WALNUT CREEK, CA -- (Marketwired) -- Feb 24, 2015 -- 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 fourth quarter and full year ended December 31, 2014.
2014 Annual Business Highlights:
- Revenue grew 4.1% year-over-year
- Adjusted diluted earnings per share were $0.25 vs. $0.09 in 2013
- Gross margin was 34.0% vs. 33.0% in 2013
- Adjusted EBITDA grew $4.0 million, or 5.9% year-over-year
- Adjusted cash flow from operations of $54.0 million vs. $47.3 million in 2013
- 2015 fully-diluted annual adjusted earnings per share projected to be in the range of $0.37 to $0.41; annual adjusted cash provided by operating activities projected to be in the range of $61 to $66 million; and annual adjusted EBITDA to be in the range of $75 million to $80 million
Financial Highlights:
Three Months Twelve Months
Ended Ended
December 31, December 31,
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(All dollar amounts in millions, except
EPS) 2014 2013 2014 2013
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Net Revenue $ 107.6 $ 101.3 $ 423.8 $ 407.2
Gross Margin 32.5% 33.0% 34.0% 33.0%
Net (loss) income attributable to ARC $ (2.3) $ (16.0) $ 7.3 $ (15.3)
Adjusted Net Income attributable to ARC $ 2.6 $ 1.1 $ 11.8 $ 4.1
Diluted (loss) earnings per share $ (0.05) $ (0.35) $ 0.15 $ (0.33)
Adjusted diluted earnings per share $ 0.06 $ 0.02 $ 0.25 $ 0.09
Cash provided by operating activities $ 13.0 $ 6.8 $ 50.0 $ 46.8
Adjusted cash provided by operating
activities $ 13.1 $ 7.8 $ 54.0 $ 47.3
EBITDA $ 9.6 $ (0.6) $ 58.3 $ 46.1
Adjusted EBITDA $ 17.0 $ 17.4 $ 72.3 $ 68.2
Capital Expenditures $ (3.2) $ (3.3) $ (13.3) $ (18.2)
Debt & Capital Leases (including
current) $ 203.9 $ 219.7
Management Commentary
"2014 was a great year for us," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC Document Solutions. "It was a year that culminated in the transformation of the company into a technology services provider, laying the foundation for our future growth. In the midst of all this change and the disruption that came with it, ARC finished six quarters of consecutive sales growth, saw earnings per share nearly triple, significantly increased its cash flows, and refinanced its long term debt for the second time in 12 months. Needless to say, I am gratified with the work done by our management team, and I look forward sharing our ideas for ARC's future during our upcoming earnings call and on our investor day on March 6th."
"The significant increase in 2014 annual earnings per share was due to our increase in sales, tight controls over our costs, and major improvements in our capital structure," said Jorge Avalos, ARC's Chief Financial Officer. "Adjusted cash flow from operations in 2014 increased 14% over 2013, and this allowed us to pay down $27 million, or 14%, of our term credit facility. By the end of the year, the resulting decrease in our leverage ratio coupled with our improved financial performance allowed us to secure a new Term A loan with an initial interest rate of approximately 2.75% -- 350 basis points lower than our previous term loan -- which will yield annual savings of approximately $6 million."
