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Information is current to September 30, 2016 unless otherwise indicated
Investor Overview
We manage and distribute critical
documents and information to facilitate
collaboration, decision-making, and
compliance in construction.
No one offers more content solutions for
architects, engineers, contractors,
or facilities managers.
3
More than 90,000 customers from all over the world rely on ARC to
connect their people and projects. We maintain exclusive document
management agreements with 22 of the Top 100 firms in the industry.
And thousands
more…
4
Projects
…involving project information,
construction drawings and documents,
specialty color documents, and cloud
collaboration applications.
Archive & Facilities
…related to all aspects
of business, including the documents
used to manage and operate existing
buildings and other facilities.
Office
…related to business management and
administration such as financial,
contractual, compliance, marketing,
HR, and other activities.
Key Areas of Document Management
3
Managed Print Services
MPS
Archive & Facilities Information Management
AIM
Construction Document
& Information Management
CDIM
Solution Configurations
PROFESSIONAL SERVICES
• Outsourced document management
• BIM services and support
• Integrations with third-party software
• Customized BI reports and analytics
• Clash detection and collision reports
• Software installation & support
• Fleet & print optimization; rule-based printing, etc.
• IT support and printer and driver management
• Workflow Automation & Implementation
• Retention policy implementation
• Cloud-based Archive & Retrieval
HARDWARE
• SmartScreens
• Tablet Computers
• Plotters
• MFD’s
• Scanners
• 3D Printers
Project Communication & Distribution • Print-as-a-Service • Print Cost Recovery
Facilities Information Management • Retention & Compliance Information Management
SOFTWARE & APPS
C O M P O N E N T S O F E A C H S O L U T I O N3
6
• …eliminates unnecessary printing from
document management
• …strip days and weeks from project
schedules
• …makes it easy to search and retrieve
documents from across the organization
• …reduces annual print costs per person
from $250 up to $1,000
• …reduces all document-related costs
by as much as 30%
ARC Document Solutions…
We save our largest
customers millions of
dollars per year.
Financial Discussion
8
CDIM Project
50% Traditional Repro
40% Color
10% Digital Services
of Net Revenue
Approx. Gross Margin: 37%-40%
50%
AIM Archive & Facility
95% Digitization
5% Professional Services
of Net Revenue
Approx. Gross Margin: 35%-38%
4%
MPS Office
40% National/Regional Customers
60% Local Customers
of Net Revenue
Approx. Gross Margin: 30%-35%
33%
Equipment & Supplies
Resale
Defensive business line
of Net Revenue
Approx. Gross Margin: 18%-21%
12%
§ We are driving revenue generation toward a
balance between new technology sales and
protecting print revenues
§ Roughly one-third of sales represent contract-
based, recurring revenue from MPS
§ Narrowing the offset in dollar-for-dollar
declines in print by targeting market share
growth and new technology services sales
§ ARC is in its fifth year of maintaining gross
margin above 30%; gross margin expands
when our mix is favorable, when we can
leverage fixed costs and labor, and when we
can benefit from targeted margin improvement
exercises
Gross Margin
Revenue and Gross Margin Revenue ($mm)
$406 $407 $424 $429
$324.1 $307.8
$0
$100
$200
$300
$400
FY12 FY13 FY14 FY 15 YTD 15 YTD 16
30.4%
33.0%
34.0%
34.6% 34.8%
33.4%
24.0%
28.0%
32.0%
36.0%
FY12 FY13 FY14 FY15 YTD 15 YTD 16
10
2016 YTD Performance: Challenge of change
§ 12-months into two-to-three year transformation
from business dominated by print-based sales to
balance of print & tech-based sales
§ Changes made in sales and operations drove
revenue declines in the third quarter; some effects
of disruption may persist over the short term
§ Secular print-based declines continue, but
moderation possible with market share gains
§ Non-recurring events affecting YOY comparisons
§ Narrowing dollar-for-dollar offsets of sales
declines and sales growth
$8mm
2015 MPS
Non-renewal
$2.5mm
UK Color
Location
closure
$2.5mm
2015 Chinese
equip. sale
$3.4mm
Net Organic
decline
2016 YTD Sales Decline: $16.4mm
§ EBITDA grows from sales and gross margin improvements
§ Cash Flows grow from improved financial performance, deleveraging senior debt, and payment
of minimal cash taxes thanks to more than $80mm in NOL's
§ Continued strong cash flows in 2016; on target for annual cash flows from operations of more
than $45mm and free cash flow of more than $35mm
Adjusted EBITDA ($mm)
*
Adjusted Free Cash Flow calculated from Adjusted Cash Flow from Operations
EBITDA and Free Cash Flows
60.5
68.2
72.3 72.2
56.2
48.1
$0.0
$25.0
$50.0
$75.0
FY12 FY13 FY14 FY15 YTD 15 YTD 16
38.5
47.3
54.0
61.2
44.3
34.0
$-
$10
$20
$30
$40
$50
$60
FY12 FY13 FY14 FY15 YTD 15 YTD 16
Adjusted CFFO ($mm)
FCF/shr $0.40 $0.64 $0.86 $0.99
18.1
29.1
40.7
46.9
32.8
26.5
$-
$10
$20
$30
$40
$50
FY12 FY13 FY14 FY15 YTD 15 YTD 16
Annual Adjusted Free Cash Flow & FCF/share
12
Uses of Cash
(All figures in millions unless otherwise noted) 2013 2014 2015 3Q '16
Total Debt $219.7 203.9 172.9 160.1
Senior Debt 196.0 173.0 143.0 $127.0
Delevering/Senior Debt Reduction
Stock Repurchase Program est. Feb 2016
• 1.3 million shares repurchased in 2016 YTD at a purchase price of $5.3mm
• Plan authorizes the company to purchase up to $15 million of common stock through Dec. 31, 2017
• The timing and amounts of any future purchases will considered on a quarter-to-quarter basis, and be based on
market conditions and other factors including price, regulatory requirements, and capital availability.
