SOURCE: ARC Document Solutions, Inc.

ARC Document Solutions, Inc.

February 24, 2015 16:05 ET

ARC Document Solutions Reports Results for Fourth Quarter and Full Year 2014

WALNUT CREEK, CA--(Marketwired - Feb 24, 2015) - ARC Document Solutions, Inc. (NYSE: ARC), the nation's leading document solutions provider for the architecture, engineering, and construction (AEC) industry, today reported its financial results for the fourth quarter and full year ended December 31, 2014.

2014 Annual Business Highlights:

  • Revenue grew 4.1% year-over-year
  • Adjusted diluted earnings per share were $0.25 vs. $0.09 in 2013
  • Gross margin was 34.0% vs. 33.0% in 2013 
  • Adjusted EBITDA grew $4.0 million, or 5.9% year-over-year
  • Adjusted cash flow from operations of $54.0 million vs. $47.3 million in 2013
  • 2015 fully-diluted annual adjusted earnings per share projected to be in the range of $0.37 to $0.41; annual adjusted cash provided by operating activities projected to be in the range of $61 to $66 million; and annual adjusted EBITDA to be in the range of $75 million to $80 million
                         
Financial Highlights:                        
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
(All dollar amounts in millions, except EPS)   2014     2013     2014     2013  
Net Revenue   $ 107.6     $ 101.3     $ 423.8     $ 407.2  
Gross Margin     32.5 %     33.0 %     34.0 %     33.0 %
Net (loss) income attributable to ARC   $ (2.3 )   $ (16.0 )   $ 7.3     $ (15.3 )
Adjusted Net Income attributable to ARC   $ 2.6     $ 1.1     $ 11.8     $ 4.1  
Diluted (loss) earnings per share   $ (0.05 )   $ (0.35 )   $ 0.15     $ (0.33 )
Adjusted diluted earnings per share   $ 0.06     $ 0.02     $ 0.25     $ 0.09  
Cash provided by operating activities   $ 13.0     $ 6.8     $ 50.0     $ 46.8  
Adjusted cash provided by operating activities   $ 13.1     $ 7.8     $ 54.0     $ 47.3  
EBITDA   $ 9.6     $ (0.6 )   $ 58.3     $ 46.1  
Adjusted EBITDA   $ 17.0     $ 17.4     $ 72.3     $ 68.2  
Capital Expenditures   $ (3.2 )   $ (3.3 )   $ (13.3 )   $ (18.2 )
Debt & Capital Leases (including current)                   $ 203.9     $ 219.7  
                                 

Management Commentary

"2014 was a great year for us," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC Document Solutions. "It was a year that culminated in the transformation of the company into a technology services provider, laying the foundation for our future growth. In the midst of all this change and the disruption that came with it, ARC finished six quarters of consecutive sales growth, saw earnings per share nearly triple, significantly increased its cash flows, and refinanced its long term debt for the second time in 12 months. Needless to say, I am gratified with the work done by our management team, and I look forward sharing our ideas for ARC's future during our upcoming earnings call and on our investor day on March 6th."

"The significant increase in 2014 annual earnings per share was due to our increase in sales, tight controls over our costs, and major improvements in our capital structure," said Jorge Avalos, ARC's Chief Financial Officer. "Adjusted cash flow from operations in 2014 increased 14% over 2013, and this allowed us to pay down $27 million, or 14%, of our term credit facility. By the end of the year, the resulting decrease in our leverage ratio coupled with our improved financial performance allowed us to secure a new Term A loan with an initial interest rate of approximately 2.75% -- 350 basis points lower than our previous term loan -- which will yield annual savings of approximately $6 million."

2014 Fourth Quarter Supplemental Information:

Net sales were $107.6 million, a 6.2% increase compared to the fourth quarter of 2013.

Days sales outstanding in Q4 2014 were 52 compared to 50 days in Q4 2013.

AEC customers comprised approximately 77% of our total net sales, while non-AEC customers made up 23% of our total net sales.

Total number of Onsite Services contracts was approximately 8,500, a gain of approximately 800 contracts over Q4 2013.

