ARCA Reports Year-End Financials

For the fourth quarter of 2004, revenues totaled $13,695,000, up 25 percent from $10,996,000 the same period in 2003.  ARCA's net loss for this period was $800,000 or $0.27 per share, compared to the net loss of $291,000 or $0.12 per share in the fourth quarter of 2003.   

Same-store sales of the eight ApplianceSmart factory outlets that were open during the complete fourth quarters of 2004 and 2003 rose 8 percent, while same-store sales of the seven outlets open during all of 2004 and 2003 were up 10 percent. Same-store sales growth for both the fourth quarter and full year were particularly strong in the Ohio market, whose performance has improved significantly since restructuring in 2003.  Total retail sales rose 25 percent to $10,686,000 in the fourth quarter and 20 percent to $41,847,000 for the full year compared to the same periods in the prior year. 

Recycling revenues increased 20 percent to $2,560,000 in the fourth quarter and 17 percent to $9,414,000 for full-year 2004 compared to the prior year. 

California's statewide residential energy conservation program, managed by Southern California Edison Co., remains ARCA's largest recycling program. Revenue contributions also were made by two new programs: one in Connecticut that is jointly sponsored by The United Illuminating Company and The Connecticut Light & Power Company and one with San Diego Gas & Electric. 

“We are encouraged by ARCA's progress in 2004 as evidenced by our strong revenue growth and improved bottom-line performance.  However, our fourth quarter results were adversely affected by start-up and associated expenses in connection with opening three ApplianceSmart outlets, “Jack Cameron, president and chief executive officer of ARCA says. “We believe that our new Atlanta facility will increase our operating efficiencies by serving not only as a retail store, but also as a regional appliance distribution center for three of our markets.”