0000897101-01-500695.txt : 20011101
0000897101-01-500695.hdr.sgml : 20011101
ACCESSION NUMBER: 0000897101-01-500695
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20011030
ITEM INFORMATION: Other events
ITEM INFORMATION: Financial statements and exhibits
FILED AS OF DATE: 20011030
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: APPLIANCE RECYCLING CENTERS OF AMERICA INC /MN
CENTRAL INDEX KEY: 0000862861
STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES [5700]
IRS NUMBER: 411454591
STATE OF INCORPORATION: MN
FISCAL YEAR END: 0103
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-19621
FILM NUMBER: 1769829
BUSINESS ADDRESS:
STREET 1: 7400 EXCELSIOR BLVD
CITY: MINNEAPOLIS
STATE: MN
ZIP: 55426-4502
BUSINESS PHONE: 6129309000
MAIL ADDRESS:
STREET 1: 7400 EXCELSIOR BLVD
CITY: NINNEAPOLIS
STATE: MN
ZIP: 554264517
8-K
1
arca014331_8k.txt
APPLIANCE RECYCLING CENTERS OF AMERICA, INC. 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: October 30, 2001
(Date of earliest event reported)
APPLIANCE RECYCLING CENTERS OF AMERICA, INC.
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(Exact name of registrant as specified in its charter)
MINNESOTA 000-19621 41-1454591
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(State or other jurisdiction of Commission (I.R.S. Employer
incorporation or organization) File No. Identification No.)
7400 EXCELSIOR BOULEVARD
MINNEAPOLIS, MN 55426-4517
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(Address of principal executive offices)
(952) 930-9000
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(Registrant's telephone number, including area code)
Item 5. Other Events.
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On October 29, 2001, Appliance Recycling Centers of America, Inc.
issued a press release announcing its third quarter 2001 results. The Company
reported record revenues of $13,645,000 and net income of $1,577,000 or $.50 per
diluted share for its third quarter of 2001. A copy of the press release is
attached as an exhibit to this filing on Form 8-K.
Item 7 (c). Exhibits.
---------- --------
99 Press Release dated October 29, 2001 announcing the Company's
third quarter 2001 results.
Date: October 30, 2001 /s/Linda Koenig
----------------------------------------
Linda Koenig, Controller
EX-99
3
arca014331_ex-99.txt
PRESS RELEASE
EXHIBIT 99
[LOGO]
ARCA Appliance Recycling Centers of America, Inc.
INCORPORATED 7400 Excelsior Boulevard, Minneapolis MN 55426
(952) 930-9000
FOR IMMEDIATE RELEASE FOR MORE INFORMATION CONTACT:
Edward R. (Jack) Cameron (952) 930-9000
Richard G. Cinquina, Equity Market Partners
(612) 338-0810
ARCA REPORTS RECORD THIRD QUARTER SALES AND EARNINGS
THIRD QUARTER APPLIANCESMART SAME-STORE SALES INCREASED 22%
OCTOBER 29, 2001--MINNEAPOLIS, MN--Appliance Recycling Centers of America, Inc.
(OTC BB: ARCI) today reported record revenues of $13,645,000 for the third
quarter of 2001 ended September 29, an increase of 121% from $6,188,000 in the
year-earlier quarter. Net income came to an all-time quarterly record of
$1,577,000 or $0.50 per diluted share, up substantially from $257,000 or $0.09
per diluted share in the third quarter of 2000.
Edward R. (Jack) Cameron, president and chief executive officer, said: "The
third quarter of 2001 was the strongest three-month period in ARCA's history,
paced by the excellent performances of our ApplianceSmart retailing and
California recycling operations. The continued strength of our growing network
of ApplianceSmart factory outlets reflects the validity of our reverse logistics
concept, whereby we serve as a retail distribution channel for the service
returns, factory overruns, discontinued models and other special-buy appliances
of our manufacturing partners. The future strength of our ApplianceSmart
operation was further bolstered by our recently announced contract with Maytag
Corporation (NYSE: MYG), which specifies that ApplianceSmart will be Maytag's
provider of reverse logistics services."
Cameron added: "The performance of our California recycling operation is
benefiting from the roll-out of a major refrigerator/freezer/room air
conditioner recycling program that ARCA is operating for the California Public
Utilities Commission (CPUC). Based on ARCA's long
experience with residential energy conservation programs in California,
including programs sponsored by Southern California Edison Company, we are now
pursuing a growing range of potential opportunities in other states."
For the first nine months of 2001, revenues totaled $31,504,000, an increase of
95% from $16,181,000 in the same period last year. Nine-month earnings rose 157%
to $2,286,000 or $0.77 per diluted share, from $888,000 or $0.31 per diluted
share in the first nine months of 2000.
Third quarter ApplianceSmart same-store sales, a comparison of the four outlets
open during the entire third quarters of 2001 and 2000, increased 22%. Total
retail sales, which increased 57% in the third quarter to $5,784,000, benefited
from the sales contribution of three recently opened outlets in Maplewood, MN
(January 2001), Dayton, Ohio (March 2001) and Columbus, Ohio (May 2001). In
October, the Company opened its largest ApplianceSmart outlet to date in Apple
Valley, Minnesota, a rapidly growing Minneapolis/St. Paul suburb. This
50,000-square-foot showroom is ARCA's ninth ApplianceSmart outlet and fourth in
the Twin Cities market.
