Financial Data and Key Metrics Changes - Overall sales for the quarter declined by 6.3% year-over-year, attributed to a double-digit drop in international equipment and supply sales, particularly due to a softening economy in China [16][17] - Cash flows from operations increased by $3.7 million year-over-year, primarily due to aggressive inventory management and improved accounts receivable collections [17][18] - The company maintained strong gross margins despite the sales decline, thanks to cost controls implemented prior to the third quarter [17] Business Line Data and Key Metrics Changes - The traditional service line experienced declining revenues, prompting a reexamination of operations and services offered [7][9] - The Managed Print Services (MPS) business saw new sales from clients outside the construction industry, although the construction sector remained a strong sales area [14][16] - Scan and archival services continued to attract customer interest, while equipment and supplies sales were affected by a drop in the Chinese joint venture [15] Market Data and Key Metrics Changes - The company noted a significant decline in printing services from construction and design companies, with work from homebuilders also decreasing [14] - The MPS business in the construction phase has been somewhat stagnant, but there are emerging opportunities in non-construction sectors [10][14] Company Strategy and Development Direction - The company is focusing on leveraging technology to differentiate services and sustain market share, particularly in MPS and archival services [10][12] - Strategic changes were made to align operations with sales levels, including closing two print locations in non-strategic markets [16] - The company is exploring ways to return value to shareholders, such as paying annual dividends or expanding the share repurchase program [12][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the business is not suffering from a loss of customers or competitive pressures, but rather a shift in how traditional services are utilized [8][9] - The company anticipates earnings per share for 2019 to be in the range of $0.14 to $0.18, with cash provided by operating activities expected to be between $45 million and $50 million [13] - Management remains optimistic about maintaining cash flows and protecting financial health despite the current challenges [12][41] Other Important Information - The company achieved over $10 million in annualized savings by the end of the year, which is expected to ease pressure on margins [7][12] - The effective tax rate for the year is projected to be approximately 30% due to new tax laws, with historical operating losses available to offset cash taxes [19] Q&A Session Summary Question: Can you provide examples of non-traditional channels being pursued? - The company is focusing on management services for large companies in sectors like insurance and energy, as well as exploring opportunities in retail, hospitality, and healthcare for color printing [22][24] Question: What is the projection for MPS revenue growth over the next year or two? - MPS revenues are unpredictable due to the nature of contracts and customer acquisitions, with potential for low single-digit growth in good years [25][28] Question: Why was there a limitation on stock buybacks? - The company faced restrictions on the amount of shares it could buy back based on market liquidity and trading volumes [30][32] Question: Can you elaborate on the $10 million in cost savings? - Approximately 60% of the savings come from cost of goods sold (COGS) and 40% from depreciation and amortization (D&A), with expectations for these savings to positively impact operating profits starting in 2020 [30][33] Question: What are the expectations for cash flow in 2020? - While exact predictions are difficult, the company aims to maintain cash flows at similar levels to 2019, focusing on protecting cash generation [40][41]

ARC Document Solutions, Inc. (NYSE:ARC) Q2 2019 Results Earnings Conference Call August 6, 2019 5:00 PM ET Company Participants David Stickney - VP of IR K. Suriyakumar - Chairman, President and CEO Dilantha Wijesuriya - COO Jorge Avalos - CFO Conference Call Participants Alan Weber - Robotti Advisors Brad Safalow - PAA Research Operator Good afternoon. My name is Bonita, and I will be your conference operator today. At this time, I would like to welcome everyone to the ARC Q2 2019 Earnings Report. [Operato ...

