SOURCE: ARC Document Solutions, Inc.

ARC Document Solutions, Inc.

November 04, 2015 16:05 ET

ARC Document Solutions Reports Results for Third Quarter 2015

WALNUT CREEK, CA--(Marketwired - Nov 4, 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 third quarter ended September 30, 2015.

2015 Third Quarter Business Highlights:

  • Adjusted diluted earnings per share were $0.09 vs. $0.06 in Q3 2014; adjustments include the reversal of more than $70 million of a valuation allowance against certain of ARC's deferred tax assets as a result of the company's sustained profitability over the past three years and forecasted continuing profitability
  • Adjusted cash flow from operations was $21.0 million, a 23% increase over Q3 2014
  • Gross profit was flat year-over-year, delivering a gross margin of 33.8%
  • Sales of $106.4 million were flat year-over-year
  • Adjusted EBITDA of $17.9 million fell 2% year-over-year
  • Management revises its annual outlook for 2015; diluted annual adjusted earnings per share currently projected to be in the range of $0.33 to $0.36; annual adjusted cash provided by operating activities currently projected to be in the range of $58 to $61 million; and annual adjusted EBITDA to currently projected to be in the range of $70 million to $73 million
                 
Financial Highlights:                
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
(All dollar amounts in millions, except EPS)   2015   2014   2015   2014
Net Sales   $ 106.4     $ 106.8     $ 324.1     $ 316.2  
Gross Margin     33.8 %     33.9 %     34.8 %     34.6 %
Net income attributable to ARC   $ 80.3     $ 3.7     $ 94.0     $ 9.6  
Adjusted Net Income attributable to ARC   $ 4.2     $ 2.9     $ 13.6     $ 9.2  
Earnings per share - Diluted   $ 1.69     $ 0.08     $ 1.98     $ 0.20  
Adjusted earnings per share - Diluted   $ 0.09     $ 0.06     $ 0.29     $ 0.20  
Adjusted EBITDA   $ 17.9     $ 18.3     $ 56.2     $ 55.2  
Cash provided by operating activities   $ 21.0     $ 15.3     $ 43.1     $ 37.0  
Adjusted cash provided by operating activities   $ 21.0     $ 17.0     $ 44.3     $ 40.9  
Capital Expenditures   $ 3.9     $ 3.4     $ 11.5     $ 10.0  
Debt & Capital Leases (including current)               $ 180.4     $ 205.6  
                             

Management Commentary

"The third quarter demonstrated the increasing momentum of our cloud-based solutions. Our archiving and information management offering rose from 16% year-over-year growth in the second quarter to 44% year-over-year growth in the third quarter, and we were pleased with the response to the latest release of SKYSITE™, our mobile document and information management application for construction professionals. The reception of both solutions highlight the growing value we can provide to a market that is increasingly focused on reducing costs and boosting efficiency with cloud-based tools," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC Document Solutions. "We were also able to reverse a valuation allowance of more than $70 million against certain of our deferred tax assets. This represents an important milestone in the company's history. We've produced three years of strong financial performance following the recession and its aftermath which allows us to forecast the use of these deferred tax assets in future periods."

"Not withstanding these successes, challenges remain," continued Mr. Suriyakumar. "Continuing implementation delays in large MPS contracts and the reduction of large-format printing pressured sales in the third quarter. While we expect conditions to improve in 2016, and while the progress in AIM, document management services, and color printing are helping to offset declines in other areas, we are revising our 2015 outlook to account for current circumstances."

Jorge Avalos, Chief Financial Officer for ARC Document Solutions said, "Our financial performance, improved capital structure, and the use of our deferred tax assets to significantly reduce our current cash taxes continue to produce strong cash flows from operations. Despite moderating sales performance, we continue to aggressively reduce our debt, improve our balance sheet, and generate strong free cash flows."

2015 Third Quarter Supplemental Information:
Net sales were $106.4 million, a 0.4% decrease compared to the third quarter of 2014.

