false000130516800013051682024-05-012024-05-01

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: May 1, 2024
(Date of earliest event reported)
ARC Document Solutions, Inc.
(Exact name of registrant as specified in its charter)
Delaware001-3240720-1700361
(State or other jurisdiction
of incorporation)		(Commission File Number)(IRS Employer
Identification Number)
12657 Alcosta Blvd, Suite 200  San RamonCA94583
(Address of principal executive offices)(Zip Code)

(925)949-5100
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareARCThe New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ 



Item 2.02. Results of Operations and Financial Condition

On May 7, 2024, ARC Document Solutions, Inc. (the “Company”) issued a press release reporting its financial results for the first quarter of the fiscal year ending December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 and is incorporated by reference herein.

The information contained in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 5.07. Submission of Matters to a Vote of Security Holders

On May 1, 2024, the Company held its 2024 annual meeting of stockholders (the “annual meeting”). A total of 42,765,875 shares of the Company’s common stock, par value $0.001 per share, were entitled to vote as of March 4, 2024, which was the record date for the annual meeting. There were 32,054,287 shares present in person or by proxy at the annual meeting. Set forth below are the matters voted upon by the Company’s stockholders at the annual meeting and the final voting results of each such proposal.

Proposal 1 - Election of Directors
The stockholders elected five directors, each to serve a one-year term until the Company’s next annual meeting of stockholders and until their respective successors are elected and qualified. The results of the vote were as follows:

For
Withheld
Broker Non-Votes
Kumarakulasingam Suriyakumar
22,109,137
1,746,327
8,198,823
Bradford L. Brooks
22,004,086
1,851,378
8,198,823
Cheryl Cook
20,885,213
2,970,251
8,198,823
Tracey Luttrell
20,631,435
3,224,029
8,198,823
Mark W. Mealy
21,676,864
2,178,600
8,198,823

Proposal 2 - Ratification of Appointment of Independent Registered Public Accounting Firm

The Company’s stockholders voted to ratify the appointment of Crowe LLP as the Company’s independent auditors for the fiscal year ending December 31, 2024. The results of the vote were as follows:
For
Against
Abstain
Broker Non-Votes
31,374,954
251,434
427,899
32,054,287

Proposal 3 - Advisory, Non-Binding Vote on Executive Compensation

The Company’s stockholders approved, on an advisory, non-binding basis, the compensation paid to the Company’s executive officers for fiscal year 2023, as disclosed in the Company’s 2024 proxy statement. The results of the advisory, non-binding vote were as follows:
For
Against
Abstain
Broker Non-Votes
21,034,468
1,462,510
1,358,486
8,198,823


Item 9.01. Financial Statements and Exhibits

(d) Exhibits
           
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURE

      Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: May 7, 2024
ARC DOCUMENT SOLUTIONS, INC.
By:  /s/ Jorge Avalos                    
     Jorge Avalos
     Chief Financial Officer



Exhibit Index
Exhibit No.Description
  
104
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ARC Reports Growth in Overall Sales and Earnings for Q1 2024

SAN RAMON, CA – (May 7, 2024) – ARC Document Solutions, Inc. (NYSE: ARC), a leading provider of digital printing and document-related services, today reported its financial results for the first quarter ended March 31, 2024.
Financial Highlights:
Three Months Ended
March 31,
(All dollar amounts in millions, except EPS)20242023
Net sales$70.8 $68.9 
Gross margin32.2 %33.3 %
Net income attributable to ARC$2.5 $1.9 
Adjusted net income attributable to ARC$2.6 $2.2 
Earnings per share - diluted$0.06 $0.04 
Adjusted earnings per share - diluted$0.06 $0.05 
Cash provided by operating activities$3.7 $3.8 
EBITDA$7.9 $8.2 
Adjusted EBITDA$8.6 $8.7 
Capital expenditures$3.1 $2.3 
Debt & finance leases (including current)$60.7 $64.8 

Management Commentary:
“ARC’s business transformation remains on track,” said Suri Suriyakumar, Chairman and CEO of ARC. “We are gratified that our strategic focus and selective investments are driving top line growth, even while material and labor costs continue to pressure margins.”
“Our focus on key business lines, and the efforts our teams have made over the past three months rewarded us with nearly three percent growth in sales for the first quarter,” said Dilo Wijesuriya, President and COO of ARC. “U.S., Canadian, U.K., and other international markets all had positive sales momentum, but we had to work for it. Construction and design activity slowed which affected plan printing, and capital spending was constrained. We fought back with color and scanning to offset these challenges and delivered a solid quarter.”

