ARC Document Solutions, Inc. has reported its financial results for the first quarter ended March 31, 2016.
2016 First Quarter Business Highlights:
- Net sales of $103.6 million vs. $104.3 million in 2015
- Adjusted diluted earnings per share were $0.06 vs. $0.07 in 2015
- Gross margin of 32.6% vs. 34.5% in 2015 due to quarterly increase in lower margin sales
- Cash flow from operations of $5.3 million despite $3 million negative impact compared to prior year from payroll timing
- Adjusted EBITDA of $14.8 million or 14.3%
- Approximately 700,000 shares of ARC common stock repurchased in the open market
- Management reaffirms 2016 forecast
Management Commentary
"We continue to make progress towards the transformation of the company," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC Document Solutions. "Our sales performance was as expected but the margins were softer due to our product mix. That said, our technology enabled services continued to grow, especially our AIM solution. We are working hard to offset the slow secular declines in our traditional business with new solutions and we are executing on our plans as expected, and I'm pleased with the direction in which we're headed."
"I'm also happy to announce the appointment of John Freeland to our Board of Directors," Mr. Suriyakumar continued. "As a part of our transition, we're actively seeking out candidates with strong backgrounds in building and leading technology-enabled companies, and John is a great fit. His experience and leadership with Accenture, salesforce.com, and IRI will bring a fresh perspective to our thinking and decisions on the Board. I look forward to his contributions."
"As usual, strong cash generation characterized the first quarter for ARC," saidJorge Avalos, Chief Financial Officer of ARC Document Solutions. "While we saw cash from operations off to its usual slow start due to seasonal timing of sales, our ability to execute our stock repurchase plan was unaffected. We bought $2.7 million of ARC common stock in the open market during the period, and further reduced the principal of our senior debt by more than $4 million."
Read more here: http://seekingalpha.com/pr/16475154-arc-document-solutions-reports-results-first-quarter-2016#