PART I—FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The company's unaudited financials show a significant year-over-year decline in net income and the adoption of a new lease accounting standard Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2019 (in thousands) | Dec 31, 2018 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $21,741 | $29,433 | | Total current assets | $111,648 | $115,375 | | Right-of-use assets from operating leases | $42,845 | $— | | Total assets | $372,462 | $339,716 | | Total current liabilities | $91,689 | $80,950 | | Long-term debt and finance leases | $94,070 | $105,060 | | Total liabilities | $224,709 | $192,414 | | Total equity | $147,753 | $147,302 | Condensed Consolidated Statements of Operations Highlights (Unaudited) | Metric (in thousands, except EPS) | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $98,873 | $104,190 | $195,995 | $201,898 | | Gross profit | $33,848 | $35,835 | $64,523 | $66,020 | | Income from operations | $5,762 | $7,344 | $7,905 | $9,220 | | Net income attributable to ARC | $524 | $4,074 | $1,116 | $4,702 | | Diluted EPS | $0.01 | $0.09 | $0.02 | $0.10 | - Net cash provided by operating activities for the six months ended June 30, 2019, was **$19.0 million**, a decrease from **$23.0 million** in 2018, while cash and cash equivalents fell to **$21.7 million**[16](index=16&type=chunk) - The company adopted the new lease accounting standard, ASC 842, recognizing operating lease Right-of-Use (ROU) assets of approximately **$46.9 million** and operating lease liabilities of **$53.7 million**[28](index=28&type=chunk)[67](index=67&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses declining sales and net income in H1 2019, driven by lower print demand, offset partially by growth in AIM services [Business Summary](index=23&type=section&id=Business%20Summary) The company provides document solutions primarily to the AEC/O industry, with a strategic focus on growing digital and onsite services - The company's main service offerings are Construction Document and Information Management (CDIM), Managed Print Services (MPS), Archiving and Information Management (AIM), and Equipment and Supplies sales[96](index=96&type=chunk) - Sales to the AEC/O industry constituted approximately **79% of net sales** for the first six months of 2019[99](index=99&type=chunk) - The company's strategic focus is on growing MPS, AIM, and CDIM to align with the market shift toward onsite and cloud-based document management[97](index=97&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Net sales and net income declined in Q2 and H1 2019 due to lower demand in most segments, with AIM being the only growth area Net Sales by Category (YoY Change) | Category | Q2 2019 (in millions) | Q2 YoY Change | H1 2019 (in millions) | H1 YoY Change | | :--- | :--- | :--- | :--- | :--- | | CDIM | $54.4 | -2.0% | $105.2 | -2.5% | | MPS | $31.6 | -5.3% | $62.5 | -3.6% | | AIM | $3.6 | +13.6% | $6.9 | +12.6% | | Equipment & Supplies | $9.3 | -23.5% | $21.4 | -7.4% | | **Total Net Sales** | **$98.9** | **-5.1%** | **$196.0** | **-2.9%** | Key Profitability Metrics (Q2 2019 vs Q2 2018) | Metric (in millions) | Q2 2019 | Q2 2018 | YoY Change | | :--- | :--- | :--- | :--- | | Gross Profit | $33.8 | $35.8 | -5.5% | | Net Income Attributable to ARC | $0.5 | $4.1 | -87.1% | | Adjusted EBITDA | $14.4 | $16.2 | -10.8% | - The effective tax rate for Q2 2019 was **88.4%**, a significant increase from 31.5% in Q2 2018, due to deferred tax expense related to expired stock-based compensation[121](index=121&type=chunk) - The decline in Equipment and Supplies sales was primarily driven by a market slowdown in China, affecting the company's joint venture, UDS[112](index=112&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity, sourced from operations and borrowings, decreased but is considered sufficient for the next twelve months Liquidity and Debt Position (in thousands) | Metric | June 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Cash and cash equivalents | $21,741 | $29,433 | | Working capital | $19,959 | $34,425 | | Total debt obligations | $116,986 | $127,192 | - Net cash provided by operating activities for the first six months of 2019 was **$19.0 million**, a decrease from **$23.0 million** in the prior-year period, due to the timing of cash outlays[145](index=145&type=chunk)[147](index=147&type=chunk) - As of June 30, 2019, the company had **$43.8 million** of borrowing availability under its Revolving Loan commitment[159](index=159&type=chunk) [Critical Accounting Policies](index=33&type=section&id=Critical%20Accounting%20Policies) No material changes were made to