“Revenue growth drove the one cent increase in earnings per share for the quarter, but we felt the impact of inflationary pressures at the gross margin line,” said Jorge Avalos, Chief Financial Officer. “That said, we secured our annual dividend with cash flows that were in line with the prior year period, and we expect to continue purchasing more of our own stock in 2024.”



2024 First Quarter Supplemental Information:
Net sales were $70.8 million, a 2.7% increase compared to the first quarter of 2023.
Cash & cash equivalents on the consolidated balance sheet in the first quarter 2024 were $52.0 million.
ARC’s next quarterly cash dividend of $0.05 will be paid on May 31, 2024 with a record date of April 30, 2024.
Days sales outstanding were 48 in Q1 2024 and 51 in Q1 2023.
The number of MPS locations have declined slightly year over year to approximately 10,400 as of March 31, 2024, representing a net decrease of approximately 300 locations compared to March 31, 2023.







Net Revenue
In millions1Q 2024FYE 20234Q 20233Q 20232Q 20231Q 2023
Total net revenue$70.8 $281.2 $68.9 $71.1 $72.4 $68.9 
In the first quarter 2024, net sales increased 2.7%, compared to the same period in 2023. The increase in net sales for the three months ended March 31, 2024 compared to the same period in 2023 was primarily driven by the growth of sales in Digital Printing and Scanning and Digital Imaging sales. Growth for the period was partially offset by small declines in sales of our other products and services.
Revenue by Business Lines
In millions1Q 2024FYE 20234Q 20233Q 20232Q 20231Q 2023
Digital Printing$42.7 $170.1 $40.9 $43.5 $44.2 $41.4 
MPS$18.6 $74.8 $18.2 $18.6 $19.0 $19.0 
Scanning and Digital Imaging$5.7 $20.3 $5.5 $5.0 $5.3 $4.6 
Equipment and supplies$3.8 $16.0 $4.3 $3.9 $3.9 $3.9 
In the first quarter 2024, Digital Printing sales increased 3.3% compared to prior year. Year-over-year sales saw healthy increases in digital color graphic printing from new and existing customers. This growth was offset by a small decrease in digital plan printing sales which we continue to attribute to less activity and lower spending on new construction projects due to high interest rates and the subsequent higher costs of capital over the past year.
In the first quarter 2024, MPS sales decreased 2.3% year-over-year. MPS sales have remained in a narrow band between $18 million to $19 million per quarter for more than two years, strongly implying fewer employees in the workplace will continue to constrain onsite print volumes relative to historical averages.
In the first quarter 2024, Scanning and Digital Imaging sales increased 23.4% year-over-year. The increase in sales of our Scanning and Digital Imaging services continues to be driven by growing demand for paper-to-digital document conversions and digital archives to replace long-term warehoused paper document storage. We believe that our Scanning and Digital Imaging services will continue to grow in the future.
In the first quarter 2024, Equipment and Supplies sales decreased 3.0% year-over-year. Equipment and Supplies sales continue to decline primarily in the U.S., while sales from our Chinese joint venture rose slightly. We attribute the decrease in U.S. sales to the desire of our domestic customers to reduce capital spending due to the increasing interest rates of the past couple of years.
Gross Profit
In millions unless otherwise indicated1Q 2024FYE 20234Q 20233Q 20232Q 20231Q 2023
Gross profit$22.8 $94.4 $22.2 $24.1 $25.2 $22.9 
   Gross margin32.2 %33.6 %32.2 %34.0 %34.8 %33.3 %
In the first quarter 2024, gross profit and gross margin were $22.8 million, and 32.2%, respectively, a year-over-year margin decline of 110 basis points driven primarily by increases in labor and material costs due to inflation pressures and increased hiring as we increased and adjusted capacity for our digital color graphic printing and Scanning and Digital Imaging Services. The increase in labor cost was partially offset by the decrease in depreciation of $0.6 million.
Selling, General and Administrative Expenses
In millions 1Q 2024FYE 20234Q 20233Q 20232Q 20231Q 2023
Selling, general and administrative expenses
$19.1 $76.3 $18.6 $19.3 $19.0 $19.5 
Selling, general and administrative expenses decreased by $0.4 million or 2.1% year-over-year. The decrease is primarily due to lower bonus accruals and consulting fees, partially offset by the increase in sales and marketing initiatives that are helping drive the growth within digital color graphic printing and Scanning and Digital Imaging Service sales.



