Edward R. (Jack) Cameron – President and Chief Executive Officer, Chairman of the Board Jeffrey A. Cammerrer – Chief Financial Officer Bruce J. Wall – Vice President Resource Efficiency Programs

Ladies and gentlemen, thank you for standing by. Welcome to the Appliance Recycling Centers of America First Quarter Investor Call. During the presentations all participants will be in a listen-only mode. Afterwards we will conduct a question-and-answer session. (Operator Instructions). As a reminder, this conference is being recorded Tuesday, May, 7, 2013. I would now like to turn the conference over to Jack Cameron President and CEO. Please go ahead. Edward R. (Jack) Cameron: Thank you, operator and good morning everyone and welcome to Appliance Recycling Centers first quarter 2013 conference call. As mentioned my name is Jack Cameron; I am President and CEO. Also on the call today will be Jeff Cammerrer our Chief Financial Officer and Brad Bremer President of ApplianceSmart. I’d like to thank you for taking the time today they are listening the call. I hope you had the opportunity to review the earnings release which we distributed yesterday afternoon. And it also can be found on our website under www.arcainc.com, actually I forgot an extra w in there or not, it’s under the Investor Relations section. On the agenda today, Jeff will go through the forward-looking statement, and then review our first quarter financial results. Brad will then talk about an update on the ApplianceSmart business. Finally, I will come back and talk about some of initiatives and recent developments that impacted our business and closing remarks. And then we will open the call up to questions, so to start it off Jeff why don’t you go ahead.

Thank you, Jack. Our comments may contain certain forward-looking statements regarding possible events including expectations and are not considered guarantees of future performance. Future results may differ materially and you should not attribute undue certainty to our forward-looking statements, please refer to the cautionary statements in our SEC filings to understand the risk that may impact our business. I will keep my comments brief today, both Brad and Jack will be discuss various financial results. And I will be available at the end of the call for any financial performance questions. As you know we extended our credit agreement through January 2016 and reset the financial covenants that created the events of the fall 2012. We are now in compliance with all the financial covenants under our amended credit agreement. Through the first quarter we are outpacing our accumulated EBITDA covenant by over $2 million, building a nice cushion going into the second and third quarters, which are more aggressive under our operating plan. We reported a consolidated net income for the first time since 2011 with a profit of a $184,000 or $0.03 per diluted share. The first quarter profit was deferred by the success of our Appliance replacement programs within our Recycling segment and sequential improvement in sales and gross margin and Appliance margin. Our Recycling segment revenues of $12.1 million were up $2.7 million compared to the first quarter of 2012. The increase was the result of 119% increase in appliance replacement volumes that drove an increase of $3.8 million in revenues. Overall utility program volumes declined by 4% compared to the first quarter of 2012. For the last 12 months we experienced decline in volumes in our recycling only programs offset by growth in the replacement business. The strength of our replacement programs drove an $800,000…

Thank you, Jeff. In the first quarter of 2013, ApplianceSmart focused on streamline activeness. First quarter which is generally slower was impacted by the federal governments 2012 tax delay which in turn delayed the refund process and associated consumer spending, this trend effect the sales through President’s day weekend. Same-store sales declined 7% compared to the same period for 2012. Total retail revenues decreased 9% to $18.1 million compared to the same period of 2012, this result was primarily due to an anticipated same-store sales decrease and a strategic decision to close two Georgia locations in late 2012. In addition, marketing efforts and traffic for our Rogers, Minnesota location were scaled down to minimize the April store closing that was result of a decision that renewed the building lease. Explain the sequential March decrease in electronics and Appliance store sale The National Retail Federation blamed colder-than-normal weather and the payroll tax hike. In addition to the factors previously mentioned the traditional Easter holiday weekend shifted in the first quarter. The tight housing market has had an impact on appliance purchases relative to relocation, in March 2013, The National Retail Association of retailers reported that the housing inventories declined by 17% compared with its prior year levels. Our first quarter last year saw usually high sales levels that spike in February and March before leveling off the remainder of the year. In the first quarter of 2013 we did not see that same spike, however, we are way ahead of our internal year-to-date sales projections illustrated our commitments tightened operations will continue to provide the same affordable appliance offerings to our valued customers. We’re expecting more consistent sales levels in the first half of this year which gradual improvements led by the housing market. On a sequential basis our retail operations…

Thank you. (Operator Instructions). And the first question is from the line of (inaudible). Please go ahead.