Days sales outstanding in Q3 2015 were 55, compared to 54 days in Q3 2014.

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

Total number of MPS contracts at the end of the third quarter was approximately 8,740, an increase of approximately 240 contracts from the end of 2014.

Adjusted EBITDA excludes loss on extinguishment of debt, the impact of trade secret litigation costs, stock-based compensation expense, and restructuring expense.

                 

Sales from Services and Product Lines as a Percentage of Net Sales
               
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
Services and Product Line   2015   2014   2015   2014
CDIM   51.4 %   51.8 %   51.9 %   52.6 %
MPS   33.8 %   34.1 %   33.6 %   33.3 %
AIM   3.5 %   2.4 %   3.1 %   2.6 %
Equipment and supplies sales   11.3 %   11.6 %   11.4 %   11.6 %
                         

Outlook:

ARC Document Solutions has revised its annual 2015 outlook. The company's diluted annual adjusted earnings per share outlook was expected to be in the range of $0.37 to $0.41, and is now expected to be in the range of $0.33 to $0.36. The outlook for annual adjusted cash provided by operating activities was projected to be in the range of $61 to $66 million, and is now expected to be in the range of $58 to $61 million. Annual adjusted EBITDA was projected to be in the range of $75 million to $80 million, and is now expected to be in the range of $70 million to $73 million.

Reversal of Valuation Allowance:

The Company recorded a valuation allowance against its U.S. deferred tax assets in its financial statements for the second quarter of 2011 due primarily to its three year cumulative pre-tax losses. At September 30, 2015, as a result of sustained profitability in the U.S. evidenced by three years of earnings and forecasted continuing profitability, the company determined it was more likely than not future earnings will be sufficient to realize deferred tax assets in the U.S. Accordingly the company reversed most of its U.S.valuation allowance resulting in non-cash income tax benefit of $76.1 million for the three months ended September 30, 2015. The reversal of the valuation allowance significantly affects the presentation of the company's financial statements, with the impact of the adjustment increasing net income and earnings per share on the company's statement of operations, and increasing deferred tax assets on the balance sheet which were previously netted against the valuation allowance.

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 third quarter of 2015. To access the live audio call, dial 888-378-0320. International callers may join the conference by dialing 719-457-1035. The conference ID number is 9461561. A live webcast will also be made available on the investor relations page of ARC Document Solution's website at ir.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 9461561. The webcast will also be made available at www.e-arc.com for approximately 90 days following the call's conclusion.

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 8,700 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 "increasing momentum," "expect," "forecast," "project," 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, 2014, 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    
(In thousands, except per share data)    
(Unaudited)        
    September 30,   December 31,
Current assets:   2015   2014
  Cash and cash equivalents   $ 20,824     $ 22,636  
  Accounts receivable, net of allowances for accounts receivable of $2,237 and $2,413     64,600       62,045  
  Inventories, net     17,839       16,251  
  Deferred income taxes     3,798       278  
  Prepaid expenses     5,049       4,767  
  Other current assets     3,271       6,080  
      Total current assets     115,381       112,057  
Property and equipment, net of accumulated depreciation of $216,023 and $214,697     58,459       59,520  
Goodwill     212,608       212,608  
Other intangible assets, net     19,339       23,841  
Deferred financing fees, net     1,804       2,440  
Deferred income taxes     71,989       1,110  
Other assets     2,192       2,492  
      Total assets   $ 481,772     $ 414,068  
Current liabilities:            
  Accounts payable   $ 24,733     $ 26,866  
  Accrued payroll and payroll-related expenses     13,820       13,765  
  Accrued expenses     18,713       22,793  
  Current portion of long-term debt and capital leases     17,268       27,969  
      Total current liabilities     74,534       91,393  
Long-term debt and capital leases     163,151       175,916  
Deferred income taxes     35,156       33,463  
Other long-term liabilities     3,226       3,458  
      Total liabilities     276,067       304,230  
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; 47,093 and 46,800 shares issued and 46,992 and 46,723 shares outstanding     47       47  
    Additional paid-in capital     114,304       110,650  
    Retained earnings (deficit)     86,626       (7,353 )
    Accumulated other comprehensive loss     (1,693 )     (161 )
      199,284       103,183  
    Less cost of common stock in treasury, 101 and 77 shares     612       408  
      Total ARC Document Solutions, Inc. stockholders' equity     198,672       102,775  
Noncontrolling interest     7,033       7,063  
      Total equity     205,705       109,838  
      Total liabilities and equity   $ 481,772     $ 414,068  
                 