Net Income and Earnings Per Share
In millions unless otherwise indicated1Q 2024FYE 20234Q 20233Q 20232Q 20231Q 2023
Net income attributable to ARC – GAAP$2.5 $8.2 $(0.9)$3.2 $4.0 $1.9 
Adjusted net income attributable to ARC $2.6 $11.8 $2.4 $3.2 $4.1 $2.2 
Earnings per share attributable to ARC
   Diluted EPS – GAAP$0.06 $0.19 $(0.02)$0.07 $0.09 $0.04 
   Adjusted diluted EPS$0.06 $0.27 $0.05 $0.07 $0.09 $0.05 
Year-over-year net income attributable to ARC and earnings per share increased during the first quarter of 2024. The increase was driven primarily by lower selling, general and administrative expenses and interest expense.
Cash Provided by Operating Activities
In millions 1Q 2024FYE 20234Q 20233Q 20232Q 20231Q 2023
Cash provided by operating activities$3.7 $36.6 $13.7 $8.7 $10.3 $3.8 
The slight decrease in cash flows from operations during the first quarter of 2024 was primarily due to timing of receivable collections as a result of an increase in sales.
EBITDA
In millions 1Q 2024FYE 20234Q 20233Q 20232Q 20231Q 2023
EBITDA$7.9 $31.9 $3.7 $9.4 $10.6 $8.2 
Adjusted EBITDA $8.6 $38.1 $8.3 $10.0 $11.1 $8.7 
Despite the increase in revenue in the first quarter of 2024, EBITDA and Adjusted EBITDA decreased modestly due to lower gross margin, as described above.
Three Months Ended
March 31,
Sales from Services and Product Lines as a Percentage of Net Sales20242023
Digital Printing60.4 %60.0 %
MPS26.2 %27.6 %
Scanning and Digital Imaging8.0 %6.7 %
Equipment and supplies sales5.4 %5.7 %

Teleconference and Webcast
ARC Document Solutions will hold a conference call with investors and analysts on Tuesday, May 7, 2024, at 2 P.M. Pacific Time (5 P.M. Eastern Time) to discuss results of the Company’s first quarter of 2024. To access the live conference call outlining ARC’s 2024 first quarter results, dial (800) 715-9871. International callers may join the conference by dialing (646) 307-1963. The conference code is 1511143 and will be required to dial into the call. A live webcast will also be made available at: https://events.q4inc.com/attendee/298624556 or on the Company's investor relations website at http://ir.e-arc.com. A replay of the webcast will be available on the website following the call's conclusion.




About ARC Document Solutions (NYSE: ARC)
ARC partners with top brands around the world to tell their stories through visually compelling graphics. We use advanced digital printing technology, sustainable materials, and innovative techniques to bring their vision to life. ARC also provides other digital printing and scanning services to a wide variety of industries all over North America and in select markets around the world. Follow ARC at 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, and on the Company’s operations. Words and phrases such as, “driving top line growth,” “we expect,” 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, digital printing 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 section titled "Part I - Item 1A. Risk Factors" of ARC Document Solution's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, 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.

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



ARC Document Solutions, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
March 31,December 31,
Current assets:20242023
Cash and cash equivalents$52,029 $56,093 
Accounts receivable, net of allowances for accounts receivable of $1,942 and $1,857
37,887 35,775 
Inventory9,277 8,818 
Prepaid expenses4,507 3,988 
Other current assets3,571 3,978 
Total current assets107,271 108,652 
Property and equipment, net of accumulated depreciation of $227,877 and $229,122
40,848 40,925 
Right-of-use assets from operating leases34,459 32,838 
Goodwill121,051 121,051 
Other intangible assets, net149 162 
Deferred income taxes3,559 4,383 
Other assets1,947 2,113 
Total assets$309,284 $310,124 
Current liabilities:
Accounts payable$24,023 $24,175 
Accrued payroll and payroll-related expenses9,022 9,401 
Accrued expenses17,549 18,787 
Current operating lease liabilities10,171 9,924 
Current portion of finance leases8,095 8,870 
Total current liabilities68,860 71,157 
Long-term operating lease liabilities28,730 27,357 
Long-term debt and finance leases52,635 53,366 
Deferred income taxes148 52 
Other long-term liabilities2,455 2,467 
Total liabilities152,828 154,399 
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; 52,941 and 52,526 shares issued and 43,179 and 42,783 shares outstanding
53 52 
Additional paid-in capital137,146 136,460 
Retained earnings44,495 44,144 
Accumulated other comprehensive loss(4,347)(4,200)
177,347 176,456 
Less cost of common stock in treasury, 9,762 and 9,743 shares
22,445 22,390 
Total ARC Document Solutions, Inc. stockholders’ equity154,902 154,066 
Noncontrolling interest1,554 1,659 
Total equity156,456 155,725 
Total liabilities and equity$309,284 $310,124 



