Appliance Recycling Centers reports 2010 operating results

Appliance Recycling Centers of America, Inc. reported operating results for the fiscal year and fourth quarter ended January 1, 2011.

Operating income for the year increased by more than 240 percent to $3.1 million from an operating loss of $2.2 million in the prior year. For the fourth quarter, operating income was $0.3 million compared to a prior year operating loss of $1.2 million. The increase in operating income for the fiscal year and quarter was driven primarily by improved gross margins, improving operational efficiencies and recognizing higher sales of byproduct materials.

Highlights of the fourth quarter and fiscal year included:

• Increased net income attributable to controlling interest by 122 percent to $0.3 million compared to a loss of $1.4 million in the fourth quarter of 2009.
• Signed 12 contracts in fiscal 2010 to provide recycling services.
• Re-signed a three-year contract with Southern California Public Power Authority to provide refrigerator replacement and retirement services.
• Entered into a new credit agreement on January 24, 2011 for a $15 million senior secured revolving credit facility with PNC Bank, National Association.