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ARC Reports Financial Results for Third Quarter 2024

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ARC Document Solutions reported Q3 2024 financial results with net sales of $74.4 million, a 4.8% increase from Q3 2023. The company experienced a slight decline in gross margin to 33.3% from 34.0%. Notable impacts include a net loss of $0.1 million compared to $3.2 million income in Q3 2023, largely due to $3.2 million in transaction costs related to a going-private transaction. Cash and cash equivalents stood at $51.3 million, with operating activities providing $9.1 million. The company will pay a quarterly dividend of $0.05 per share on November 29, 2024. MPS locations decreased by approximately 200 year-over-year to 10,300.

ARC Document Solutions ha riportato i risultati finanziari del terzo trimestre 2024 con vendite nette pari a 74,4 milioni di dollari, un aumento del 4,8% rispetto al terzo trimestre 2023. L'azienda ha registrato una leggera diminuzione del margine lordo, scendendo al 33,3% dal 34,0%. Tra gli impatti significativi c'è stata una perdita netta di 0,1 milioni di dollari rispetto a un reddito di 3,2 milioni di dollari nel terzo trimestre del 2023, principalmente a causa di costi di transazione pari a 3,2 milioni di dollari relativi a una transazione di privatizzazione. Le disponibilità liquide e equivalenti ammontano a 51,3 milioni di dollari, con le attività operative che hanno generato 9,1 milioni di dollari. L'azienda distribuirà un dividendo trimestrale di 0,05 dollari per azione il 29 novembre 2024. Le sedi MPS sono diminuite di circa 200 unità rispetto all'anno precedente, raggiungendo un totale di 10.300.

ARC Document Solutions informó los resultados financieros del tercer trimestre de 2024 con ventas netas de 74,4 millones de dólares, un aumento del 4,8% en comparación con el tercer trimestre de 2023. La compañía experimentó una ligera disminución en el margen bruto, cayendo al 33,3% desde el 34,0%. Entre los impactos notables se encuentra una pérdida neta de 0,1 millones de dólares en comparación con un ingreso de 3,2 millones de dólares en el tercer trimestre de 2023, en gran parte debido a costos de transacción de 3,2 millones de dólares relacionados con una transacción de privatización. Las disponibilidades de efectivo y equivalentes ascendieron a 51,3 millones de dólares, con actividades operativas que generaron 9,1 millones de dólares. La compañía pagará un dividendo trimestral de 0,05 dólares por acción el 29 de noviembre de 2024. Las ubicaciones de MPS disminuyeron en aproximadamente 200 en comparación con el año anterior, alcanzando un total de 10,300.

ARC Document Solutions는 2024년 3분기 재무 결과를 보고하며 순매출이 7440만 달러로 2023년 3분기보다 4.8% 증가했다고 발표했습니다. 회사는 총 이익률이 34.0%에서 33.3%로 약간 감소했습니다. 주목할 만한 영향으로는 2023년 3분기 320만 달러의 수익에 비해 10만 달러의 순손실이 발생했으며, 이는 주로 사모 전환 거래와 관련된 320만 달러의 거래 비용 때문입니다. 현금 및 현금성 자산은 5130만 달러로, 운영 활동에서 910만 달러를 창출했습니다. 회사는 2024년 11월 29일에 주당 0.05달러의 분기 배당금을 지급할 예정입니다. MPS 위치는 전년 대비 약 200개 줄어들어 총 10,300개에 이릅니다.

ARC Document Solutions a rapporté les résultats financiers du troisième trimestre 2024 avec des ventes nettes de 74,4 millions de dollars, soit une augmentation de 4,8 % par rapport au troisième trimestre 2023. L'entreprise a connu une légère baisse de la marge brute, passant de 34,0 % à 33,3 %. Parmi les impacts notables, on trouve une perte nette de 0,1 million de dollars par rapport à un revenu de 3,2 millions de dollars au troisième trimestre 2023, en grande partie en raison de coûts de transaction de 3,2 millions de dollars liés à une opération de privatisation. Les liquidités et équivalents de liquidités s'élevaient à 51,3 millions de dollars, les activités opérationnelles ayant généré 9,1 millions de dollars. L'entreprise versera un dividende trimestriel de 0,05 dollar par action le 29 novembre 2024. Les emplacements MPS ont diminué d'environ 200 par rapport à l'année précédente, atteignant un total de 10 300.

