Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 28, 2013 | Nov. 07, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'APPLIANCE RECYCLING CENTERS OF AMERICA INC /MN | ' |
Entity Central Index Key | '0000862861 | ' |
Current Fiscal Year End Date | '--12-28 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Document Type | '10-Q | ' |
Document Period End Date | 28-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 5,570,927 |
UNAUDITED_CONSOLIDATED_BALANCE
UNAUDITED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ||
Cash and cash equivalents | $2,131 | $3,174 | ||
Accounts receivable, net of allowance of $10 and $8, respectively | 10,796 | 6,256 | ||
Inventories, net of reserves of $149 and $682, respectively | 15,249 | 17,274 | ||
Income taxes receivable | 263 | 522 | ||
Other current assets | 1,473 | 1,332 | ||
Total current assets | 29,912 | 28,558 | ||
Property and equipment, net | 11,686 | 12,248 | ||
Restricted cash | 500 | 0 | ||
Other assets | 976 | 973 | ||
Deferred income taxes | 24 | 25 | ||
Total assets | 43,098 | [1] | 41,804 | [1] |
Current liabilities: | ' | ' | ||
Accounts payable | 7,277 | 4,957 | ||
Accrued expenses | 5,328 | 4,310 | ||
Line of credit | 6,823 | 10,559 | ||
Current maturities of long-term obligations | 1,217 | 955 | ||
Accrued Income Taxes, Current | 229 | 0 | ||
Deferred income tax liabilities | 146 | 146 | ||
Total current liabilities | 21,020 | 20,927 | ||
Long-term debt obligations, net of current maturities | 5,706 | 6,357 | ||
Deferred gain, net of current portion | 0 | 365 | ||
Deferred income tax liabilities | 921 | 921 | ||
Total liabilities | 27,647 | [1] | 28,570 | [1] |
Commitments and contingencies | ' | ' | ||
Shareholders' equity: | ' | ' | ||
Common Stock, no par value; 10,000 shares authorized; issued and outstanding: 5,571 shares and 5,556 shares, respectively | 20,773 | 20,577 | ||
Accumulated deficit | -6,563 | -8,649 | ||
Accumulated other comprehensive loss | -386 | -290 | ||
Total shareholders' equity | 13,824 | 11,638 | ||
Noncontrolling interest | 1,627 | 1,596 | ||
Total equity | 15,451 | 13,234 | ||
Total liabilities and shareholders' equity | $43,098 | $41,804 | ||
[1] | Assets of ARCA Advanced Processing, LLC (AAP), our consolidated variable interest entity (VIE), that can only be used to settle obligations of AAP were $9,856 and $10,045 as of September 28, 2013, and December 29, 2012, respectively. Liabilities of AAP for which creditors do not have recourse to the general credit of Appliance Recycling Centers of America, Inc. were $2,140 and $1,948 as of September 28, 2013, and December 29, 2012, respectively.See Notes to Consolidated Financial Statements. |
UNAUDITED_CONSOLIDATED_BALANCE1
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance | $10 | $8 |
Inventories, reserves | 149 | 682 |
Common Stock, shares authorized (in shares) | 10,000 | 10,000 |
Common Stock, issued shares (in shares) | 5,571 | 5,556 |
Common Stock, outstanding shares (in shares) | 5,571 | 5,556 |
Assets of the consolidated variable interest entity | 9,856 | 10,045 |
Liabilities of the consolidated variable interest entity | $2,140 | $1,948 |
UNAUDITED_CONSOLIDATED_STATEME
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Revenues: | ' | ' | ' | ' |
Retail | $17,018 | $17,286 | $52,878 | $56,006 |
Recycling | 11,823 | 7,025 | 30,383 | 18,435 |
Byproduct | 4,697 | 4,417 | 12,974 | 13,274 |
Total revenues | 33,538 | 28,728 | 96,235 | 87,715 |
Costs of revenues | 24,445 | 21,634 | 70,737 | 64,740 |
Gross profit | 9,093 | 7,094 | 25,498 | 22,975 |
Selling, general and administrative expenses | 7,291 | 7,828 | 22,071 | 23,818 |
Operating income (loss) | 1,802 | -734 | 3,427 | -843 |
Other income (expense): | ' | ' | ' | ' |
Interest expense, net | -320 | -299 | -925 | -832 |
Other income (expense), net | 7 | -13 | -13 | -22 |
Income (loss) before income taxes and noncontrolling interest | 1,489 | -1,046 | 2,489 | -1,697 |
Provision for income taxes | 227 | 113 | 372 | 90 |
Net income (loss) | 1,262 | -1,159 | 2,117 | -1,787 |
Net income attributable to noncontrolling interest | -128 | 77 | -31 | -2 |
Net income (loss) attributable to controlling interest | 1,134 | -1,082 | 2,086 | -1,789 |
Income (loss) per common share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.20 | ($0.19) | $0.38 | ($0.32) |
Diluted (in dollars per share) | $0.20 | ($0.19) | $0.36 | ($0.32) |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 5,564 | 5,556 | 5,559 | 5,549 |
Diluted (in shares) | 5,777 | 5,556 | 5,723 | 5,549 |
Net income (loss) | 1,262 | -1,159 | 2,117 | -1,787 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Effect of foreign currency translation adjustments | 40 | 120 | -96 | 109 |
Total other comprehensive income (loss), net of tax | 40 | 120 | -96 | 109 |
Comprehensive income (loss) | 1,302 | -1,039 | 2,021 | -1,678 |
Comprehensive loss (income) attributable to noncontrolling interest | -128 | 77 | -31 | -2 |
Comprehensive income (loss) attributable to controlling interest | $1,174 | ($962) | $1,990 | ($1,680) |
UNAUDITED_CONSOLIDATED_STATEME1
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Operating activities | ' | ' |
Net income (loss) | $2,117 | ($1,787) |
Adjustments to reconcile net income (loss) to net cash and cash equivalents (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 1,017 | 907 |
Share-based compensation | 160 | 130 |
Amortization of deferred gain | -365 | -366 |
Amortization of debt issuance costs | 105 | 148 |
Deferred Income Tax Expense (Benefit) | 0 | 113 |
Other | 16 | 35 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -4,541 | 132 |
Inventories | 2,025 | -2,060 |
Other current assets | 118 | -735 |
Other assets | -38 | -38 |
Accounts payable and accrued expenses | 3,353 | 1,427 |
Income taxes payable | 229 | 0 |
Net cash flows provided by (used in) operating activities | 4,196 | -2,094 |
Investing activities | ' | ' |
Purchases of property and equipment | -357 | -742 |
Increase in restricted cash | -500 | 0 |
Proceeds from Sale of Property, Plant, and Equipment | 10 | 0 |
Net cash flows used in investing activities | -847 | -742 |
Financing activities | ' | ' |
Net borrowings (payments) under line of credit | -3,736 | 1,772 |
Payments on debt obligations | -687 | -748 |
Proceeds from issuance of debt obligations | 220 | 0 |
Proceeds from issuance of Common Stock | 36 | 86 |
Payment of debt issuance costs | -129 | 0 |
Net cash flows provided by (used in) financing activities | -4,296 | 1,110 |
Effect of changes in exchange rate on cash and cash equivalents | -96 | 102 |
Increase (decrease) in cash and cash equivalents | -1,043 | -1,624 |
Cash and cash equivalents at beginning of period | 3,174 | 4,401 |
Cash and cash equivalents at end of period | 2,131 | 2,777 |
Supplemental disclosures of cash flow information | ' | ' |
Cash payments for interest | 712 | 680 |
Cash payments for income taxes, net of refunds | -110 | 123 |
Non-cash investing and financing activities | ' | ' |
Equipment acquired under capital lease and other financing obligations | 78 | 159 |
Repayment of debt from trade-in of equipment | $0 | $87 |
Nature_of_Business_and_Basis_o
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 28, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of Business and Basis of Presentation | ' |
Nature of Business and Basis of Presentation | |
Appliance Recycling Centers of America, Inc. and subsidiaries (“we,” the “Company” or “ARCA”) are in the business of providing turnkey appliance recycling and replacement services for electric utilities and other sponsors of energy efficiency programs. We also sell new major household appliances through a chain of Company-owned stores under the name ApplianceSmart®. In addition, we have a 50% interest in a joint venture operating under the name ARCA Advanced Processing, LLC (“AAP”), which recycles appliances from twelve states in the Northeast and Mid-Atlantic regions of the United States for General Electric Company (“GE”) acting through its GE Appliances business component. These appliances include units manufactured by GE as well as by other manufacturers. | |
The accompanying consolidated financial statements of the Company are unaudited and have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial information and Article 8 of Regulation S-X promulgated by the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, normal and recurring adjustments and accruals considered necessary for a fair presentation for the periods indicated have been included. Operating results for the three-month and nine-month periods ended September 28, 2013, and September 29, 2012, are presented using 13-week and 39-week periods, respectively. The results of operations for any interim period are not necessarily indicative of the results for the year. | |
These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes thereto for the year ended December 29, 2012, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 22, 2013. | |
Principles of consolidation: The consolidated financial statements include the accounts of Appliance Recycling Centers of America, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
ApplianceSmart, Inc., a Minnesota corporation, is a wholly owned subsidiary that was formed through a corporate reorganization in July 2011 to hold our business of selling new major household appliances through a chain of Company-owned retail stores. ARCA Canada Inc., a Canadian corporation, is a wholly owned subsidiary that was formed in September 2006 to provide turnkey recycling services for electric utility energy efficiency programs. ARCA Recycling, Inc., a California corporation, is a wholly owned subsidiary that was formed in November 1991 to provide turnkey recycling services for electric utility efficiency programs. The operating results of our wholly owned subsidiaries are consolidated in our financial statements. | |
