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,
---------------- ----------------
(All dollar amounts in millions, except
EPS) 2014 2013 2014 2013
------- ------- ------- -------
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."
2014 Fourth Quarter Supplemental Information:
Net sales were $107.6 million, a 6.2% increase compared to the fourth quarter of 2013.
Days sales outstanding in Q4 2014 were 52 compared to 50 days in Q4 2013.
AEC customers comprised approximately 77% of our total net sales, while non-AEC customers made up 23% of our total net sales.
Total number of Onsite Services contracts was approximately 8,500, a gain of approximately 800 contracts over Q4 2013.
Sales from Services and Product Lines as a Percentage of Net Sales
Twelve Months
Three Months Ended Ended
December 31, December 31,
------------------ ------------------
Services and Product Line 2014 2013 2014 2013
-------- -------- -------- --------
Onsite Services 32.1% 30.6% 31.9% 29.9%
Traditional Reprographics 24.6% 27.3% 26.7% 28.7%
Color Services 21.5% 20.0% 21.3% 20.5%
Digital 7.6% 8.1% 7.9% 8.2%
Equipment and Supplies Sales 14.2% 14.0% 12.2% 12.7%
Outlook
ARC Document Solutions anticipates annual adjusted earnings per share in 2015 to be in the range of $0.37 to $0.41 on a fully diluted basis, and annual cash flow from operations to be in the range of $61 million to $66 million. The Company's outlook for 2015 annual adjusted EBITDA is expected to be in the range of $75 million to $80 million.
Teleconference and Webcast
ARC Document Solutions will host a conference call and audio webcast today at 2:00 P.M. Pacific Time (5:00 P.M. Eastern Time) to discuss results for the Company's fourth quarter of 2014. To access the live audio call, dial 888-500-6950. International callers may join the conference by dialing 719-325-2484. The conference ID number is 2292169. A live webcast will also be made available on the investor relations page of ARC Document Solutions' website at www.e-arc.com.
A replay of the call will be available for five days after the call's conclusion. To access the replay, dial 888-203-1112. International callers may access the replay by dialing 719-457-0820. The conference ID number is 2292169. The webcast will also be made available at www.e-arc.com for approximately 90 days following the call's conclusion.
Investor Day to be Held on March 6, 2015
ARC Document Solutions will be holding an investor day in Las Vegas on Friday, March 6, 2015. Planned events include demonstrations of SKYSITE™, ARC's recently released cloud-based, document distribution solution for the construction industry, as well as demonstrations of how its technology, innovation and scale in the marketplace create significant competitive advantages. Attendees can also expect a customer discussion panel, management presentations, and an opportunity to meet Jorge Avalos, ARC's recently appointed Chief Financial Officer, and other members of senior management.
Registration and venue information for the event in Las Vegas are available on the ARC Document Solutions Investor Relations website. Interested investors may also contact David Stickney, Vice President Communications and Investor Relations, at 925-949-5114, or via email at Email Contact.
About ARC Document Solutions (NYSE: ARC)
ARC Document Solutions is a leading document solutions company serving businesses of all types, with an emphasis on the non-residential segment of the architecture, engineering and construction industries. The Company helps more than 90,000 customers reduce costs and increase efficiency in the use of their documents, improve document access and control, and offers a wide variety of ways to print, produce, and store documents. ARC provides its solutions onsite in more than 8,500 of its customers' offices, offsite in service centers around the world, and digitally in the form of proprietary software and web applications. For more information please visit www.e-arc.com.