• The company expects that the repurchase program will be funded by cash flows generated from its operations
13
Twelve Months Ended Nine Months Ended
December 31, September 30,
(All dollar amounts in millions, except EPS) 2015 2014 2016 2015
Net Revenue $ 428.7 $ 423.8 $ 307.8 $ 324.1
Gross Margin 34.6 % 34.0 % 33.4 % 34.8 %
Net income (loss) attributable to ARC $ 97 $ 7.3 $ (50.5) $ 94.0
Adjusted net income attributable to ARC $ 16.8 $ 11.8 $ 10.5 $ 13.6
Diluted earnings (loss) per share $ 2.04 $ 0.15 $ (1.10) $ 1.98
Adjusted diluted earnings per share $ 0.35 $ 0.25 $ 0.23 $ 0.29
Cash provided by operating activities $ 60.0 $ 50.0 $ 34.0 $ 43.1
Adjusted EBITDA $ 72.2 $ 72.3 $ 48.1 $ 56.2
Capital Expenditures $ (14.2) $ (13.3 ) $ 7.6 $ 11.5
Debt & Capital Leases (including current) $ 173 $ 204 $ 160.1 $ 180.4
Financial Highlights from 2015 & YTD 2016
14
2016 Annual Guidance
Earnings Per Share: $0.24 - $0.28
Cash from Operations: $48mm - $52mm
EBITDA: $59mm - $63mm
2015 Key Metrics (in millions unless noted)
Revenue: $428.7
Gross Margin: 34.6%
Adj. EPS: $0.35
Adj. EBITDA: $72.2
Adj. CF from Ops: $61.2
CapEx: $14.2
Shares O/S: 47,532,000
For further information, please contact David Stickney,
ARC’s VP of Corporate Communications & IR at 925-949-5114

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ARC Document Solutions Investor Overview

  • 1. Information is current to September 30, 2016 unless otherwise indicated Investor Overview
  • 2. We manage and distribute critical documents and information to facilitate collaboration, decision-making, and compliance in construction. No one offers more content solutions for architects, engineers, contractors, or facilities managers.
  • 3. 3 More than 90,000 customers from all over the world rely on ARC to connect their people and projects. We maintain exclusive document management agreements with 22 of the Top 100 firms in the industry. And thousands more…
  • 4. 4 Projects …involving project information, construction drawings and documents, specialty color documents, and cloud collaboration applications. Archive & Facilities …related to all aspects of business, including the documents used to manage and operate existing buildings and other facilities. Office …related to business management and administration such as financial, contractual, compliance, marketing, HR, and other activities. Key Areas of Document Management 3 Managed Print Services MPS Archive & Facilities Information Management AIM Construction Document & Information Management CDIM
  • 5. Solution Configurations PROFESSIONAL SERVICES • Outsourced document management • BIM services and support • Integrations with third-party software • Customized BI reports and analytics • Clash detection and collision reports • Software installation & support • Fleet & print optimization; rule-based printing, etc. • IT support and printer and driver management • Workflow Automation & Implementation • Retention policy implementation • Cloud-based Archive & Retrieval HARDWARE • SmartScreens • Tablet Computers • Plotters • MFD’s • Scanners • 3D Printers Project Communication & Distribution • Print-as-a-Service • Print Cost Recovery Facilities Information Management • Retention & Compliance Information Management SOFTWARE & APPS C O M P O N E N T S O F E A C H S O L U T I O N3
  • 6. 6 • …eliminates unnecessary printing from document management • …strip days and weeks from project schedules • …makes it easy to search and retrieve documents from across the organization • …reduces annual print costs per person from $250 up to $1,000 • …reduces all document-related costs by as much as 30% ARC Document Solutions… We save our largest customers millions of dollars per year.
