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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Service Sales | |||||||||||||||
Traditional reprographics | $ | 28,907 | $ | 30,820 | $ | 88,981 | $ | 98,427 | |||||||
Color | 20,638 | 19,335 | 63,389 | 59,839 | |||||||||||
Digital | 8,295 | 8,565 | 25,346 | 27,763 | |||||||||||
Subtotal(1) | 57,840 | 58,720 | 177,716 | 186,029 | |||||||||||
Onsite services(2) | 30,990 | 27,116 | 90,542 | 81,262 | |||||||||||
Total services sales | 88,830 | 85,836 | 268,258 | 267,291 | |||||||||||
Equipment and supplies sales | 12,422 | 13,590 | 37,652 | 41,936 | |||||||||||
Total net sales | $ | 101,252 | $ | 99,426 | $ | 305,910 | $ | 309,227 |
(1) | For comparison purposes this subtotal agrees with Reprographics Services historically reported prior to the 2012 Annual Report on Form 10-K. |
(2) | Represents work done at the Company’s customer sites which includes Facilities Management (“FM”) and Managed Print Services (“MPS”). |
|
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||
Employee termination costs | $ | 1 | $ | 12 | |||
Estimated lease termination and obligation costs | 395 | 1,361 | |||||
Other restructuring expenses | 261 | 392 | |||||
Total restructuring expenses | $ | 657 | $ | 1,765 |
Nine Months Ended September 30, 2013 | |||
Balance, December 31, 2012 | $ | 2,299 | |
Restructuring expenses | 1,765 | ||
Payments | (3,324 | ) | |
Balance, September 30, 2013 | $ | 740 |
|
Gross Goodwill | Accumulated Impairment Loss | Net Carrying Amount | |||||||||
January 1, 2012 | $ | 405,558 | $ | 176,243 | $ | 229,315 | |||||
Additions | — | — | — | ||||||||
Goodwill impairment | — | 16,707 | (16,707 | ) | |||||||
December 31, 2012 | 405,558 | 192,950 | 212,608 | ||||||||
Additions | — | — | — | ||||||||
Goodwill impairment | — | — | — | ||||||||
September 30, 2013 | $ | 405,558 | $ | 192,950 | $ | 212,608 |
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Amortizable other intangible assets | |||||||||||||||||||||||
Customer relationships | $ | 97,861 | $ | 69,005 | $ | 28,856 | $ | 97,926 | $ | 64,024 | $ | 33,902 | |||||||||||
Trade names and trademarks | 20,370 | 19,790 | 580 | 20,350 | 19,754 | 596 | |||||||||||||||||
$ | 118,231 | $ | 88,795 | $ | 29,436 | $ | 118,276 | $ | 83,778 | $ | 34,498 |
2013 (excluding the nine months ended September 30, 2013) | $ | 1,548 | |
2014 | 5,761 | ||
2015 | 5,218 | ||
2016 | 4,518 | ||
2017 | 4,002 | ||
Thereafter | 8,389 | ||
$ | 29,436 |
|
|
September 30, 2013 | December 31, 2012 | ||||||
10.5% senior notes due 2016, net of bond discount of $2,549 and $3,148 | $ | 190,451 | $ | 196,852 | |||
Various capital leases; weighted average interest rate of 7.5% at September 30, 2013 and December 31, 2012; principal and interest payable monthly through September 2018 | 20,841 | 23,445 | |||||
Borrowings from foreign revolving credit facilities; 0.6% interest rate at September 30, 2013 and December 31, 2012 | 1,596 | 1,985 | |||||
Various other notes payable with a weighted average interest rate of 6.4% and 6.0% at September 30, 2013 and December 31, 2012, respectively; principal and interest payable monthly through June 2016 | 497 | 243 | |||||
213,385 | 222,525 | ||||||
Less current portion | (11,505 | ) | (13,263 | ) | |||
$ | 201,880 | $ | 209,262 |
|
|
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Amount of Gain or (Loss) Reclassified from Accumulated Comprehensive Income (Loss) into Income | |||||||||||||||||||||||||||||||
(effective portion) | (ineffective portion) | ||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Location of Loss Reclassified from AOCL into Income | |||||||||||||||||||||||||||||||
Interest expense | $ | — | $ | (776 | ) | $ | — | $ | (3,047 | ) | $ | — | $ | — | $ | — | $ | — |
|
Significant Other Unobservable Inputs September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Level 3 | Total Losses | Level 3 | Total Losses | ||||||||||||
Nonrecurring Fair Value Measure | |||||||||||||||
Goodwill | $ | 212,608 | $ | — | $ | 212,608 | $ | 16,707 |
|
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Assets | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 21,115 | $ | 15,939 | $ | — | $ | 37,054 | |||||||||
Accounts receivable, net | — | 49,186 | 9,457 | — | 58,643 | ||||||||||||||
Intercompany operations | 128,672 | 5,109 | — | (133,781 | ) | — | |||||||||||||
Inventories, net | — | 10,469 | 3,281 | — | 13,750 | ||||||||||||||
Deferred income taxes | — | 3 | 465 | — | 468 | ||||||||||||||
Prepaid expenses | 1 | 3,702 | 1,008 | — | 4,711 | ||||||||||||||
Other current assets | — | 1,834 | 1,584 | — | 3,418 | ||||||||||||||
Total current assets | 128,673 | 91,418 | 31,734 | (133,781 | ) | 118,044 | |||||||||||||
Property and equipment, net | — | 48,471 | 7,896 | — | 56,367 | ||||||||||||||
Goodwill | — | 212,608 | — | — | 212,608 | ||||||||||||||
Investment in subsidiaries | 171,077 | 18,089 | — | (189,166 | ) | — | |||||||||||||
Other intangible assets, net | — | 27,508 | 1,928 | — | 29,436 | ||||||||||||||
Deferred financing costs, net | 3,291 | — | — | — | 3,291 | ||||||||||||||
Deferred income taxes | — | 69 | 1,200 | — | 1,269 | ||||||||||||||
Other assets | — | 2,095 | 496 | — | 2,591 | ||||||||||||||
Total assets | $ | 303,041 | $ | 400,258 | $ | 43,254 | $ | (322,947 | ) | $ | 423,606 | ||||||||
Liabilities and Equity | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | $ | — | $ | 19,491 | $ | 2,398 | $ | — | $ | 21,889 | |||||||||
Accrued payroll and payroll-related expenses | — | 12,089 | 745 | — | 12,834 | ||||||||||||||
Accrued expenses | 5,984 | 18,451 | 3,188 | — | 27,623 | ||||||||||||||
Intercompany loans | — | 128,377 | 5,404 | (133,781 | ) | — | |||||||||||||
Current portion of long-term debt and capital leases | — | 8,581 | 2,924 | — | 11,505 | ||||||||||||||
