PITTSBURGH Appliance Recycling Centers of America Inc. (Arca) built on momentum seen earlier this year, remaining profitable for the second consecutive quarter amid higher revenue.
The Minneapolis-based recycler posted net income of $726,000 in the second quarter, in contrast to a $551,000 net loss in the same period last year, as sales rose 9.2 percent to $32.3 million. Arca had returned to the black in the first quarter after logging four consecutive quarterly losses (amm.com, May 7).
"Were pleased to build on last quarters positive momentum with continued quarterly revenue growth, both sequentially and year over year," president and chief executive officer Edward R. Cameron said.
The company also said it is financially stabile. "Across our company, profitability improvements enabled us to comfortably satisfy the conditions of our credit agreement, including the planned monthly (earnings before interest, taxes, depreciation and amortization) covenants," he said.
The recycler had been out of compliance on two of its financial covenants earlier this year (amm.com, Feb 28).
Arcas recycling segment posted revenue of $10.3 million, a nearly 67-percent increase from $6.1 million in the year-ago quarter.
Revenue from the companys Advanced Processing LLC (AAP) center in Philadelphia declined 8.9 percent to $2.7 million due to a retreat in ferrous and nonferrous scrap prices. Average scrap steel selling prices fell 11.1 percent per gross ton from the same year-ago quarter, while overall gross tons received for processing rose 5.4 percent. AAP is a joint venture that provides recycling services for General Electric Co. appliances and utility companies on the East Coast.