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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000897101-02-000761.txt : 20021106
<SEC-HEADER>0000897101-02-000761.hdr.sgml : 20021106
<ACCEPTANCE-DATETIME>20021106160813
ACCESSION NUMBER:		0000897101-02-000761
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20021107
ITEM INFORMATION:		Other events
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20021106

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:		02811283

	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>arca025331_8k.txt
<DESCRIPTION>APPLIANCE RECYCLING CENTERS OF AMER, INC. FORM 8K
<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: November 7, 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 October 28, 2002, Appliance Recycling Centers of America, Inc.
issued a press release announcing its third quarter operating results. The
Company reported revenues of $13,079,000 and net income of $274,000 or $.09 per
diluted share for its quarter ended September 28, 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 October 28, 2002, announcing its third quarter
           operating results.


Date: November 1, 2002                          /s/ Linda Koenig
                                                --------------------------------
                                                Linda Koenig, Controller

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>arca025331_ex99.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>
                                                                      EXHIBIT 99


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



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 REPORTS THIRD QUARTER EARNINGS

        SAME-STORE APPLIANCE SALES UP 9%; TOTAL RETAIL SALES INCREASE 38%


OCTOBER 28, 2002--MINNEAPOLIS, MN-- Appliance Recycling Centers of America, Inc.
(OTC BB: ARCI) today reported revenues of $13,079,000 for the third quarter of
2002 ended September 28, down slightly from $13,645,000 in the year-earlier
period. Net income came to $274,000 or $0.09 per diluted share after a one-time
write-off of $124,000 of deferred financing costs related to a pay down of
long-term debt, compared to $1,577,000 or $0.50 per diluted share in the third
quarter of 2001.


For the first nine months of 2002, revenues totaled $36,512,000, up 16% from
$31,504,000 a year ago. Nine-month earnings amounted to $1,049,000 or $0.32 per
diluted share, compared to $2,286,000 or $0.76 per diluted share in the same
period of 2001.


Edward R. (Jack) Cameron, president and chief executive officer, commented:
"Consistent with our previous forecast, the anticipated decline in third quarter
recycling revenues, related to the scaling back of California's residential
energy conservation initiatives, offset the continuation of strong retail sales
at our ApplianceSmart network. Generated despite the nation's weak economy, the
strong growth in ApplianceSmart's same-store and total retail sales for this
period reflects the soundness of our special-buy retail concept and our ability
to successfully execute this strategy. ApplianceSmart is providing true value to
its customers by offering virtually new major household


<PAGE>


appliances at a substantial discount to full retail. We believe this business
formula will serve us well in robust as well as sluggish economic times. Since
ApplianceSmart represents a significant part of ARCA's future, we intend to
continue investing in our appliance retailing operation with the goals of
opening additional ApplianceSmart outlets and further strengthening the
ApplianceSmart brand image. We are also evaluating additional strategies for
enhancing the long-term profitability of this operation."


Same-store ApplianceSmart sales, a comparison of the eight factory outlets open
during the complete third quarters of 2002 and 2001, increased 9.0%. Total
retail sales rose 38% in the third quarter compared to the same quarter in the
preceding year, reflecting the positive impact of newer factory outlets. At the
end of this year's third quarter, ARCA was operating 10 ApplianceSmart factory
outlets.


Cameron continued: "During last year's third quarter, we recycled over 40,000
appliances under three California energy conservation programs, due to the
urgent need to address the state's energy crisis at this time last year. This
record recycling volume made the third quarter of 2001 the strongest three-month
period in ARCA's history. Now that the California energy crisis has passed for
the moment and energy conservation has become less of a front-burner issue, our
recycling volume declined to approximately 33,000 older, inefficient
refrigerators and freezers in this year's third quarter under two energy
conservation programs. One of these programs was completed during the quarter,
leaving California's statewide recycling program as the only such initiative
operating in this year's fourth quarter. As a result, we anticipate a further
decrease in our recycling business during this period."


The Company said it is seeing indications of renewed interest in residential
energy conservation programs by electric utilities around the nation. This
interest is being spurred in part by consumer demand for greater energy
efficiency due to steadily rising energy prices. ARCA is currently evaluating
and pursuing various new recycling opportunities that could have a positive
impact on its recycling operations in 2003.


The ApplianceSmart operation is expected to post solid sales growth in this
year's fourth quarter. However, the expectation of a further decline in
recycling operations will result in fourth quarter results at or near breakeven.


<PAGE>


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 Corporation. These special-buy appliances, which
include closeouts, 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 October 2002, ApplianceSmart was operating 10 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
nation's 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)
3rd Quarter 2002 Results
(000'S OMITTED EXCEPT FOR SHARE AMOUNTS)

<TABLE>
<CAPTION>
                                                                    THREE MONTHS ENDED        NINE MONTHS ENDED
                                                                  ---------------------     ---------------------
                                                                  SEPT. 28     SEPT. 29     SEPT. 28     SEPT. 29
                                                                    2002         2001         2002         2001
                                                                  --------     --------     --------     --------
<S>                                                               <C>          <C>          <C>          <C>
REVENUES
     Retail                                                       $  7,980     $  5,784     $ 22,462     $ 15,452
     Recycling                                                       4,726        7,380       13,030       15,131
     ByProduct                                                         373          481        1,020          921
                                                                  --------     --------     --------     --------

          Total revenues                                          $ 13,079     $ 13,645     $ 36,512     $ 31,504

COST OF REVENUES                                                     8,503        8,053       23,473       18,827
                                                                  --------     --------     --------     --------
     Gross profit                                                 $  4,576     $  5,592     $ 13,039     $ 12,677

SELLING, GENERAL & ADMINISTRATIVE EXPENSES                           3,861        3,307       10,519        8,706
                                                                  --------     --------     --------     --------
    Operating income                                              $    715     $  2,285     $  2,520     $  3,971

OTHER INCOME (EXPENSE)
     Other income                                                        4           24           21           71
     Interest expense                                                 (261)        (280)        (789)        (790)
                                                                  --------     --------     --------     --------
     Income before provision for income taxes                     $    458     $  2,029     $  1,752     $  3,252

PROVISION FOR INCOME TAXES                                             184          452          703          966

                                                                  --------     --------     --------     --------
     NET INCOME                                                   $    274     $  1,577     $  1,049     $  2,286
                                                                  ========     ========     ========     ========

     BASIC INCOME PER COMMON SHARE                                    0.12         0.69         0.45         1.00
                                                                  ========     ========     ========     ========

     DILUTED INCOME PER COMMON SHARE                                  0.09         0.50         0.32         0.76
                                                                  ========     ========     ========     ========

     BASIC WEIGHTED AVERAGE NO. OF COMMON SHARES OUTSTANDING         2,324        2,297        2,318        2,289
                                                                  ========     ========     ========     ========

     DILUTED WEIGHTED AVERAGE NO. OF COMMON SHARES OUTSTANDING       3,176        3,147        3,259        2,989
                                                                  ========     ========     ========     ========
</TABLE>

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