Total current liabilities | 5,984 | 186,989 | 14,659 | (133,781 | ) | 73,851 | |||||||||||||
Long-term debt and capital leases | 190,455 | 9,974 | 1,451 | — | 201,880 | ||||||||||||||
Deferred income taxes | — | 30,910 | 28 | — | 30,938 | ||||||||||||||
Other long-term liabilities | — | 1,308 | 1,814 | — | 3,122 | ||||||||||||||
Total liabilities | 196,439 | 229,181 | 17,952 | (133,781 | ) | 309,791 | |||||||||||||
Commitments and contingencies | |||||||||||||||||||
Total equity | 106,602 | 171,077 | 25,302 | (189,166 | ) | 113,815 | |||||||||||||
Total liabilities and equity | $ | 303,041 | $ | 400,258 | $ | 43,254 | $ | (322,947 | ) | $ | 423,606 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Assets | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 10,965 | $ | 17,056 | $ | — | $ | 28,021 | |||||||||
Accounts receivable, net | — | 45,289 | 6,566 | — | 51,855 | ||||||||||||||
Intercompany operations | 146,475 | 4,869 | — | (151,344 | ) | — | |||||||||||||
Inventories, net | — | 9,426 | 4,825 | — | 14,251 | ||||||||||||||
Prepaid expenses | — | 2,732 | 545 | — | 3,277 | ||||||||||||||
Other current assets | — | 5,854 | 965 | — | 6,819 | ||||||||||||||
Total current assets | 146,475 | 79,135 | 29,957 | (151,344 | ) | 104,223 | |||||||||||||
Property and equipment, net | — | 48,484 | 7,987 | — | 56,471 | ||||||||||||||
Goodwill | — | 212,608 | — | — | 212,608 | ||||||||||||||
Investment in subsidiaries | 151,015 | 14,233 | — | (165,248 | ) | — | |||||||||||||
Other intangible assets, net | — | 32,327 | 2,171 | — | 34,498 | ||||||||||||||
Deferred financing costs, net | 4,219 | — | — | — | 4,219 | ||||||||||||||
Deferred income taxes | — | — | 1,246 | — | 1,246 | ||||||||||||||
Other assets | — | 1,788 | 786 | — | 2,574 | ||||||||||||||
Total assets | $ | 301,709 | $ | 388,575 | $ | 42,147 | $ | (316,592 | ) | $ | 415,839 | ||||||||
Liabilities and Equity | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | $ | 1 | $ | 19,395 | $ | 1,819 | $ | — | $ | 21,215 | |||||||||
Accrued payroll and payroll-related expenses | — | 6,460 | 314 | — | 6,774 | ||||||||||||||
Accrued expenses | 951 | 17,230 | 4,140 | — | 22,321 | ||||||||||||||
Intercompany loans | — | 143,450 | 7,894 | (151,344 | ) | — | |||||||||||||
Current portion of long-term debt and capital leases | — | 9,909 | 3,354 | — | 13,263 | ||||||||||||||
Total current liabilities | 952 | 196,444 | 17,521 | (151,344 | ) | 63,573 | |||||||||||||
Long-term debt and capital leases | 196,861 | 10,945 | 1,456 | — | 209,262 | ||||||||||||||
Deferred income taxes | — | 28,900 | 36 | — | 28,936 | ||||||||||||||
Other long-term liabilities | — | 1,271 | 1,960 | — | 3,231 | ||||||||||||||
Total liabilities | 197,813 | 237,560 | 20,973 | (151,344 | ) | 305,002 | |||||||||||||
Commitments and contingencies | |||||||||||||||||||
Total equity | 103,896 | 151,015 | 21,174 | (165,248 | ) | 110,837 | |||||||||||||
Total liabilities and equity | $ | 301,709 | $ | 388,575 | $ | 42,147 | $ | (316,592 | ) | $ | 415,839 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net sales | $ | — | $ | 88,766 | $ | 12,486 | $ | — | $ | 101,252 | |||||||||
Cost of sales | — | 58,727 | 9,645 | — | 68,372 | ||||||||||||||
Gross profit | — | 30,039 | 2,841 | — | 32,880 | ||||||||||||||
Selling, general and administrative expenses | 2 | 21,672 | 2,345 | — | 24,019 | ||||||||||||||
Amortization of intangible assets | — | 1,534 | 76 | — | 1,610 | ||||||||||||||
Restructuring expense | — | 657 | — | — | 657 | ||||||||||||||
(Loss) income from operations | (2 | ) | 6,176 | 420 | — | 6,594 | |||||||||||||
Other income, net | — | (25 | ) | — | — | (25 | ) | ||||||||||||
Loss on extinguishment of debt | 262 | — | — | — | 262 | ||||||||||||||
Interest expense, net | 5,584 | 357 | (46 | ) | — | 5,895 | |||||||||||||
(Loss) income before equity earnings of subsidiaries and income tax provision | (5,848 | ) | 5,844 | 466 | — | 462 | |||||||||||||
Equity in earnings of subsidiaries | (5,398 | ) | (253 | ) | — | 5,651 | — | ||||||||||||
Income tax provision | — | 699 | 91 | — | 790 | ||||||||||||||
Net (loss) income | (450 | ) | 5,398 | 375 | (5,651 | ) | (328 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | (122 | ) | — | (122 | ) | ||||||||||||
Net (loss) income attributable to ARC Document Solutions, Inc. shareholders | $ | (450 | ) | $ | 5,398 | $ | 253 | $ | (5,651 | ) | $ | (450 | ) |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net sales | $ | — | $ | 86,714 | $ | 12,712 | $ | — | $ | 99,426 | |||||||||
Cost of sales | — | 59,988 | 10,190 | — | 70,178 | ||||||||||||||
Gross profit | — | 26,726 | 2,522 | — | 29,248 | ||||||||||||||
Selling, general and administrative expenses | 2 | 23,274 | 640 | — | 23,916 | ||||||||||||||
Amortization of intangible assets | — | 1,760 | 86 | — | 1,846 | ||||||||||||||
Goodwill impairment | — | 15,204 | 1,503 | — | 16,707 | ||||||||||||||
(Loss) income from operations | (2 | ) | (13,512 | ) | 293 | — | (13,221 | ) | |||||||||||
Other income, net | — | (25 | ) | — | — | (25 | ) | ||||||||||||
Interest expense, net | 5,752 | 1,238 | (8 | ) | — | 6,982 | |||||||||||||
(Loss) income before equity earnings of subsidiaries and income tax (benefit) provision | (5,754 | ) | (14,725 | ) | 301 | — | (20,178 | ) | |||||||||||
Equity in earnings of subsidiaries | 14,358 | (200 | ) | — | (14,158 | ) | — | ||||||||||||
Income tax (benefit) provision | — | (167 | ) | 83 | — | (84 | ) | ||||||||||||
Net (loss) income | (20,112 | ) | (14,358 | ) | 218 | 14,158 | (20,094 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | (18 | ) | — | (18 | ) | ||||||||||||
Net (loss) income attributable to ARC Document Solutions, Inc. shareholders | $ | (20,112 | ) | $ | (14,358 | ) | $ | 200 | $ | 14,158 | $ | (20,112 | ) |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net sales | $ | — | $ | 268,530 | $ | 37,380 | $ | — | $ | 305,910 | |||||||||