Forward-Looking Statements
This press release contains forward-looking statements that are based on current opinions, estimates and assumptions of management regarding future events and the future financial performance of the Company. Words such as "future," "look forward," and similar expressions identify forward-looking statements and all statements other than statements of historical fact, including, but not limited to, any projections regarding earnings, revenues and financial performance of the Company, could be deemed forward-looking statements. We caution you that such statements are only predictions and are subject to certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. In addition to matters affecting the construction, managed print services, document management or reprographics industries, or the economy generally, factors that could cause actual results to differ from expectations stated in forward-looking statements include, among others, the factors described in the caption entitled "Risk Factors" in Item 1A in ARC Document Solution's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, Quarterly Reports on Form 10-Q, and other periodic filings and prospectuses. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
ARC Document Solutions, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share data)
(Unaudited)
December 31, December 31,
------------- -------------
Current assets: 2014 2013
------------- -------------
Cash and cash equivalents $ 22,636 $ 27,362
Accounts receivable, net of allowances for
accounts receivable of $2,413 and $2,517 62,045 56,328
Inventories, net 16,251 14,047
Deferred income taxes 278 356
Prepaid expenses 4,767 4,324
Other current assets 6,080 4,013
------------- -------------
Total current assets 112,057 106,430
Property and equipment, net of accumulated
depreciation of $214,697 and $206,636 59,520 56,181
Goodwill 212,608 212,608
Other intangible assets, net 23,841 27,856
Deferred financing fees, net 2,440 3,242
Deferred income taxes 1,110 1,186
Other assets 2,492 2,419
------------- -------------
Total assets $ 414,068 $ 409,922
============= =============
Current liabilities:
Accounts payable $ 26,866 $ 23,363
Accrued payroll and payroll-related expenses 13,765 11,497
Accrued expenses 22,793 21,365
Current portion of long-term debt and
capital leases 27,969 21,500
------------- -------------
Total current liabilities 91,393 77,725
Long-term debt and capital leases 175,916 198,228
Deferred income taxes 33,463 31,667
Other long-term liabilities 3,458 3,163
------------- -------------
Total liabilities 304,230 310,783
------------- -------------
Commitments and contingencies
Stockholders' equity:
ARC Document Solutions, Inc. stockholders'
equity:
Preferred stock, $0.001 par value, 25,000
shares authorized; 0 shares issued and
outstanding -- --
Common stock, $0.001 par value, 150,000
shares authorized; 46,800 and 46,365 shares
issued and 46,723 and 46,320 shares
outstanding 47 46
Additional paid-in capital 110,650 105,806
Retained deficit (7,353) (14,628)
Accumulated other comprehensive (loss)
income (161) 634
------------- -------------
103,183 91,858
Less cost of common stock in treasury, 77
and 45 shares 408 168
------------- -------------
Total ARC Document Solutions, Inc.
stockholders' equity 102,775 91,690
Noncontrolling interest 7,063 7,449
------------- -------------
Total equity 109,838 99,139
------------- -------------
Total liabilities and equity $ 414,068 $ 409,922
============= =============
ARC Document Solutions, Inc.
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- -------------------
2014 2013 2014 2013
--------- --------- --------- --------
Service sales $ 92,329 $ 87,100 $ 371,884 $355,358
Equipment and supplies sales 15,265 14,185 51,872 51,837
--------- --------- --------- --------
Total net sales 107,594 101,285 423,756 407,195
Cost of sales 72,680 67,818 279,478 272,858
--------- --------- --------- --------
Gross profit 34,914 33,467 144,278 134,337
Selling, general and
administrative expenses 26,952 24,117 107,672 96,800
Amortization of intangible assets 1,489 1,556 5,987 6,612
Restructuring expense 12 779 777 2,544
--------- --------- --------- --------
Income from operations 6,461 7,015 29,842 28,381
Other income, net (25) (20) (96) (106)
Loss on extinguishment of debt 5,252 16,077 5,599 16,339
Interest expense, net 2,923 5,725 14,560 23,737
--------- --------- --------- --------
(Loss) income before income
tax provision (1,689) (14,767) 9,779 (11,589)
Income tax provision 418 1,040 2,348 2,986
--------- --------- --------- --------
Net (loss) income (2,107) (15,807) 7,431 (14,575)
Income attributable to
noncontrolling interest (220) (203) (156) (748)
--------- --------- --------- --------
Net (loss) income
attributable to ARC Document
Solutions, Inc. shareholders $ (2,327) $ (16,010) $ 7,275 $(15,323)
========= ========= ========= ========
(Loss) income per share
attributable to ARC Document
Solutions, Inc. shareholders:
Basic $ (0.05) $ (0.35) $ 0.16 $ (0.33)
========= ========= ========= ========
Diluted $ (0.05) $ (0.35) $ 0.15 $ (0.33)
========= ========= ========= ========
Weighted average common shares
outstanding:
Basic 46,393 45,928 46,245 45,856
Diluted 46,393 45,928 47,088 45,856
ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of cash flows provided by operating activities to EBIT,
EBITDA and Adjusted EBITDA
(Dollars in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2014 2013 2014 2013
--------- --------- --------- ---------