  • 8. 8 CDIM Project 50% Traditional Repro 40% Color 10% Digital Services of Net Revenue Approx. Gross Margin: 37%-40% 50% AIM Archive & Facility 95% Digitization 5% Professional Services of Net Revenue Approx. Gross Margin: 35%-38% 4% MPS Office 40% National/Regional Customers 60% Local Customers of Net Revenue Approx. Gross Margin: 30%-35% 33% Equipment & Supplies Resale Defensive business line of Net Revenue Approx. Gross Margin: 18%-21% 12%
  • 9. § We are driving revenue generation toward a balance between new technology sales and protecting print revenues § Roughly one-third of sales represent contract- based, recurring revenue from MPS § Narrowing the offset in dollar-for-dollar declines in print by targeting market share growth and new technology services sales § ARC is in its fifth year of maintaining gross margin above 30%; gross margin expands when our mix is favorable, when we can leverage fixed costs and labor, and when we can benefit from targeted margin improvement exercises Gross Margin Revenue and Gross Margin Revenue ($mm) $406 $407 $424 $429 $324.1 $307.8 $0 $100 $200 $300 $400 FY12 FY13 FY14 FY 15 YTD 15 YTD 16 30.4% 33.0% 34.0% 34.6% 34.8% 33.4% 24.0% 28.0% 32.0% 36.0% FY12 FY13 FY14 FY15 YTD 15 YTD 16
  • 10. 10 2016 YTD Performance: Challenge of change § 12-months into two-to-three year transformation from business dominated by print-based sales to balance of print & tech-based sales § Changes made in sales and operations drove revenue declines in the third quarter; some effects of disruption may persist over the short term § Secular print-based declines continue, but moderation possible with market share gains § Non-recurring events affecting YOY comparisons § Narrowing dollar-for-dollar offsets of sales declines and sales growth $8mm 2015 MPS Non-renewal $2.5mm UK Color Location closure $2.5mm 2015 Chinese equip. sale $3.4mm Net Organic decline 2016 YTD Sales Decline: $16.4mm
  • 11. § EBITDA grows from sales and gross margin improvements § Cash Flows grow from improved financial performance, deleveraging senior debt, and payment of minimal cash taxes thanks to more than $80mm in NOL's § Continued strong cash flows in 2016; on target for annual cash flows from operations of more than $45mm and free cash flow of more than $35mm Adjusted EBITDA ($mm) * Adjusted Free Cash Flow calculated from Adjusted Cash Flow from Operations EBITDA and Free Cash Flows 60.5 68.2 72.3 72.2 56.2 48.1 $0.0 $25.0 $50.0 $75.0 FY12 FY13 FY14 FY15 YTD 15 YTD 16 38.5 47.3 54.0 61.2 44.3 34.0 $- $10 $20 $30 $40 $50 $60 FY12 FY13 FY14 FY15 YTD 15 YTD 16 Adjusted CFFO ($mm) FCF/shr $0.40 $0.64 $0.86 $0.99 18.1 29.1 40.7 46.9 32.8 26.5 $- $10 $20 $30 $40 $50 FY12 FY13 FY14 FY15 YTD 15 YTD 16 Annual Adjusted Free Cash Flow & FCF/share
  • 12. 12 Uses of Cash (All figures in millions unless otherwise noted) 2013 2014 2015 3Q '16 Total Debt $219.7 203.9 172.9 160.1 Senior Debt 196.0 173.0 143.0 $127.0 Delevering/Senior Debt Reduction Stock Repurchase Program est. Feb 2016 • 1.3 million shares repurchased in 2016 YTD at a purchase price of $5.3mm • Plan authorizes the company to purchase up to $15 million of common stock through Dec. 31, 2017 • The timing and amounts of any future purchases will considered on a quarter-to-quarter basis, and be based on market conditions and other factors including price, regulatory requirements, and capital availability. • The company expects that the repurchase program will be funded by cash flows generated from its operations
  • 13. 13 Twelve Months Ended Nine Months Ended December 31, September 30, (All dollar amounts in millions, except EPS) 2015 2014 2016 2015 Net Revenue $ 428.7 $ 423.8 $ 307.8 $ 324.1 Gross Margin 34.6 % 34.0 % 33.4 % 34.8 % Net income (loss) attributable to ARC $ 97 $ 7.3 $ (50.5) $ 94.0 Adjusted net income attributable to ARC $ 16.8 $ 11.8 $ 10.5 $ 13.6 Diluted earnings (loss) per share $ 2.04 $ 0.15 $ (1.10) $ 1.98 Adjusted diluted earnings per share $ 0.35 $ 0.25 $ 0.23 $ 0.29 Cash provided by operating activities $ 60.0 $ 50.0 $ 34.0 $ 43.1 Adjusted EBITDA $ 72.2 $ 72.3 $ 48.1 $ 56.2 Capital Expenditures $ (14.2) $ (13.3 ) $ 7.6 $ 11.5 Debt & Capital Leases (including current) $ 173 $ 204 $ 160.1 $ 180.4 Financial Highlights from 2015 & YTD 2016
  • 14. 14 2016 Annual Guidance Earnings Per Share: $0.24 - $0.28 Cash from Operations: $48mm - $52mm EBITDA: $59mm - $63mm 2015 Key Metrics (in millions unless noted) Revenue: $428.7 Gross Margin: 34.6% Adj. EPS: $0.35 Adj. EBITDA: $72.2 Adj. CF from Ops: $61.2 CapEx: $14.2 Shares O/S: 47,532,000 For further information, please contact David Stickney, ARC’s VP of Corporate Communications & IR at 925-949-5114