critical accounting policies, with goodwill not impaired and a valuation allowance maintained for deferred tax assets - There have been **no material changes** to the critical accounting policies described in the 2018 Annual Report on Form 10-K[170](index=170&type=chunk) - The last annual goodwill impairment test as of September 30, 2018, indicated **no impairment**, with fair values significantly exceeding carrying values[171](index=171&type=chunk)[176](index=176&type=chunk) - The company maintains a valuation allowance of **$2.2 million** against certain deferred tax assets as of June 30, 2019[180](index=180&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no new or material market risks for this period - The company indicates that there are no applicable quantitative and qualitative disclosures about market risk for this period[185](index=185&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Based on an evaluation as of June 30, 2019, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective**[187](index=187&type=chunk) - No changes to internal control over financial reporting occurred during the second quarter of 2019 that have materially affected, or are reasonably likely to materially affect, internal controls[188](index=188&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings are not expected to have a material impact on the company's financial condition or results - The company states that the outcome of ongoing legal proceedings is **not expected to have a material effect** on its consolidated financial position, results of operations or cash flows[190](index=190&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the 2018 Annual Report on Form 10-K - There have been **no material changes** to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2018[191](index=191&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company initiated a new $15.0 million stock repurchase program and repurchased 354,000 shares during the second quarter - On May 1, 2019, the Board of Directors approved a stock repurchase program authorizing the purchase of up to **$15.0 million** of the company's common stock through March 31, 2021[192](index=192&type=chunk) Issuer Purchases of Equity Securities (Q2 2019) | Period | Total Shares Purchased (in thousands) | Average Price Paid per Share | | :--- | :--- | :--- | | May 2019 | 236 | $2.10 | | June 2019 | 118 | $2.12 | | **Total** | **354** | **N/A** | - As of June 30, 2019, approximately **$14.25 million** remained available for repurchase under the program[192](index=192&type=chunk) [Item 6. Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including officer certifications required by the Sarbanes-Oxley Act and XBRL data files - The report includes required certifications from the CEO (Principal Executive Officer) and CFO (Principal Financial Officer) pursuant to the Sarbanes-Oxley Act of 2002[194](index=194&type=chunk) - Interactive Data Files (XBRL Instance Document and related taxonomy files) are also filed as exhibits with this report[194](index=194&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________ Form 10-Q _______________________________________ (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |---------------------------------------------------------------------------------------------- ...

ARC Document Solutions, Inc. (NYSE:ARC) Q1 2019 Earnings Conference Call May 6, 2019 5:00 PM ET Company Participants David Stickney - Vice President of Corporate Communications and Investor Relations K. Suriyakumar - President and Chief Executive Officer Dilantha Wijesuriya - Chief Operating Officer Jorge Avalos - Chief Financial Officer Conference Call Participants Glenn Primack - PDT Capital Operator Good afternoon. My name is Sheryl, and I will be your conference operator today. At this time, I would lik ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________ Form 10-K _______________________________________ (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2018 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |--------------------------------------------------------------------------------------------------- ...

ARC Document Solutions, Inc. (NYSE:ARC) Q4 2018 Results Earnings Conference Call February 26, 2019 5:00 PM ET Company Participants David Stickney - VP, Corporate Communication and IR Suri Suriyakumar - CEO Dilo Wijesuriya - COO Jorge Avalos - CFO Conference Call Participants Aman Gulani - B. Riley Glenn Primack - Matthew Schwarz - MAZE Investments Alan Weber - Robotti Advisors Operator Good afternoon. My name is Kelly, and I will be your conference operator today. At this time, I would like to welcome ever ...