Cost of sales | — | 176,300 | 28,740 | — | 205,040 | ||||||||||||||
Gross profit | — | 92,230 | 8,640 | — | 100,870 | ||||||||||||||
Selling, general and administrative expenses | 5 | 65,950 | 6,728 | — | 72,683 | ||||||||||||||
Amortization of intangible assets | — | 4,821 | 235 | — | 5,056 | ||||||||||||||
Restructuring expense | — | 1,758 | 7 | — | 1,765 | ||||||||||||||
(Loss) income from operations | (5 | ) | 19,701 | 1,670 | — | 21,366 | |||||||||||||
Other income, net | — | (86 | ) | — | — | (86 | ) | ||||||||||||
Loss on extinguishment of debt | 262 | — | — | — | 262 | ||||||||||||||
Interest expense, net | 17,101 | 1,056 | (145 | ) | — | 18,012 | |||||||||||||
(Loss) income before equity earnings of subsidiaries and income tax provision (benefit) | (17,368 | ) | 18,731 | 1,815 | — | 3,178 | |||||||||||||
Equity in earnings of subsidiaries | (18,055 | ) | (1,550 | ) | — | 19,605 | — | ||||||||||||
Income tax provision (benefit) | — | 2,226 | (280 | ) | — | 1,946 | |||||||||||||
Net income (loss) | 687 | 18,055 | 2,095 | (19,605 | ) | 1,232 | |||||||||||||
Income attributable to noncontrolling interest | — | — | (545 | ) | — | (545 | ) | ||||||||||||
Net income (loss) attributable to ARC Document Solutions, Inc. shareholders | $ | 687 | $ | 18,055 | $ | 1,550 | $ | (19,605 | ) | $ | 687 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net sales | $ | — | $ | 270,645 | $ | 38,582 | $ | — | $ | 309,227 | |||||||||
Cost of sales | — | 184,274 | 30,074 | — | 214,348 | ||||||||||||||
Gross profit | — | 86,371 | 8,508 | — | 94,879 | ||||||||||||||
Selling, general and administrative expenses | 5 | 66,631 | 4,710 | — | 71,346 | ||||||||||||||
Amortization of intangible assets | — | 8,961 | 283 | — | 9,244 | ||||||||||||||
Goodwill impairment | — | 15,204 | 1,503 | — | 16,707 | ||||||||||||||
(Loss) income from operations | (5 | ) | (4,425 | ) | 2,012 | — | (2,418 | ) | |||||||||||
Other income, net | — | (79 | ) | — | — | (79 | ) | ||||||||||||
Interest expense, net | 17,219 | 4,514 | (58 | ) | — | 21,675 | |||||||||||||
(Loss) income before equity earnings of subsidiaries and income tax provision | (17,224 | ) | (8,860 | ) | 2,070 | — | (24,014 | ) | |||||||||||
Equity in earnings of subsidiaries | 8,848 | (1,527 | ) | — | (7,321 | ) | — | ||||||||||||
Income tax provision | — | 1,515 | 330 | — | 1,845 | ||||||||||||||
Net (loss) income | (26,072 | ) | (8,848 | ) | 1,740 | 7,321 | (25,859 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | (213 | ) | — | (213 | ) | ||||||||||||
Net (loss) income attributable to ARC Document Solutions, Inc. shareholders | $ | (26,072 | ) | $ | (8,848 | ) | $ | 1,527 | $ | 7,321 | $ | (26,072 | ) |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net (loss) income | $ | (450 | ) | $ | 5,398 | $ | 375 | $ | (5,651 | ) | $ | (328 | ) | ||||||
Other comprehensive income, net of tax | |||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | 385 | — | 385 | ||||||||||||||
Other comprehensive income, net of tax | — | — | 385 | — | 385 | ||||||||||||||
Comprehensive (loss) income | (450 | ) | 5,398 | 760 | (5,651 | ) | 57 | ||||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | 182 | — | 182 | ||||||||||||||
Comprehensive (loss) income attributable to ARC Document Solutions, Inc. shareholders | $ | (450 | ) | $ | 5,398 | $ | 578 | $ | (5,651 | ) | $ | (125 | ) |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net (loss) income | $ | (20,112 | ) | $ | (14,358 | ) | $ | 218 | $ | 14,158 | $ | (20,094 | ) | ||||||
Other comprehensive income, net of tax | |||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | 270 | — | 270 | ||||||||||||||
Amortization of derivative, net of tax | — | 486 | — | — | 486 | ||||||||||||||
Other comprehensive income, net of tax | — | 486 | 270 | — | 756 | ||||||||||||||
Comprehensive (loss) income | (20,112 | ) | (13,872 | ) | 488 | 14,158 | (19,338 | ) | |||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | (9 | ) | — | (9 | ) | ||||||||||||
Comprehensive (loss) income attributable to ARC Document Solutions, Inc. shareholders | $ | (20,112 | ) | $ | (13,872 | ) | $ | 497 | $ | 14,158 | $ | (19,329 | ) |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net income (loss) | $ | 687 | $ | 18,055 | $ | 2,095 | $ | (19,605 | ) | $ | 1,232 | ||||||||
Other comprehensive income, net of tax | |||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | 259 | — | 259 | ||||||||||||||
Other comprehensive income, net of tax | — | — | 259 | — | 259 | ||||||||||||||
Comprehensive income (loss) | 687 | 18,055 | 2,354 | (19,605 | ) | 1,491 | |||||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | 757 | — | 757 | ||||||||||||||
Comprehensive income (loss) attributable to ARC Document Solutions, Inc. shareholders | $ | 687 | $ | 18,055 | $ | 1,597 | $ | (19,605 | ) | $ | 734 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net (loss) income | $ | (26,072 | ) | $ | (8,848 | ) | $ | 1,740 | $ | 7,321 | $ | (25,859 | ) | ||||||
Other comprehensive income, net of tax | |||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | 281 | — | 281 | ||||||||||||||
Amortization of derivative, net of tax | — | 1,908 | — | — | 1,908 | ||||||||||||||
Other comprehensive income, net of tax | — | 1,908 | 281 | — | 2,189 | ||||||||||||||
Comprehensive (loss) income | (26,072 | ) | (6,940 | ) | 2,021 | 7,321 | (23,670 | ) | |||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | 205 | — | 205 | ||||||||||||||
Comprehensive (loss) income attributable to ARC Document Solutions, Inc. shareholders | $ | (26,072 | ) | $ | (6,940 | ) | $ | 1,816 | $ | 7,321 | $ | (23,875 | ) |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (110 | ) | $ | 17,199 | $ | 2,930 | $ | — | $ | 20,019 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Capital expenditures | — | (4,478 | ) | (336 | ) | — | (4,814 | ) | |||||||||||