                 
                 
ARC Document Solutions, Inc.        
Consolidated Statements of Operations        
(In thousands, except per share data)        
(Unaudited)        
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2015   2014   2015   2014
Service sales   $ 94,384     $ 94,426     $ 287,045     $ 279,555  
Equipment and supplies sales     12,034       12,381       37,081       36,607  
  Total net sales     106,418       106,807       324,126       316,162  
Cost of sales     70,475       70,584       211,303       206,798  
  Gross profit     35,943       36,223       112,823       109,364  
Selling, general and administrative expenses     25,816       26,331       80,403       80,720  
Amortization of intangible assets     1,375       1,497       4,306       4,498  
Restructuring expense     4       11       89       765  
  Income from operations     8,748       8,384       28,025       23,381  
Other income, net     (25 )     (22 )     (81 )     (71 )
Loss on extinguishment of debt     96       347       193       347  
Interest expense, net     1,679       3,780       5,475       11,637  
  Income before income tax (benefit) provision     6,998       4,279       22,438       11,468  
Income tax (benefit) provision     (73,338 )     659       (71,766 )     1,930  
  Net income     80,336       3,620       94,204       9,538  
(Income) loss attributable to the noncontrolling interest     (50 )     41       (225 )     64  
  Net income attributable to ARC Document Solutions, Inc. shareholders   $ 80,286     $ 3,661     $ 93,979     $ 9,602  
Earnings per share attributable to ARC Document Solutions, Inc. shareholders:                        
  Basic   $ 1.72     $ 0.08     $ 2.02     $ 0.21  
  Diluted   $ 1.69     $ 0.08     $ 1.98     $ 0.20  
Weighted average common shares outstanding:                        
  Basic     46,698       46,338       46,601       46,195  
  Diluted     47,557       47,015       47,541       46,856  
                                 
                                 
 
ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of cash flows provided by operating activities to EBIT, EBITDA and Adjusted EBITDA
(In thousands)
(Unaudited)        
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2015   2014   2015   2014
Cash flows provided by operating activities   $ 20,965     $ 15,311     $ 43,117     $ 37,049  
  Changes in operating assets and liabilities, net of effect of business acquisitions     (5,101 )     (1,174 )     7,243       3,985  
  Non-cash expenses, including depreciation, amortization and restructuring     64,472       (10,517 )     43,844       (31,496 )
  Income tax (benefit) provision     (73,338 )     659       (71,766 )     1,930  
  Interest expense, net     1,679       3,780       5,475       11,637  
  (Income) loss attributable to the noncontrolling interest     (50 )     41       (225 )     64  
EBIT     8,627       8,100       27,688       23,169  
  Depreciation and amortization     8,415       8,536       25,490       25,561  
EBITDA     17,042       16,636       53,178       48,730  
  Loss on extinguishment of debt     96       347       193       347  
  Trade secret litigation costs(1)     --       306       34       2,787  
  Restructuring expense     4       11       89       765  
  Stock-based compensation     735       956       2,739       2,618  
Adjusted EBITDA   $ 17,877     $ 18,256     $ 56,233     $ 55,247  
                                 

(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 ARC 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 the first quarter of 2015, we entered into a settlement and paid the defendant. Legal fees associated with the litigation were recorded as selling, general and administrative expense.