                         
Sales from Services and Product Lines as a Percentage of Net Sales  
   
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
Services and Product Line   2014     2013     2014     2013  
Onsite Services   32.1 %   30.6 %   31.9 %   29.9 %
Traditional Reprographics   24.6 %   27.3 %   26.7 %   28.7 %
Color Services   21.5 %   20.0 %   21.3 %   20.5 %
Digital   7.6 %   8.1 %   7.9 %   8.2 %
Equipment and Supplies Sales   14.2 %   14.0 %   12.2 %   12.7 %
                         

Outlook

ARC Document Solutions anticipates annual adjusted earnings per share in 2015 to be in the range of $0.37 to $0.41 on a fully diluted basis, and annual cash flow from operations to be in the range of $61 million to $66 million. The Company's outlook for 2015 annual adjusted EBITDA is expected to be in the range of $75 million to $80 million.

Teleconference and Webcast

ARC Document Solutions 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 fourth quarter of 2014. To access the live audio call, dial 888-500-6950. International callers may join the conference by dialing 719-325-2484. The conference ID number is 2292169. A live webcast will also be made available on the investor relations page of ARC Document Solutions' website at www.e-arc.com.

A replay of the call will be available for five days after the call's conclusion. To access the replay, dial 888-203-1112. International callers may access the replay by dialing 719-457-0820. The conference ID number is 2292169. The webcast will also be made available at www.e-arc.com for approximately 90 days following the call's conclusion.

Investor Day to be Held on March 6, 2015

ARC Document Solutions will be holding an investor day in Las Vegas on Friday, March 6, 2015. Planned events include demonstrations of SKYSITE™, ARC's recently released cloud-based, document distribution solution for the construction industry, as well as demonstrations of how its technology, innovation and scale in the marketplace create significant competitive advantages. Attendees can also expect a customer discussion panel, management presentations, and an opportunity to meet Jorge Avalos, ARC's recently appointed Chief Financial Officer, and other members of senior management.

Registration and venue information for the event in Las Vegas are available on the ARC Document Solutions Investor Relations website. Interested investors may also contact David Stickney, Vice President Communications and Investor Relations, at 925-949-5114, or via email at david.stickney@e-arc.com.

About ARC Document Solutions (NYSE: ARC)

ARC Document Solutions is a leading document solutions company serving businesses of all types, with an emphasis on the non-residential segment of the architecture, engineering and construction industries. The Company helps more than 90,000 customers reduce costs and increase efficiency in the use of their documents, improve document access and control, and offers a wide variety of ways to print, produce, and store documents. ARC provides its solutions onsite in more than 8,500 of its customers' offices, offsite in service centers around the world, and digitally in the form of proprietary software and web applications. For more information please visit www.e-arc.com.

Forward-Looking Statements

This press release contains forward-looking statements that are based on current opinions, estimates and assumptions of management regarding future events and the future financial performance of the Company. Words such as "future," "look forward," and similar expressions identify forward-looking statements and all statements other than statements of historical fact, including, but not limited to, any projections regarding earnings, revenues and financial performance of the Company, could be deemed forward-looking statements. We caution you that such statements are only predictions and are subject to certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. In addition to matters affecting the construction, managed print services, document management or reprographics industries, or the economy generally, factors that could cause actual results to differ from expectations stated in forward-looking statements include, among others, the factors described in the caption entitled "Risk Factors" in Item 1A in ARC Document Solution's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, Quarterly Reports on Form 10-Q, and other periodic filings and prospectuses. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

   
   