Cash flows provided by operating
activities $ 12,963 $ 6,788 $ 50,012 $ 46,798
Changes in operating assets
and liabilities, net of
effect of business
acquisitions 453 4,629 4,438 (2,388)
Non-cash expenses, including
depreciation, amortization
and restructuring (15,523) (27,224) (47,019) (58,985)
Income tax provision 418 1,040 2,348 2,986
Interest expense, net 2,923 5,725 14,560 23,737
Income attributable to
noncontrolling interest (220) (203) (156) (748)
--------- --------- --------- ---------
EBIT 1,014 (9,245) 24,183 11,400
Depreciation and amortization 8,574 8,655 34,135 34,745
--------- --------- --------- ---------
EBITDA 9,588 (590) 58,318 46,145
Loss on extinguishment of debt 5,252 16,077 5,599 16,339
Trade secret litigation costs
(1) 979 -- 3,766 --
Restructuring expense 12 779 777 2,544
Stock-based compensation 1,184 1,158 3,802 3,207
--------- --------- --------- ---------
Adjusted EBITDA $ 17,015 $ 17,424 $ 72,262 $ 68,235
========= ========= ========= =========
(1) On February 1, 2013, we filed a civil complaint against a competitor and
a former employee in the Superior Court of California for Orange County,
which alleged, among other claims, the misappropriation of ARC trade
secrets; namely, proprietary customer lists that were used to
communicate with our customers in an attempt to unfairly acquire their
business. In prior litigation with the competitor based on related
facts, in 2007 the competitor entered into a settlement agreement and
stipulated judgment, which included an injunction. We instituted this
suit to stop the defendant from using similar unfair business practices
against us in the Southern California market. The case proceeded to
trial in May 2014, and a jury verdict was entered for the defendants. In
December 2014, the court awarded the defendant attorneys' fees related
to the case. In February 2015, ARC entered into a settlement with the
defendant with regards to attorneys' fees. Legal fees associated with
the litigation totaled $1.0 million and $3.8 million for the three and
twelve months ended December 31, 2014, respectively.
ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of cash flows provided by operating activities to adjusted
cash flows provided by operating activities
(Dollars in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- --------------------
2014 2013 2014 2013
---------- ---------- ---------- ---------
Cash flows provided by operating
activities $ 12,963 $ 6,788 $ 50,012 $ 46,798
Payments related to trade
secret litigation costs 130 -- 2,744 --
Payments related to
restructuring expenses 9 980 1,203 4,304
Receipt of federal income tax
refund(1) -- -- -- (3,762)
---------- ---------- ---------- ---------
Adjusted cash flows provided by
operating activities $ 13,102 $ 7,768 $ 53,959 $ 47,340
========== ========== ========== =========
(1) In 2013, ARC received a federal income tax refund of $3.8 million
related to its 2009 consolidated federal income tax return.
ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of net (loss) income attributable to ARC to unaudited
adjusted net income attributable to ARC
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2014 2013 2014 2013
--------- --------- --------- ---------
Net (loss) income attributable
to ARC Document Solutions, Inc. $ (2,327) $ (16,010) $ 7,275 $ (15,323)
Loss on extinguishment of debt 5,252 16,077 5,599 16,339
Restructuring expense 12 779 777 2,544
Trade secret litigation costs 979 -- 3,766 --
Income tax benefit related to
above items (2,434) (6,877) (3,953) (7,667)
Deferred tax valuation
allowance and other discrete
tax items 1,141 7,172 (1,657) 8,245
--------- --------- --------- ---------
Unaudited adjusted net income
attributable to ARC Document
Solutions, Inc. $ 2,623 $ 1,141 $ 11,807 $ 4,138
========= ========= ========= =========
Actual:
(Loss) income per share
attributable to ARC Document
Solutions, Inc. shareholders:
Basic $ (0.05) $ (0.35) $ 0.16 $ (0.33)
========= ========= ========= =========
Diluted $ (0.05) $ (0.35) $ 0.15 $ (0.33)
========= ========= ========= =========
Weighted average common shares
outstanding:
Basic 46,393 45,928 46,245 45,856
Diluted 46,393 45,928 47,088 45,856
Adjusted:
Earnings per share attributable
to ARC Document Solutions, Inc.
shareholders:
Basic $ 0.06 $ 0.02 $ 0.26 $ 0.09
========= ========= ========= =========
Diluted $ 0.06 $ 0.02 $ 0.25 $ 0.09
========= ========= ========= =========
Weighted average common shares
outstanding:
Basic 46,393 45,928 46,245 45,856
Diluted 47,595 46,682 47,088 46,157
ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of net (loss) income attributable to ARC to EBIT, EBITDA and
Adjusted EBITDA
(Dollars in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2014 2013 2014 2013
--------- --------- ---------- ---------
Net (loss) income attributable
to ARC Document Solutions, Inc. $ (2,327) $ (16,010) $ 7,275 $ (15,323)
Interest expense, net 2,923 5,725 14,560 23,737
Income tax provision 418 1,040 2,348 2,986
--------- --------- ---------- ---------
EBIT 1,014 (9,245) 24,183 11,400
Depreciation and amortization 8,574 8,655 34,135 34,745
--------- --------- ---------- ---------
EBITDA 9,588 (590) 58,318 46,145
Loss on extinguishment of debt 5,252 16,077 5,599 16,339
Trade secret litigation costs 979 -- 3,766 --
Restructuring expense 12 779 777 2,544
Stock-based compensation 1,184 1,158 3,802 3,207
--------- --------- ---------- ---------
Adjusted EBITDA $ 17,015 $ 17,424 $ 72,262 $ 68,235
========= ========= ========== =========
ARC Document Solutions, Inc.