AAP is a joint venture that was formed in October 2009 between ARCA and 4301 Operations, LLC (“4301”) to support ARCA’s agreement, as amended, with GE acting through its GE Appliances business component. Both ARCA and 4301 have a 50% interest in AAP. GE sells its recyclable appliances generated from twelve states in the Northeast and Mid-Atlantic regions of the United States to ARCA, which collects, processes and recycles the appliances. The agreement requires that ARCA will only recycle, and will not sell for re-use or resale, the recyclable appliances purchased from GE. AAP established a regional processing center in Philadelphia, Pennsylvania, at which the recyclable appliances are processed. The term of the agreement is for six years from the first date of appliance collection, which was March 31, 2010. AAP commenced operations in February 2010 and has the exclusive rights to service the GE agreement as a subcontractor for ARCA. The financial position and results of operations of AAP are consolidated in our financial statements based on our conclusion that AAP is a variable interest entity and because we have the ability to significantly influence the economic performance of the entity through our contractual agreement with GE. | |
Reclassifications: The consolidated statements of comprehensive income (loss) include the reclassification of prior year revenues, cost of revenues and sales, general and administrative expenses related to AAP to conform with the current year presentation. The reclassification is related primarily to facilities costs and certain other costs not directly related to the production of recycled materials from cost of revenues to sales, general and administrative expenses. | |
Fair value of financial instruments: The following methods and assumptions are used to estimate the fair value of each class of financial instrument: | |
Cash and cash equivalents, accounts receivable and accounts payable: Due to their nature and short-term maturities, the carrying amounts approximate fair value. | |
Short- and long-term debt: The fair value of short- and long-term debt approximates carrying value and has been estimated based on discounted cash flows using interest rates being offered for similar debt having the same or similar remaining maturities and collateral requirements. | |
No separate comparison of fair values versus carrying values is presented for the aforementioned financial instruments since their fair values are not significantly different than their balance sheet carrying amounts. In addition, the aggregate fair values of the financial instruments would not represent the underlying value of our Company. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Significant Accounting Policies | ' | |||||||||||||||
Significant Accounting Policies | ||||||||||||||||
Trade receivables: We carry unsecured trade receivables at the original invoice amount less an estimate made for doubtful accounts based on a monthly review of all outstanding amounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history and current economic conditions. We write off trade receivables when we deem them uncollectible. We record recoveries of trade receivables previously written off when we receive them. We consider a trade receivable to be past due if any portion of the receivable balance is outstanding for more than ninety days. We do not charge interest on past due receivables. Our management considers the allowance for doubtful accounts of $10 and $8 to be adequate to cover any exposure to loss at September 28, 2013, and December 29, 2012, respectively. | ||||||||||||||||
Inventories: Inventories, consisting principally of appliances, are stated at the lower of cost, determined on a specific identification basis, or market and consist of: | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Appliances held for resale | $ | 15,112 | $ | 17,768 | ||||||||||||
Processed metals from recycled appliances held for resale | 286 | 188 | ||||||||||||||
Less provision for inventory obsolescence | (149 | ) | (682 | ) | ||||||||||||
$ | 15,249 | $ | 17,274 | |||||||||||||
We provide estimated provisions for the obsolescence of our appliance inventories, including adjustments to market, based on various factors, including the age of such inventory and our management’s assessment of the need for such provisions. We look at historical inventory agings and margin analysis in determining our provision estimate. A revised cost basis is used once a provision for obsolescence is recorded. | ||||||||||||||||
Property and equipment: Property and equipment consists of the following: | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Land | $ | 1,140 | $ | 1,140 | ||||||||||||
Buildings and improvements | 3,275 | 3,429 | ||||||||||||||
Equipment (including computer software) | 20,539 | 20,158 | ||||||||||||||
Projects under construction | 62 | 63 | ||||||||||||||
25,016 | 24,790 | |||||||||||||||
Less accumulated depreciation and amortization | (13,330 | ) | (12,542 | ) | ||||||||||||
$ | 11,686 | $ | 12,248 | |||||||||||||
Software development costs: We capitalize software developed for internal use and are amortizing such costs over their estimated useful lives of three years. Costs capitalized were $20 and $30 for the three months ended September 28, 2013, and September 29, 2012, respectively. Costs capitalized were $83 and $115 for the nine months ended September 28, 2013, and September 29, 2012, respectively. | ||||||||||||||||
Restricted cash: Restricted cash consisted of a reserve required by our bankcard processor to cover chargebacks, adjustments, fees and other charges that may be due from us. | ||||||||||||||||
Product warranty: We provide a warranty for the replacement or repair of certain defective units, which varies based on the product sold. Our standard warranty policy requires us to repair or replace certain defective units at no cost to our customers. We estimate the costs that may be incurred under our warranty and record an accrual in the amount of such costs at the time we recognize product revenue. Factors that affect our warranty accrual for covered units include the number of units sold, historical and anticipated rates of warranty claims on these units, and the cost of such claims. We periodically assess the adequacy of our recorded warranty accrual and adjust the amounts as necessary. | ||||||||||||||||
Changes in our warranty accrual are as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Beginning Balance | $ | 41 | $ | 61 | $ | 47 | $ | 71 | ||||||||
Standard accrual based on units sold | (4 | ) | 10 | (12 | ) | 34 | ||||||||||
Actual costs incurred | 10 | (4 | ) | 36 | (12 | ) | ||||||||||
Periodic accrual adjustments | (8 | ) | (12 | ) | (32 | ) | (38 | ) | ||||||||
Ending Balance | $ | 39 | $ | 55 | $ | 39 | $ | 55 | ||||||||
Share-based compensation: We recognize share-based compensation expense on a straight-line basis over the expected vesting period for share-based awards granted. We use the Black-Scholes option pricing model to determine the fair value of awards at the grant date. We calculate the expected volatility for stock awards using historical volatility. We estimate a 0%-5% forfeiture rate for stock awards issued to all employees and members of the Board of Directors, but will continue to review these estimates in future periods. The risk-free rates for the expected terms of the stock awards are based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life represents the period that the stock awards are expected to be outstanding. The expected dividend yield is zero as we have not paid or declared any cash dividends on our Common Stock. Based on these valuations, we recognized share-based compensation expense of $101 and $62 for the three months ended September 28, 2013, and September 29, 2012, respectively, and $160 and $130 for the nine months ended September 28, 2013 and September 29, 2012, respectively. We estimate that the remaining expense for fiscal 2013, 2014, 2015 and 2016 will be approximately $73, $159, $97, and $19, respectively, based on the value of stock option awards outstanding as of September 28, 2013. This estimate does not include any expense for additional awards that may be granted and vest during fiscal 2013. | ||||||||||||||||
Comprehensive income (loss): Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income (loss) but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to shareholders’ equity. Our other comprehensive income (loss) is comprised of foreign currency translation adjustments. | ||||||||||||||||
Basic and diluted income (loss) per share: Basic income (loss) per common share is computed based on the weighted average number of common shares outstanding. Diluted income (loss) per common share is computed based on the weighted average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive shares of Common Stock include unexercised stock options and warrants. Basic per share amounts are computed, generally, by dividing net income (loss) attributable to controlling interest by the weighted average number of common shares outstanding. Diluted per share amounts assume the conversion, exercise or issuance of all potential Common Stock instruments unless their effect is anti-dilutive, thereby reducing the loss or increasing the income per common share. In calculating diluted weighted average shares and per share amounts, we included stock options and warrants with exercise prices below average market prices, for the respective reporting periods in which they were dilutive, using the treasury stock method. We calculated the number of additional shares by assuming the outstanding stock options were exercised and that the proceeds from such exercises were used to acquire Common Stock at the average market price during the quarter. For the three and nine months ended September 28, 2013, we excluded 364 and 465, respectively, options and warrants from the diluted weighted average share outstanding calculation as the effect of these options and warrants were anti-dilutive. For the three and nine months ended September 29, 2012, we excluded 816 and 798, respectively, options and warrants from the diluted weighted average shares outstanding calculation as the effect of these options were anti-dilutive due to the net loss incurred. | ||||||||||||||||
A reconciliation of the denominator in the basic and diluted income or loss per share is as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) attributable to controlling interest | $ | 1,134 | $ | (1,082 | ) | $ | 2,086 | $ | (1,789 | ) | ||||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding — basic | 5,564 | 5,556 | 5,559 | 5,549 | ||||||||||||
Employee stock options | 27 | — | 3 | — | ||||||||||||
Stock warrants | 186 | — | 161 | — | ||||||||||||