ARC Document Solutions, Inc.  
Consolidated Balance Sheets  
(Dollars in thousands, except per share data)  
(Unaudited)  
    December 31,     December 31,  
Current assets:   2014     2013  
  Cash and cash equivalents   $ 22,636     $ 27,362  
  Accounts receivable, net of allowances for accounts receivable of $2,413 and $2,517     62,045       56,328  
  Inventories, net     16,251       14,047  
  Deferred income taxes     278       356  
  Prepaid expenses     4,767       4,324  
  Other current assets     6,080       4,013  
    Total current assets     112,057       106,430  
Property and equipment, net of accumulated depreciation of $214,697 and $206,636     59,520       56,181  
Goodwill     212,608       212,608  
Other intangible assets, net     23,841       27,856  
Deferred financing fees, net     2,440       3,242  
Deferred income taxes     1,110       1,186  
Other assets     2,492       2,419  
    Total assets   $ 414,068     $ 409,922  
Current liabilities:                
  Accounts payable   $ 26,866     $ 23,363  
  Accrued payroll and payroll-related expenses     13,765       11,497  
  Accrued expenses     22,793       21,365  
  Current portion of long-term debt and capital leases     27,969       21,500  
    Total current liabilities     91,393       77,725  
Long-term debt and capital leases     175,916       198,228  
Deferred income taxes     33,463       31,667  
Other long-term liabilities     3,458       3,163  
    Total liabilities     304,230       310,783  
Commitments and contingencies                
Stockholders' equity:                
ARC Document Solutions, Inc. stockholders' equity:                
  Preferred stock, $0.001 par value, 25,000 shares authorized; 0 shares issued and outstanding     --       --  
  Common stock, $0.001 par value, 150,000 shares authorized; 46,800 and 46,365 shares issued and 46,723 and 46,320 shares outstanding     47       46  
  Additional paid-in capital     110,650       105,806  
  Retained deficit     (7,353 )     (14,628 )
  Accumulated other comprehensive (loss) income     (161 )     634  
      103,183       91,858  
  Less cost of common stock in treasury, 77 and 45 shares     408       168  
    Total ARC Document Solutions, Inc. stockholders' equity     102,775       91,690  
Noncontrolling interest     7,063       7,449  
    Total equity     109,838       99,139  
    Total liabilities and equity   $ 414,068     $ 409,922  
                     
                     
                     
ARC Document Solutions, Inc.  
Consolidated Statements of Operations  
(Dollars in thousands, except per share data)  
(Unaudited)  
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2014     2013     2014     2013  
Service sales   $ 92,329     $ 87,100     $ 371,884     $ 355,358  
Equipment and supplies sales     15,265       14,185       51,872       51,837  
    Total net sales     107,594       101,285       423,756       407,195  
Cost of sales     72,680       67,818       279,478       272,858  
    Gross profit     34,914       33,467       144,278       134,337  
Selling, general and administrative expenses     26,952       24,117       107,672       96,800  
Amortization of intangible assets     1,489       1,556       5,987       6,612  
Restructuring expense     12       779       777       2,544  
    Income from operations     6,461       7,015       29,842       28,381  
Other income, net     (25 )     (20 )     (96 )     (106 )
Loss on extinguishment of debt     5,252       16,077       5,599       16,339  
Interest expense, net     2,923       5,725       14,560       23,737  
    (Loss) income before income tax provision     (1,689 )     (14,767 )     9,779       (11,589 )
Income tax provision     418       1,040       2,348       2,986  
    Net (loss) income     (2,107 )     (15,807 )     7,431       (14,575 )
Income attributable to noncontrolling interest     (220 )     (203 )     (156 )     (748 )
    Net (loss) income attributable to ARC Document Solutions, Inc. shareholders   $ (2,327 )   $ (16,010 )   $ 7,275     $ (15,323 )
(Loss) income per share attributable to ARC Document Solutions, Inc. shareholders:                                
    Basic   $ (0.05 )   $ (0.35 )   $ 0.16     $ (0.33 )
    Diluted   $ (0.05 )   $ (0.35 )   $ 0.15     $ (0.33 )
Weighted average common shares outstanding:                                
    Basic     46,393       45,928       46,245       45,856  
    Diluted     46,393       45,928       47,088       45,856  
                                     
                                     
                                     
ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of cash flows provided by operating activities to EBIT, EBITDA and Adjusted EBITDA
(Dollars in thousands)
(Unaudited)
 
   
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2014     2013     2014     2013  
Cash flows provided by operating activities   $ 12,963     $ 6,788     $ 50,012     $ 46,798  
  Changes in operating assets and liabilities, net of effect of business acquisitions     453       4,629       4,438       (2,388 )
  Non-cash expenses, including depreciation, amortization and restructuring     (15,523 )     (27,224 )     (47,019 )     (58,985 )
  Income tax provision     418       1,040       2,348       2,986  
  Interest expense, net     2,923       5,725       14,560       23,737  
  Income attributable to noncontrolling interest     (220 )     (203 )     (156 )     (748 )
EBIT     1,014       (9,245 )     24,183       11,400  
  Depreciation and amortization     8,574       8,655       34,135       34,745  
EBITDA     9,588       (590 )     58,318       46,145  
  Loss on extinguishment of debt     5,252       16,077       5,599       16,339  
  Trade secret litigation costs (1)     979       --       3,766       --  
  Restructuring expense     12       779       777       2,544  
  Stock-based compensation     1,184       1,158       3,802       3,207  
Adjusted EBITDA   $ 17,015     $ 17,424     $ 72,262     $ 68,235  
                                 
