MINNEAPOLIS, Aug. 16, 2017 /PRNewswire/ -- Appliance
Recycling Centers of America, Inc. (NASDAQ: ARCI) ("ARCA" or the
"company"), a leading provider of utility appliance recycling
programs, announces today that it has completed the sale of its 50
percent joint venture interest in ARCA Advanced Processing, LLC
("AAP").
In a transaction valued at approximately $5 million, the company received $800,000 in cash and was released from more than
$4 million in direct and contingent
liabilities and guarantees. In addition, the transaction is
expected to improve the company's net income moving forward.
More importantly, the sale allows ARCA to focus on growing its
successful recycling programs nationwide, as well as providing
additional support to its retail subsidiary, Appliance Smart.
"The transaction is significant for shareholders, between
the cash received from the sale and extinguishment of debt and
release of guarantees made by ARCA years ago," says Tony Isaac, ARCA's CEO. "We are elated to
have the guarantees and liabilities released from our balance sheet
and to be able to focus on executing upon the company's business
plans."
About ARCA
ARCA's two business components are uniquely
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 affordable
ENERGY STAR® options for energy efficiency appliance replacement
programs.
Forward Looking Statements
This press release contains
statements that are forward-looking statements as defined within
the Private Securities Litigation Reform Act of 1995, including
statements regarding ARCA's future success. These forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from the statements made,
including the risks associated with the general economic
conditions, competition in the retain and recycling industries and
regulatory risks. Other factors that could cause operating and
financial results to differ are described in ARCA's periodic
reports filed with the Securities and Exchange Commission. Other
risks may be detailed from time to time in reports to be filed with
the SEC.
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SOURCE Appliance Recycling Centers of America, Inc.