ARC reported that sales in the third quarter of 2020 were $72.4 million, compared to $94.1 million in Q3 of 2019, representing a drop of over 23 percent. Here is the text of the press release announcing the results:
ARC Document Solutions, Inc. (NYSE:ARC), a leading document solutions provider to professionals in the design, marketing, commercial real estate, construction and related fields, today reported its financial results for the third quarter ended September 30, 2020.
Management Commentary:
"The continuing strength of our quarterly performance clearly speaks to the validity of our long-term plans," said Suri Suriyakumar, Chairman, President and CEO of ARC. "As the economic and cultural landscape continues to evolve in the face of the pandemic, we are adapting to the opportunities it presents for both new business and for refining our cost structure."
"As we noted last month, returning shareholder value remains a key corporate objective, and ensuring consistent performance to support it has been an important part of our efforts since March," Mr. Suriyakumar continued. "We are confident in our ability to continue our dividend and share repurchase programs in the future, and anticipate a re-commencement of both programs before the end of the year."
"As a result of our performance over the past two quarters, the strength and staying power of ARC under its new configuration is clear," said Jorge Avalos, Chief Financial Officer of ARC. "Sales of $72.4 million were very strong in the face of the continuing pandemic, and our EBITDA for the quarter actually grew year-over-year despite lower sales. Earnings per share more than doubled sequentially. Cash flow from operations grew considerably at $12.8 million for the quarter and $39 million year to date. Combined with a strong capital structure that includes a year-to-date cash balance increase of more than $20 million, we believe our ability to support our shareholders and to weather the continuing uncertainties in the coming winter months is assured."
2020 Third Quarter Supplemental Information:
Net sales were $72.4 million, a 23.1% decrease compared to the third quarter of 2019.
Cash & cash equivalents on the consolidated balance sheet in the third quarter 2020 were $50.3 million.
Days sales outstanding were 51 in Q3 2020 and 55 in Q3 2019.
Architectural, engineering, construction and building owner/operators (AEC/O) customers comprised approximately 70% of total net sales, while customers outside of construction made up approximately 30% of total net sales.
The number of MPS locations have remained relatively flat year over year at approximately 10,800 as of September 30, 2020.