Other | — | 93 | (10 | ) | — | 83 | |||||||||||||
Net cash used in investing activities | — | (4,385 | ) | (346 | ) | — | (4,731 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Proceeds from issuance of common stock under Employee Stock Purchase Plan | — | 4 | — | — | 4 | ||||||||||||||
Payments of debt extinguishment costs | (66 | ) | — | — | — | (66 | ) | ||||||||||||
Early extinguishment of long-term debt | (7,000 | ) | — | — | — | (7,000 | ) | ||||||||||||
Payments on long-term debt agreements and capital leases | — | (2,555 | ) | (433 | ) | — | (2,988 | ) | |||||||||||
Net repayments under revolving credit facilities | — | — | (228 | ) | — | (228 | ) | ||||||||||||
Payment of deferred financing fees | — | — | (485 | ) | — | (485 | ) | ||||||||||||
Advances to/from subsidiaries | 7,176 | (4,228 | ) | (2,948 | ) | — | — | ||||||||||||
Net cash provided by (used in) financing activities | 110 | (6,779 | ) | (4,094 | ) | — | (10,763 | ) | |||||||||||
Effect of foreign currency translation on cash balances | — | — | 152 | — | 152 | ||||||||||||||
Net change in cash and cash equivalents | — | 6,035 | (1,358 | ) | — | 4,677 | |||||||||||||
Cash and cash equivalents at beginning of period | — | 15,080 | 17,297 | — | 32,377 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 21,115 | $ | 15,939 | $ | — | $ | 37,054 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (54 | ) | $ | 13,893 | $ | 190 | $ | — | $ | 14,029 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Capital expenditures | — | (4,588 | ) | (344 | ) | — | (4,932 | ) | |||||||||||
Other | — | 350 | (33 | ) | — | 317 | |||||||||||||
Net cash used in investing activities | — | (4,238 | ) | (377 | ) | — | (4,615 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Payments on long-term debt agreements and capital leases | — | (3,125 | ) | (450 | ) | — | (3,575 | ) | |||||||||||
Net borrowings under revolving credit facilities | — | — | 1,424 | — | 1,424 | ||||||||||||||
Advances to/from subsidiaries | 54 | 11 | (65 | ) | — | ||||||||||||||
Net cash provided by (used in) financing activities | 54 | (3,114 | ) | 909 | — | (2,151 | ) | ||||||||||||
Effect of foreign currency translation on cash balances | — | — | (47 | ) | — | (47 | ) | ||||||||||||
Net change in cash and cash equivalents | — | 6,541 | 675 | — | 7,216 | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 9,681 | 13,637 | — | 23,318 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 16,222 | $ | 14,312 | $ | — | $ | 30,534 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (10,737 | ) | $ | 46,353 | $ | 4,394 | $ | — | $ | 40,010 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Capital expenditures | — | (13,285 | ) | (1,571 | ) | — | (14,856 | ) | |||||||||||
Other | — | 280 | 342 | — | 622 | ||||||||||||||
Net cash used in investing activities | — | (13,005 | ) | (1,229 | ) | — | (14,234 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Proceeds from issuance of common stock under Employee Stock Purchase Plan | — | 13 | — | — | 13 | ||||||||||||||
Share repurchases, including shares surrendered for tax withholding | — | (90 | ) | — | — | (90 | ) | ||||||||||||
Proceeds from borrowings on long-term debt agreements | — | 402 | — | — | 402 | ||||||||||||||
Payments of debt extinguishment costs | (66 | ) | — | — | — | (66 | ) | ||||||||||||
Early extinguishment of long-term debt | (7,000 | ) | — | — | — | (7,000 | ) | ||||||||||||
Payments on long-term debt agreements and capital leases | — | (8,210 | ) | (1,185 | ) | — | (9,395 | ) | |||||||||||
Net repayments under revolving credit facilities | — | — | (438 | ) | — | (438 | ) | ||||||||||||
Dividends paid to noncontrolling interest | — | — | (485 | ) | — | (485 | ) | ||||||||||||
Advances to/from subsidiaries | 17,803 | (15,313 | ) | (2,490 | ) | — | — | ||||||||||||
Net cash provided by (used in) financing activities | 10,737 | (23,198 | ) | (4,598 | ) | — | (17,059 | ) | |||||||||||
Effect of foreign currency translation on cash balances | — | — | 316 | — | 316 | ||||||||||||||
Net change in cash and cash equivalents | — | 10,150 | (1,117 | ) | — | 9,033 | |||||||||||||
Cash and cash equivalents at beginning of period | — | 10,965 | 17,056 | — | 28,021 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 21,115 | $ | 15,939 | $ | — | $ | 37,054 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (10,636 | ) | $ | 40,281 | $ | 1,234 | $ | — | $ | 30,879 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Capital expenditures | — | (12,997 | ) | (1,197 | ) | — | (14,194 | ) | |||||||||||
Other | — | 233 | (100 | ) | — | 133 | |||||||||||||
Net cash used in investing activities | — | (12,764 | ) | (1,297 | ) | — | (14,061 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Proceeds from stock option exercises | — | 79 | — | — | 79 | ||||||||||||||
Proceeds from issuance of common stock under Employee Stock Purchase Plan | — | 28 | — | — | 28 | ||||||||||||||
Payments on long-term debt agreements and capital leases | — | (10,866 | ) | (1,175 | ) | — | (12,041 | ) | |||||||||||
Net borrowings under revolving credit facilities | — | — | 1,041 | — | 1,041 | ||||||||||||||
Payment of deferred financing costs | (839 | ) | — | — | — | (839 | ) | ||||||||||||
Advances to/from subsidiaries | 11,475 | (12,242 | ) | 767 | — | ||||||||||||||
Net cash provided by (used in) financing activities | 10,636 | (23,001 | ) | 633 | — | (11,732 | ) | ||||||||||||
Effect of foreign currency translation on cash balances | — | — | 11 | — | 11 | ||||||||||||||
Net change in cash and cash equivalents | — | 4,516 | 581 | — | 5,097 | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 11,706 | 13,731 | — | 25,437 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 16,222 | $ | 14,312 | $ | — | $ | 30,534 |
|
