Recycling Centers of America realizes profit
Appliance Recycling Centers of America, Inc.
reported operating results for the second quarter ended July
Highlights of the second quarter included:
- Reported a profitable quarter with net income attributable
to controlling interest of $0.7 million compared to a net loss
of $0.4 million in the second quarter of 2009.
- Generated operating income of $1.1 million compared to
an operating loss of $0.1 million in the second quarter of 2009.
- Grew revenues from appliance recycling fees by 47.9 percent
over the second quarter of 2009.
- Increased overall revenues for the second quarter by 11.1
percent over the second quarter of 2009.
- Signed four new multi-year recycling contracts servicing
utilities in New York, Minnesota and Texas.
Total revenues for the second quarter of 2010 increased 11.1
percent to $28.2 million from $25.4 million in the second quarter
of 2009. Comparable store revenues from ApplianceSmart Factory
Outlets operating during the entire second quarters of 2010 and
2009 decreased 2.3 percent, and total retail revenues decreased
4.0 percent to $18.6 million from $19.3 million during the second
quarter of 2009. The decrease in comparable store revenues was
due primarily to softer sales in Ohio.
Recycling revenues, which include appliance recycling fees and
low-income appliance replacement program revenues, increased
17.7 percent to $6.3 million in the second quarter of 2010 compared
to revenues of $5.4 million in the second quarter of 2009. Appliance
recycling fees increased 47.9 percent to $5.3 million for the
second quarter of 2010 compared to $3.6 million in the second
quarter of 2009 due primarily to the new recycling contracts
added during the past 12 months. Replacement program revenues
decreased $0.8 million, primarily as the result of lower volumes
for a California utility customer’s replacement program. Even
though the California utility sponsoring the replacement program
reduced its marketing outreach to potential participants in the
second quarter of 2010, resulting in an overall decrease in customer
enrollment and corresponding revenues, the program generated
$1.0 million in revenues for the company in the second quarter
of 2010. Byproduct revenues increased 382.5 percent to $3.3 million
in the second quarter of 2010 compared to revenues of $0.7 million
in the second quarter of 2009. The increase in byproduct revenues
was primarily the result of higher scrap metal prices compared
to the second quarter of 2009 and revenues from the company’s
joint venture, ARCA Advanced Processing, LLC.