Oil, Gas, Energy, Metals - That's the core of my research.I am a semi-retired former engineer who switched careers in 2018 to focus on capital management. I acquired most of my knowledge about finance and valuation from NYU Professor Damodaran and books like "Margin of Safety" and "The Intelligent Investor."I specialize in fundamental analysis and require both a deep "Margin of Safety" and a "Catalyst" to consider adding a stock to my portfolio. My portfolio usually contains no more than 10 stocks.I joined ...

[PART I—FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Q3 2024, highlighting a net loss, decreased operating cash flow, and a pending merger agreement [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of September 30, 2024, shows total assets increased to $313.5 million, liabilities rose, and cash equivalents decreased to $51.3 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $51,291 | $56,093 | | Accounts receivable, net | $41,896 | $35,775 | | Total current assets | $111,527 | $108,652 | | Total assets | $313,455 | $310,124 | | **Liabilities & Equity** | | | | Total current liabilities | $74,702 | $71,157 | | Long-term debt and finance leases | $52,172 | $53,366 | | Total liabilities | $156,908 | $154,399 | | Total equity | $156,547 | $155,725 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales for Q3 2024 increased to $74.4 million, but a surge in SG&A expenses led to a net loss of $0.1 million, impacting diluted EPS Statement of Operations Summary (in thousands, except EPS) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $74,448 | $71,057 | $220,354 | $212,325 | | Gross profit | $24,759 | $24,149 | $73,954 | $72,250 | | SG&A expenses | $23,268 | $19,269 | $63,681 | $57,764 | | Income from operations | $1,482 | $4,870 | $10,244 | $14,455 | | Net (loss) income | $(101) | $3,121 | $5,398 | $8,935 | | Diluted EPS | $— | $0.07 | $0.13 | $0.21 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $19.2 million for the nine months ended September 30, 2024, with increased investing and financing activities Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $19,209 | $22,857 | | Net cash used in investing activities | $(10,456) | $(7,461) | | Net cash used in financing activities | $(13,616) | $(17,206) | | Net change in cash and cash equivalents | $(4,802) | $(1,975) | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes disclose a pending merger agreement, revenue by service line, no goodwill impairment, and an increased site remediation liability of $4.3 million - On August 27, 2024, ARC entered into a merger agreement with TechPrint Holdings, LLC, an entity affiliated with ARC's CEO, COO, and CFO, to be taken private. The transaction is expected to close in Q4 2024[31](index=31&type=chunk)[33](index=33&type=chunk) Net Sales by Service Line (in thousands) | Service Line | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Digital Printing | $46,636 | $43,537 | $136,127 | $129,134 | | MPS | $18,315 | $18,582 | $55,627 | $56,556 | | Scanning & Digital Imaging | $5,354 | $4,991 | $16,676 | $14,845 | | Equipment & Supplies | $4,143 | $3,947 | $11,924 | $11,790 | | **Total Net Sales** | **$74,448** | **$71,057** | **$220,354** | **$212,325** | - The company recorded a site remediation liability of **$4.3 million** as of September 30, 2024, related to a contaminated site acquired in the 1990s. This is an increase from the initial estimate due to newly identified complexities[81](index=81&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses 3.8% revenue growth for the first nine months of 2024, increased SG&A due to merger costs, and strong liquidity despite lower net income [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q3 2024 net sales increased 4.8% to $74.4 million, but surging SG&A expenses, driven by merger costs, resulted in a net loss and reduced EBITDA margin Q3 2024 vs Q3 2023 Performance (in millions) | Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Net Sales | $74.4 | $71.1 | $3.4 | 4.8% | | Gross Profit | $24.8 | $24.1 | $0.6 | 2.5% | | SG&A Expenses | $23.3 | $19.3 | $4.0 | 20.8% | | Net (Loss) Income | $(0.1) | $3.2 | $(3.2) | (102.1)% | | Adjusted EBITDA | $6.2 | $10.0 | $(3.9) | (38.4)% | - The increase in Selling, General and Administrative (SG&A) expenses for Q3 and the first nine months of 2024 included **$3.2 million** and **$4.1 million**, respectively, of costs related to the pending take-private merger transaction[128](index=128&type=chunk) - The effective tax rate for Q3 2024 was **108.6%**, significantly impacted by non-deductible costs associated with the merger agreement[131](index=131&type=chunk)[132](index=132&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2024, the company held $51.3 million in cash, with $36.8 million in working capital, and sufficient liquidity for the next twelve months Liquidity Position (in thousands) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $51,291 | $56,093 | | Working capital | $36,825 | $37,495 | | Total debt obligations | $59,148 | $62,236 | - The company's 2021 Credit Agreement, with **$40.0 million** in outstanding revolving loans, will be paid off as part of the transactions contemplated by the Merger Agreement[130](index=130&type=chunk)[185](index=185&type=chunk) - Capital expenditures for the nine months ended September 30, 2024, were **$10.9 million**, an increase from **$7.7 million** in the prior year, as the company chose to purchase more equipment outright due to rising interest rates[168](index=168&type=chunk) [Critical Accounting Policies and Significant Judgements and Estimates](index=37&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Judgements%20and%20Estimates) No material changes to critical accounting policies, with goodwill confirmed as not impaired and a valuation allowance maintained against deferred tax assets - The annual goodwill impairment test as of September 30, 2024, concluded that the company's **$121.1 million** in goodwill was not impaired[197](index=197&type=chunk)[200](index=200&type=chunk) - A sensitivity analysis showed that a **50-basis point reduction** in projected EBITDA margin or a **50-basis point increase** in the discount rate would not result in goodwill impairment[200](index=200&type=chunk)[201](index=201&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, ARC is exempt from providing disclosures on market risk under Item 3 - As a smaller reporting company, ARC is exempt from providing disclosures on market risk under Item 3[210](index=210&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of September 30, 2024, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2024[212](index=212&type=chunk) - No changes that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting occurred during the quarter ended September 30, 2024[213](index=213&type=chunk) [PART II—OTHER INFORMATION](index=40&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, with no expected material adverse effect on financial condition or results of operations - The company does not expect current legal proceedings to have a material adverse effect on its results of operations, financial condition, or cash flows[215](index=215&type=chunk) [Risk Factors](index=40&type=page&id=Item%201A.%20Risk%20Factors) Primary risks relate to the pending merger, including potential non-completion, operational uncertainty, and significant transaction-related costs - A key risk is the potential failure to complete the proposed merger, which is subject to stockholder approval and other closing conditions. Failure could result in adverse consequences, including a termination fee of **$5,277,367**[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) - The pending transaction creates uncertainty that may impair the company's ability to retain key employees and could cause customers and suppliers to change or discontinue business relationships[222](index=222&type=chunk) - The merger agreement restricts the company from taking certain actions without the acquirer's consent, potentially preventing it from pursuing attractive business opportunities[226](index=226&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No equity securities were repurchased in Q3 2024, with repurchases restricted due to the pending merger agreement - No shares were repurchased during the quarter from July 1, 2024, to September 30, 2024. The company is restricted from repurchasing shares due to the pending merger agreement[232](index=232&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during Q3 2024 - No board members or executive officers adopted or terminated Rule 10b5-1 trading plans in Q3 2024[233](index=233&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including the Merger Agreement and CEO/CFO certifications - Key exhibits filed with this report include the Merger Agreement dated August 27, 2024, and related amendments, along with CEO/CFO certifications under SOX Sections 302 and 906[235](index=235&type=chunk) [Signatures](index=44&type=section&id=Signatures) The report was duly signed by the Chairman and CEO, and the CFO, on November 4, 2024 - The report was signed on November 4, 2024, by the company's Chairman and CEO, and its CFO[237](index=237&type=chunk)

