Appliance Recycling Centers of America Inc. (Arca) built on
momentum seen earlier this year, remaining profitable for the
second consecutive quarter amid higher revenue.
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
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).
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.