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Service Sales | |||||||||||||||
Traditional reprographics | $ | 28,907 | $ | 30,820 | $ | 88,981 | $ | 98,427 | |||||||
Color | 20,638 | 19,335 | 63,389 | 59,839 | |||||||||||
Digital | 8,295 | 8,565 | 25,346 | 27,763 | |||||||||||
Subtotal(1) | 57,840 | 58,720 | 177,716 | 186,029 | |||||||||||
Onsite services(2) | 30,990 | 27,116 | 90,542 | 81,262 | |||||||||||
Total services sales | 88,830 | 85,836 | 268,258 | 267,291 | |||||||||||
Equipment and supplies sales | 12,422 | 13,590 | 37,652 | 41,936 | |||||||||||
Total net sales | $ | 101,252 | $ | 99,426 | $ | 305,910 | $ | 309,227 |
(1) | For comparison purposes this subtotal agrees with Reprographics Services historically reported prior to the 2012 Annual Report on Form 10-K. |
(2) | Represents work done at the Company’s customer sites which includes Facilities Management (“FM”) and Managed Print Services (“MPS”). |
|
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||
Employee termination costs | $ | 1 | $ | 12 | |||
Estimated lease termination and obligation costs | 395 | 1,361 | |||||
Other restructuring expenses | 261 | 392 | |||||
Total restructuring expenses | $ | 657 | $ | 1,765 |
Nine Months Ended September 30, 2013 | |||
Balance, December 31, 2012 | $ | 2,299 | |
Restructuring expenses | 1,765 | ||
Payments | (3,324 | ) | |
Balance, September 30, 2013 | $ | 740 |
|
Gross Goodwill | Accumulated Impairment Loss | Net Carrying Amount | |||||||||
January 1, 2012 | $ | 405,558 | $ | 176,243 | $ | 229,315 | |||||
Additions | — | — | — | ||||||||
Goodwill impairment | — | 16,707 | (16,707 | ) | |||||||
December 31, 2012 | 405,558 | 192,950 | 212,608 | ||||||||
Additions | — | — | — | ||||||||
Goodwill impairment | — | — | — | ||||||||
September 30, 2013 | $ | 405,558 | $ | 192,950 | $ | 212,608 |
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Amortizable other intangible assets | |||||||||||||||||||||||
Customer relationships | $ | 97,861 | $ | 69,005 | $ | 28,856 | $ | 97,926 | $ | 64,024 | $ | 33,902 | |||||||||||
Trade names and trademarks | 20,370 | 19,790 | 580 | 20,350 | 19,754 | 596 | |||||||||||||||||
$ | 118,231 | $ | 88,795 | $ | 29,436 | $ | 118,276 | $ | 83,778 | $ | 34,498 |
2013 (excluding the nine months ended September 30, 2013) | $ | 1,548 | |
2014 | 5,761 | ||
2015 | 5,218 | ||
2016 | 4,518 | ||
2017 | 4,002 | ||
Thereafter | 8,389 | ||
$ | 29,436 |
|
September 30, 2013 | December 31, 2012 | ||||||
10.5% senior notes due 2016, net of bond discount of $2,549 and $3,148 | $ | 190,451 | $ | 196,852 | |||
Various capital leases; weighted average interest rate of 7.5% at September 30, 2013 and December 31, 2012; principal and interest payable monthly through September 2018 | 20,841 | 23,445 | |||||
Borrowings from foreign revolving credit facilities; 0.6% interest rate at September 30, 2013 and December 31, 2012 | 1,596 | 1,985 | |||||
Various other notes payable with a weighted average interest rate of 6.4% and 6.0% at September 30, 2013 and December 31, 2012, respectively; principal and interest payable monthly through June 2016 | 497 | 243 | |||||
213,385 | 222,525 | ||||||
Less current portion | (11,505 | ) | (13,263 | ) | |||
$ | 201,880 | $ | 209,262 |
|
Amount of Gain or (Loss) Reclassified from Accumulated Comprehensive Income (Loss) into Income | |||||||||||||||||||||||||||||||
(effective portion) | (ineffective portion) | ||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Location of Loss Reclassified from AOCL into Income | |||||||||||||||||||||||||||||||
Interest expense | $ | — | $ | (776 | ) | $ | — | $ | (3,047 | ) | $ | — | $ | — | $ | — | $ | — |
|
Significant Other Unobservable Inputs September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Level 3 | Total Losses | Level 3 | Total Losses | ||||||||||||
Nonrecurring Fair Value Measure | |||||||||||||||
Goodwill | $ | 212,608 | $ | — | $ | 212,608 | $ | 16,707 |
|
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Assets | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 21,115 | $ | 15,939 | $ | — | $ | 37,054 | |||||||||
Accounts receivable, net | — | 49,186 | 9,457 | — | 58,643 | ||||||||||||||
Intercompany operations | 128,672 | 5,109 | — | (133,781 | ) | — | |||||||||||||
Inventories, net | — | 10,469 | 3,281 | — | 13,750 | ||||||||||||||
Deferred income taxes | — | 3 | 465 | — | 468 | ||||||||||||||
Prepaid expenses | 1 | 3,702 | 1,008 | — | 4,711 | ||||||||||||||
Other current assets | — | 1,834 | 1,584 | — | 3,418 | ||||||||||||||
Total current assets | 128,673 | 91,418 | 31,734 | (133,781 | ) | 118,044 | |||||||||||||
Property and equipment, net | — | 48,471 | 7,896 | — | 56,367 | ||||||||||||||
Goodwill | — | 212,608 | — | — | 212,608 | ||||||||||||||
Investment in subsidiaries | 171,077 | 18,089 | — | (189,166 | ) | — | |||||||||||||
Other intangible assets, net | — | 27,508 | 1,928 | — | 29,436 | ||||||||||||||
Deferred financing costs, net | 3,291 | — | — | — | 3,291 | ||||||||||||||
Deferred income taxes | — | 69 | 1,200 | — | 1,269 | ||||||||||||||
Other assets | — | 2,095 | 496 | — | 2,591 | ||||||||||||||
Total assets | $ | 303,041 | $ | 400,258 | $ | 43,254 | $ | (322,947 | ) | $ | 423,606 | ||||||||
Liabilities and Equity | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | $ | — | $ | 19,491 | $ | 2,398 | $ | — | $ | 21,889 | |||||||||
Accrued payroll and payroll-related expenses | — | 12,089 | 745 | — | 12,834 | ||||||||||||||
Accrued expenses | 5,984 | 18,451 | 3,188 | — | 27,623 | ||||||||||||||
Intercompany loans | — | 128,377 | 5,404 | (133,781 | ) | — | |||||||||||||
Current portion of long-term debt and capital leases | — | 8,581 | 2,924 | — | 11,505 | ||||||||||||||
Total current liabilities | 5,984 | 186,989 | 14,659 | (133,781 | ) | 73,851 | |||||||||||||
Long-term debt and capital leases | 190,455 | 9,974 | 1,451 | — | 201,880 | ||||||||||||||