ARC Document Solutions berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit Nettoverkaufszahlen von 74,4 Millionen US-Dollar, was einem Anstieg von 4,8% im Vergleich zum dritten Quartal 2023 entspricht. Das Unternehmen verzeichnete einen leichten Rückgang der Bruttomarge von 34,0% auf 33,3%. Zu den bemerkenswerten Auswirkungen gehört ein Nettoverlust von 0,1 Millionen US-Dollar im Vergleich zu einem Einkommen von 3,2 Millionen US-Dollar im dritten Quartal 2023, hauptsächlich bedingt durch Transaktionskosten von 3,2 Millionen US-Dollar im Zusammenhang mit einer Privattransaktion. Die liquiden Mittel und gleichwertigen Beträge beliefen sich auf 51,3 Millionen US-Dollar, wobei die operativen Aktivitäten 9,1 Millionen US-Dollar einbrachten. Das Unternehmen wird am 29. November 2024 eine vierteljährliche Dividende von 0,05 US-Dollar pro Aktie auszahlen. Die MPS-Standorte reduzierten sich im Vergleich zum Vorjahr um etwa 200 auf insgesamt 10.300.

Positive
  • Net sales increased 4.8% to $74.4 million in Q3 2024
  • Operating cash flow improved to $9.1 million from $8.7 million in Q3 2023
  • Strong cash position with $51.3 million in cash and cash equivalents
Negative
  • Net loss of $0.1 million compared to $3.2 million profit in Q3 2023
  • Gross margin declined to 33.3% from 34.0% year-over-year
  • MPS locations decreased by 200 year-over-year
  • $3.2 million in transaction costs impacted earnings negatively
  • Debt and finance leases remained significant at $59.1 million

Insights

The Q3 2024 results reveal mixed performance with concerning trends. While net sales increased by 4.8% to $74.4 million, profitability metrics deteriorated significantly. The company swung to a net loss of $0.1 million from a profit of $3.2 million in Q3 2023. Gross margin contracted to 33.3% from 34.0%.

The going-private transaction costs of $3.2 million significantly impacted earnings, reducing EPS by $0.07. Operating cash flow quality remains stable at $9.1 million, though year-to-date figures show decline. The MPS location reduction of 200 sites signals potential market share challenges. With debt at $59.1 million against cash reserves of $51.3 million, the balance sheet remains manageable but requires monitoring.

SAN RAMON, CA / ACCESSWIRE / November 4, 2024 / ARC Document Solutions, Inc. (NYSE:ARC), a leading provider of digital printing and document-related services, today reported its financial results for the third quarter ended September 30, 2024.

Financial Highlights:

Three Months Ended

Nine Months Ended

September 30,

September 30,

(All dollar amounts in millions, except EPS)

2024

2023

2024

2023

Net sales

$

74.4

$

71.1

$

220.4

$

212.3

Gross margin

33.3

%

34.0

%

33.6

%

34.0

%

Net (loss) income attributable to ARC

$

(0.1

)

$

3.2

$

5.5

$

9.1

Adjusted net income attributable to ARC

$

-

$

3.2

$

5.9

$

9.4

Earnings per share - diluted

$

-

$

0.07

$

0.13

$

0.21

Adjusted earnings per share - diluted

$

-

$

0.07

$

0.14

$

0.22

Cash provided by operating activities

$

9.1

$

8.7

$

19.2

$

22.9

EBITDA1

$

5.6

$

9.4

$

22.5

$

28.2

Adjusted EBITDA1

$

6.2

$

10.0

$

24.5

$

29.8

Transaction costs

$

3.2

$

-

$

4.1

$

-

Capital expenditures

$

4.0

$

3.2

$

10.9

$

7.7

Debt & finance leases (including current)

$

59.1

$

62.2

2024Third Quarter Supplemental Information:

Net sales were $74.4 million, a 4.8%increase compared to the third quarter of 2023.