Weighted average shares outstanding — diluted | 5,777 | 5,556 | 5,723 | 5,549 | ||||||||||||
Income (loss) per share: | ||||||||||||||||
Basic | $ | 0.2 | $ | (0.19 | ) | $ | 0.38 | $ | (0.32 | ) | ||||||
Diluted | $ | 0.2 | $ | (0.19 | ) | $ | 0.36 | $ | (0.32 | ) | ||||||
Variable_Interest_Entity
Variable Interest Entity | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Variable Interest Entity | ' | |||||||||||||||
Variable Interest Entity | ' | |||||||||||||||
Variable Interest Entity | ||||||||||||||||
The financial position and results of operations of AAP are consolidated in our financial statements based on our conclusion that AAP is a variable interest entity and because we have the ability to significantly influence the economic performance of the entity through our contractual agreement with GE. | ||||||||||||||||
The following table summarizes the assets and liabilities of AAP as of September 28, 2013, and December 29, 2012: | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Assets | ||||||||||||||||
Current assets | $ | 848 | $ | 787 | ||||||||||||
Property and equipment, net | 8,868 | 9,109 | ||||||||||||||
Other assets | 140 | 149 | ||||||||||||||
Total Assets | $ | 9,856 | $ | 10,045 | ||||||||||||
Liabilities | ||||||||||||||||
Accounts payable | $ | 1,019 | $ | 826 | ||||||||||||
Accrued expenses | 258 | 204 | ||||||||||||||
Current maturities of long-term debt obligations | 885 | 635 | ||||||||||||||
Long-term debt obligations, net of current maturities | 3,969 | 4,437 | ||||||||||||||
Other liabilities (a) | 469 | 749 | ||||||||||||||
Total Liabilities | $ | 6,600 | $ | 6,851 | ||||||||||||
(a) Other liabilities represent loans between ARCA and AAP that are eliminated in consolidation. | ||||||||||||||||
The following table summarizes the operating results of AAP for the three and nine months ended September 28, 2013, and September 29, 2012: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues | $ | 3,037 | $ | 2,468 | $ | 8,281 | $ | 8,114 | ||||||||
Gross profit | 819 | 115 | 1,569 | 1,364 | ||||||||||||
Operating income (loss) | 331 | (71 | ) | 272 | 258 | |||||||||||
Net income (loss) | 255 | (153 | ) | 62 | 4 | |||||||||||
Other_Assets
Other Assets | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
Other Assets | ' | |||||||
Other Assets | ||||||||
Other assets as of September 28, 2013, and December 29, 2012, consist of the following: | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
Goodwill | $ | 38 | $ | 38 | ||||
Deposits | 413 | 376 | ||||||
Recycling contract, net | 200 | 259 | ||||||
Debt issuance costs, net | 304 | 279 | ||||||
Patent costs | 21 | 21 | ||||||
$ | 976 | $ | 973 | |||||
For the three and nine months ended September 28, 2013, and September 29, 2012, we recorded amortization expense of $20 and $60, respectively, related to our recycling contract. For the three months ended September 28, 2013, and September 29, 2012, we recorded non-cash interest expense of $28 and $49, respectively, related to debt issuance costs. For the nine months ended September 28, 2013, and September 29, 2012, we recorded non-cash interest expense of $105 and $148, respectively, related to debt issuance costs. In connection with the third amendment to our Credit Agreement with PNC Bank, N.A. (“PNC”) executed on March 14, 2013, we incurred additional debt issuance costs of $129. The additional debt issuance costs were capitalized and will be amortized over the remaining term of the Credit Agreement along with the remaining balance of the previously capitalized costs. See Note 6 for further discussion regarding the amended Credit Agreement entered into with PNC. |
Accrued_Expenses
Accrued Expenses | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Expenses | ' | |||||||
Accrued Expenses | ||||||||
Accrued expenses as of September 28, 2013, and December 29, 2012, consist of the following: | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
Compensation and benefits | $ | 1,524 | $ | 963 | ||||
Accrued incentive and rebate checks | 495 | 563 | ||||||
Accrued rent | 1,182 | 1,383 | ||||||
Warranty expense | 39 | 47 | ||||||
Accrued payables | 425 | 307 | ||||||
Current portion of deferred gain on sale-leaseback of building | 487 | 487 | ||||||
Deferred revenue | 231 | 157 | ||||||
Other | 945 | 403 | ||||||
$ | 5,328 | $ | 4,310 | |||||
Line_of_Credit
Line of Credit | 9 Months Ended | |
Sep. 28, 2013 | ||
Line of Credit Facility [Abstract] | ' | |
Line of Credit | ' | |
Line of Credit | ||
On January 24, 2011, we entered into a Revolving Credit, Term Loan and Security Agreement, as amended, (“Credit Agreement”) with PNC Bank, National Association (“PNC”) that provides us with a $15,000 revolving line of credit. See Note 8 for further discussion regarding the Term Loan entered into with PNC. The Credit Agreement has a stated maturity date of January 24, 2016, if not renewed. The Credit Agreement includes a lockbox agreement and a subjective acceleration clause and as a result we have classified the revolving line of credit as a current liability. The Credit Agreement is collateralized by a security interest in substantially all of our assets and PNC is also secured by an inventory repurchase agreement with Whirlpool Corporation for Whirlpool purchases only. We also issued a $750 letter of credit in favor of Whirlpool Corporation. The Credit Agreement requires starting with the fiscal quarter ending December 28, 2013, and continuing at the end of each quarter thereafter, that we meet a minimum fixed charge coverage ratio of 1.10 to 1.00, measured on a trailing twelve-month basis. The Credit Agreement limits investments we can purchase, the amount of other debt and leases we can incur, the amount of loans we can issue to our affiliates and the amount we can spend on fixed assets, along with prohibiting the payment of dividends. The interest rate on the revolving line of credit is PNC Base Rate plus 2.75%. If certain interest rate reduction conditions are met starting January 31, 2014, the rate will change to PNC Base Rate plus 1.75%, or 1-, 2- or 3-month PNC LIBOR Rate plus 2.75%. The PNC Base Rate shall mean, for any day, a fluctuating per annum rate of interest equal to the highest of (i) the interest rate per annum announced from time to time by PNC at its prime rate, (ii) the Federal Funds Open Rate plus 0.5%, and (iii) the one-month LIBOR rate plus 100 basis points (1%). As of September 28, 2013, the outstanding balance under the Credit Agreement was $6,823 with an interest rate of 6.00%. As of December 29, 2012, the outstanding balance under the Credit Agreement was $10,559 with a weighted average interest rate of 3.07%, which included both PNC LIBOR Rate and PNC Base Rate loans. The amount of revolving borrowings under the Credit Agreement is based on a formula using accounts receivable and inventories. We may not have access to the full $15,000 revolving line of credit due to the formula using accounts receivable and inventories, the amount of the letter of credit issued in favor of Whirlpool Corporation and the amount of outstanding loans between PNC and our AAP joint venture. As of September 28, 2013, and December 29, 2012, our available borrowing capacity under the Credit Agreement was $6,801 and $2,531, respectively. | ||
On March 14, 2013, we executed the third amendment to the Credit Agreement that extended the agreement from January 24, 2014, until January 24, 2016, waived our prior “events of default,” reset our financial covenants and increased our interest rate, among other things. The material amended terms under the Credit Agreement are as follows: | ||
• | We must meet monthly minimum EBITDA requirements set forth in the amendment through 2013. | |
• | The affiliate loan balance must be reduced by $40 per month in 2013 and the affiliate loan balance will be capped at $300 on January 25, 2014, and thereafter. | |
• | Starting on December 28, 2013, we must meet a minimum fixed charge coverage ratio of 1.10 to 1.00 for the nine months then ended and on a trailing twelve-month basis beginning with the period ending March 30, 2014, and each quarter thereafter. | |
• | The interest rate spread on our Revolving Loan and Term Loan increased 100 basis points for both PNC Base Rate loans and 1-, 2- or 3-month PNC LIBOR Rate loans. We are not eligible to borrow under 1-, 2- or 3-month PNC LIBOR Rate loans until certain interest rate reduction conditions are met as set forth in the amendment, which include meeting all financial covenants during 2013. If these interest rate reduction conditions are met, we will also be able to remove the 100 basis point increase for both PNC Base Rate loans and 1-, 2- or 3-month PNC LIBOR Rate loans. The earliest the interest rate reduction conditions could be met is January 31, 2014. | |
• | A prepayment penalty will be assessed at 3% during the first year of the third amendment to our Credit Agreement, 2% during the second year and 1% during the third year. | |
On September 27, 2013, we executed the fourth amendment to the Credit Agreement. The material amended terms under the Credit Agreement are as follows: | ||
• | The affiliate loan balance be held at $469.1 until January 24, 2014, and starting in January 2014 and each month thereafter the affiliate loan balance must be reduced by $14 per month until December 31, 2014. The affiliate loan balance will be capped at $300 on December 31, 2014, and thereafter. | |
• | We will be eligible to borrow under 1-, 2- or 3-month PNC LIBOR Rate loans on November 1, 2013, if ARCA and AAP receive at least $300 in cash related to selling carbon offsets. On October 9, 2013, the combination of ARCA and AAP received $516 in cash related to selling carbon offsets. |
Deferred_Gain
Deferred Gain | 9 Months Ended |
Sep. 28, 2013 | |
Deferred Revenue Disclosure [Abstract] | ' |
Deferred Gain | ' |
Deferred Gain | |
In connection with the September 25, 2009, sale-leaseback of our St. Louis Park, Minnesota, building, we recorded a deferred gain of $2,436. The deferred gain is being amortized over the initial lease period of five years. For both the three months ended September 28, 2013, and September 29, 2012, we amortized $122 of the deferred gain. For the nine months ended September 28, 2013, and September 29, 2012, we amortized $365 and $366, respectively, of the deferred gain. The deferred gain amortization is netted against rent expense as a component of selling, general and administrative expenses in the consolidated statements of comprehensive income (loss). |