Deferred income taxes | — | 30,910 | 28 | — | 30,938 | ||||||||||||||
Other long-term liabilities | — | 1,308 | 1,814 | — | 3,122 | ||||||||||||||
Total liabilities | 196,439 | 229,181 | 17,952 | (133,781 | ) | 309,791 | |||||||||||||
Commitments and contingencies | |||||||||||||||||||
Total equity | 106,602 | 171,077 | 25,302 | (189,166 | ) | 113,815 | |||||||||||||
Total liabilities and equity | $ | 303,041 | $ | 400,258 | $ | 43,254 | $ | (322,947 | ) | $ | 423,606 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Assets | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 10,965 | $ | 17,056 | $ | — | $ | 28,021 | |||||||||
Accounts receivable, net | — | 45,289 | 6,566 | — | 51,855 | ||||||||||||||
Intercompany operations | 146,475 | 4,869 | — | (151,344 | ) | — | |||||||||||||
Inventories, net | — | 9,426 | 4,825 | — | 14,251 | ||||||||||||||
Prepaid expenses | — | 2,732 | 545 | — | 3,277 | ||||||||||||||
Other current assets | — | 5,854 | 965 | — | 6,819 | ||||||||||||||
Total current assets | 146,475 | 79,135 | 29,957 | (151,344 | ) | 104,223 | |||||||||||||
Property and equipment, net | — | 48,484 | 7,987 | — | 56,471 | ||||||||||||||
Goodwill | — | 212,608 | — | — | 212,608 | ||||||||||||||
Investment in subsidiaries | 151,015 | 14,233 | — | (165,248 | ) | — | |||||||||||||
Other intangible assets, net | — | 32,327 | 2,171 | — | 34,498 | ||||||||||||||
Deferred financing costs, net | 4,219 | — | — | — | 4,219 | ||||||||||||||
Deferred income taxes | — | — | 1,246 | — | 1,246 | ||||||||||||||
Other assets | — | 1,788 | 786 | — | 2,574 | ||||||||||||||
Total assets | $ | 301,709 | $ | 388,575 | $ | 42,147 | $ | (316,592 | ) | $ | 415,839 | ||||||||
Liabilities and Equity | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | $ | 1 | $ | 19,395 | $ | 1,819 | $ | — | $ | 21,215 | |||||||||
Accrued payroll and payroll-related expenses | — | 6,460 | 314 | — | 6,774 | ||||||||||||||
Accrued expenses | 951 | 17,230 | 4,140 | — | 22,321 | ||||||||||||||
Intercompany loans | — | 143,450 | 7,894 | (151,344 | ) | — | |||||||||||||
Current portion of long-term debt and capital leases | — | 9,909 | 3,354 | — | 13,263 | ||||||||||||||
Total current liabilities | 952 | 196,444 | 17,521 | (151,344 | ) | 63,573 | |||||||||||||
Long-term debt and capital leases | 196,861 | 10,945 | 1,456 | — | 209,262 | ||||||||||||||
Deferred income taxes | — | 28,900 | 36 | — | 28,936 | ||||||||||||||
Other long-term liabilities | — | 1,271 | 1,960 | — | 3,231 | ||||||||||||||
Total liabilities | 197,813 | 237,560 | 20,973 | (151,344 | ) | 305,002 | |||||||||||||
Commitments and contingencies | |||||||||||||||||||
Total equity | 103,896 | 151,015 | 21,174 | (165,248 | ) | 110,837 | |||||||||||||
Total liabilities and equity | $ | 301,709 | $ | 388,575 | $ | 42,147 | $ | (316,592 | ) | $ | 415,839 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net sales | $ | — | $ | 88,766 | $ | 12,486 | $ | — | $ | 101,252 | |||||||||
Cost of sales | — | 58,727 | 9,645 | — | 68,372 | ||||||||||||||
Gross profit | — | 30,039 | 2,841 | — | 32,880 | ||||||||||||||
Selling, general and administrative expenses | 2 | 21,672 | 2,345 | — | 24,019 | ||||||||||||||
Amortization of intangible assets | — | 1,534 | 76 | — | 1,610 | ||||||||||||||
Restructuring expense | — | 657 | — | — | 657 | ||||||||||||||
(Loss) income from operations | (2 | ) | 6,176 | 420 | — | 6,594 | |||||||||||||
Other income, net | — | (25 | ) | — | — | (25 | ) | ||||||||||||
Loss on extinguishment of debt | 262 | — | — | — | 262 | ||||||||||||||
Interest expense, net | 5,584 | 357 | (46 | ) | — | 5,895 | |||||||||||||
(Loss) income before equity earnings of subsidiaries and income tax provision | (5,848 | ) | 5,844 | 466 | — | 462 | |||||||||||||
Equity in earnings of subsidiaries | (5,398 | ) | (253 | ) | — | 5,651 | — | ||||||||||||
Income tax provision | — | 699 | 91 | — | 790 | ||||||||||||||
Net (loss) income | (450 | ) | 5,398 | 375 | (5,651 | ) | (328 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | (122 | ) | — | (122 | ) | ||||||||||||
Net (loss) income attributable to ARC Document Solutions, Inc. shareholders | $ | (450 | ) | $ | 5,398 | $ | 253 | $ | (5,651 | ) | $ | (450 | ) |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net sales | $ | — | $ | 86,714 | $ | 12,712 | $ | — | $ | 99,426 | |||||||||
Cost of sales | — | 59,988 | 10,190 | — | 70,178 | ||||||||||||||
Gross profit | — | 26,726 | 2,522 | — | 29,248 | ||||||||||||||
Selling, general and administrative expenses | 2 | 23,274 | 640 | — | 23,916 | ||||||||||||||
Amortization of intangible assets | — | 1,760 | 86 | — | 1,846 | ||||||||||||||
Goodwill impairment | — | 15,204 | 1,503 | — | 16,707 | ||||||||||||||
(Loss) income from operations | (2 | ) | (13,512 | ) | 293 | — | (13,221 | ) | |||||||||||
Other income, net | — | (25 | ) | — | — | (25 | ) | ||||||||||||
Interest expense, net | 5,752 | 1,238 | (8 | ) | — | 6,982 | |||||||||||||
(Loss) income before equity earnings of subsidiaries and income tax (benefit) provision | (5,754 | ) | (14,725 | ) | 301 | — | (20,178 | ) | |||||||||||
Equity in earnings of subsidiaries | 14,358 | (200 | ) | — | (14,158 | ) | — | ||||||||||||
Income tax (benefit) provision | — | (167 | ) | 83 | — | (84 | ) | ||||||||||||
Net (loss) income | (20,112 | ) | (14,358 | ) | 218 | 14,158 | (20,094 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | (18 | ) | — | (18 | ) | ||||||||||||
Net (loss) income attributable to ARC Document Solutions, Inc. shareholders | $ | (20,112 | ) | $ | (14,358 | ) | $ | 200 | $ | 14,158 | $ | (20,112 | ) |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net sales | $ | — | $ | 268,530 | $ | 37,380 | $ | — | $ | 305,910 | |||||||||
Cost of sales | — | 176,300 | 28,740 | — | 205,040 | ||||||||||||||
Gross profit | — | 92,230 | 8,640 | — | 100,870 | ||||||||||||||