Cash & cash equivalents on the consolidated balance sheet in the third quarter 2024 were $51.3 million.

Accrued transaction costs of $3.2 million related to the going-private transaction had an earnings per share impact of $0.07 in the third quarter 2024 as these costs were not tax deductible.

Cash provided by operating activities was reduced by $1.6 million of costs paid in connection with the going-private transaction in the third quarter 2024.

ARC's next quarterly cash dividend of $0.05 will be paid on November 29, 2024 to shareholders of record on October 31, 2024.

Days sales outstanding2 were 51 in Q3 2024 and in Q3 2023.

The number of MPS locations have declined slightly year over year to approximately 10,300 as of September 30, 2024, representing a net decrease of approximately 200 locations compared to September 30, 2023.

1Non-GAAP measures. See Non-GAAP Financial Measures and Key Performance Indicators below for definitions and reconciliations.
2 Key Performance Indicator. See Non-GAAP Financial Measures and Key Performance Indicators below for definition.

About ARC Document Solutions (NYSE: ARC)

ARC partners with top brands around the world to tell their stories through visually compelling graphics. We use advanced digital printing technology, sustainable materials, and innovative techniques to bring their vision to life. ARC also provides other digital printing and scanning services to a wide variety of industries all over North America and in select markets around the world. Follow ARC at www.e-arc.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or referenced in this press release that address activities, events or developments which we expect will or may occur in the future are forward-looking statements. You can generally identify these statements and other forward-looking statements in this document by words such as "may," "will," "should," "can," "could," "anticipate," "estimate," "expect," "predict," "project," "future," "potential," "intend," "plan," "assume," "believe," "forecast," "look," "build," "focus," "create," "work," "continue," "target," "poised," "advance," "drive," "aim," "forecast," "approach," "seek," "schedule," "position," "pursue," "progress," "budget," "outlook," "trend," "guidance," "commit," "on track," "objective," "goal," "strategy," "opportunity," "ambitions," "aspire" and similar expressions, and variations or negative of such terms or other variations thereof. Words and terms of similar substance used in connection with any discussion of future plans, actions or events identify forward-looking statements. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. All such forward-looking statements are based upon current plans, estimates, expectations and ambitions that are subject to risks, uncertainties and assumptions, many of which are beyond the control of ARC Document Solutions Inc. (the "Company" or "ARC"), that could cause actual results to differ materially from those expressed in such forward-looking statements. Key factors that could cause actual results to differ materially include, but are not limited to, the expected timing and likelihood of completion of the merger, including the timing, receipt and terms and conditions of any required governmental approvals of the merger; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; the possibility that ARC's stockholders may not approve the merger; the risk that the parties may not be able to satisfy the conditions to the merger in a timely manner or at all; risks related to disruption of management time from ongoing business operations due to the merger; the risk that any announcements relating to the merger could have adverse effects on the market price of the ARC's common stock; the risk that the merger and its announcement could have an adverse effect on the parties' business relationships and business generally, including the ability of ARC to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers, and on their operating results and businesses generally; the risk of unforeseen or unknown liabilities; customer, shareholder, regulatory and other stakeholder approvals and support; the risk of unexpected future capital expenditures; the risk of potential litigation relating to the merger that could be instituted against ARC or its directors and/or officers; the risk associated with third-party contracts containing material consent, anti-assignment, transfer or other provisions that may be related to the merger which are not waived or otherwise satisfactorily resolved; the risk of ARC's ability to access short- and long-term debt markets on a timely and affordable basis; the risk of various events that could disrupt operations, including severe weather, such as droughts, floods, avalanches and earthquakes, pandemic conditions, cybersecurity attacks, security threats and governmental response to them, and technological changes; the risks of labor disputes, changes in labor costs and labor difficulties; the risks resulting from other effects of industry, market, economic, legal or legislative, political or regulatory conditions, and other risks and factors that may be difficult to predict and beyond ARC's control, including those detailed in ARC's Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 and subsequent Current Reports on Form 8-K that are available on ARC's website at https://ir.e-arc.com and on the website of the Securities and Exchange Commission ("SEC") at http://www.sec.gov. ARC's forward-looking statements are based on assumptions that ARC believes to be reasonable but that may not prove to be accurate. Other unpredictable events or factors not discussed in this press release could also have material adverse effects on forward-looking statements. ARC does not assume an obligation to update any forward-looking statements, except as required by applicable law. These forward-looking statements speak only as of the date they are made.

