American Reprographics reports net income of $18.5 Million
Press release from the issuing company
(May 08, 2008) American Reprographics Company, the nation's leading provider of reprographics services and technology, today reported its financial results for the first quarter ended March 31, 2008.
Net revenue for the first quarter of 2008 was $187.4 million, compared to $160.2 million in the first quarter of 2007, an increase of 17.0%. The Company's gross margin for the first quarter was 42.5% compared to 42.3% in the same period in 2007, and up from 41.2% in the fourth quarter of 2007.
Net income for the first quarter of 2008 was $18.5 million, or $0.41 per diluted share. This compares to net income for the first quarter of 2007 of $16.8 million, or $0.37 per diluted share.
"I'm very pleased with our performance in the first quarter," said K. "Suri" Suriyakumar, President and Chief Executive Officer. "Our performance reinforces my belief that the company is well-positioned to operate successfully even when the broader economy is softening. This has been clearly established by our financial results during the past two quarters. While the indications of a slowing construction market are unmistakable, our continuing focus on sales and improving operational efficiencies, while aggressively implementing cost cutting measures, should continue to serve us well throughout the year."
"The trends in our business mix remain consistent with the bulk of our sales being generated by non-residential construction," said Jonathan Mather, Chief Financial Officer. "As the economy slows, however, we are seeing a small increase in sales of our digital services, suggesting that our offering is appealing to those customers who are trying to manage more of their business more efficiently with less overhead and labor. Our position as the industry leader and the strength of our technology portfolio allow us to offer services that are compelling even in difficult economic conditions, and sometimes because of them."
"We have clear evidence in the results of our last two quarters that the Company should be able to perform very well throughout the year," said Mr. Suriyakumar. "As such, we are reaffirming our guidance for 2008 and expect revenues to be in the range of $720 million to $760 million and that earnings per share will be in the range of $ 1.52 to $1.60 on a fully diluted basis."
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 2008 and business outlook. The conference call can be accessed by dialing 201-689-8562.
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 201-612-7415. The account number to access the phone replay is 3055 and the conference ID number is 282260.
A Web archive will be made available at http://www.e-arc.com for approximately 90 days following the call's conclusion.
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