Selling, general and administrative expenses | 5 | 65,950 | 6,728 | — | 72,683 | ||||||||||||||
Amortization of intangible assets | — | 4,821 | 235 | — | 5,056 | ||||||||||||||
Restructuring expense | — | 1,758 | 7 | — | 1,765 | ||||||||||||||
(Loss) income from operations | (5 | ) | 19,701 | 1,670 | — | 21,366 | |||||||||||||
Other income, net | — | (86 | ) | — | — | (86 | ) | ||||||||||||
Loss on extinguishment of debt | 262 | — | — | — | 262 | ||||||||||||||
Interest expense, net | 17,101 | 1,056 | (145 | ) | — | 18,012 | |||||||||||||
(Loss) income before equity earnings of subsidiaries and income tax provision (benefit) | (17,368 | ) | 18,731 | 1,815 | — | 3,178 | |||||||||||||
Equity in earnings of subsidiaries | (18,055 | ) | (1,550 | ) | — | 19,605 | — | ||||||||||||
Income tax provision (benefit) | — | 2,226 | (280 | ) | — | 1,946 | |||||||||||||
Net income (loss) | 687 | 18,055 | 2,095 | (19,605 | ) | 1,232 | |||||||||||||
Income attributable to noncontrolling interest | — | — | (545 | ) | — | (545 | ) | ||||||||||||
Net income (loss) attributable to ARC Document Solutions, Inc. shareholders | $ | 687 | $ | 18,055 | $ | 1,550 | $ | (19,605 | ) | $ | 687 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net sales | $ | — | $ | 270,645 | $ | 38,582 | $ | — | $ | 309,227 | |||||||||
Cost of sales | — | 184,274 | 30,074 | — | 214,348 | ||||||||||||||
Gross profit | — | 86,371 | 8,508 | — | 94,879 | ||||||||||||||
Selling, general and administrative expenses | 5 | 66,631 | 4,710 | — | 71,346 | ||||||||||||||
Amortization of intangible assets | — | 8,961 | 283 | — | 9,244 | ||||||||||||||
Goodwill impairment | — | 15,204 | 1,503 | — | 16,707 | ||||||||||||||
(Loss) income from operations | (5 | ) | (4,425 | ) | 2,012 | — | (2,418 | ) | |||||||||||
Other income, net | — | (79 | ) | — | — | (79 | ) | ||||||||||||
Interest expense, net | 17,219 | 4,514 | (58 | ) | — | 21,675 | |||||||||||||
(Loss) income before equity earnings of subsidiaries and income tax provision | (17,224 | ) | (8,860 | ) | 2,070 | — | (24,014 | ) | |||||||||||
Equity in earnings of subsidiaries | 8,848 | (1,527 | ) | — | (7,321 | ) | — | ||||||||||||
Income tax provision | — | 1,515 | 330 | — | 1,845 | ||||||||||||||
Net (loss) income | (26,072 | ) | (8,848 | ) | 1,740 | 7,321 | (25,859 | ) | |||||||||||
Income attributable to noncontrolling interest | — | — | (213 | ) | — | (213 | ) | ||||||||||||
Net (loss) income attributable to ARC Document Solutions, Inc. shareholders | $ | (26,072 | ) | $ | (8,848 | ) | $ | 1,527 | $ | 7,321 | $ | (26,072 | ) |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net (loss) income | $ | (450 | ) | $ | 5,398 | $ | 375 | $ | (5,651 | ) | $ | (328 | ) | ||||||
Other comprehensive income, net of tax | |||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | 385 | — | 385 | ||||||||||||||
Other comprehensive income, net of tax | — | — | 385 | — | 385 | ||||||||||||||
Comprehensive (loss) income | (450 | ) | 5,398 | 760 | (5,651 | ) | 57 | ||||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | 182 | — | 182 | ||||||||||||||
Comprehensive (loss) income attributable to ARC Document Solutions, Inc. shareholders | $ | (450 | ) | $ | 5,398 | $ | 578 | $ | (5,651 | ) | $ | (125 | ) |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net (loss) income | $ | (20,112 | ) | $ | (14,358 | ) | $ | 218 | $ | 14,158 | $ | (20,094 | ) | ||||||
Other comprehensive income, net of tax | |||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | 270 | — | 270 | ||||||||||||||
Amortization of derivative, net of tax | — | 486 | — | — | 486 | ||||||||||||||
Other comprehensive income, net of tax | — | 486 | 270 | — | 756 | ||||||||||||||
Comprehensive (loss) income | (20,112 | ) | (13,872 | ) | 488 | 14,158 | (19,338 | ) | |||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | (9 | ) | — | (9 | ) | ||||||||||||
Comprehensive (loss) income attributable to ARC Document Solutions, Inc. shareholders | $ | (20,112 | ) | $ | (13,872 | ) | $ | 497 | $ | 14,158 | $ | (19,329 | ) |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net income (loss) | $ | 687 | $ | 18,055 | $ | 2,095 | $ | (19,605 | ) | $ | 1,232 | ||||||||
Other comprehensive income, net of tax | |||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | 259 | — | 259 | ||||||||||||||
Other comprehensive income, net of tax | — | — | 259 | — | 259 | ||||||||||||||
Comprehensive income (loss) | 687 | 18,055 | 2,354 | (19,605 | ) | 1,491 | |||||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | 757 | — | 757 | ||||||||||||||
Comprehensive income (loss) attributable to ARC Document Solutions, Inc. shareholders | $ | 687 | $ | 18,055 | $ | 1,597 | $ | (19,605 | ) | $ | 734 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Net (loss) income | $ | (26,072 | ) | $ | (8,848 | ) | $ | 1,740 | $ | 7,321 | $ | (25,859 | ) | ||||||
Other comprehensive income, net of tax | |||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | 281 | — | 281 | ||||||||||||||
Amortization of derivative, net of tax | — | 1,908 | — | — | 1,908 | ||||||||||||||
Other comprehensive income, net of tax | — | 1,908 | 281 | — | 2,189 | ||||||||||||||
Comprehensive (loss) income | (26,072 | ) | (6,940 | ) | 2,021 | 7,321 | (23,670 | ) | |||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | 205 | — | 205 | ||||||||||||||
Comprehensive (loss) income attributable to ARC Document Solutions, Inc. shareholders | $ | (26,072 | ) | $ | (6,940 | ) | $ | 1,816 | $ | 7,321 | $ | (23,875 | ) |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (110 | ) | $ | 17,199 | $ | 2,930 | $ | — | $ | 20,019 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Capital expenditures | — | (4,478 | ) | (336 | ) | — | (4,814 | ) | |||||||||||
Other | — | 93 | (10 | ) | — | 83 | |||||||||||||