Contact Information:
David Stickney
VP Corporate Communications & Investor Relations
925-949-5114

ARC Document Solutions, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)

September 30,

December 31,

Current assets:

2024

2023

Cash and cash equivalents

$

51,291

$

56,093

Accounts receivable, net of allowances for accounts receivable of $1,640 and $1,857

41,896

35,775

Inventory

9,202

8,818

Prepaid expenses

4,828

3,988

Other current assets

4,310

3,978

Total current assets

111,527

108,652

Property and equipment, net of accumulated depreciation of $226,164 and $229,122

43,668

40,925

Right-of-use assets from operating leases

33,670

32,838

Goodwill

121,051

121,051

Other intangible assets, net

134

162

Deferred income taxes

1,450

4,383

Other assets

1,955

2,113

Total assets

$

313,455

$

310,124

Current liabilities:

Accounts payable

$

25,639

$

24,175

Accrued payroll and payroll-related expenses

10,572

9,401

Accrued expenses

20,860

18,787

Current operating lease liabilities

10,655

9,924

Current portion of finance leases

6,976

8,870

Total current liabilities

74,702

71,157

Long-term operating lease liabilities

27,367

27,357

Long-term debt and finance leases

52,172

53,366

Deferred income taxes

236

52

Other long-term liabilities

2,431

2,467

Total liabilities

156,908

154,399

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; 53,125 and 52,526 shares issued and 43,262 and 42,783 shares outstanding

53

52

Additional paid-in capital

138,516

136,460

Retained earnings

43,327

44,144

Accumulated other comprehensive loss

(4,135

)

(4,200

)

177,761

176,456

Less cost of common stock in treasury, 9,863 and 9,743 shares

22,727

22,390

Total ARC Document Solutions, Inc. stockholders' equity

155,034

154,066

Noncontrolling interest

1,513

1,659

Total equity

156,547

155,725

Total liabilities and equity

$

313,455

$

310,124

ARC Document Solutions, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

Net sales

$

74,448

$

71,057

$

220,354

$

212,325

Cost of sales

49,689

46,908

146,400

140,075

Gross profit

24,759

24,149

73,954

72,250

Selling, general and administrative expenses

23,268

19,269

63,681

57,764

Amortization of intangible assets

9

10

29

31

Income from operations

1,482

4,870

10,244

14,455

Other income, net

(23

)

(16

)

(94

)

(42

)

Interest expense, net

327

397

968

1,300

Income before income tax provision

1,178

4,489

9,370

13,197

Income tax provision

1,279

1,368

3,972

4,262

Net (loss) income

(101

)

3,121

5,398

8,935

Loss attributable to the noncontrolling interest

36

44

149

188

Net (loss) income attributable to ARC Document Solutions, Inc. stockholders

$

(65

)

$

3,165

$

5,547

$

9,123

Earnings per share attributable to ARC Document Solutions, Inc. stockholders

Basic

$

-

$

0.07

$

0.13

$

0.21

Diluted

$

-

$

0.07

$

0.13

$

0.21

Weighted average common shares outstanding:

Basic

42,529

42,554

42,355

42,634

Diluted

43,440

43,516

43,192

43,624

ARC Document Solutions, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

Cash flows from operating activities

Net (loss) income

$

(101

)

$

3,121

$

5,398

$

8,935

Adjustments to reconcile net income to net cash provided by operating activities:

Allowance for credit losses

(21

)

56

135

285

Depreciation

4,032

4,488

12,026

13,503

Amortization of intangible assets

9

10

29

31

Amortization of deferred financing costs

17

18

52

50

Stock-based compensation

593

599

1,935

1,622

Deferred income taxes

986

1,101

3,256

3,646

Deferred tax valuation allowance

14

111

(107

)

