PR Newswire
WALNUT CREEK, Calif., May 1, 2018
WALNUT CREEK, Calif., May 1, 2018 /PRNewswire/ -- ARC Document Solutions, Inc. (NYSE: ARC), a leading document solutions provider to design, engineering, construction, and facilities management professionals, today reported its financial results for the first quarter ended March 31, 2018.
Financial Highlights: | | | |||
| Three Months Ended | ||||
| March 31, | ||||
(All dollar amounts in millions, except EPS) | 2018 | | 2017 | ||
Net Sales | $ | 97.7 | | $ | 98.7 |
Gross Margin | 30.9% | | 31.2% | ||
Net income attributable to ARC | $ | 0.6 | | $ | 1.8 |
Adjusted net income attributable to ARC | $ | 0.5 | | $ | 1.9 |
Earnings per share - Diluted | $ | 0.01 | | $ | 0.04 |
Adjusted earnings per share - Diluted | $ | 0.01 | | $ | 0.04 |
Cash (used in) provided by operating activities | $ | (2.0) | | $ | 6.9 |
EBITDA | $ | 10.2 | | $ | 12.8 |
Adjusted EBITDA | $ | 10.9 | | $ | 13.6 |
Capital Expenditures | $ | 2.9 | | $ | 2.0 |
Debt & Capital Leases (including current), net of unamortized deferred financing fees | $ | 138.1 | | $ | 154.3 |
Management Commentary
"We are starting to see our sales declines moderating, while we experience a return to growth in our more traditional business lines. This is encouraging and clear evidence that we are making progress against our strategic objectives laid out last year," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC Document Solutions. "Our renewed focus on ARC's print business gained considerable traction during the quarter with a 2.1% increase in CDIM."
"While our efforts to protect our print business and grow our tech business are starting to show results, recent experience shows that we must continue to make changes as we move forward and stay ahead of the curve in an ever-changing business environment," said Mr. Suriyakumar. "We remain upbeat about the coming year and our strategic direction, and in pursuit of further progress, we will continue to support initiatives that are growing, but shrink costs associated with products and services that have not."
"Medical costs were exceptionally high during the period, having a 140 basis point impact on our operating margins and a two cent impact on earnings per share. Despite these costs, gross margin declined just 30 basis points," said Jorge Avalos, Chief Financial Officer. "Negative cash flow from operations was due to changes in working capital, and more specifically the timing of payables. This is a trend that is likely to be familiar to our long-term investors, and as usual, we expect this trend to reverse by the second half of the year, and anticipate strong cash flows for the year as our forecast demonstrates."
2018 First Quarter Supplemental Information:
Net sales were $97.7 million, a 1.0% decrease compared to the first quarter of 2017.
Days sales outstanding were 55 in Q1 2018 and 54 in Q1 2017.
Architectural, engineering, construction and building owner/operators (AEC/O) customers comprised approximately 79% of our total net sales, while customers outside of construction made up approximately 21% of our total net sales.
Total number of MPS locations at the end of the first quarter has grown to approximately 10,270, a net gain of approximately 590 locations over Q1 2017.
Adjusted EBITDA excludes loss on extinguishment and modification of debt and stock-based compensation expense.
Sales from Services and Product Lines as a Percentage of Net Sales | | | |
| Three Months Ended | ||
| March 31, | ||
Services and Product Line | 2018 | | 2017 |
CDIM | 53.5% | | 51.9% |
MPS | 32.2% | | 32.9% |
AIM | 3.0% | | 3.3% |
Equipment and supplies sales | 11.3% | | 11.9% |
Outlook
The outlook for ARC Document Solutions remains unchanged with 2018 fully-diluted annual adjusted earnings per share anticipated to be in the range of $0.10 to $0.16; 2018 annual cash provided by operating activities projected to be in the range of $44 to $50 million; and 2018 annual adjusted EBITDA forecast to be in the range of $48 to $54 million.
Teleconference and Webcast
ARC Document Solutions will hold a conference call with investors and analysts on Tuesday, May 1, 2018, at 2 P.M. Pacific Time (5 P.M. Eastern Time) to discuss results for the Company's 2018 first quarter. To access the live audio call, dial 800-239-9838. International callers may join the conference by dialing +1 323-794-2551. The conference code is 9761261. A live webcast will also be made available on the investor relations page of ARC Document Solution's website at http://ir.e-arc.com. A recording of the webcast will be available for approximately 90 days following the call's conclusion.
About ARC Document Solutions (NYSE: ARC)
ARC Document Solutions distributes Documents and Information to facilitate communication for design, engineering and construction professionals, real estate managers and developers, facilities owners, and a variety of similar disciplines. The Company provides cloud and mobile solutions, professional services, and hardware to help its customers around the world reduce costs and increase efficiency, improve information access and control, and communicate faster, easier, and better. Follow ARC at www.e-arc.com.
Forward-Looking Statements
Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.