recycling equipment, such as trash compactors and balers to end user customers.

The Company’s two reportable segments are determined by the products and services that each offers. The Recycling segment generates its revenues based on buying and selling of ferrous, non-ferrous, including stainless steel, and fiber scrap. On July 2, 2012, the Company opened the ISA Pick.Pull.Save used automobile yard, which is considered a new product line within the ISA Recycling Segment. The Company purchases automobiles for the yard through auctions, automobile purchase programs with various suppliers, and general scrap purchases. Retail customers locate and remove used parts for purchase from automobiles within the yard. Fuel, Freon, tires and certain core automobile parts are also sold to various vendors for additional revenue. All automobiles are shredded and sold as scrap metal after a specified time period in the yard.

Waste Services’ revenues consist of charges to customers for waste disposal services and equipment sales and lease income. The components of the column labeled “other” are selling, general and administrative expenses that are not directly related to the two primary segments.

The accounting policies of the two segments are the same as those described in the summary of significant accounting policies (Note 1). We evaluate segment performance based on gross profit or loss and the evaluation process for each segment includes only direct expenses and selling, general and administrative costs, omitting any other income and expense and income taxes.

2012	RECYCLING			WASTE SERVICES			OTHER			SEGMENT TOTALS
	(in thousands)
Recycling revenues	$	187,034		$	—		$	—		$	187,034
Equipment sales, service and leasing revenues	—			2,110			—			2,110
Management fees	—			5,088			—			5,088
Cost of goods sold	(179,708		)	(5,292		)	—			(185,000		)
Selling, general, and administrative expenses	(5,917		)	(768		)	(4,740		)	(11,425		)
Impairment loss, goodwill	(6,840		)	—			—			(6,840		)
Segment (loss) profit	$	(5,431	)	$	1,138		$	(4,740	)	$	(9,033	)

2012	RECYCLING		WASTE SERVICES		OTHER		SEGMENT TOTALS
	(in thousands)
Cash	$	1,083	$	—	$	843	$	1,926
Income tax receivable	—		—		1,437		1,437
Accounts receivable, net	12,453		890		1		13,344
Inventories	16,465		64		—		16,529
Net property and equipment	16,870		983		6,357		24,210
Net intangibles	4,275		—		—		4,275
Deferred income taxes	—		—		1,146		1,146
Other assets	158		12		286		456
Segment assets	$	51,304	$	1,949	$	10,070	$	63,323

2011	RECYCLING			WASTE SERVICES			OTHER			SEGMENT TOTALS
	(in thousands)
Recycling revenues	$	269,802		$	—		$	—		$	269,802
Equipment sales, service and leasing revenues	—			2,132			—			2,132
Management fees	—			5,279			—			5,279
Cost of goods sold	(260,018		)	(5,474		)	—			(265,492		)
Inventory adjustment for lower of cost or market	(3,441		)	—			—			(3,441		)
Selling, general, and administrative expenses	(7,811		)	(808		)	(3,775		)	(12,394		)
Segment (loss) profit	$	(1,468	)	$	1,129		$	(3,775	)	$	(4,114	)

2011	RECYCLING		WASTE SERVICES		OTHER			SEGMENT TOTALS
	(in thousands)
Cash	$	1,116	$	—	$	1,151		$	2,267
Income tax receivable	—		—		3,967			3,967
Accounts receivable, net	16,342		940		(91		)	17,191
Inventories	18,500		44		—			18,544
Net property and equipment	18,909		1,024		6,266			26,199
Goodwill	6,840		—		—			6,840
Net intangibles	5,025		—		—			5,025
Other assets	363		12		562			937
Segment assets	$	67,095	$	2,020	$	11,855		$	80,970

2010	RECYCLING			WASTE SERVICES			OTHER			SEGMENT TOTALS
	(in thousands)
Recycling revenues	$	335,831		$	—		$	—		$	335,831
Equipment sales, service and leasing revenues	—			2,125			—			2,125
Management fees	—			6,213			—			6,213
Cost of goods sold	(309,607		)	(6,239		)	—			(315,846		)
Selling, general, and administrative expenses	(7,343		)	(1,016		)	(5,252		)	(13,611		)
Segment (loss) profit	$	18,881		$	1,083		$	(5,252	)	$	14,712

2010	RECYCLING		WASTE SERVICES		OTHER		SEGMENT TOTALS
	(in thousands)
Cash	$	1,258	$	—	$	1,210	$	2,468
Accounts receivable, net	24,933		1,140		1,376		27,449
Inventories	34,222		89		—		34,311
Net property and equipment	25,799		1,228		527		27,554
Goodwill	6,840		—		—		6,840
Net intangibles	5,775		—		—		5,775
Other assets	574		86		1,105		1,765
Segment assets	$	99,401	$	2,543	$	4,218	$	106,162