         
         
ARC Document Solutions, Inc.  
Non-GAAP Measures  
Reconciliation of cash flows provided by operating activities to adjusted cash flows provided by operating activities  
(In thousands)        
(Unaudited)        
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2015   2014   2015   2014
Cash flows provided by operating activities   $ 20,965   $ 15,311   $ 43,117   $ 37,049
  Payments related to trade secret litigation costs     --     1,101     1,033     2,615
  Payments related to restructuring expenses     13     578     154     1,194
Adjusted cash flows provided by operating activities   $ 20,978   $ 16,990   $ 44,304   $ 40,858
                         
                         
         
ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of net income attributable to ARC to unaudited adjusted net income attributable to ARC
(In thousands, except per share data)
(Unaudited)        
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2015   2014   2015   2014
Net income attributable to ARC Document Solutions, Inc.   $ 80,286     $ 3,661     $ 93,979     $ 9,602  
  Loss on extinguishment of debt     96       347       193       347  
  Restructuring expense     4       11       89       765  
  Trade secret litigation costs     --       306       34       2,787  
  Income tax benefit related to above items     (41 )     (258 )     (125 )     (1,519 )
  Deferred tax valuation allowance and other discrete tax items     (76,147 )     (1,172 )     (80,554 )     (2,798 )
Unaudited adjusted net income attributable to ARC Document Solutions, Inc.   $ 4,198     $ 2,895     $ 13,616     $ 9,184  
                         
Actual:                        
Earnings per share attributable to ARC Document Solutions, Inc. shareholders:                        
  Basic   $ 1.72     $ 0.08     $ 2.02     $ 0.21  
  Diluted   $ 1.69     $ 0.08     $ 1.98     $ 0.20  
Weighted average common shares outstanding:                        
  Basic     46,698       46,338       46,601       46,195  
  Diluted     47,557       47,015       47,541       46,856  
                         
Adjusted:                        
Earnings per share attributable to ARC Document Solutions, Inc. shareholders:                        
  Basic   $ 0.09     $ 0.06     $ 0.29     $ 0.20  
  Diluted   $ 0.09     $ 0.06     $ 0.29     $ 0.20  
Weighted average common shares outstanding:                        
  Basic     46,698       46,338       46,601       46,195  
  Diluted     47,557       47,015       47,541       46,856  
                                 
                                 
         
ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of net income attributable to ARC Document Solutions, Inc. shareholders to EBIT, EBITDA and Adjusted EBITDA
(In thousands)
(Unaudited)        
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2015   2014   2015   2014
Net income attributable to ARC Document Solutions, Inc. shareholders   $ 80,286     $ 3,661   $ 93,979     $ 9,602
  Interest expense, net     1,679       3,780     5,475       11,637
  Income tax (benefit) provision     (73,338 )     659     (71,766 )     1,930
EBIT     8,627       8,100     27,688       23,169
  Depreciation and amortization     8,415       8,536     25,490       25,561
EBITDA     17,042       16,636     53,178       48,730
  Loss on extinguishment of debt     96       347     193       347
  Trade secret litigation costs     --       306     34       2,787
  Restructuring expense     4       11     89       765
  Stock-based compensation     735       956     2,739       2,618
Adjusted EBITDA   $ 17,877     $ 18,256   $ 56,233     $ 55,247
                             
                             
                 
ARC Document Solutions, Inc.
Net Sales by Product Line
(In thousands)                
(Unaudited)                
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2015   2014   2015   2014
Service sales                        
CDIM     54,710     55,352     168,187     166,234
MPS     35,923     36,464     108,934     105,216
AIM     3,751     2,610     9,924     8,105
  Total service sales     94,384     94,426     287,045     279,555
Equipment and supplies sales     12,034     12,381     37,081     36,607
  Total net sales   $ 106,418   $ 106,807   $ 324,126   $ 316,162
                         

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 have presented 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. For more information, see our interim Condensed Consolidated Financial Statements and related notes on our 2015 third quarter report on Form 10-Q. Additionally, please refer to our 2014 Annual Report on Form 10-K.

Our presentation of adjusted net income, adjusted EBITDA, and adjusted cash flows from operations 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.