Borrowings
Borrowings | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Borrowings | ' | |||||||
Borrowings | ||||||||
Long-term debt, capital lease and other financing obligations as of September 28, 2013, and December 29, 2012, consist of the following: | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
PNC term loan | $ | 1,849 | $ | 2,040 | ||||
Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | 3,886 | 4,154 | ||||||
2.75% note, due in monthly installments of $3, including interest, due October 2024, collateralized by equipment | 389 | 411 | ||||||
10.00% note, due in monthly installments of $13, including interest, due December 2014 | 181 | 280 | ||||||
Capital leases and other financing obligations | 618 | 427 | ||||||
6,923 | 7,312 | |||||||
Less current maturities | 1,217 | 955 | ||||||
$ | 5,706 | $ | 6,357 | |||||
On January 24, 2011, we entered into a $2,550 Term Loan (“Term Loan”) with PNC Bank to refinance the mortgage on our California facility. The Term Loan is payable as follows, subject to acceleration upon the occurrence of an event of default or termination of the Revolving Credit Agreement: 119 consecutive monthly principal payments of $21 plus interest commencing on February 1, 2011, and continuing on the first day of each month thereafter followed by a 120th payment of all unpaid principal, interest and fees on February 1, 2021. If the Revolving Credit Agreement is not renewed, a balloon payment of $1,275 in principal plus interest and additional fees will be due on January 24, 2016. The Term Loan is collateralized with our California facility located in Compton, California. The interest rate is PNC Base Rate plus 3.25%. If certain interest rate reduction conditions are met starting January 31, 2014, the rate will change to PNC Base Rate plus 2.25%, or 1-, 2- or 3-month PNC LIBOR Rate plus 3.25%. As of September 28, 2013, and December 29, 2012, the interest rate was 6.50% and 5.50%, respectively. | ||||||||
On March 10, 2011, ARCA Advanced Processing, LLC entered into three separate commercial term loans (“AAP Term Loans”) with Susquehanna Bank, pursuant to the guidelines of the U.S. Small Business Administration 7(a) Loan Program. The total amount of the AAP Term Loans is $4,750, split into three separate loans for $2,100; $1,400; and $1,250. The AAP Term Loans mature in ten years and bear an interest rate of Prime plus 2.75%. As of September 28, 2013, and December 29, 2012, the interest rate was 6.00%. Borrowings under the AAP Term Loans are secured by substantially all of the assets of AAP along with liens on the business assets and certain personal assets of the owners of 4301 Operations, LLC. We are a guarantor of the AAP Term Loans along with 4301 Operations, LLC and its owners. | ||||||||
Capital leases and other financing obligations: We acquire certain equipment under capital leases and other financing obligations. The cost of the equipment was approximately $2,031 and $1,969 at September 28, 2013, and December 29, 2012, respectively. Accumulated amortization at September 28, 2013, and December 29, 2012, was approximately $1,620 and $1,574, respectively. Depreciation and amortization expense is included in cost of revenues and selling, general and administrative expenses. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 28, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Contracts: We have entered into material contracts with three appliance manufacturers. Under the agreements there are no minimum purchase commitments; however, we have agreed to indemnify the manufacturers for certain claims, allegations or losses with respect to appliances we sell. | |
Litigation: We are party from time to time to ordinary course disputes that we do not believe to be material or have merit. We intend to vigorously defend ourselves against these ordinary course disputes. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
For the three and nine months ended September 28, 2013, we recorded a provision for income taxes of $227 and $372, respectively. For the three and nine months ended September 29, 2012, we recorded a provision for income taxes of $113 and $90, respectively. We have available net operating losses to utilize in 2013 to offset a portion of our projected full-year taxable income for the United States. We also expect to receive $250 carryback refund in 2013 related to taxable losses incurred in 2012. We expect to realize a Canadian tax benefit in fiscal 2013 as a result of carrying back the fiscal 2013 Canadian losses. We regularly evaluate both positive and negative evidence related to retaining a valuation allowance against our deferred tax assets. The realization of deferred tax assets is dependent upon sufficient future taxable income during the periods when deductible temporary differences and carryforwards are expected to be available to reduce taxable income. We have concluded based on the weight of negative evidence that a valuation allowance should be maintained against our deferred tax assets that we do not expect to utilize as of September 28, 2013. | |
We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. As of September 28, 2013, and December 29, 2012, we did not have any material uncertain tax positions. | |
It is our practice to recognize interest related to income tax matters as a component of interest expense and penalties as a component of selling, general and administrative expense. As of September 28, 2013, and December 29, 2012, we had an immaterial amount of accrued interest and penalties. | |
We are subject to income taxes in the U.S. federal jurisdiction, foreign jurisdictions and various state jurisdictions. Tax regulations from each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, we are no longer subject to U.S. federal, foreign, state or local income tax examinations by tax authorities for the years before 2010. We are not currently under examination by any taxing jurisdiction. | |
We had no significant unrecognized tax benefits as of September 28, 2013, and December 29, 2012, that would reasonably be expected to affect our effective tax rate during the next twelve months. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | ||||
Sep. 28, 2013 | |||||
Stockholders' Equity Note [Abstract] | ' | ||||
Shareholders' Equity | ' | ||||
Shareholders’ Equity | |||||
Stock options: On May 12, 2011, our shareholders approved and adopted the 2011 Stock Compensation Plan (the “2011 Plan”). The 2011 Plan authorizes the granting of awards in any of the following forms: (i) stock options, (ii) stock appreciation rights, and (iii) other share-based awards, including but not limited to restricted stock, restricted stock units or performance shares and expires on the earlier of May 12, 2021, or the date that all shares reserved under the 2011 Plan are issued or no longer available. | |||||
The 2011 Plan provides for the issuance of up to 700 shares of Common Stock pursuant to awards granted under the 2011 Plan. Options granted to employees typically vest over two years while grants to non-employee directors vest in six months. As of September 28, 2013, 367 options were outstanding under the 2011 Plan. Our 2006 Stock Option Plan (the “2006 Plan”) expired on June 30, 2011, but the options outstanding under the 2006 Plan continue to be exercisable in accordance with their terms. As of September 28, 2013, 391 options were outstanding under the 2006 Plan. Our Restated 1997 Stock Option Plan (the “1997 Plan”) has expired, but the options outstanding under the expired 1997 Plan continue to be exercisable in accordance with their terms. As of September 28, 2013, options to purchase an aggregate of 8 shares were outstanding under the 1997 Plan. | |||||
On May 9, 2013, we granted 30 stock options from our 2011 Plan to non-employee directors with an exercise price of $1.89 per share, a vesting period of six months and a weighted average fair value of $1.66 per share. Also on May 9, 2013, we granted 185 stock options from our 2011 Plan to management with an exercise price of $1.89 per share and a weighted average fair value of $1.47 per share. The stock options granted to management have both time and performance vesting, of which 135 stock options vest equally over two years and 50 stock options vest based on the achievement of performance targets. For performance-based options, the Company evaluates the likelihood of the targets being met and records the expense over the probable vesting period. | |||||
On July 22, 2013, we granted 100 stock options from our 2011 Plan to management with an exercise price of $2.65 per share and a weighted average fair value of $2.06 per share. The stock options granted to management have both time and performance vesting, of which 50 stock options vest equally over 3 years and 50 stock options vest based on the achievement of performance targets. For performance-based options, the Company evaluates the likelihood of the targets being met and records the expense over the probable vesting period. | |||||
The following table summarizes the weighted-average assumptions used to estimate the fair value of stock options granted using the Black-Scholes Model: | |||||
May 9, | July 22, | ||||
2013 | 2013 | ||||
Expected dividend yield | — | — | |||
Expected stock price volatility | 90.93 | % | 89.6 | % | |
Risk-free interest rate | 1.28 | % | 1.88 | % | |
Expected life of options | 7.42 | 7 | |||
Stock warrants: As of September 28, 2013, we had 278 warrants outstanding that were fully vested and have exercise prices ranging from $0.73 per share to $3.55 per share, which begin to expire in October 2019. | |||||
Preferred Stock: Our amended Articles of Incorporation authorize two million shares of Preferred Stock that may be issued from time to time in one or more series having such rights, powers, preferences and designations as the Board of Directors may determine. To date no such preferred shares have been issued. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