Net Sales by Product Line
(Dollars in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- ---------------------
2014 2013 2014 2013
---------- ---------- ---------- ----------
Service Sales
Onsite services(1) $ 34,578 $ 31,008 $ 135,020 $ 121,550
Traditional reprographics 26,477 27,693 113,179 116,673
Color 23,128 20,212 90,310 83,601
Digital 8,146 8,187 33,375 33,534
---------- ---------- ---------- ----------
Total services sales 92,329 87,100 371,884 355,358
Equipment and supplies sales 15,265 14,185 51,872 51,837
---------- ---------- ---------- ----------
Total net sales $ 107,594 $ 101,285 $ 423,756 $ 407,195
========== ========== ========== ==========
(1) Represents work done at our customer sites, which includes Facilities
Management ("FM") and Managed Print Services ("MPS").
Non-GAAP Financial Measures.
EBIT, EBITDA and related ratios presented in this report are supplemental measures of our performance that are not required by or presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These measures are not measurements of our financial performance under GAAP and should not be considered as alternatives to net income, income from operations, or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating, investing or financing activities as a measure of our liquidity.
EBIT represents net income before interest and taxes. EBITDA represents net income before interest, taxes, depreciation and amortization. EBIT margin is a non-GAAP measure calculated by dividing EBIT by net sales. EBITDA margin is a non-GAAP measure calculated by dividing EBITDA by net sales.
We present EBIT, EBITDA and related ratios because we consider them important supplemental measures of our performance and liquidity. We believe investors may also find these measures meaningful, given how our management makes use of them. The following is a discussion of our use of these measures.
We use EBIT and EBITDA to measure and compare the performance of our operating segments. Our operating segments' financial performance includes all of the operating activities except debt and taxation which are managed at the corporate level for U.S. operating segments. As a result, we believe EBIT is the best measure of operating segment profitability and the most useful metric by which to measure and compare the performance of our operating segments. We use EBITDA to measure performance for determining consolidated-level compensation. In addition, we use EBIT and EBITDA to evaluate potential acquisitions and potential capital expenditures.
EBIT, EBITDA and related ratios have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows:
- They do not reflect our cash expenditures, or future requirements for capital expenditures and contractual commitments;
- They do not reflect changes in, or cash requirements for, our working capital needs;
- They do not reflect the significant interest expense, or the cash requirements necessary, to service interest or principal payments on our debt;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and
- Other companies, including companies in our industry, may calculate these measures differently than we do, limiting their usefulness as comparative measures.
Because of these limitations, EBIT, EBITDA, and related ratios should not be considered as measures of discretionary cash available to us to invest in business growth or to reduce our indebtedness. We compensate for these limitations by relying primarily on our GAAP results and using EBIT, EBITDA and related ratios only as supplements.
Our presentation of adjusted net income, adjusted cash flows from operating activities, and adjusted EBITDA over certain periods is an attempt to provide meaningful comparisons to our historical performance for our existing and future investors. The unprecedented changes in our end markets over the past several years have required us to take measures that are unique in our history and specific to individual circumstances. Comparisons inclusive of these actions make normal financial and other performance patterns difficult to discern under a strict GAAP presentation. Each non-GAAP presentation, however, is explained in detail in the reconciliation tables above. For more information, see our 2013 Annual Report on Form 10-K.
Specifically, we have presented adjusted net income attributable to ARC shareholders and adjusted earnings per share attributable to ARC shareholders for the three and twelve months ended December 31, 2014 and 2013 to reflect the exclusion of loss on extinguishment of debt, restructuring expense, trade secret litigation costs, and changes in the valuation allowances related to certain deferred tax assets and other discrete tax items. We have presented adjusted cash flows from operating activities for the three and twelve months ended December 31, 2014 and 2013 to reflect the exclusion of cash payments related to trade secret litigation costs, cash payments related to restructuring expenses, and the receipt of a federal income tax refund in 2013 related to the Company's 2009 consolidated federal income tax return. This presentation facilitates a meaningful comparison of our operating results for the three and twelve months ended December 31, 2014 and 2013. We believe these charges were the result of the current macroeconomic environment, our capital restructuring, or other items which are not indicative of our actual operating performance.