Specifically, we have presented adjusted net income attributable to ARC and adjusted earnings per share attributable to ARC shareholders for the three and nine months ended September 30, 2015 and 2014 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 nine months ended September 30, 2015 and 2014 to reflect the exclusion of cash payments related to trade secret litigation costs and cash payments related to restructuring expenses. This presentation facilitates a meaningful comparison of our operating results for the three and nine months ended September 30, 2015 and 2014. 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 have presented adjusted EBITDA in the three and nine months ended September 30, 2015 and 2014 to exclude loss on extinguishment of debt, trade secret litigation costs, restructuring expense and stock-based compensation 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
(In thousands)
(Unaudited)        
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2015   2014   2015   2014
Cash flows from operating activities                
Net income   $ 80,336     $ 3,620     $ 94,204     $ 9,538  
Adjustments to reconcile net income to net cash provided by operating activities:                        
  Allowance for accounts receivable     110       197       292       444  
  Depreciation     7,040       7,039       21,184       21,063  
  Amortization of intangible assets     1,375       1,497       4,306       4,498  
  Amortization of deferred financing costs     138       190       460       587  
  Amortization of discount on long-term debt     --       207       --       656  
  Stock-based compensation     735       956       2,739       2,618  
  Deferred income taxes     2,198       2,100       8,221       6,272  
  Deferred tax valuation allowance     (76,091 )     (1,615 )     (80,882 )     (4,652 )
  Loss on early extinguishment of debt     96       347       193       347  
  Other non-cash items, net     (73 )     (401 )     (357 )     (337 )
  Changes in operating assets and liabilities:                        
    Accounts receivable     2,996       (930 )     (3,637 )     (8,424 )
    Inventory     1,083       (142 )     (1,775 )     (2,071 )
    Prepaid expenses and other assets     1,224       (946 )     2,941       (309 )
    Accounts payable and accrued expenses     (202 )     3,192       (4,772 )     6,819  
Net cash provided by operating activities     20,965       15,311       43,117       37,049  
Cash flows from investing activities                        
Capital expenditures     (3,880 )     (3,430 )     (11,517 )     (10,027 )
Payments for businesses acquisitions     --       --       (142 )     (342 )
Other     266       105       656       505  
Net cash used in investing activities     (3,614 )     (3,325 )     (11,003 )     (9,864 )
Cash flows from financing activities                        
Proceeds from stock option exercises     1       191       562       1,201  
Proceeds from issuance of common stock under Employee Stock Purchase Plan     25       17       83       65  
Share repurchases, including shares surrendered for tax withholding     --       --       (204 )     (151 )
Contingent consideration on prior acquisitions     (360 )     --       (360 )     --  
Early extinguishment of long-term debt     (3,625 )     (5,000 )     (10,875 )     (12,500 )
Payments on long-term debt agreements and capital leases     (7,262 )     (5,497 )     (20,042 )     (16,437 )
Net repayments under revolving credit facilities     (144 )     (532 )     (1,888 )     (828 )
Payment of deferred financing costs     --       --       (25 )     (454 )
Payment of hedge premium     --       --       (632 )     --  
Dividends paid to noncontrolling interest     --       (486 )     --       (486 )
Net cash used in financing activities     (11,365 )     (11,307 )     (33,381 )     (29,590 )
Effect of foreign currency translation on cash balances     (598 )     (50 )     (545 )     (122 )
Net change in cash and cash equivalents     5,388       629       (1,812 )     (2,527 )
Cash and cash equivalents at beginning of period     15,436       24,206       22,636       27,362  
Cash and cash equivalents at end of period   $ 20,824     $ 24,835     $ 20,824     $ 24,835  
Supplemental disclosure of cash flow information                        
Noncash investing and financing activities                        
  Capital lease obligations incurred   $ 2,625     $ 5,506     $ 9,667     $ 14,909  
  Contingent liabilities in connection with acquisition of businesses   $ --     $ 186     $ --     $ 1,110  
                                 
                                 

Contact Information

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