Hey, Jack.

Hey, [Jerry]

Now what was the name of that Doctor that you we’re talking about I wanted to Google him, but I didn’t get that name.

It’s Dr. Richard, and his last name is spelled Muller.

Okay.

Muller, he is Professor of Physics, at University California, Begley. He is noted a very famous scientist.

Okay. And then, you talked about potential from the sale of carbon oxide credit of about $1 million from the credit that you generate this year and then almost a $1 million from credits generated last year. Did you recognize any revenues of this sort and 2012?

No, while we did there is one burn that we sold approximately just I give you a round numbers approximately 60,000 credits that we did burnt that we sold at $9.50credit they paid us $3.50 upfront and we got an other $3 when they get registered in California and an other $3 when the get certified in California. So, we were waiting on most that money, but I think we did book about 180,000 last year, 150,000 was it just, yeah. So, we did book basically one-third of that sale, but we still have remaining on that sale over 300,000 and we were expecting that actually in the first quarter this year, but the paperwork in California just gotten delayed and they’re now saying it will be Spring or the second quarter. And so, we should get half of that in the second quarter and then rest of it comes on verification, and we’re not sure when that will be but we’re pretty confident it will be before the year is over.

Okay. Thank you.

(Operator Instructions) And our next question is from the line of [Clarence Scholas] with [ARCA]. Please go ahead.

Hi, good morning Clarence here, individual Investor. I’m wondering if you can tell me a little bit more about those carbon credits from last year that haven’t been fulfilled in terms of the revenue. Do you have something sitting on the balance sheet in either accounts receivable or other assets where those are on your balance sheet and what are valuing them at?

No, Jeff can speak to that, but no, they’re not on our balance sheet. We’re not allowed to book that. There is no accounting process to take credit for that, and we have a huge inventory either have burned it or sitting on it or about to burn it and its not booked in any way, shape or form. The only time we can take any credit for revenue on this is when we actually get the cash.

So, the credits that you generated, but haven’t sold don’t sit on your balance sheet at all?

That’s correct.

Jeff is the CFO, believe me I’ve been arguing this point for a long time but I haven’t won yet.

Right now, because of cost that we incurred to develop these credits are pretty minor. The only thing that we could put on the balance sheet is cost associated with it, and we can’t put the market value on the balance sheet so if it only costs us $1 to generate the credits and we sell them for $9 we can’t put that differential on the balance sheet.

That’s because the market value is so uncertain?

Yes.

Okay. Thank you.

(Operator Instructions). There are no other questions at the moment sir. Edward R. (Jack) Cameron: Okay, well thank you very much if there are no further questions that will conclude the call today. And thanks very much for listening we’re continuing to hope that the economy and the housing continues on an upswing meanwhile we are encouraged by the momentum we have going right now, and we’re focusing, we’re really focusing on those elements that we can’t control. I think, all of our operations people are doing that and I really appreciate that from the support that we have from the entire company. And we appreciate the support from the listeners today, thank you very much and if you are in the Twin City area or if you like to fly-in we have our Annual Meeting on Thursday, this week Thursday, May 9 at 3:30 and the meeting is here at the company headquarters and I’d like to invite you to attend we’ll have cookies and coffee and also other discussion about more of this type of thing, so please join us. And with that if there, since there is no other questions, we’ll wrap it up and that’s the end of the call today. Thanks very much for listening.

Ladies and gentlemen that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.