We operate within targeted markets through two reportable segments: retail and recycling. The retail segment is comprised of income generated through our ApplianceSmart stores, which includes appliance sales and byproduct revenues from collected appliances. The recycling segment includes all fees charged and costs incurred for collecting, recycling and installing appliances for utilities and other customers and includes byproduct revenue, which is primarily generated through the recycling of appliances. We have included the results from consolidating AAP in our recycling segment. The nature of products, services and customers for both segments varies significantly. As such, the segments are managed separately. Our Chief Executive Officer has been identified as the Chief Operating Decision Maker (“CODM”). The CODM evaluates performance and allocates resources based on revenues and income from operations of each segment. Income from operations represents revenues less cost of revenues and operating expenses, including certain allocated selling, general and administrative costs. There are no inter-segment sales or transfers. | ||||||||||||||||
The following tables present our segment information for periods indicated: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues: | ||||||||||||||||
Retail | $ | 17,300 | $ | 17,572 | $ | 53,732 | $ | 56,915 | ||||||||
Recycling | 16,238 | 11,156 | 42,503 | 30,800 | ||||||||||||
Total revenues | $ | 33,538 | $ | 28,728 | $ | 96,235 | $ | 87,715 | ||||||||
Operating income (loss): | ||||||||||||||||
Retail | $ | (163 | ) | $ | (961 | ) | $ | (216 | ) | $ | (1,419 | ) | ||||
Recycling | 2,172 | 194 | 4,193 | 595 | ||||||||||||
Unallocated corporate | (207 | ) | 33 | (550 | ) | (19 | ) | |||||||||
Total operating income (loss) | $ | 1,802 | $ | (734 | ) | $ | 3,427 | $ | (843 | ) | ||||||
Assets: | ||||||||||||||||
Retail | $ | 15,675 | $ | 21,588 | $ | 15,675 | $ | 21,588 | ||||||||
Recycling | 22,904 | 20,319 | 22,904 | 20,319 | ||||||||||||
Corporate assets not allocable | 4,519 | 5,700 | 4,519 | 5,700 | ||||||||||||
Total assets | $ | 43,098 | $ | 47,607 | $ | 43,098 | $ | 47,607 | ||||||||
Cash capital expenditures: | ||||||||||||||||
Retail | $ | 5 | $ | 52 | $ | 11 | $ | 222 | ||||||||
Recycling | 244 | 30 | 256 | 232 | ||||||||||||
Corporate assets not allocable | 5 | 35 | 90 | 288 | ||||||||||||
Total cash capital expenditures | $ | 254 | $ | 117 | $ | 357 | $ | 742 | ||||||||
Depreciation and amortization: | ||||||||||||||||
Retail | $ | 45 | $ | 58 | $ | 146 | $ | 170 | ||||||||
Recycling | 203 | 145 | 598 | 444 | ||||||||||||
Unallocated corporate | 89 | 95 | 273 | 293 | ||||||||||||
Total depreciation and amortization | $ | 337 | $ | 298 | $ | 1,017 | $ | 907 | ||||||||
Interest expense: | ||||||||||||||||
Retail | $ | 134 | $ | 105 | $ | 380 | $ | 284 | ||||||||
Recycling | 115 | 115 | 321 | 354 | ||||||||||||
Unallocated corporate | 72 | 81 | 226 | 198 | ||||||||||||
Total interest expense | $ | 321 | $ | 301 | $ | 927 | $ | 836 | ||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Nature of business and basis of presentation | ' | |||||||
Nature of Business and Basis of Presentation | ||||||||
Appliance Recycling Centers of America, Inc. and subsidiaries (“we,” the “Company” or “ARCA”) are in the business of providing turnkey appliance recycling and replacement services for electric utilities and other sponsors of energy efficiency programs. We also sell new major household appliances through a chain of Company-owned stores under the name ApplianceSmart®. In addition, we have a 50% interest in a joint venture operating under the name ARCA Advanced Processing, LLC (“AAP”), which recycles appliances from twelve states in the Northeast and Mid-Atlantic regions of the United States for General Electric Company (“GE”) acting through its GE Appliances business component. These appliances include units manufactured by GE as well as by other manufacturers. | ||||||||
The accompanying consolidated financial statements of the Company are unaudited and have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America for interim financial information and Article 8 of Regulation S-X promulgated by the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, normal and recurring adjustments and accruals considered necessary for a fair presentation for the periods indicated have been included. Operating results for the three-month and nine-month periods ended September 28, 2013, and September 29, 2012, are presented using 13-week and 39-week periods, respectively. The results of operations for any interim period are not necessarily indicative of the results for the year. | ||||||||
These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes thereto for the year ended December 29, 2012, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 22, 2013. | ||||||||
Principles of consolidation | ' | |||||||
Principles of consolidation: The consolidated financial statements include the accounts of Appliance Recycling Centers of America, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||||||||
ApplianceSmart, Inc., a Minnesota corporation, is a wholly owned subsidiary that was formed through a corporate reorganization in July 2011 to hold our business of selling new major household appliances through a chain of Company-owned retail stores. ARCA Canada Inc., a Canadian corporation, is a wholly owned subsidiary that was formed in September 2006 to provide turnkey recycling services for electric utility energy efficiency programs. ARCA Recycling, Inc., a California corporation, is a wholly owned subsidiary that was formed in November 1991 to provide turnkey recycling services for electric utility efficiency programs. The operating results of our wholly owned subsidiaries are consolidated in our financial statements. | ||||||||
AAP is a joint venture that was formed in October 2009 between ARCA and 4301 Operations, LLC (“4301”) to support ARCA’s agreement, as amended, with GE acting through its GE Appliances business component. Both ARCA and 4301 have a 50% interest in AAP. GE sells its recyclable appliances generated from twelve states in the Northeast and Mid-Atlantic regions of the United States to ARCA, which collects, processes and recycles the appliances. The agreement requires that ARCA will only recycle, and will not sell for re-use or resale, the recyclable appliances purchased from GE. AAP established a regional processing center in Philadelphia, Pennsylvania, at which the recyclable appliances are processed. The term of the agreement is for six years from the first date of appliance collection, which was March 31, 2010. AAP commenced operations in February 2010 and has the exclusive rights to service the GE agreement as a subcontractor for ARCA. The financial position and results of operations of AAP are consolidated in our financial statements based on our conclusion that AAP is a variable interest entity and because we have the ability to significantly influence the economic performance of the entity through our contractual agreement with GE. | ||||||||
Reclassifications | ' | |||||||
Reclassifications: The consolidated statements of comprehensive income (loss) include the reclassification of prior year revenues, cost of revenues and sales, general and administrative expenses related to AAP to conform with the current year presentation. The reclassification is related primarily to facilities costs and certain other costs not directly related to the production of recycled materials from cost of revenues to sales, general and administrative expenses. | ||||||||
Fair value of financial instruments | ' | |||||||
Fair value of financial instruments: The following methods and assumptions are used to estimate the fair value of each class of financial instrument: | ||||||||
Cash and cash equivalents, accounts receivable and accounts payable: Due to their nature and short-term maturities, the carrying amounts approximate fair value. | ||||||||
Short- and long-term debt: The fair value of short- and long-term debt approximates carrying value and has been estimated based on discounted cash flows using interest rates being offered for similar debt having the same or similar remaining maturities and collateral requirements. | ||||||||
No separate comparison of fair values versus carrying values is presented for the aforementioned financial instruments since their fair values are not significantly different than their balance sheet carrying amounts. In addition, the aggregate fair values of the financial instruments would not represent the underlying value of our Company. | ||||||||
Trade receivables | ' | |||||||
Trade receivables: We carry unsecured trade receivables at the original invoice amount less an estimate made for doubtful accounts based on a monthly review of all outstanding amounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history and current economic conditions. We write off trade receivables when we deem them uncollectible. We record recoveries of trade receivables previously written off when we receive them. We consider a trade receivable to be past due if any portion of the receivable balance is outstanding for more than ninety days. We do not charge interest on past due receivables. | ||||||||
Inventories | ' | |||||||
Inventories: Inventories, consisting principally of appliances, are stated at the lower of cost, determined on a specific identification basis, or market and consist of: | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
Appliances held for resale | $ | 15,112 | $ | 17,768 | ||||
Processed metals from recycled appliances held for resale | 286 | 188 | ||||||
Less provision for inventory obsolescence | (149 | ) | (682 | ) | ||||
$ | 15,249 | $ | 17,274 | |||||
We provide estimated provisions for the obsolescence of our appliance inventories, including adjustments to market, based on various factors, including the age of such inventory and our management’s assessment of the need for such provisions. We look at historical inventory agings and margin analysis in determining our provision estimate. A revised cost basis is used once a provision for obsolescence is recorded. | ||||||||
Software development costs | ' | |||||||
Software development costs: We capitalize software developed for internal use and are amortizing such costs over their estimated useful lives of three years. | ||||||||
Product warranty | ' | |||||||
