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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000897101-02-000530.txt : 20020807
<SEC-HEADER>0000897101-02-000530.hdr.sgml : 20020807
<ACCEPTANCE-DATETIME>20020807123950
ACCESSION NUMBER:		0000897101-02-000530
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20020805
ITEM INFORMATION:		Other events
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20020807

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			APPLIANCE RECYCLING CENTERS OF AMERICA INC /MN
		CENTRAL INDEX KEY:			0000862861
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-HOME FURNITURE, FURNISHINGS & EQUIPMENT STORES [5700]
		IRS NUMBER:				411454591
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			0103

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19621
		FILM NUMBER:		02721486

	BUSINESS ADDRESS:	
		STREET 1:		7400 EXCELSIOR BLVD
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55426-4502
		BUSINESS PHONE:		6129309000

	MAIL ADDRESS:	
		STREET 1:		7400 EXCELSIOR BLVD
		CITY:			NINNEAPOLIS
		STATE:			MN
		ZIP:			554264517
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>arca023898_8k.txt
<DESCRIPTION>ARCA, INC. FORM 8-K 2ND QUARTER
<TEXT>
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 8-K

                                 CURRENT REPORT

                         PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934



                         Date of Report: August 5, 2002
                                         --------------
                        (Date of earliest event reported)




                  APPLIANCE RECYCLING CENTERS OF AMERICA, INC.
- --------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)



         MINNESOTA                        000-19621               41-1454591
- -------------------------------          ----------          -------------------
(State or other jurisdiction of          Commission           (I.R.S. Employer
incorporation or organization)            File No.           Identification No.)


         7400 EXCELSIOR BOULEVARD
         MINNEAPOLIS, MN                                          55426-4517
- -----------------------------------------                    -------------------
(Address of principal executive offices)



                                 (952) 930-9000
- --------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)


<PAGE>


Item 5.     Other Events.
- ------      ------------

         On July 24, 2002, Appliance Recycling Centers of America, Inc. issued a
press release announcing its second quarter operating results. The Company
reported revenues of $11,734,000 and net income of $537,000 or $.16 per diluted
share for its quarter ended June 29, 2002. A copy of the press release is
attached as an exhibit to this filing on Form 8-K.


Item 7(c).  Exhibits.
- ---------   --------

99          Press Release dated July 24, 2002, announcing its second quarter
            operating results.


Date: August 5, 2002                                    /s/ Linda Koenig
                                                        ------------------------
                                                        Linda Koenig, Controller

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>arca023898_ex99.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>
                                                                      EXHIBIT 99


   [LOGO]
    ARCA           APPLIANCE RECYCLING CENTERS OF AMERICA, INC.
INCORPORATED       7400 EXCELSIOR BOULEVARD, MINNEAPOLIS MN 55426 (952) 930-9000



FOR IMMEDIATE RELEASE                              FOR MORE INFORMATION CONTACT:
                                                   EDWARD R. (Jack) CAMERON, CEO
                                                   (952) 930-9000
                                                   RICHARD G. CINQUINA,
                                                   EQUITY MARKET PARTNERS
                                                   (612) 338-0810

                  APPLIANCE RECYCLING CENTERS OF AMERICA, INC.
                    REPORTS SECOND QUARTER OPERATING RESULTS

JULY 24, 2002--MINNEAPOLIS, MN--Appliance Recycling Centers of America, Inc.
(OTC BB: ARCI) today reported revenues of $11,734,000 for the second quarter of
2002 ended June 29, an increase of 16% from $10,095,000 in the year-earlier
period. Net income came to $537,000 or $0.16 per diluted share, up 37% from
$393,000 or $0.13 per diluted share in the second quarter of 2001.

For the first six months of 2002, revenues totaled $23,433,000, an increase of
31% from $17,859,000 in the same period of 2001. First half earnings came to
$775,000 or $0.23 per diluted share, compared to $709,000 or $0.24 per diluted
share a year earlier.

Edward R. (Jack) Cameron, president and chief executive officer, said: "ARCA's
ApplianceSmart operation continued to perform at a high level during the second
quarter. We believe the ability to record strong sales growth amid a sluggish
economy further validates the basic soundness of our special-buy retail concept.
Our ApplianceSmart operation also is benefiting from last year's addition of the
Maytag and Frigidaire lines of appliances, which have significantly expanded
consumer choice at our factory outlets. ARCA's overall second quarter
performance was affected by lower appliance recycling volumes, reflecting
reduced funding for Southern California Edison Company's residential energy
conservation program. Energy conservation is not receiving the same priority in
2002 as it did last year when California was confronted with a severe energy
shortage. However, we


<PAGE>


are aggressively pursuing a number of promising opportunities in other states
that could have a positive impact on our recycling operation in 2003."

Same-store ApplianceSmart sales, a comparison of the seven factory outlets open
during the complete second quarters of 2002 and 2001, increased 10.4%. Total
retail sales increased 45% in the second quarter from the year-earlier period,
reflecting the positive impact of newer factory outlets. At the end of this
year's second quarter, ARCA was operating 10 ApplianceSmart factory outlets.

