ARC Document Solutions Reports Results for Fourth Quarter and Full Year 2015
Wednesday, February 24, 2016
Press release from the issuing company
WALNUT CREEK, CA - ARC Document Solutions, Inc. (NYSE: ARC), the nation's leading document solutions provider for the architecture, engineering, and construction (AEC) industry, today reported its financial results for the fourth quarter and full year ended December 31, 2015.
2015 Annual Business Highlights:
"In 2015 we carved out a solid position for our new technology solutions, generated more than a million dollars of new sales from innovative technology-enabled services, and drove impressive growth in our Archiving and Information Management business," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC Document Solutions. "Our team also generated a consolidated gross margin of nearly 35 percent, paid down more than 10 percent of our senior debt obligations, generated strong cash flows and healthy EBITDA performance, and created the opportunity to produce strong returns on a share repurchase program. All of this was done in the face of our traditional business being challenged due to secular headwinds and a continuing industry trend toward reducing print."
"As we look at the next 24 to 36 months," said Mr. Suriyakumar, "we expect to deliver excellent cash generation, healthy gross margin performance, and continuing improvements to our capital structure as we capture new business, gain traction with our new business lines, and build upon them to offset the slow declines in our traditional business. We're building a new business, and as we do so, we believe our investors will recognize the fundamental value of our transformation."
2015 Fourth Quarter Supplemental Information:
Days sales outstanding in Q4 2015 and 2014 were 52.
AEC customers comprised approximately 77% of our total net sales, while non-AEC customers made up 23% of our total net sales.
The number of MPS accounts has grown to approximately 9,000, a gain of approximately 500 contracts over Q4 2014.
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