Product warranty: We provide a warranty for the replacement or repair of certain defective units, which varies based on the product sold. Our standard warranty policy requires us to repair or replace certain defective units at no cost to our customers. We estimate the costs that may be incurred under our warranty and record an accrual in the amount of such costs at the time we recognize product revenue. Factors that affect our warranty accrual for covered units include the number of units sold, historical and anticipated rates of warranty claims on these units, and the cost of such claims. We periodically assess the adequacy of our recorded warranty accrual and adjust the amounts as necessary. | ||||||||
Share-based compensation | ' | |||||||
Share-based compensation: We recognize share-based compensation expense on a straight-line basis over the expected vesting period for share-based awards granted. We use the Black-Scholes option pricing model to determine the fair value of awards at the grant date. We calculate the expected volatility for stock awards using historical volatility. We estimate a 0%-5% forfeiture rate for stock awards issued to all employees and members of the Board of Directors, but will continue to review these estimates in future periods. The risk-free rates for the expected terms of the stock awards are based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life represents the period that the stock awards are expected to be outstanding. | ||||||||
Comprehensive income (loss) | ' | |||||||
Comprehensive income (loss): Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income (loss) but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to shareholders’ equity. Our other comprehensive income (loss) is comprised of foreign currency translation adjustments. | ||||||||
Basic and diluted income per share | ' | |||||||
Basic and diluted income (loss) per share: Basic income (loss) per common share is computed based on the weighted average number of common shares outstanding. Diluted income (loss) per common share is computed based on the weighted average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive shares of Common Stock include unexercised stock options and warrants. Basic per share amounts are computed, generally, by dividing net income (loss) attributable to controlling interest by the weighted average number of common shares outstanding. Diluted per share amounts assume the conversion, exercise or issuance of all potential Common Stock instruments unless their effect is anti-dilutive, thereby reducing the loss or increasing the income per common share. In calculating diluted weighted average shares and per share amounts, we included stock options and warrants with exercise prices below average market prices, for the respective reporting periods in which they were dilutive, using the treasury stock method. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Schedule of inventories, consisting principally of appliances, are stated at the lower of cost, determined on a specific identification basis, or market | ' | |||||||||||||||
Inventories: Inventories, consisting principally of appliances, are stated at the lower of cost, determined on a specific identification basis, or market and consist of: | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Appliances held for resale | $ | 15,112 | $ | 17,768 | ||||||||||||
Processed metals from recycled appliances held for resale | 286 | 188 | ||||||||||||||
Less provision for inventory obsolescence | (149 | ) | (682 | ) | ||||||||||||
$ | 15,249 | $ | 17,274 | |||||||||||||
Schedule of property and equipment | ' | |||||||||||||||
We provide estimated provisions for the obsolescence of our appliance inventories, including adjustments to market, based on various factors, including the age of such inventory and our management’s assessment of the need for such provisions. We look at historical inventory agings and margin analysis in determining our provision estimate. A revised cost basis is used once a provision for obsolescence is recorded. | ||||||||||||||||
Property and equipment: Property and equipment consists of the following: | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Land | $ | 1,140 | $ | 1,140 | ||||||||||||
Buildings and improvements | 3,275 | 3,429 | ||||||||||||||
Equipment (including computer software) | 20,539 | 20,158 | ||||||||||||||
Projects under construction | 62 | 63 | ||||||||||||||
25,016 | 24,790 | |||||||||||||||
Less accumulated depreciation and amortization | (13,330 | ) | (12,542 | ) | ||||||||||||
$ | 11,686 | $ | 12,248 | |||||||||||||
Schedule of warranty accrual | ' | |||||||||||||||
Changes in our warranty accrual are as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Beginning Balance | $ | 41 | $ | 61 | $ | 47 | $ | 71 | ||||||||
Standard accrual based on units sold | (4 | ) | 10 | (12 | ) | 34 | ||||||||||
Actual costs incurred | 10 | (4 | ) | 36 | (12 | ) | ||||||||||
Periodic accrual adjustments | (8 | ) | (12 | ) | (32 | ) | (38 | ) | ||||||||
Ending Balance | $ | 39 | $ | 55 | $ | 39 | $ | 55 | ||||||||
Schedule of reconciliation of the denominator in the basic and diluted income or loss per share | ' | |||||||||||||||
A reconciliation of the denominator in the basic and diluted income or loss per share is as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) attributable to controlling interest | $ | 1,134 | $ | (1,082 | ) | $ | 2,086 | $ | (1,789 | ) | ||||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding — basic | 5,564 | 5,556 | 5,559 | 5,549 | ||||||||||||
Employee stock options | 27 | — | 3 | — | ||||||||||||
Stock warrants | 186 | — | 161 | — | ||||||||||||
Weighted average shares outstanding — diluted | 5,777 | 5,556 | 5,723 | 5,549 | ||||||||||||
Income (loss) per share: | ||||||||||||||||
Basic | $ | 0.2 | $ | (0.19 | ) | $ | 0.38 | $ | (0.32 | ) | ||||||
Diluted | $ | 0.2 | $ | (0.19 | ) | $ | 0.36 | $ | (0.32 | ) | ||||||
Variable_Interest_Entity_Table
Variable Interest Entity (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Variable Interest Entity | ' | |||||||||||||||
Summary of assets and liabilities | ' | |||||||||||||||
The following table summarizes the assets and liabilities of AAP as of September 28, 2013, and December 29, 2012: | ||||||||||||||||
September 28, | December 29, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Assets | ||||||||||||||||
Current assets | $ | 848 | $ | 787 | ||||||||||||
Property and equipment, net | 8,868 | 9,109 | ||||||||||||||
Other assets | 140 | 149 | ||||||||||||||
Total Assets | $ | 9,856 | $ | 10,045 | ||||||||||||
Liabilities | ||||||||||||||||
Accounts payable | $ | 1,019 | $ | 826 | ||||||||||||
Accrued expenses | 258 | 204 | ||||||||||||||
Current maturities of long-term debt obligations | 885 | 635 | ||||||||||||||
Long-term debt obligations, net of current maturities | 3,969 | 4,437 | ||||||||||||||
Other liabilities (a) | 469 | 749 | ||||||||||||||
Total Liabilities | $ | 6,600 | $ | 6,851 | ||||||||||||
(a) Other liabilities represent loans between ARCA and AAP that are eliminated in consolidation. | ||||||||||||||||
Summary of operating results | ' | |||||||||||||||
The following table summarizes the operating results of AAP for the three and nine months ended September 28, 2013, and September 29, 2012: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues | $ | 3,037 | $ | 2,468 | $ | 8,281 | $ | 8,114 | ||||||||
Gross profit | 819 | 115 | 1,569 | 1,364 | ||||||||||||
Operating income (loss) | 331 | (71 | ) | 272 | 258 | |||||||||||
Net income (loss) | 255 | (153 | ) | 62 | 4 | |||||||||||
Other_Assets_Tables
Other Assets (Tables) | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
Schedule of other assets | ' | |||||||
Other assets as of September 28, 2013, and December 29, 2012, consist of the following: | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
Goodwill | $ | 38 | $ | 38 | ||||
Deposits | 413 | 376 | ||||||
Recycling contract, net | 200 | 259 | ||||||
Debt issuance costs, net | 304 | 279 | ||||||
Patent costs | 21 | 21 | ||||||
$ | 976 | $ | 973 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of accrued expenses | ' | |||||||
Accrued expenses as of September 28, 2013, and December 29, 2012, consist of the following: | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
Compensation and benefits | $ | 1,524 | $ | 963 | ||||
Accrued incentive and rebate checks | 495 | 563 | ||||||
Accrued rent | 1,182 | 1,383 | ||||||
Warranty expense | 39 | 47 | ||||||
Accrued payables | 425 | 307 | ||||||
Current portion of deferred gain on sale-leaseback of building | 487 | 487 | ||||||
Deferred revenue | 231 | 157 | ||||||
Other | 945 | 403 | ||||||
$ | 5,328 | $ | 4,310 | |||||
Borrowings_Tables
Borrowings (Tables) | 9 Months Ended | |||||||
Sep. 28, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of long-term debt, capital lease and other financing obligations | ' | |||||||
Long-term debt, capital lease and other financing obligations as of September 28, 2013, and December 29, 2012, consist of the following: | ||||||||
September 28, | December 29, | |||||||
2013 | 2012 | |||||||
PNC term loan | $ | 1,849 | $ | 2,040 | ||||
Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | 3,886 | 4,154 | ||||||
2.75% note, due in monthly installments of $3, including interest, due October 2024, collateralized by equipment | 389 | 411 | ||||||
10.00% note, due in monthly installments of $13, including interest, due December 2014 | 181 | 280 | ||||||
Capital leases and other financing obligations | 618 | 427 | ||||||
6,923 | 7,312 | |||||||
Less current maturities | 1,217 | 955 | ||||||
$ | 5,706 | $ | 6,357 | |||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 28, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule of segment information | ' | |||||||||||||||
The following tables present our segment information for periods indicated: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues: | ||||||||||||||||
Retail | $ | 17,300 | $ | 17,572 | $ | 53,732 | $ | 56,915 | ||||||||
Recycling | 16,238 | 11,156 | 42,503 | 30,800 | ||||||||||||
Total revenues | $ | 33,538 | $ | 28,728 | $ | 96,235 | $ | 87,715 | ||||||||
Operating income (loss): | ||||||||||||||||
Retail | $ | (163 | ) | $ | (961 | ) | $ | (216 | ) | $ | (1,419 | ) | ||||
Recycling | 2,172 | 194 | 4,193 | 595 | ||||||||||||
Unallocated corporate | (207 | ) | 33 | (550 | ) | (19 | ) | |||||||||
Total operating income (loss) | $ | 1,802 | $ | (734 | ) | $ | 3,427 | $ | (843 | ) | ||||||