(1) On February 1, 2013, we filed a civil complaint against a competitor and a former employee in the Superior Court of California for Orange County, which alleged, among other claims, the misappropriation of ARC trade secrets; namely, proprietary customer lists that were used to communicate with our customers in an attempt to unfairly acquire their business. In prior litigation with the competitor based on related facts, in 2007 the competitor entered into a settlement agreement and stipulated judgment, which included an injunction. We instituted this suit to stop the defendant from using similar unfair business practices against us in the Southern California market. The case proceeded to trial in May 2014, and a jury verdict was entered for the defendants. In December 2014, the court awarded the defendant attorneys' fees related to the case. In February 2015, ARC entered into a settlement with the defendant with regards to attorneys' fees. Legal fees associated with the litigation totaled $1.0 million and $3.8 million for the three and twelve months ended December 31, 2014, respectively.
   
   
   
ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of cash flows provided by operating activities to adjusted cash flows provided by operating activities
(Dollars in thousands)
(Unaudited)
 
    Three Months Ended   Twelve Months Ended  
    December 31,   December 31,  
    2014   2013   2014   2013  
Cash flows provided by operating activities   $ 12,963   $ 6,788   $ 50,012   $ 46,798  
  Payments related to trade secret litigation costs     130     --     2,744     --  
  Payments related to restructuring expenses     9     980     1,203     4,304  
  Receipt of federal income tax refund(1)     --     --     --     (3,762 )
Adjusted cash flows provided by operating activities   $ 13,102   $ 7,768   $ 53,959   $ 47,340  
                           
(1) In 2013, ARC received a federal income tax refund of $3.8 million related to its 2009 consolidated federal income tax return.
   
   
   
ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of net (loss) income attributable to ARC to unaudited adjusted net income attributable to ARC
(Dollars in thousands, except per share data)
(Unaudited)
 
   
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2014     2013     2014     2013  
Net (loss) income attributable to ARC Document Solutions, Inc.   $ (2,327 )   $ (16,010 )   $ 7,275     $ (15,323 )
  Loss on extinguishment of debt     5,252       16,077       5,599       16,339  
  Restructuring expense     12       779       777       2,544  
  Trade secret litigation costs     979       --       3,766       --  
  Income tax benefit related to above items     (2,434 )     (6,877 )     (3,953 )     (7,667 )
  Deferred tax valuation allowance and other discrete tax items     1,141       7,172       (1,657 )     8,245  
Unaudited adjusted net income attributable to ARC Document Solutions, Inc.   $ 2,623     $ 1,141     $ 11,807     $ 4,138  
                                 
Actual:                                
(Loss) income per share attributable to ARC Document Solutions, Inc. shareholders:                                
  Basic   $ (0.05 )   $ (0.35 )   $ 0.16     $ (0.33 )
  Diluted   $ (0.05 )   $ (0.35 )   $ 0.15     $ (0.33 )
Weighted average common shares outstanding:                                
  Basic     46,393       45,928       46,245       45,856  
  Diluted     46,393       45,928       47,088       45,856  
                                 
Adjusted:                                
Earnings per share attributable to ARC Document Solutions, Inc. shareholders:                                
  Basic   $ 0.06     $ 0.02     $ 0.26     $ 0.09  
  Diluted   $ 0.06     $ 0.02     $ 0.25     $ 0.09  
Weighted average common shares outstanding:                                
  Basic     46,393       45,928       46,245       45,856  
  Diluted     47,595       46,682       47,088       46,157  
                                   
                                   
                                   

ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of net (loss) income attributable to ARC to EBIT, EBITDA and Adjusted EBITDA
(Dollars in thousands)
(Unaudited)
 
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2014     2013     2014   2013  
Net (loss) income attributable to ARC Document Solutions, Inc.   $ (2,327 )   $ (16,010 )   $ 7,275   $ (15,323 )
  Interest expense, net     2,923       5,725       14,560     23,737  
  Income tax provision     418       1,040       2,348     2,986  
EBIT     1,014       (9,245 )     24,183     11,400  
  Depreciation and amortization     8,574       8,655       34,135     34,745  
EBITDA     9,588       (590 )     58,318     46,145  
  Loss on extinguishment of debt     5,252       16,077       5,599     16,339  
  Trade secret litigation costs     979       --       3,766     --  
  Restructuring expense     12       779       777     2,544  
  Stock-based compensation     1,184       1,158       3,802     3,207  
Adjusted EBITDA   $ 17,015     $ 17,424     $ 72,262   $ 68,235  
                               