Net cash used in investing activities | — | (4,385 | ) | (346 | ) | — | (4,731 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Proceeds from issuance of common stock under Employee Stock Purchase Plan | — | 4 | — | — | 4 | ||||||||||||||
Payments of debt extinguishment costs | (66 | ) | — | — | — | (66 | ) | ||||||||||||
Early extinguishment of long-term debt | (7,000 | ) | — | — | — | (7,000 | ) | ||||||||||||
Payments on long-term debt agreements and capital leases | — | (2,555 | ) | (433 | ) | — | (2,988 | ) | |||||||||||
Net repayments under revolving credit facilities | — | — | (228 | ) | — | (228 | ) | ||||||||||||
Payment of deferred financing fees | — | — | (485 | ) | — | (485 | ) | ||||||||||||
Advances to/from subsidiaries | 7,176 | (4,228 | ) | (2,948 | ) | — | — | ||||||||||||
Net cash provided by (used in) financing activities | 110 | (6,779 | ) | (4,094 | ) | — | (10,763 | ) | |||||||||||
Effect of foreign currency translation on cash balances | — | — | 152 | — | 152 | ||||||||||||||
Net change in cash and cash equivalents | — | 6,035 | (1,358 | ) | — | 4,677 | |||||||||||||
Cash and cash equivalents at beginning of period | — | 15,080 | 17,297 | — | 32,377 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 21,115 | $ | 15,939 | $ | — | $ | 37,054 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (54 | ) | $ | 13,893 | $ | 190 | $ | — | $ | 14,029 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Capital expenditures | — | (4,588 | ) | (344 | ) | — | (4,932 | ) | |||||||||||
Other | — | 350 | (33 | ) | — | 317 | |||||||||||||
Net cash used in investing activities | — | (4,238 | ) | (377 | ) | — | (4,615 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Payments on long-term debt agreements and capital leases | — | (3,125 | ) | (450 | ) | — | (3,575 | ) | |||||||||||
Net borrowings under revolving credit facilities | — | — | 1,424 | — | 1,424 | ||||||||||||||
Advances to/from subsidiaries | 54 | 11 | (65 | ) | — | ||||||||||||||
Net cash provided by (used in) financing activities | 54 | (3,114 | ) | 909 | — | (2,151 | ) | ||||||||||||
Effect of foreign currency translation on cash balances | — | — | (47 | ) | — | (47 | ) | ||||||||||||
Net change in cash and cash equivalents | — | 6,541 | 675 | — | 7,216 | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 9,681 | 13,637 | — | 23,318 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 16,222 | $ | 14,312 | $ | — | $ | 30,534 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (10,737 | ) | $ | 46,353 | $ | 4,394 | $ | — | $ | 40,010 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Capital expenditures | — | (13,285 | ) | (1,571 | ) | — | (14,856 | ) | |||||||||||
Other | — | 280 | 342 | — | 622 | ||||||||||||||
Net cash used in investing activities | — | (13,005 | ) | (1,229 | ) | — | (14,234 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Proceeds from issuance of common stock under Employee Stock Purchase Plan | — | 13 | — | — | 13 | ||||||||||||||
Share repurchases, including shares surrendered for tax withholding | — | (90 | ) | — | — | (90 | ) | ||||||||||||
Proceeds from borrowings on long-term debt agreements | — | 402 | — | — | 402 | ||||||||||||||
Payments of debt extinguishment costs | (66 | ) | — | — | — | (66 | ) | ||||||||||||
Early extinguishment of long-term debt | (7,000 | ) | — | — | — | (7,000 | ) | ||||||||||||
Payments on long-term debt agreements and capital leases | — | (8,210 | ) | (1,185 | ) | — | (9,395 | ) | |||||||||||
Net repayments under revolving credit facilities | — | — | (438 | ) | — | (438 | ) | ||||||||||||
Dividends paid to noncontrolling interest | — | — | (485 | ) | — | (485 | ) | ||||||||||||
Advances to/from subsidiaries | 17,803 | (15,313 | ) | (2,490 | ) | — | — | ||||||||||||
Net cash provided by (used in) financing activities | 10,737 | (23,198 | ) | (4,598 | ) | — | (17,059 | ) | |||||||||||
Effect of foreign currency translation on cash balances | — | — | 316 | — | 316 | ||||||||||||||
Net change in cash and cash equivalents | — | 10,150 | (1,117 | ) | — | 9,033 | |||||||||||||
Cash and cash equivalents at beginning of period | — | 10,965 | 17,056 | — | 28,021 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 21,115 | $ | 15,939 | $ | — | $ | 37,054 |
(In thousands) | ARC Document Solutions, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Total | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (10,636 | ) | $ | 40,281 | $ | 1,234 | $ | — | $ | 30,879 | ||||||||
Cash flows from investing activities | |||||||||||||||||||
Capital expenditures | — | (12,997 | ) | (1,197 | ) | — | (14,194 | ) | |||||||||||
Other | — | 233 | (100 | ) | — | 133 | |||||||||||||
Net cash used in investing activities | — | (12,764 | ) | (1,297 | ) | — | (14,061 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||
Proceeds from stock option exercises | — | 79 | — | — | 79 | ||||||||||||||
Proceeds from issuance of common stock under Employee Stock Purchase Plan | — | 28 | — | — | 28 | ||||||||||||||
Payments on long-term debt agreements and capital leases | — | (10,866 | ) | (1,175 | ) | — | (12,041 | ) | |||||||||||
Net borrowings under revolving credit facilities | — | — | 1,041 | — | 1,041 | ||||||||||||||
Payment of deferred financing costs | (839 | ) | — | — | — | (839 | ) | ||||||||||||
Advances to/from subsidiaries | 11,475 | (12,242 | ) | 767 | — | ||||||||||||||
Net cash provided by (used in) financing activities | 10,636 | (23,001 | ) | 633 | — | (11,732 | ) | ||||||||||||
Effect of foreign currency translation on cash balances | — | — | 11 | — | 11 | ||||||||||||||
Net change in cash and cash equivalents | — | 4,516 | 581 | — | 5,097 | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 11,706 | 13,731 | — | 25,437 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 16,222 | $ | 14,312 | $ | — | $ | 30,534 |
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