Ladies and Gentlemen, thank you for standing by and welcome to the Appliance Recycling Centers of America Third Quarter Investor Conference Call. (Operator Instructions) As a reminder, this conference is being recorded, Tuesday, November 4, 2014. I would now like to turn the conference over to Mark Eisenschenk, CEO at Appliance Recycling Centers of America. Please go ahead, sir.

Thank you, operator. Good morning, everyone, and thank you very much for joining in this morning's call. Welcome to Appliance Recycling Centers of America's third quarter 2014 conference call. I am Mark Eisenschenk, President and CEO and with me today are members of our -- couple of our executive team, Jeff Cammerrer, Chief Financial Officer and Brad Bremer, President of ApplianceSmart. I also invited Jack Cameron, ARCI Founder and Board Chairman to join us on this morning's call. Jack retired as ARCA’s President and CEO in August after serving in that role for 38 years. Along with his responsibilities as our Board Chairman Jack is serving as ARCA’s ambassador to our industry. He is also helping me with our top leadership transition as I continue to learn to fill his shoes. This morning we will be discussing our third quarter results. Our press release can be found on our website arcainc.com, in the Investor Relations section. To start us off today, Jeff will read our forward-looking statement and review our third quarter financial results and then Brad will give an update on our retail appliance business and I will provide an overview of developments impacting our company. Finally, we'll open the call for your questions. I would now turn the call over to Jeff.

Thank you, Mark. Our comments may contain certain forward-looking statements regarding possible events, including expectations that are not considered guarantees of future performance. Future results may differ materially and you should not attribute undue certainty to any forward-looking statements. Please refer to the cautionary statements in our SEC filings to understand risks that may impact our business. We reported quarter-over-quarter revenue growth again and positive earnings in the third quarter. Total third quarter revenues of $33.6 million were up $100,000 and our quarterly EBITDA was $1.4 million. We generated net earnings of $556,000 or $0.09 per diluted share, which was a decline compared with $1.1 million or $0.20 per diluted share in the third quarter last year. The decline in net earnings is a result of an increase in our effective tax rate and generating lower profit margins at AAP at ApplianceSmart. As I mentioned, our effective tax rate increased. Last year we reduced our effective tax rate and income tax expense by utilizing net operating losses with a corresponding valuation allowance and that was not the case this year. The impact of the lower effective tax rate in the third quarter last year was $0.10 per diluted share. Normalizing for this benefit, the diluted earnings per share was consistent with last year. Our overall results continue to be driven by our recycling division. Recycling revenues of $12.2 million were up $400,000 compared with the third quarter last year. The growth continues to be attributed to our appliance replacement programs. Byproduct revenues of $4.7 million are consistent with the third quarter last year. Revenues at AAP, which are reported as byproduct revenues, declined $100,000 on a reduction in non-ferrous scrap metal revenues. The declined in AAP revenues was entirely offset by improved byproduct revenues at ARCA. Our recycling division, including…

Thanks, Jeff. As Jeff said, our ApplianceSmart third quarter results were affected by business of contractors. One large contract that we had during the third quarter of last year did not continue at the same levels as the previous year causing the $600,000 decline in the contract component of ApplianceSmart sales. That decline however was favorably offset by a $300,000 sales gain at our physical stores. In particular, we saw strong in-store sales this quarter in the Georgia market. As you know, Georgia's housing market was hit severely by the recession. However, home values there are rapidly accelerating now and this is hopefully a sign of few things to come. As Jeff said, we also experienced some margin compression during the third quarter, mainly due to our sales mix. Part of the compression was due to an inventory adjustment that we made in the quarter, which may or may not ultimately be needed as we sell through the affected merchandize. Actually the Nation's economy in general, retailers generally had a lackluster year and consumer activity has been subdued, sliding crude oil prices however are given relief at the [thumb] (ph), which is bound to provide a boost for consumer spending in the coming months since gasoline prices have dropped to a four-year low. On the industry front, we continue to watch our competition. A major retailer in the South ApplianceSmart just closed stores on the second of its four locations in Atlanta and we expect to see them exit the market completely in 2015. Sears and Hh Gregg also continue to report large same-store sales declines. This is a sign of a turbulent times that the industry is currently facing. The collapse of Sears would clearly alter the industry landscape and that may have a positive impact on ApplianceSmart. As to our market position, ApplianceSmart is considered a power regional independent and we operate in a market niche. We differentiate ourselves in a mix of in and out-of-carton products a bunch of which has closed out of special by merchandize and is typically in stock in our stores. It is also available to take home today as it is purchased. Also unlike many other appliance retailers, we had a highly trained sales staff many of whom have been with us for years. In summary, we carry the same top rated brands, but we have the expertise to help consumes make the right buying decision for their needs and our appliances and incredible values. I wanted to close by comments I mentioned that Bosch recently awarded us the rights to sell two of their high end brands, their prestigious Bosch Benchmark and [lines] (ph). Having just launched these high-end brands at ApplianceSmart, I am happy to say we're already registering some sales of these appliances. I'll now the call over to Mark.

Thank you, very much Brad. First off, I would like to say, I am very happy to serving as ARCA's new President and CEO. Jack Cameron's shoes are large indeed and I am doing my very best to fill them. This morning we heard discussion about the outstanding California sales tax matter and on our third quarter financial results. I would now like to share some positive developments and initiatives in our business. First off, as you may recall, in our second quarter earnings release, we said there were some uncertainty about our particular plants replacement program, whose funds were expected to run out at the end of the past third quarter. While I am pleased to say that that utility just agreed to fund another $4 million under the contract and that will be through the end of the fourth quarter 2014. For the rest of this year, we'll continue to provide energy efficient washers to their low income customers. As you know California is experiencing a major water shortage due to a small prior year drought and our energy star high efficiency thermal washer should ultimately help California save millions of gallons of water. And in addition to consumers saving on their water bills, the new washers also conserve electricity. To provide a big picture perspective on appliance replacements through utility companies energy efficiency programs, we provide truck loads of energy efficient appliances to their customers, to those customers are located in California and Washington, Texas and Missouri, New Jersey and also in Canada. So far this year, under energy efficiency programs, we've delivered about 500 semi-trailer loads of new energy efficient refrigerators and washers and exchange them for old energy cost saving appliances and these exchanges are what we refer to as appliance replacement. In the last…

Thank you. (Operator Instructions) And I am not showing any questions any questions at this time. Mr. Eisenschenk, I'll turn it over to you.

Well, thank you very much everyone who has attended this morning's conference call. And with that, we'll conclude our call and we appreciate the opportunity to keep you updated about ARCA and look forward to talking with you again in the future.