                               
ARC Document Solutions, Inc.
Net Sales by Product Line
(Dollars in thousands)
(Unaudited)
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
    2014   2013   2014   2013
Service Sales                        
Onsite services(1)   $ 34,578   $ 31,008   $ 135,020   $ 121,550
Traditional reprographics     26,477     27,693     113,179     116,673
Color     23,128     20,212     90,310     83,601
Digital     8,146     8,187     33,375     33,534
  Total services sales     92,329     87,100     371,884     355,358
Equipment and supplies sales     15,265     14,185     51,872     51,837
  Total net sales   $ 107,594   $ 101,285   $ 423,756   $ 407,195
                           
(1) Represents work done at our customer sites, which includes Facilities Management ("FM") and Managed Print Services ("MPS").
   

Non-GAAP Financial Measures.

EBIT, EBITDA and related ratios presented in this report are supplemental measures of our performance that are not required by or presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These measures are not measurements of our financial performance under GAAP and should not be considered as alternatives to net income, income from operations, or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating, investing or financing activities as a measure of our liquidity.

EBIT represents net income before interest and taxes. EBITDA represents net income before interest, taxes, depreciation and amortization. EBIT margin is a non-GAAP measure calculated by dividing EBIT by net sales. EBITDA margin is a non-GAAP measure calculated by dividing EBITDA by net sales.

We present EBIT, EBITDA and related ratios because we consider them important supplemental measures of our performance and liquidity. We believe investors may also find these measures meaningful, given how our management makes use of them. The following is a discussion of our use of these measures.

We use EBIT and EBITDA to measure and compare the performance of our operating segments. Our operating segments' financial performance includes all of the operating activities except debt and taxation which are managed at the corporate level for U.S. operating segments. As a result, we believe EBIT is the best measure of operating segment profitability and the most useful metric by which to measure and compare the performance of our operating segments. We use EBITDA to measure performance for determining consolidated-level compensation. In addition, we use EBIT and EBITDA to evaluate potential acquisitions and potential capital expenditures.

EBIT, EBITDA and related ratios have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows:

  • They do not reflect our cash expenditures, or future requirements for capital expenditures and contractual commitments;
  • They do not reflect changes in, or cash requirements for, our working capital needs;
  • They do not reflect the significant interest expense, or the cash requirements necessary, to service interest or principal payments on our debt;
  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and
  • Other companies, including companies in our industry, may calculate these measures differently than we do, limiting their usefulness as comparative measures.

Because of these limitations, EBIT, EBITDA, and related ratios should not be considered as measures of discretionary cash available to us to invest in business growth or to reduce our indebtedness. We compensate for these limitations by relying primarily on our GAAP results and using EBIT, EBITDA and related ratios only as supplements.

Our presentation of adjusted net income, adjusted cash flows from operating activities, and adjusted EBITDA over certain periods is an attempt to provide meaningful comparisons to our historical performance for our existing and future investors. The unprecedented changes in our end markets over the past several years have required us to take measures that are unique in our history and specific to individual circumstances. Comparisons inclusive of these actions make normal financial and other performance patterns difficult to discern under a strict GAAP presentation. Each non-GAAP presentation, however, is explained in detail in the reconciliation tables above. For more information, see our 2013 Annual Report on Form 10-K.

Specifically, we have presented adjusted net income attributable to ARC shareholders and adjusted earnings per share attributable to ARC shareholders for the three and twelve months ended December 31, 2014 and 2013 to reflect the exclusion of loss on extinguishment of debt, restructuring expense, trade secret litigation costs, and changes in the valuation allowances related to certain deferred tax assets and other discrete tax items. We have presented adjusted cash flows from operating activities for the three and twelve months ended December 31, 2014 and 2013 to reflect the exclusion of cash payments related to trade secret litigation costs, cash payments related to restructuring expenses, and the receipt of a federal income tax refund in 2013 related to the Company's 2009 consolidated federal income tax return. This presentation facilitates a meaningful comparison of our operating results for the three and twelve months ended December 31, 2014 and 2013. We believe these charges were the result of the current macroeconomic environment, our capital restructuring, or other items which are not indicative of our actual operating performance.