Appliance recycling revenues declined 14% in the second quarter of 2002 versus
the year-earlier period. The California Public Utilities Commission's (CPUC)
recycling program, which started in the third quarter of 2001, is scheduled to
end in August. However, the Company recently announced that it signed a contract
to recycle refrigerators and freezers in support of California's 2002 statewide
recycling program administered by Edison.

The Company recycled approximately 82,000 appliances under three California
energy conservation programs during the second half of 2001, making it an
exceptionally strong period for recycling operations. By comparison, ARCA
expects to recycle approximately 35,000 appliances under a single California
program during this year's second half. Due to this forecasted reduction in
recycling volumes, ARCA anticipates reduced sales and earnings in this year's
third and fourth quarters versus the same periods of 2001.

ARCA, which believes that its ApplianceSmart operation will record robust growth
over the balance of 2002, intends to continue investing in its appliance
retailing operation throughout the second half, despite the outlook for reduced
recycling volumes. These investments will support the opening of additional
factory outlets and further strengthening the ApplianceSmart brand image. This
strategic decision, which is based on the need to accelerate ApplianceSmart's
sales growth, highlights the fact that appliance retailing represents ARCA's
long-term future. The Company believes this course of action will enable ARCA to
post stronger sales and earnings growth over the longer-term.

ABOUT ARCA

Through its ApplianceSmart (www.ApplianceSmart.com) operation, ARCA is one of
the nation's leading retailers of special-buy household appliances, primarily
those manufactured by Whirlpool


<PAGE>


Corporation. These special-buy appliances, which include close-outs, factory
overruns and scratch-and-dent units, typically are not integrated into the
manufacturer's normal distribution channel. ApplianceSmart sells these virtually
new appliances at a discount to full retail, offers a 100% money-back guarantee
and provides warranties on parts and labor. As of July 2002, ApplianceSmart was
operating ten factory outlets: four in the Minneapolis/St. Paul market; three in
the Columbus, Ohio, market; two in the Dayton, Ohio, market; and one in Los
Angeles. ARCA is also one of the largest recyclers of major household appliances
for the energy conservation programs of electric utilities.

                                      # # #

- --------------------------------------------------------------------------------
Statements about ARCA's outlook are forward-looking and involve risks and
uncertainties, including but not limited to: the strength of recycling programs,
the growth of appliance retail sales, the speed at which individual retail
stores reach profitability, and other factors discussed in the Company's filings
with the Securities and Exchange Commission.
- --------------------------------------------------------------------------------


Visit our web site at www.arcainc.com
                      ---------------


<PAGE>


APPLIANCE RECYCLING CENTERS OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
2nd Quarter 2002 Results
(000'S OMITTED EXCEPT FOR SHARE AMOUNTS)

<TABLE>
<CAPTION>
                                                                       THREE MONTHS ENDED             SIX MONTHS ENDED
                                                                    -----------------------       -----------------------
                                                                     JUNE 29        JUNE 30        JUNE 29        JUNE 30
                                                                      2002           2001           2002           2001
                                                                    --------       --------       --------       --------
<S>                                                                 <C>            <C>            <C>            <C>
REVENUES
     Retail                                                         $  7,145       $  4,940       $ 14,482       $  9,668
     Recycling                                                         4,204          4,885          8,304          7,751
     ByProduct                                                           385            270            647            440
                                                                    --------       --------       --------       --------

          Total revenues                                            $ 11,734       $ 10,095       $ 23,433       $ 17,859

COST OF REVENUES                                                       7,245          6,164         14,970         10,774
                                                                    --------       --------       --------       --------
     Gross profit                                                   $  4,489       $  3,931       $  8,463       $  7,085

SELLING, GENERAL & ADMINISTRATIVE EXPENSES                             3,339          3,009          6,658          5,399
                                                                    --------       --------       --------       --------
    Operating income                                                $  1,150       $    922       $  1,805       $  1,686

OTHER INCOME (EXPENSE)
     Other income                                                         10             26             17             47
     Interest expense                                                   (263)          (270)          (528)          (510)
                                                                    --------       --------       --------       --------
     Income before provision for income taxes                       $    897       $    678       $  1,294       $  1,223

PROVISION FOR INCOME TAXES                                               360            285            519            514

                                                                    --------       --------       --------       --------
     NET INCOME                                                     $    537       $    393       $    775       $    709
                                                                    ========       ========       ========       ========

     BASIC INCOME PER COMMON SHARE                                      0.23           0.17           0.33           0.31
                                                                    ========       ========       ========       ========

     DILUTED INCOME PER COMMON SHARE                                    0.16           0.13           0.23           0.24
                                                                    ========       ========       ========       ========

     BASIC WEIGHTED AVERAGE NO. OF COMMON SHARES OUTSTANDING           2,320          2,287          2,316          2,287
                                                                    ========       ========       ========       ========

     DILUTED WEIGHTED AVERAGE NO. OF COMMON SHARES OUTSTANDING         3,291          2,957          3,303          2,910
                                                                    ========       ========       ========       ========
</TABLE>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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