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APPLIANCE RECYCLING CENTERS OF AMERICA REPORTS SECOND QUARTER RESULTS

 MINNEAPOLIS, July 20 /PRNewswire/ -- Appliance Recycling Centers of America, Inc. (ARCA) (NASDAQ-NMS: ARCI) today reported net revenues of $3,609,000 for the second quarter of 1993, a decrease of 24 percent from $4,755,000 in the year-earlier period. The company also reported a net loss of $175,000, or $.04 per share, compared to net income of $668,000, or $.18 per share in the second quarter of 1992.
 For the first six months of 1993, the company's net revenues declined 7 percent to $6,175,000. The company reported a net loss of $604,000, or $.16 per share, compared to net income of $676,000, or $.18 per share in the first half of 1992.
 Edward R. Cameron, president and chief executive officer, said the company's weaker than planned second quarter performance reflected the action taken by a major customer to scale back its recycling program due to budgetary constraints.
 "Despite this revenue shortfall," he continued, "we made the strategic decision to continue investing in ARCA's operational infrastructure as we prepare for the opening of our Los Angeles center later this year. This center will provide appliance recycling services for the nearly 5 million residential customers of both Southern California Edison Company -- the nation's largest electric utility -- and the Los Angeles Department of Water and Power. The upfront costs related to this major effort have kept our profitability under considerable short-term pressure."
 The Los Angeles recycling center is expected to commence operations in the fourth quarter, subject to the execution of a definitive contract and final approvals.
 Cameron said that given the scope of its West Coast opportunity, the company is focusing on its longer-term performance. He said this joint recycling program is expected to have a significant positive impact on the company's performance in 1994.
 While ARCA anticipates lower 1993 third quarter revenues as compared to 1992's third quarter, the company expects that the 1993 third quarter revenues, which will be slightly higher than 1993 second quarter revenues, will generate a modest profit.
 ARCA provides a comprehensive range of environmentally sound recycling services for major household appliances. ARCA is traded on the NASDAQ National Market System under the symbol ARCI.
 APPLIANCE RECYCLING CENTERS OF AMERICA, INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 SECOND QUARTER 1993
 Three Months Ended Six Months Ended
 6/30/93 6/30/92 6/30/93 6/30/92
 Net revenues $3,609,000 $4,755,000 $6,175,000 $6,654,000
 Cost of revenues 2,401,000 2,198,000 4,422,000 3,280,000
 Gross profit 1,208,000 2,557,000 1,753,000 3,374,000
 Selling, general and
 administrative expenses 1,467,000 1,410,000 2,710,000 2,206,000
 Operating income (259,000) 1,147,000 (957,000) 1,168,000
 Interest income 27,000 10,000 40,000 29,000
 Interest expense (65,000) (38,000) (123,000) (67,000)
 Income before provision
 for income taxes (297,000) 1,119,000 (1,040,000) 1,130,000
 Provision for
 income taxes (122,000) 451,000 (436,000) 454,000
 Net income $(175,000) $668,000 $(604,000) $676,000
 Earnings per share $(.04) $.18 $(.16) $.18
 Weighted average number
 of shares 3,947,000 3,775,000 3,736,000 3,777,000
 -0- 7/20/93
 /CONTACT: Kent S. McCoy of Appliance Recycling Centers of America, 612-930-9000/
 (ARCI)


CO: Appliance Recycling Centers of America ST: Minnesota IN: ENV SU: ERN

KH -- MN016 -- 3467 07/20/93 14:46 EDT
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Publication:PR Newswire
Date:Jul 20, 1993
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