We presented adjusted EBITDA in three and twelve months ended December 31, 2014 and 2013 to exclude loss on extinguishment of debt, trade secret litigation costs, stock-based compensation expense, and restructuring expense. The adjustment of EBITDA for these items is consistent with the definition of adjusted EBITDA in our credit agreement; therefore, we believe this information is useful to investors in assessing our financial performance.
ARC Document Solutions
Consolidated Statements of Cash
Flows
(Dollars in thousands) Three Months Ended Twelve Months Ended
(Unaudited) December 31, December 31,
-------------------- --------------------
2014 2013 2014 2013
--------- --------- --------- ---------
Cash flows from operating
activities
Net (loss) income $ (2,107) $ (15,807) $ 7,431 $ (14,575)
Adjustments to reconcile net
(loss) income to net cash
provided by operating
activities:
Allowance for accounts
receivable 102 85 546 636
Depreciation 7,085 7,099 28,148 28,133
Amortization of intangible
assets 1,489 1,556 5,987 6,612
Amortization of deferred
financing costs (37) 267 550 1,098
Amortization of bond discount 316 171 972 671
Stock-based compensation 1,184 1,158 3,802 3,207
Deferred income taxes (1,025) (5,827) 5,247 (4,909)
Deferred tax valuation
allowance 1,282 6,717 (3,370) 7,277
Restructuring expense, non-
cash portion -- (119) -- 244
Loss on early extinguishment
of debt 5,252 16,077 5,599 16,339
Other non-cash items, net (125) 40 (462) (323)
Changes in operating assets
and liabilities, net of
effect of business
acquisitions:
Accounts receivable 1,526 2,225 (6,898) (5,133)
Inventory (149) (345) (2,220) 376
Prepaid expenses and other
assets (1,521) (22) (1,830) 1,966
Accounts payable and accrued
expenses (309) (6,487) 6,510 5,179
--------- --------- --------- ---------
Net cash provided by operating
activities 12,963 6,788 50,012 46,798
--------- --------- --------- ---------
Cash flows from investing
activities
Capital expenditures (3,242) (3,335) (13,269) (18,191)
Payments for businesses
acquired, net of cash acquired
and including other cash
payments associated with the
acquisitions -- -- (342) --
Other (690) 119 (185) 741
--------- --------- --------- ---------
Net cash used in investing
activities (3,932) (3,216) (13,796) (17,450)
--------- --------- --------- ---------
Cash flows from financing
activities
Proceeds from stock option
exercises 26 59 1,227 59
Proceeds from issuance of common
stock under Employee Stock
Purchase Plan 17 17 82 30
Share repurchases, including
shares surrendered for tax
withholding (89) (34) (240) (124)
Proceeds from borrowings on
long-term debt agreements 175,000 196,000 175,000 196,402
Payments of debt extinguishment
costs -- (11,264) -- (11,330)
Early extinguishment of long-
term debt (182,000) (193,000) (194,500) (200,000)
Payments on long-term debt
agreements and capital leases (2,780) (2,984) (19,217) (12,379)
Net borrowings (repayments)
under revolving credit
facilities 926 201 98 (237)
Payment of deferred financing
costs (2,281) (2,220) (2,735) (2,220)
Dividends paid to noncontrolling
interest -- -- (486) (485)
--------- --------- --------- ---------
Net cash used in financing
activities (11,181) (13,225) (40,771) (30,284)
--------- --------- --------- ---------
Effect of foreign currency
translation on cash balances (49) (39) (171) 277
--------- --------- --------- ---------
Net change in cash and cash
equivalents (2,199) (9,692) (4,726) (659)
Cash and cash equivalents at
beginning of period 24,835 37,054 27,362 28,021
--------- --------- --------- ---------
Cash and cash equivalents at end
of period $ 22,636 $ 27,362 $ 22,636 $ 27,362
========= ========= ========= =========
Supplemental disclosure of cash
flow information:
Noncash financing activities:
Capital lease obligations
incurred $ 4,146 $ 3,662 $ 19,055 $ 10,399
Liabilities in connection with
the acquisition of businesses $ 658 $ -- $ 1,768 $ --
Liabilities in connection with
deferred financing costs $ 8 $ 433 $ 8 $ 433
Contact Information: David Stickney VP Corporate Communications & Investor Relations 925-949-5114