160

Other non-cash items, net

(59

)

(190

)

(394

)

(347

)

Changes in operating assets and liabilities:

Accounts receivable

(147

)

(2,190

)

(6,151

)

(1,968

)

Inventory

78

188

(368

)

(135

)

Prepaid expenses and other assets

2,420

1,947

6,249

6,489

Accounts payable and accrued expenses

1,295

(555

)

(2,851

)

(9,414

)

Net cash provided by operating activities

9,116

8,704

19,209

22,857

Cash flows from investing activities

Capital expenditures

(4,014

)

(3,232

)

(10,933

)

(7,728

)

Other

259

76

477

267

Net cash used in investing activities

(3,755

)

(3,156

)

(10,456

)

(7,461

)

Cash flows from financing activities

Proceeds from stock option exercises

12

49

40

1,130

Proceeds from issuance of common stock under Employee Stock Purchase Plan

23

38

82

98

Share repurchases

-

(1,041

)

(337

)

(2,849

)

Payments on finance leases

(2,140

)

(2,969

)

(7,055

)

(9,163

)

Borrowings under revolving credit facilities

40,000

40,000

120,000

122,000

Payments under revolving credit facilities

(40,000

)

(40,000

)

(120,000

)

(122,000

)

Payment of deferred financing costs

-

-

-

(23

)

Dividends paid

(2,127

)

(2,132

)

(6,346

)

(6,399

)

Net cash used in financing activities

(4,232

)

(6,055

)

(13,616

)

(17,206

)

Effect of foreign currency translation on cash balances

251

27

61

(165

)

Net change in cash and cash equivalents

1,380

(480

)

(4,802

)

(1,975

)

Cash and cash equivalents at beginning of period

49,911

51,066

56,093

52,561

Cash and cash equivalents at end of period

$

51,291

$

50,586

$

51,291

$

50,586

Supplemental disclosure of cash flow information

Noncash investing and financing activities

Finance lease obligations incurred

$

1,330

$

2,663

$

3,935

$

5,145

Operating lease obligations incurred

$

1,724

$

2,695

$

8,187

$

7,070

ARC Document Solutions, Inc.
Net Sales by Product Line
(In thousands)
(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

Service sales

Digital Printing

$

46,636

$

43,537

$

136,127

$

129,134

MPS

18,315

18,582

55,627

56,556

Scanning and Digital Imaging

5,354

4,991

16,676

14,845

Total service sales

70,305

67,110

208,430

200,535

Equipment and Supplies Sales

4,143

3,947

11,924

11,790

Total net sales

$

74,448

$

71,057

$

220,354

$

212,325

Non-GAAP Financial Measures and Key Performance Indicators

Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, adjusted net income and adjusted earnings per share presented in this press release 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, diluted earnings per share 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. We have presented these measures 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.

EBITDA represents net income before interest, taxes, depreciation and amortization.

We use EBITDA to measure and compare the performance of our operating divisions. Our operating divisions' financial performance includes all of the operating activities except debt and taxation which are managed at the corporate level for U.S. operating divisions. We use EBITDA to compare the performance of our operating divisions and to measure performance for determining consolidated-level compensation. In addition, we use EBITDA to evaluate potential acquisitions and potential capital expenditures.

EBITDA has 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, EBITDA 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 EBITDA only as supplements.

Our presentation of adjusted net income and adjusted EBITDA 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 below.

Specifically, we have presented adjusted net income attributable to ARC and adjusted earnings per share attributable to ARC stockholders for the three and nine months ended September 30, 2024 to reflect the exclusion of changes in the valuation allowances related to certain deferred tax assets and other discrete tax items. We believe this presentation helps facilitate our investors understanding of our results of operations and allows them to make meaningful comparisons of our operating results for the three and nine months ended September 30, 2024 against the corresponding periods in 2023. We believe these changes were the result of items which are not indicative of our actual operating performance.

We have presented Adjusted EBITDA for the three and nine months ended September 30, 2024 to exclude stock-based compensation expense. The adjustment to exclude stock-based compensation expense from EBITDA 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 and ability to access our credit facility.

