Appliance Recycling Centers of America realizes profit

Appliance Recycling Centers of America, Inc. reported operating results for the second quarter ended July 3, 2010.

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.