ARC Reports Financial Results for Third Quarter 2024 —————————————————————— SAN RAMON, CA – (November 4, 2024) – ARC Document Solutions, Inc. (NYSE: ARC), a leading provider of digital printing and document-related services, today reported its financial results for the third quarter ended September 30, 2024. | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------|-------|-----------------------------------------|-------|----------|-------|--------------------- ...

ARC Document Solutions (ARC) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.06. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -100%. A quarter ago, it was expected that this provider of document services to businesses would post earnings of $0.07 per share when it actually produced earnings of $0.07, delivering no surprise.Over the last four quart ...

Warwick, NY, Oct. 02, 2024 (GLOBE NEWSWIRE) -- Automated Room Controls Inc. (ARC), a subsidiary of Ozop Energy Solutions, Inc. (OZSC), is excited to announce that it will be showcasing its innovative ARC product line at the second annual NYControlled Lighting Controls Event. This event, held on October 29, 2024, at the Metropolitan Pavilion in NYC, is an educational trade show focused on lighting controls, attended by top industry professionals, including designers, contractors, and engineers. Engage with A ...

Grand Cayman, Cayman Islands , Sept. 25, 2024 (GLOBE NEWSWIRE) -- Caymanian Entrepreneur and Director of Miss World Cayman Islands, Pamela Ebanks-Small is flipping the narrative. “This is a unique opportunity for local and global businesses to be part of an empowering movement, one that redefines beauty and promotes leadership and community impact. As the Minister of Tourism & Ports, I am honored to be a major sponsor for this upcoming event.”- Hon. Kenneth V. Bryan, MP, Minister of Tourism & Ports. The up ...

NEW YORK, Sept. 18, 2024 (GLOBE NEWSWIRE) -- Monteverde & Associates PC (the "M&A Class Action Firm"), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating ARC Document Solutions, Inc. (NYSE: ARC), relating to its proposed merger with TechPrint Holdings, LLC. Under the terms of the agreement, ARC shareholders are expected to receive $3.40 i ...

Warwick, NY, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Ozop Energy Solutions Inc. (OZSC), a leader in advanced lighting control solutions, announces significant progress within its Automated Room Controls Inc. (ARC) division. ARC continues to innovate in the lighting controls industry, advancing its product offerings and maintaining its commitment to quality and regulatory compliance. Submission of URC and Expansion Cards for ETL Testing ARC has submitted its Universal Room Controller (URC) and associated expansio ...

Group 1 - Monteverde & Associates PC is investigating ARC Document Solutions, Inc. regarding its proposed merger with TechPrint Holdings, LLC [1] - Under the merger agreement, ARC shareholders are expected to receive $3.40 in cash per share [1] - Monteverde & Associates PC has a successful track record in recovering money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report [1] Group 2 - The firm is headquartered in the Empire State Building, New York City [1] - The firm emphasizes the importance of selecting a law firm that actively files class actions and has a history of recovering money for shareholders [2] - Contact information for inquiries regarding the company and the merger is provided, including an email and telephone number for Juan Monteverde, Esq. [2]

THIS PRESS RELEASE CONTAINS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF THE EUROPEAN MARKET ABUSE REGULATION (596/2014) Up-LIFT Study results published in Nature Medicine De Novo application submitted to FDA to obtain clearance to market the investigational ARC-EX® System in the United States Up to EUR 52.5M in growth financing obtained from US-based Runway Growth Capital Several additional milestones achieved with the investigational ARC-BCI™ System, leveraging brain-computer interface (BCI) t ...