Under terms of its national contract with Maytag, ApplianceSmart will
significantly expand customer choice by offering a complete range of Maytag
special-buy appliances, which include the Maytag, Jenn-Air and Magic Chef
brands. ApplianceSmart, which has been offering special-buy appliances from
Whirlpool Corporation (NYSE: WHP) since 1997, has been engaged in a pilot
program with Maytag for the past six months.
Recycling revenues increased 223% in this year's third quarter to $7,380,000.
This growth was generated by three residential energy conservation programs in
California: the state-funded Summer Initiative program that was completed in the
third quarter with the recycling of approximately 36,000 unwanted refrigerators
and freezers; the recycling program sponsored by Southern California Edison
Company; and the recently launched Appliance Early Retirement and Recycling
Program sponsored and administered by the CPUC. The Appliance Early Retirement
and Recycling program serves residential customers of California's public
utilities in a six-county region of the Central Valley, the seven-country Bay
Area, and San Diego and surrounding areas. Through this effort, ARCA expects to
permanently remove from service approximately 70,000 operating inefficient
refrigerators, freezers and room air conditioners. The
CPUC has budgeted $14 million to fund the recycling program. The budget
allocation includes $50 incentive payments to participants for refrigerators and
freezers and $25 incentive payments for room air conditioners. The program is a
one-year contract through May 2002.
Based on its outlook for appliance retail and recycling revenues, the Company
anticipates improved fourth quarter revenues and earnings in comparison to the
fourth quarter of 2000. Reflecting the normal seasonal slowdown in appliance
retailing and the third quarter completion of the Summer Initiative recycling
program, fourth quarter operating results are not expected to equal the
exceptionally strong third quarter levels.
Through its ApplianceSmart (www.ApplianceSmart.com) operation, ARCA is one of
the nation's leading retailers of special-buy household appliances, primarily
those manufactured by Whirlpool Corporation and Maytag Corporation. These
special-buy appliances, which include close-outs, factory overruns and
scratch-and-dent units, typically are not integrated into the manufacturer's
normal distribution channel. ApplianceSmart sells these virtually new appliances
at a discount to full retail, offers a 100% money-back guarantee and provides
warranties on parts and labor. As of October 2001, ApplianceSmart was operating
four stores in the Minneapolis/St. Paul market; two in the Dayton, Ohio, market;
two in the Columbus, Ohio, market; and one in Los Angeles. ARCA is also one of
the largest recyclers of major household appliances for the energy conservation
programs of electric utilities.
# # #
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Statements about ARCA's outlook are forward-looking and involve risks and
uncertainties, including but not limited to: the strength of recycling programs,
the growth of appliance retail sales, the speed at which individual retail
stores reach profitability, and other factors discussed in the Company's filings
with the Securities and Exchange Commission.
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Visit our web site at www.arcainc.com
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APPLIANCE RECYCLING CENTERS OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
3rd Quarter 2001 Results
(000'S OMITTED EXCEPT FOR SHARE AMOUNTS)
THREE MONTHS ENDED NINE MONTHS ENDED
------------------------- -------------------------
SEPT. 29 SEPT 30 SEPT 29 SEPT 30
2001 2000 2001 2000
---------- ---------- ---------- ----------
REVENUES
Retail $ 5,784 $ 3,681 $ 15,452 $ 8,908
Recycling 7,380 2,287 15,131 6,516
ByProduct 481 220 921 757
---------- ---------- ---------- ----------
Total revenues $ 13,645 $ 6,188 $ 31,504 $ 16,181
COST OF REVENUES 8,053 3,782 18,827 9,232
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Gross profit $ 5,592 $ 2,406 $ 12,677 $ 6,949
SELLING, GENERAL & ADMINISTRATIVE EXPENSES 3,307 1,997 8,706 5,162
---------- ---------- ---------- ----------
Operating income $ 2,285 $ 409 $ 3,971 $ 1,787
OTHER INCOME (EXPENSE)
Other income 24 281 71 289
Interest expense (280) (222) (790) (634)
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Income before provision for income taxes $ 2,029 $ 468 $ 3,252 $ 1,442
PROVISION FOR INCOME TAXES 452 211 966 554
---------- ---------- ---------- ----------
NET INCOME $ 1,577 $ 257 $ 2,286 $ 888
========== ========== ========== ==========
BASIC INCOME PER COMMON SHARE 0.69 0.11 1.00 0.39
========== ========== ========== ==========
DILUTED INCOME PER COMMON SHARE 0.50 .09 .77 .31
========== ========== ========== ==========
BASIC WEIGHTED AVERAGE NO. OF COMMON SHARES OUTSTANDING 2,292 2,287 2,289 2,287
========== ========== ========== ==========
DILUTED WEIGHTED AVERAGE NO. OF COMMON SHARES OUTSTANDING 3,147 2,948 2,989 2,893
========== ========== ========== ==========