Appliance Recycling Centers of America Inc. (ARCA), a Minneapolis-based provider of utility appliance recycling programs, has announced that the company anticipates increased profitability following recent corporatewide efforts to reduce costs and streamline operations.
The company says it recently launched an initiative to increase productivity and streamline operations, which ARCA management says should result in increased profitability. As part of this initiative, ARCA management conducted an extensive audit of current costs to determine areas where cuts could be enacted, which led to an 18 percent reduction in overhead costs, which the company recently reported for the quarter ending July 1, 2017. In addition, several areas were identified where systems could be streamlined. The result was a significant cost savings, ARCA says, which will garner continued profitability going forward. This initiative is expected to continue in the coming quarters.
American Metal Market (AMM), referencing earnings results released Aug. 21, 2017, reports that ARCA swung to a $2.06 million profit compared with a $2.1 million loss in the year earlier quarter on a 4.1 percent increase in revenue—up to $25.78 million from $24.76 million.
AMM reports the company’s recycling segment posted $705,000 in operating income on $11.3 million in revenues for the three months ended July 1, 2017m compared with a $606,000 operating loss on $8.7 million in revenue in the second quarter 2016.
“With the sale of the equity stake in its Philadelphia appliance-shredding joint venture, the company expects to be financially stronger. ARCA’s interest expenses on the recycling division, which includes the now-divested shredder, came to $422,000 for the first six months of the year,” AMM reports Aug. 24, 2017.
Tony Isaac, CEO of ARCA, says, “It is essential that we regularly evaluate our operations to maintain efficiency, making cuts that we anticipate streamlin[e] our operations. We believe that these strategic cost reductions will naturally result in efficient operations and potentially increased profitability, which, of course, translates to increased shareholder value.”
ARCA’s two business components are 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 Energy Star options for energy efficiency appliance replacement programs.
The company says it recently launched an initiative to increase productivity and streamline operations, which ARCA management says should result in increased profitability. As part of this initiative, ARCA management conducted an extensive audit of current costs to determine areas where cuts could be enacted, which led to an 18 percent reduction in overhead costs, which the company recently reported for the quarter ending July 1, 2017. In addition, several areas were identified where systems could be streamlined. The result was a significant cost savings, ARCA says, which will garner continued profitability going forward. This initiative is expected to continue in the coming quarters.
American Metal Market (AMM), referencing earnings results released Aug. 21, 2017, reports that ARCA swung to a $2.06 million profit compared with a $2.1 million loss in the year earlier quarter on a 4.1 percent increase in revenue—up to $25.78 million from $24.76 million.
AMM reports the company’s recycling segment posted $705,000 in operating income on $11.3 million in revenues for the three months ended July 1, 2017m compared with a $606,000 operating loss on $8.7 million in revenue in the second quarter 2016.
“With the sale of the equity stake in its Philadelphia appliance-shredding joint venture, the company expects to be financially stronger. ARCA’s interest expenses on the recycling division, which includes the now-divested shredder, came to $422,000 for the first six months of the year,” AMM reports Aug. 24, 2017.
Tony Isaac, CEO of ARCA, says, “It is essential that we regularly evaluate our operations to maintain efficiency, making cuts that we anticipate streamlin[e] our operations. We believe that these strategic cost reductions will naturally result in efficient operations and potentially increased profitability, which, of course, translates to increased shareholder value.”
ARCA’s two business components are 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 Energy Star options for energy efficiency appliance replacement programs.
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