MINNEAPOLIS--ARCA Recycling, Inc., a wholly owned subsidiary of Appliance Recycling Centers of America, Inc. (NASDAQ:ARCI), recently signed contracts to manage turnkey appliance recycling programs for multiple utilities in five states: Delaware, Georgia, New Mexico, Maryland and Virginia.
These contracts vary in length and will take effect during the second quarter of 2016, beginning in early April. Some contracts resulted from ARCA Recycling’s work assisting utilities impacted by the suspension of programs managed by a former competitor. In many cases, ARCA Recycling was awarded long-term contracts after helping bridge the short-term service gap.
“We’re pleased to help utilities and their customers who were inconvenienced by disruptions to their programs,” said Edward R. (Jack) Cameron, ARCA Recycling’s President. “Since late last year we have been experiencing strong momentum and interest from utilities.”
As announced earlier this month, ARCA Recycling has been negotiating utility contracts that reflect the recycling industry’s changing landscape, notably the sharp decline in scrap metal prices the past two years.
Cameron concluded, “These new contract wins in five states, combined with our pricing adjustments, give us optimism for financial improvements in fiscal 2016.”
ARCA is a recognized leader in appliance recycling programs, supported by regional processing centers across the U.S. and utilizing state-of-the-art technology that removes environmentally damaging substances and produces byproducts for recycling.
ARCA's three business components are uniquely positioned in the industry to work together to provide a full array of appliance-related services. ARCA Advanced Processing, LLC employs advanced technology to refine traditional appliance recycling techniques to achieve optimal revenue-generating and environmental benefits. ARCA (www.ARCAInc.com) is also the exclusive North American distributor for UNTHA Recycling Technology (URT), one of the world's leading manufacturers of technologically advanced refrigerator recycling systems and recycling facilities for electrical household appliances and electronic scrap.
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.®(www.ApplianceSmart.com) sell new appliances directly to consumers and provide affordable ENERGY STAR® options for energy efficiency appliance replacement programs.
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 general economic conditions, competition in the retail 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.