American Reprographics Reports Results for Second Quarter 2009
Press release from the issuing company
WALNUT CREEK, CA -- American Reprographics Company
* EPS of $0.14 per share
* Quarterly Cash from Operating Activities of $33.5 million
* Gross Margin of 37.5%
* Company reaffirms forecast
American Reprographics Company (the "Company"), the nation's leading provider of reprographic services and technology, today reported its financial results for the second quarter ended June 30, 2009.
"Our performance was very strong under extraordinary economic circumstances," said K. "Suri" Suriyakumar, Chairman, President and CEO. "We protected our profits and cash flow despite the obvious challenges we encountered during the period, and I remain confident in our ability to protect them in the future. Over the past nine months, we've made significant changes to improve sales management, eliminate overhead, reduce our labor costs, and streamline reporting and administrative functions to keep the management team tightly focused on both the opportunities and challenges we face on a day-to-day basis. Those efforts are clearly paying off as demonstrated by our improvement in gross margins and the continuing strength of our cash position."
Net revenue for the second quarter of 2009 was $131.1 million. The Company's gross margin was 37.5% for the three-month period ending June 30, 2009. Net income for the second quarter of 2009 was $6.3 million, or $0.14 per diluted share.
Net revenue for the first six months of 2009 was $270.5 million. The Company's gross margin was 37.4% for the six-month period ending June 30, 2009. Net income for the first six months of 2009 was $13.8 million, or $0.31 per diluted share.
Jonathan Mather, Chief Financial Officer, said, "While we saw a continuing slide in revenues during the period, the decrease was not as steep as the two previous quarters, and our gross margins continue to show incremental improvement despite the difficult sales environment. We made additional progress in our cost savings programs and eliminated an additional $8.6 million in costs for 2009, and also exercised our strong cash flow by paying down at the Company's discretion, an additional $10.7 million of capital lease debt during the period. In addition, I'm happy to report that the environment for amending our debt agreements is more favorable today than we've seen in the recent past. In order to increase our flexibility regarding the financial covenants associated with our credit facility, we have begun discussions with our banks to review our present requirements."
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.
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