We presented adjusted EBITDA in three and twelve months ended December 31, 2014 and 2013 to exclude loss on extinguishment of debt, trade secret litigation costs, stock-based compensation expense, and restructuring expense. The adjustment of EBITDA for these items is consistent with the definition of adjusted EBITDA in our credit agreement; therefore, we believe this information is useful to investors in assessing our financial performance.

             
             
ARC Document Solutions
Consolidated Statements of Cash Flows
(Dollars in thousands) (Unaudited)
  Three Months Ended December 31,     Twelve Months Ended December 31,  
    2014     2013     2014     2013  
Cash flows from operating activities                                
Net (loss) income   $ (2,107 )   $ (15,807 )   $ 7,431     $ (14,575 )
  Adjustments to reconcile net (loss) income to net cash provided by operating activities:                                
  Allowance for accounts receivable     102       85       546       636  
  Depreciation     7,085       7,099       28,148       28,133  
  Amortization of intangible assets     1,489       1,556       5,987       6,612  
  Amortization of deferred financing costs     (37 )     267       550       1,098  
  Amortization of bond discount     316       171       972       671  
  Stock-based compensation     1,184       1,158       3,802       3,207  
  Deferred income taxes     (1,025 )     (5,827 )     5,247       (4,909 )
  Deferred tax valuation allowance     1,282       6,717       (3,370 )     7,277  
  Restructuring expense, non-cash portion     --       (119 )     --       244  
  Loss on early extinguishment of debt     5,252       16,077       5,599       16,339  
  Other non-cash items, net     (125 )     40       (462 )     (323 )
  Changes in operating assets and liabilities, net of effect of business acquisitions:                                
    Accounts receivable     1,526       2,225       (6,898 )     (5,133 )
    Inventory     (149 )     (345 )     (2,220 )     376  
    Prepaid expenses and other assets     (1,521 )     (22 )     (1,830 )     1,966  
    Accounts payable and accrued expenses     (309 )     (6,487 )     6,510       5,179  
Net cash provided by operating activities     12,963       6,788       50,012       46,798  
Cash flows from investing activities                                
Capital expenditures     (3,242 )     (3,335 )     (13,269 )     (18,191 )
Payments for businesses acquired, net of cash acquired and including other cash payments associated with the acquisitions     --       --       (342 )     --  
Other     (690 )     119       (185 )     741  
Net cash used in investing activities     (3,932 )     (3,216 )     (13,796 )     (17,450 )
Cash flows from financing activities                                
Proceeds from stock option exercises     26       59       1,227       59  
Proceeds from issuance of common stock under Employee Stock Purchase Plan     17       17       82       30  
Share repurchases, including shares surrendered for tax withholding     (89 )     (34 )     (240 )     (124 )
Proceeds from borrowings on long-term debt agreements     175,000       196,000       175,000       196,402  
Payments of debt extinguishment costs     --       (11,264 )     --       (11,330 )
Early extinguishment of long-term debt     (182,000 )     (193,000 )     (194,500 )     (200,000 )
Payments on long-term debt agreements and capital leases     (2,780 )     (2,984 )     (19,217 )     (12,379 )
Net borrowings (repayments) under revolving credit facilities     926       201       98       (237 )
Payment of deferred financing costs     (2,281 )     (2,220 )     (2,735 )     (2,220 )
Dividends paid to noncontrolling interest     --       --       (486 )     (485 )
Net cash used in financing activities     (11,181 )     (13,225 )     (40,771 )     (30,284 )
Effect of foreign currency translation on cash balances     (49 )     (39 )     (171 )     277  
Net change in cash and cash equivalents     (2,199 )     (9,692 )     (4,726 )     (659 )
Cash and cash equivalents at beginning of period     24,835       37,054       27,362       28,021  
Cash and cash equivalents at end of period   $ 22,636     $ 27,362     $ 22,636     $ 27,362  
Supplemental disclosure of cash flow information:                                
Noncash financing activities:                                
  Capital lease obligations incurred   $ 4,146     $ 3,662     $ 19,055     $ 10,399  
  Liabilities in connection with the acquisition of businesses   $ 658     $ --     $ 1,768     $ --  
  Liabilities in connection with deferred financing costs   $ 8     $ 433     $ 8     $ 433  

Contact Information

  • Contact Information:
    David Stickney
    VP Corporate Communications & Investor Relations
    925-949-5114