MINNEAPOLIS, Aug. 25, 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 management anticipates increased
profitability following recent corporate-wide efforts to reduce
costs and streamline operations.
The company recently launched an initiative to increase
productivity and streamline operations, which management believes
will result in increased profitability. As part of this
initiative, 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 (SGA), 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 that management believes will
garner continued profitability going forward. This initiative
is expected to continue in the coming quarters.
"It is essential that we regularly evaluate our operations to
maintain efficiency, making cuts that we anticipate streamlining
our operations," said Tony Isaac,
CEO of ARCA. "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."
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