Assets: | ||||||||||||||||
Retail | $ | 15,675 | $ | 21,588 | $ | 15,675 | $ | 21,588 | ||||||||
Recycling | 22,904 | 20,319 | 22,904 | 20,319 | ||||||||||||
Corporate assets not allocable | 4,519 | 5,700 | 4,519 | 5,700 | ||||||||||||
Total assets | $ | 43,098 | $ | 47,607 | $ | 43,098 | $ | 47,607 | ||||||||
Cash capital expenditures: | ||||||||||||||||
Retail | $ | 5 | $ | 52 | $ | 11 | $ | 222 | ||||||||
Recycling | 244 | 30 | 256 | 232 | ||||||||||||
Corporate assets not allocable | 5 | 35 | 90 | 288 | ||||||||||||
Total cash capital expenditures | $ | 254 | $ | 117 | $ | 357 | $ | 742 | ||||||||
Depreciation and amortization: | ||||||||||||||||
Retail | $ | 45 | $ | 58 | $ | 146 | $ | 170 | ||||||||
Recycling | 203 | 145 | 598 | 444 | ||||||||||||
Unallocated corporate | 89 | 95 | 273 | 293 | ||||||||||||
Total depreciation and amortization | $ | 337 | $ | 298 | $ | 1,017 | $ | 907 | ||||||||
Interest expense: | ||||||||||||||||
Retail | $ | 134 | $ | 105 | $ | 380 | $ | 284 | ||||||||
Recycling | 115 | 115 | 321 | 354 | ||||||||||||
Unallocated corporate | 72 | 81 | 226 | 198 | ||||||||||||
Total interest expense | $ | 321 | $ | 301 | $ | 927 | $ | 836 | ||||||||
Nature_of_Business_and_Basis_o1
Nature of Business and Basis of Presentation (Details) | 3 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
W | W | |
state | ||
Nature of Business and Basis of Presentation | ' | ' |
Interest in a joint venture (as a percent) | 50.00% | ' |
Number of states generating recyclable appliances | 12 | ' |
Number of weeks reflected in operating results | 13 | 13 |
Term of contractual agreement between GE and the entity | '6 years | ' |
4301 | ' | ' |
Nature of Business and Basis of Presentation | ' | ' |
Interest in a joint venture (as a percent) | 50.00% | ' |
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Dec. 29, 2012 |
Trade receivables | ' | ' |
Trade receivable period to be recognized | '90 days | ' |
Accounts receivable, allowance | $10 | $8 |
Significant_Accounting_Policie4
Significant Accounting Policies (Details 1) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Appliances held for resale | $15,112 | $17,768 |
Processed metals from recycled appliances held for resale | 286 | 188 |
Less provision for inventory obsolescence | -149 | -682 |
Inventory, Net | $15,249 | $17,274 |
Significant_Accounting_Policie5
Significant Accounting Policies (Details 2) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
In Thousands, unless otherwise specified | Land | Land | Buildings and improvements | Buildings and improvements | Equipment (including computer software) | Equipment (including computer software) | Projects under construction | Projects under construction | Software development costs | Software development costs | Software development costs | Software development costs | ||
Property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property plant and equipment, gross | $25,016 | $24,790 | $1,140 | $1,140 | $3,275 | $3,429 | $20,539 | $20,158 | $62 | $63 | ' | ' | ' | ' |
Less accumulated depreciation and amortization | -13,330 | -12,542 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property plant and equipment, net | 11,686 | 12,248 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' |
Costs capitalized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20 | $30 | $83 | $115 |
Significant_Accounting_Policie6
Significant Accounting Policies (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Jan. 01, 2011 |
Changes in warranty accrual | ' | ' | ' | ' | ' |
Beginning Balance | $41 | ' | $47 | $61 | $71 |
Standard accrual based on units sold | -4 | 10 | -12 | 34 | ' |
Actual costs incurred | 10 | -4 | 36 | -12 | ' |
Periodic accrual adjustments | -8 | -12 | -32 | -38 | ' |
Ending Balance | $39 | $55 | $39 | $55 | $71 |
Significant_Accounting_Policie7
Significant Accounting Policies (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 |
Share-based Compensation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated forfeiture rate, minimum (as a percent) | ' | ' | 0.00% | ' | ' | ' | ' | ' |
Estimated forfeiture rate, maximum (as a percent) | ' | ' | 5.00% | ' | ' | ' | ' | ' |
Expected dividend yield (as a percent) | ' | ' | 0.00% | ' | ' | ' | ' | ' |
Share-based compensation expense recognized | $101 | $62 | $160 | $130 | $19 | $97 | $159 | $73 |
Significant_Accounting_Policie8
Significant Accounting Policies (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Basic and diluted income per share | ' | ' | ' | ' |
Options and warrants excluded from computation of earnings per share (in shares) | 364 | 816 | 465 | 798 |
Numerator: | ' | ' | ' | ' |
Net income (loss) attributable to controlling interest | $1,134 | ($1,082) | $2,086 | ($1,789) |
Denominator: | ' | ' | ' | ' |
Weighted average shares outstanding - basic | 5,564 | 5,556 | 5,559 | 5,549 |
Employee stock options (in shares) | 27 | 0 | 3 | 0 |
Stock warrants (in shares) | 186 | 0 | 161 | 0 |
Weighted average shares outstanding - diluted (in shares) | 5,777 | 5,556 | 5,723 | 5,549 |
Income per share: | ' | ' | ' | ' |
Basic (loss) (in dollars per share) | $0.20 | ($0.19) | $0.38 | ($0.32) |
Diluted (in dollars per share) | $0.20 | ($0.19) | $0.36 | ($0.32) |
Variable_Interest_Entity_Detai
Variable Interest Entity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | |||
Variable Interest Entity, Classification of Carrying Amount, Assets | ' | ' | ' | ' | ' | |||
Current assets | $29,912 | ' | $29,912 | ' | $28,558 | |||
Property and equipment, net | 11,686 | ' | 11,686 | ' | 12,248 | |||
Other assets | 976 | ' | 976 | ' | 973 | |||
Total | 9,856 | ' | 9,856 | ' | 10,045 | |||
Liabilities | ' | ' | ' | ' | ' | |||
Accounts payable | 7,277 | ' | 7,277 | ' | 4,957 | |||
Accrued expenses | 5,328 | ' | 5,328 | ' | 4,310 | |||
Current maturities of long-term debt obligations | 1,217 | ' | 1,217 | ' | 955 | |||
Long-term debt obligations, net of current maturities | 5,706 | ' | 5,706 | ' | 6,357 | |||
Total | 2,140 | ' | 2,140 | ' | 1,948 | |||
Operating results of AAP | ' | ' | ' | ' | ' | |||
Revenues | 33,538 | 28,728 | 96,235 | 87,715 | ' | |||
Gross profit (loss) | 9,093 | 7,094 | 25,498 | 22,975 | ' | |||
Operating income (loss) | 1,802 | -734 | 3,427 | -843 | ' | |||
Net income (loss) | 1,262 | -1,159 | 2,117 | -1,787 | ' | |||
AAP | ' | ' | ' | ' | ' | |||
Variable Interest Entity, Classification of Carrying Amount, Assets | ' | ' | ' | ' | ' | |||
Current assets | 848 | ' | 848 | ' | 787 | |||
Property and equipment, net | 8,868 | ' | 8,868 | ' | 9,109 | |||
Other assets | 140 | ' | 140 | ' | 149 | |||
Total | 9,856 | ' | 9,856 | ' | 10,045 | |||
Liabilities | ' | ' | ' | ' | ' | |||
Accounts payable | 1,019 | ' | 1,019 | ' | 826 | |||
Accrued expenses | 258 | ' | 258 | ' | 204 | |||
Current maturities of long-term debt obligations | 885 | ' | 885 | ' | 635 | |||
Long-term debt obligations, net of current maturities | 3,969 | ' | 3,969 | ' | 4,437 | |||
Other liabilities | 469 | [1] | ' | 469 | [1] | ' | 749 | [1] |
Total | 6,600 | ' | 6,600 | ' | 6,851 | |||
Operating results of AAP | ' | ' | ' | ' | ' | |||
Revenues | 3,037 | 2,468 | 8,281 | 8,114 | ' | |||
Gross profit (loss) | 819 | 115 | 1,569 | 1,364 | ' | |||
Operating income (loss) | 331 | -71 | 272 | 258 | ' | |||
Net income (loss) | $255 | ($153) | $62 | $4 | ' | |||
[1] | Other liabilities represent loans between ARCA and AAP that are eliminated in consolidation. |
Other_Assets_Details
Other Assets (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 14, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 |
Other Assets, Noncurrent [Abstract] | ' | ' | ' | ' | ' | ' |
Goodwill | ' | $38 | ' | $38 | ' | $38 |
Deposits | ' | 413 | ' | 413 | ' | 376 |
Recycling contract, net | ' | 200 | ' | 200 | ' | 259 |
Debt issuance costs, net | ' | 304 | ' | 304 | ' | 279 |
Patent costs | ' | 21 | ' | 21 | ' | 21 |
Total | ' | 976 | ' | 976 | ' | 973 |
Amortization expense related to recycling contract | ' | 20 | ' | 20 | 60 | ' |
Non-cash interest expense related to debt issuance costs | ' | 28 | 49 | 105 | 148 | ' |
Debt issuance cost incurred | 129 | ' | ' | ' | ' | ' |
Payment of debt issuance costs | ' | ' | ' | $129 | $0 | ' |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Sep. 28, 2013 | Jun. 29, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Dec. 31, 2011 | Jan. 01, 2011 |
In Thousands, unless otherwise specified | ||||||
Payables and Accruals [Abstract] | ' | ' | ' | ' | ' | ' |
Compensation and benefits | $1,524 | ' | $963 | ' | ' | ' |
Accrued incentive and rebate checks | 495 | ' | 563 | ' | ' | ' |
Accrued rent | 1,182 | ' | 1,383 | ' | ' | ' |
Warranty expense | 39 | 41 | 47 | 55 | 61 | 71 |
Accrued payables | 425 | ' | 307 | ' | ' | ' |
Current portion of deferred gain on sale-leaseback of building | 487 | ' | 487 | ' | ' | ' |
Deferred revenue | 231 | ' | 157 | ' | ' | ' |
Other | 945 | ' | 403 | ' | ' | ' |
Total | $5,328 | ' | $4,310 | ' | ' | ' |
Line_of_Credit_Details
Line of Credit (Details) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Oct. 09, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Mar. 14, 2013 | |
Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Revolving line of credit | Letter of credit | AAP | AAP | Maximum | Maximum | |||
PNC | PNC | PNC | PNC | PNC | PNC | PNC | PNC | PNC | Revolving line of credit | Revolving line of credit | AAP | AAP | |||
Base Rate | Base Rate, Condition One | LIBOR Rate | LIBOR Rate | Federal Funds Open Rate | One month LIBOR rate | PNC | PNC | Revolving line of credit | Revolving line of credit | ||||||
Base Rate | Base Rate | PNC | PNC | ||||||||||||
Base Rate | Base Rate | ||||||||||||||
Line of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of revolving line of credit | ' | ' | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit issued in favor of Whirlpool Corporation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000 | ' | ' | ' | ' |
Minimum fixed charge coverage ratio | ' | ' | 1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trailing period for measurement of fixed charge coverage ratio (in months) | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on the revolving line of credit | 'one-month LIBOR rate | ' | ' | ' | 'PNC Base Rate | ' | ' | '1-, 2- or 3-month PNC LIBOR Rate | 'Federal Funds Open Rate | ' | ' | ' | ' | ' | ' |