Key Performance Indicators

DSO is calculated by taking the respective years September 30, accounts receivable balance divided by the net sales for the quarter multiplied by the number of total days in a quarter. We have presented DSO because we consider it to be an important indicator of the efficiency of our business and the quality of our cash flows. We believe investors may also find this metric meaningful given the importance of cash flows from operations and management's ability to efficiently manage our working capital. We use DSO to measure and compare the cash management performance of our operating divisions. Other companies, including companies in our industry, may calculate DSO differently than we do, limiting its usefulness as a comparative measure.

ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of cash flows provided by operating activities to EBITDA and Adjusted EBITDA
(In thousands)
(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

Cash flows provided by operating activities

$

9,116

$

8,704

$

19,209

$

22,857

Changes in operating assets and liabilities

(3,646

)

610

3,121

5,028

Non-cash expenses, including depreciation and amortization

(5,571

)

(6,193

)

(16,932

)

(18,950

)

Income tax provision

1,279

1,368

3,972

4,262

Interest expense, net

327

397

968

1,300

Loss attributable to the noncontrolling interest

36

44

149

188

Depreciation and amortization

4,041

4,498

12,055

13,534

EBITDA

5,582

9,428

22,542

28,219

Stock-based compensation

593

599

1,935

1,622

Adjusted EBITDA

$

6,175

$

10,027

$

24,477

$

29,841

ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of net (loss) income attributable to ARC Document Solutions, Inc. to EBITDA and Adjusted
EBITDA
(In thousands)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

Net (loss) income attributable to ARC Document Solutions, Inc.

$

(65

)

$

3,165

$

5,547

$

9,123

Interest expense, net

327

397

968

1,300

Income tax provision

1,279

1,368

3,972

4,262

Depreciation and amortization

4,041

4,498

12,055

13,534

EBITDA

5,582

9,428

22,542

28,219

Stock-based compensation

593

599

1,935

1,622

Adjusted EBITDA

$

6,175

$

10,027

$

24,477

$

29,841

ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of net (loss) income attributable to ARC Document Solutions, Inc. to unaudited adjusted net income attributable to ARC Document Solutions, Inc.
(In thousands, except per share data)
(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2024

2023

2024

2023

Net (loss) income attributable to ARC Document Solutions, Inc.

$

(65

)

$

3,165

$

5,547

$

9,123

Deferred tax valuation allowance and other discrete tax items

84

30

361

297

Adjusted net income attributable to ARC Document Solutions, Inc.

$

19

$

3,195

$

5,908

$

9,420

Actual:

Earnings per share attributable to ARC Document Solutions, Inc. stockholders:

Basic

$

-

$

0.07

$

0.13

$

0.21

Diluted

$

-

$

0.07

$

0.13

$

0.21

Weighted average common shares outstanding:

Basic

42,529

42,554

42,355

42,634

Diluted

43,440

43,516

43,192

43,624

Adjusted:

Earnings per share attributable to ARC Document Solutions, Inc. stockholders:

Basic

$

-

$

0.08

$

0.14

$

0.22

Diluted

$

-

$

0.07

$

0.14

$

0.22

Weighted average common shares outstanding:

Basic

42,529

42,554

42,355

42,634

Diluted

43,440

43,516

43,192

43,624

SOURCE: ARC Document Solutions



View the original press release on accesswire.com

FAQ

What was ARC's revenue growth in Q3 2024?

ARC's net sales grew 4.8% to $74.4 million in Q3 2024 compared to $71.1 million in Q3 2023.

Why did ARC report a net loss in Q3 2024?

ARC reported a net loss primarily due to $3.2 million in transaction costs related to a going-private transaction, which were not tax deductible.

What is ARC's dividend payment for Q3 2024?

ARC will pay a quarterly cash dividend of $0.05 per share on November 29, 2024, to shareholders of record on October 31, 2024.

How many MPS locations does ARC have as of Q3 2024?

ARC had approximately 10,300 MPS locations as of September 30, 2024, representing a decrease of about 200 locations compared to the previous year.

ARC Document Solutions, Inc.

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