WALNUT CREEK, CA -- (Marketwired) -- Nov 06, 2014 -- ARC Document Solutions, Inc. (NYSE: ARC), the nation's leading document solutions provider for the architecture, engineering, and construction (AEC) industry, today reported its financial results for the third quarter ended September 30, 2014.
Quarterly Business Highlights:
- Q3 Adjusted earnings per share of $0.06 vs. $0.02 in Q3 2013
- Q3 Gross margin of 33.9%; year-over-year increase of 140 basis points
- Q3 cash flow from operations was $15.3 million and included cash payments for trade secret litigation and quarterly interest payments on senior debt
- Revises 2014 fully-diluted annual adjusted earnings per share outlook from $0.19 to $0.23 to be in the range of $0.24 to $0.27, narrows the outlook for 2014 annual cash provided by operating activities from $51 million to $56 million to be in the range of $52 to $54 million, and revises the outlook for annual adjusted EBITDA from $69 million to $73 million to be in the range of $71 million to $74 million
Financial Highlights:
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
(All dollar amounts in millions,
except EPS) 2014 2013 2014 2013
-------- -------- -------- --------
Net Revenue $ 106.8 $ 101.3 $ 316.2 $ 305.9
Gross Margin 33.9% 32.5% 34.6% 33.0%
Net income (loss) attributable to
ARC $ 3.7 $ (0.5) $ 9.6 $ 0.7
Adjusted Net Income attributable to
ARC $ 2.9 $ 0.8 $ 9.2 $ 3.0
Earnings (loss) per share - Diluted $ 0.08 $ (0.01) $ 0.20 $ 0.01
Adjusted earnings per share -
Diluted $ 0.06 $ 0.02 $ 0.20 $ 0.07
Adjusted EBITDA $ 18.3 $ 16.6 $ 55.2 $ 50.8
Cash provided by operating
activities $ 15.3 $ 20.0 $ 37.0 $ 40.0
Capital Expenditures $ 3.4 $ 4.8 $ 10.0 $ 14.9
Debt & Capital Leases (including
current) $ 205.6 $ 213.4
Management Commentary
"It was an excellent quarter and our performance clearly highlighted the difference between the document solutions provider we are today, the reprographics company we were prior to the recession, and the role we'll play in the future distributing documents and information from the cloud with secure mobile access. Our customers are asking us to find new ways to meet their needs, work with them in the cloud, and create new solutions for them to interact with the massive amounts of information they generate," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC Document Solutions. "It's a different ballgame."