Interest rate margin (as a percent) | ' | ' | 1.75% | ' | ' | 2.75% | ' | 2.75% | 0.50% | 1.00% | ' | ' | ' | ' | ' |
Document Period End Date | 28-Sep-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance under the Revolving Credit Agreement | 6,823,000 | 10,559,000 | 6,823,000 | 10,559,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate (as a percent) | ' | ' | 6.00% | 3.07% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing capacity under the Revolving Credit Agreement | ' | ' | 6,801,000 | 2,531,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000 | 40,000 | ' | ' |
Due to affiliate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 469,100 | 300,000 |
Increase in interest rate spread | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment penalty percent year one | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment penalty percent year two | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment penalty percent year three | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Eligible to borrow if selling carbon offsets threshold is reached | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' |
Cash related to selling carbon offsets | ' | ' | ' | ' | ' | ' | $516,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred_Gain_Details
Deferred Gain (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 25, 2009 |
Deferred Revenue Disclosure [Abstract] | ' | ' | ' | ' |
Deferred gain of sale-leaseback transaction | ' | ' | ' | $2,436 |
Initial lease period for amortization of deferred gain (in years) | ' | '5 years | ' | ' |
Amortization of deferred gain | $122 | $365 | $366 | ' |
Borrowings_Details
Borrowings (Details) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||||
Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Feb. 28, 2011 | Jan. 30, 2011 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | Mar. 30, 2011 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Sep. 28, 2013 | Mar. 30, 2011 | Mar. 30, 2011 | Mar. 30, 2011 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | |
AAP | AAP | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loan, due in monthly installments of $21, plus interest, due February 2021, collateralized by land and building | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Floating rate term loans, due in monthly installments of $54, including interest, due March 2021, collateralized by equipment | Debt instrument term loan one | Debt instrument term loan two | Debt instrument term loan three | 2.75% note, due in monthly installments of $3, including interest, due October 2024, collateralized by equipment | 2.75% note, due in monthly installments of $3, including interest, due October 2024, collateralized by equipment | 10.00% note, due in monthly installments of $10, including interest, due December 2014 | 10.00% note, due in monthly installments of $10, including interest, due December 2014 | Capital leases and other financing obligations | Capital leases and other financing obligations | |||
PNC | PNC | PNC | PNC | Base Rate | Base Rate, Condition One | LIBOR Rate | Susquehanna Bank | Susquehanna Bank | Susquehanna Bank | Base Rate | Prime | Susquehanna Bank | Susquehanna Bank | Susquehanna Bank | |||||||||||||||
payment | PNC | PNC | PNC | AAP | AAP | AAP | Susquehanna Bank | Susquehanna Bank | AAP | AAP | AAP | ||||||||||||||||||
loan | AAP | AAP | |||||||||||||||||||||||||||
Borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, capital lease and other financing obligations | $6,923,000 | $7,312,000 | ' | ' | $1,849,000 | $2,040,000 | ' | ' | ' | ' | ' | ' | ' | $3,886,000 | $4,154,000 | ' | ' | ' | ' | ' | ' | ' | ' | $389,000 | $411,000 | $181,000 | $280,000 | $618,000 | $427,000 |
Less current maturities | 1,217,000 | 955,000 | 885,000 | 635,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, capital lease and other financing obligations, less current maturities | 5,706,000 | 6,357,000 | 3,969,000 | 4,437,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | ' | 10.00% | ' | ' | ' |
Monthly installments | ' | ' | ' | ' | ' | ' | 21,000 | ' | ' | ' | ' | ' | ' | 54,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000 | ' | 13,000 | ' | ' | ' |
Balloon Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,275,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan to refinance the existing mortgage | ' | ' | ' | ' | ' | ' | ' | 2,550,000 | ' | ' | ' | ' | ' | ' | ' | 4,750,000 | ' | ' | ' | ' | 2,100,000 | 1,400,000 | 1,250,000 | ' | ' | ' | ' | ' | ' |
Number of consecutive monthly principal payments plus interest | ' | ' | ' | ' | ' | ' | 119 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | 'one-month LIBOR rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'PNC Base Rate | ' | '1-, 2- or 3-month PNC LIBOR Rate | ' | ' | ' | ' | ' | ' | 'Prime | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | 2.25% | 3.25% | ' | ' | ' | ' | ' | 2.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at the end of the period (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 6.50% | 5.50% | ' | ' | ' | ' | ' | ' | 6.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of separate commercial term loans entered into during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term Loans maturity period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital leases and other financing obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of equipment acquired under capital leases and other financing obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,031,000 | 1,969,000 |
Accumulated amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,620,000 | $1,574,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | Sep. 28, 2013 |
manufacturer | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Number of appliance manufacturers that have material contracts with the Company | 3 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Provision for income taxes | $227 | $113 | $372 | $90 |
Expected, income tax carryback refunds | $250 | ' | $250 | ' |
Percentage of likelihood of realization that the tax position must exceed in order for the amount to be recognized | ' | ' | 50.00% | ' |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 9 Months Ended | 6 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Jul. 22, 2013 | 9-May-13 | Sep. 28, 2013 | 9-May-13 | Jul. 22, 2013 | 9-May-13 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Oct. 21, 2009 | Oct. 21, 2009 |
2011 Plan | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Stock options | Warrant [Member] | Warrant [Member] | ||
2011 Plan | 2011 Plan | 2011 Plan | 2011 Plan | 2011 Plan | 2011 Plan | 2011 Plan | 2011 Plan | 2006 Plan | 1997 Plan | Minimum [Member] | Maximum | |||||
Director | Director | Director | Management | Employees | Employees | Employees | ||||||||||
Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | ' | ' | ' | ' | ' | $2.65 | $1.89 | ' | ' | ' | $1.89 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | $2.06 | $1.66 | ' | ' | ' | $1.47 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ' | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares of common stock which can be issued | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | '3 years | '2 years | '2 years | ' | ' | ' | ' |
Document Period End Date | 28-Sep-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | ' | ' | ' | ' | 100,000 | 30,000 | ' | 185,000 | 50,000 | 135,000 | ' | ' | ' | ' | ' |
Options outstanding (in shares) | ' | ' | ' | ' | 367,000 | ' | ' | ' | ' | ' | ' | ' | 391,000 | 8,000 | ' | ' |
Warrants outstanding | $278 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.73 | 3.55 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | ' | ' | 90.93% | 89.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | ' | ' | 1.28% | 1.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ' | ' | '7 years 5 months 1 day | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Details_2
Stockholders' Equity (Details 2) | Sep. 28, 2013 |
Preferred Stock | ' |
Number of authorized shares of preferred stock | 2,000,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | |||
segment | segment | |||||||
Segment Information | ' | ' | ' | ' | ' | |||
Revenues | $33,538 | $28,728 | $96,235 | $87,715 | ' | |||
Operating income (loss) | 1,802 | -734 | 3,427 | -843 | ' | |||
Assets | 43,098 | [1] | 47,607 | 43,098 | [1] | 47,607 | 41,804 | [1] |
Cash capital expenditures | 254 | 117 | 357 | 742 | ' | |||
Depreciation and amortization | 337 | 298 | 1,017 | 907 | ' | |||
Interest Expense | 320 | 299 | 925 | 832 | ' | |||
Interest Expense | -321 | -301 | -927 | -836 | ' | |||
Number of reportable segments | 2 | ' | 2 | ' | ' | |||
Retail | ' | ' | ' | ' | ' | |||
Segment Information | ' | ' | ' | ' | ' | |||
Revenues | 17,300 | 17,572 | 53,732 | 56,915 | ' | |||
Operating income (loss) | -163 | -961 | -216 | -1,419 | ' | |||
Assets | 15,675 | 21,588 | 15,675 | 21,588 | ' | |||
Cash capital expenditures | 5 | 52 | 11 | 222 | ' | |||
Depreciation and amortization | 45 | 58 | 146 | 170 | ' | |||
Interest Expense | 134 | 105 | 380 | 284 | ' | |||
Recycling | ' | ' | ' | ' | ' | |||
Segment Information | ' | ' | ' | ' | ' | |||
Revenues | 16,238 | 11,156 | 42,503 | 30,800 | ' | |||
Operating income (loss) | 2,172 | 194 | 4,193 | 595 | ' | |||
Assets | 22,904 | 20,319 | 22,904 | 20,319 | ' | |||
Cash capital expenditures | 244 | 30 | 256 | 232 | ' | |||
Depreciation and amortization | 203 | 145 | 598 | 444 | ' | |||
Interest Expense | 115 | 115 | 321 | 354 | ' | |||
Unallocated corporate | ' | ' | ' | ' | ' | |||
Segment Information | ' | ' | ' | ' | ' | |||
Operating income (loss) | -207 | 33 | -550 | -19 | ' | |||
Assets | 4,519 | 5,700 | 4,519 | 5,700 | ' | |||
Cash capital expenditures | 5 | 35 | 90 | 288 | ' | |||
Depreciation and amortization | 89 | 95 | 273 | 293 | ' | |||
Interest Expense | $72 | $81 | $226 | $198 | ' | |||
[1] | Assets of ARCA Advanced Processing, LLC (AAP), our consolidated variable interest entity (VIE), that can only be used to settle obligations of AAP were $9,856 and $10,045 as of September 28, 2013, and December 29, 2012, respectively. Liabilities of AAP for which creditors do not have recourse to the general credit of Appliance Recycling Centers of America, Inc. were $2,140 and $1,948 as of September 28, 2013, and December 29, 2012, respectively.See Notes to Consolidated Financial Statements. |