MINNEAPOLIS, Nov. 14, 2017 /PRNewswire/ -- Appliance Recycling
Centers of America, Inc. (Nasdaq: ARCI) ("ARCA" or the "company"),
a leading provider of utility appliance recycling programs,
announces today its financial results for the third quarter of
2017.
Highlights include:
- Revenues of $25.5 million
- Gross profit of $8.4 million
- Operating Income of $1.1
million
- Net Income of more than $.77
million, or, $0.12 earnings
per basic common share
- Cash flow from operations of approximately $2.4 million for the 39 weeks ended September 30, 2017
- Stockholders Equity increased to $30.8
Million, due to the Series A preferred shares issued to
acquire GeoTraq and profits from Q3-2017
"We are very pleased with our Q3 results for 2017. In the
same period in 2016, we had a large one-time carbon credit sale of
$1.048 million and all 18
ApplianceSmart stores were operational during the entire
quarter. Our revenues for this quarter were adversely impacted
by not having our 18th store operational during most of
the quarter. In July 2017, we
had a fire in our Reynoldsburg, OH
store. That store has been closed since the fire and we expect
to reopen it later this month. In addition, we have cleaned up
our balance sheet with the sale of our stake in ARCA Advanced
Processing ("AAP"), our former joint venture, and have continued
our work at improving our profitability, reducing expenses and
improving margins," said Virland
Johnson, CFO of ARCA.
"The sale of our stake in AAP, the results and deconsolidation
of which are now included in our financial statements, has improved
our balance sheet through the receipt of $800,000 in cash and the elimination of more than
$4.2 million in direct and indirect
liabilities. We have also recently acquired GeoTraq Inc., a new
business for us that we plan on developing and growing to serve the
location-based services market. Ultimately, we believe the
entirety of these efforts will result in additional shareholder
value," said Tony Isaac, CEO of
ARCA.
About ARCA
ARCA's two appliance business components
are uniquely positioned in the industry to work together to provide
a full array of appliance-related services. ARCA's regional centers
process appliances at end of life to remove environmentally
damaging substances and produce material byproducts for recycling
for utilities in the U.S. and Canada. Eighteen company-owned stores under
the name ApplianceSmart, Inc.® sell new appliances
directly to consumers and provide affordable ENERGY
STAR® options for energy efficiency appliance
replacement programs. GeoTraq is a development stage company
engaged in the design, development and, ultimately, the company
expects, sale of cellular transceiver modules, also known as
Cell-ID modules, for the location based services market.
Forward Looking Statements
This press release contains statements that are forward-looking
statements as defined within the Private Securities Litigation
Reform Act of 1995, including statements regarding ARCA's future
success. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from the statements made, including the risks associated with the
general economic conditions, competition in the retain and
recycling industries and regulatory risks. Other factors that could
cause operating and financial results to differ are described in
ARCA's periodic reports filed with the Securities and Exchange
Commission. Other risks may be detailed from time to time in
reports to be filed with the SEC.
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SOURCE Appliance Recycling Centers of America