American Reprographics Reports 37% Gross Margin
Friday, May 08, 2009
American Reprographics Company (the "Company"), the nation's leading provider of reprographic services and technology, today reported its financial results for the first quarter ended March 31, 2009.
"I am extremely pleased with our first quarter results. They clearly demonstrate our ability to quickly reduce our costs and improve efficiency even under very difficult conditions," said K. "Suri" Suriyakumar, Chairman, President and CEO. "Our management team's agility in the face of a dynamic market will help our organization drive through this downturn successfully as we remain focused on reducing our operating costs and generating cash."
Net revenue for the first quarter of 2009 was $139.5 million. The Company's gross margin was 37.3% for the three-month period ending March 31, 2009. Net income for the first quarter of 2009 was $7.5 million, or $0.17 per diluted share.
Jonathan Mather, Chief Financial Officer, said, "Our gross margin of 37.3% in the first quarter was a distinct improvement over the 2008 fourth quarter gross margin of 36.7%. During the first quarter we saw sequential gains in our gross margins month over month as the effects of our ongoing cost-cutting measures began to be felt. In addition, the Company's cash flow from operations also increased 9.5% year-over-year, despite the significant decrease in revenue. Cash flow from operating activities for the past twelve months ending March 31, 2009, was $ 129.2 million. While this is impressive in and of itself, it also provides confidence and momentum for the management team while operating under extraordinary circumstances."
The Company reaffirmed its EPS forecast of $0.50 to $0.75 on a fully-diluted basis, projecting cash flow from operations in the range of $70 million to $90 million.
Teleconference and Webcast
American Reprographics Company 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 first quarter 2009 and business outlook. The conference call can be accessed by dialing 888-218-8032.
A replay of this call will be available approximately one hour after the call for seven days following the call's conclusion. To access the replay, dial 888-203-1112. The conference ID number is 4908112.
A Web archive will be made available at http://www.e-arc.com for approximately 90 days following the call's conclusion.
About American Reprographics Company
American Reprographics Company is the leading reprographics company in the United States providing business-to-business document management technology and services to the architectural, engineering and construction, or AEC industries. The Company provides these services to companies in non-AEC industries, such as technology, financial services, retail, entertainment, and food and hospitality, which also require sophisticated document management services. American Reprographics Company provides its core services through its suite of reprographics technology products, a network of hundreds of locally-branded reprographics service centers across the U.S., Canada and the U.K, on-site at more than 5,000 customer locations, and through UDS, a joint-venture company headquartered in Beijing, China. The Company's service centers are arranged in a hub and satellite structure and are digitally connected as a cohesive network, allowing the provision of services both locally and nationally to more than 160,000 active customers.