ARC Document Solutions, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)Three Months Ended
March 31,
20242023
Net sales$70,792 $68,918 
Cost of sales47,985 45,993 
Gross profit22,807 22,925 
Selling, general and administrative expenses19,071 19,482 
Amortization of intangible assets10 11 
Income from operations3,726 3,432 
Other income, net(36)(11)
Interest expense, net310 456 
Income before income tax provision3,452 2,987 
Income tax provision1,088 1,160 
Net income2,364 1,827 
Loss attributable to the noncontrolling interest89 113 
Net income attributable to ARC Document Solutions, Inc. stockholders$2,453 $1,940 
Earnings per share attributable to ARC Document Solutions, Inc. stockholders
Basic $0.06 $0.05 
Diluted $0.06 $0.04 
Weighted average common shares outstanding:
Basic 42,191 42,552 
Diluted 43,049 43,764 




















ARC Document Solutions, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)Three Months Ended
March 31,
20242023
Cash flows from operating activities
Net income$2,364 $1,827 
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for credit losses97 98 
Depreciation4,040 4,652 
Amortization of intangible assets10 11 
Amortization of deferred financing costs17 16 
Stock-based compensation651 494 
Deferred income taxes841 962 
Deferred tax valuation allowance59 43 
Other non-cash items, net(55)(75)
Changes in operating assets and liabilities:
Accounts receivable(2,286)(698)
Inventory(495)(583)
Prepaid expenses and other assets2,411 3,258 
Accounts payable and accrued expenses(3,953)(6,181)
Net cash provided by operating activities3,701 3,824 
Cash flows from investing activities
Capital expenditures(3,075)(2,255)
Other66 92 
Net cash used in investing activities(3,009)(2,163)
Cash flows from financing activities
Proceeds from stock option exercises 4 1,036 
Proceeds from issuance of common stock under Employee Stock Purchase Plan32 29 
Share repurchases(55)(117)
Payments on finance leases(2,552)(3,183)
Borrowings under revolving credit facilities40,000 42,000 
Payments under revolving credit facilities(40,000)(42,000)
Dividends paid(2,108)(2,122)
Net cash used in financing activities(4,679)(4,357)
Effect of foreign currency translation on cash balances (77)(62)
Net change in cash and cash equivalents(4,064)(2,758)
Cash and cash equivalents at beginning of period56,093 52,561 
Cash and cash equivalents at end of period$52,029 $49,803 
Supplemental disclosure of cash flow information
Noncash investing and financing activities
Finance lease obligations incurred$1,106 $1,485 
Operating lease obligations incurred$4,235 $3,365 









ARC Document Solutions, Inc.
Net Sales by Product Line
(In thousands)
(Unaudited)
 Three Months Ended
March 31,
20242023
Service sales
Digital Printing$42,725 $41,379 
MPS18,584 19,016 
Scanning and Digital Imaging5,671 4,594 
Total service sales66,980 64,989 
Equipment and Supplies Sales3,812 3,929 
Total net sales$70,792 $68,918 

ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of cash flows provided by operating activities to EBITDA and Adjusted EBITDA
(In thousands)
(Unaudited)
Three Months Ended
March 31,
20242023
Cash flows provided by operating activities$3,701 $3,824 
Changes in operating assets and liabilities4,323 4,204 
Non-cash expenses, including depreciation and amortization(5,660)(6,201)
Income tax provision1,088 1,160 
Interest expense, net310 456 
Loss attributable to the noncontrolling interest89 113 
Depreciation and amortization4,050 4,663 
EBITDA7,901 8,219 
Stock-based compensation651 494 
Adjusted EBITDA$8,552 $8,713 
See Non-GAAP Financial Measures discussion below.


ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of net income attributable to ARC Document Solutions, Inc. to EBITDA and Adjusted EBITDA
(In thousands)
(Unaudited)
 Three Months Ended
March 31,
20242023
Net income attributable to ARC Document Solutions, Inc.$2,453 $1,940 
Interest expense, net310 456 
Income tax provision1,088 1,160 
Depreciation and amortization4,050 4,663 
EBITDA7,901 8,219 
Stock-based compensation651 494 
Adjusted EBITDA$8,552 $8,713 
See Non-GAAP Financial Measures discussion below.



ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of net income attributable to ARC Document Solutions, Inc. to unaudited adjusted net income attributable to ARC Document Solutions, Inc.
(In thousands, except per share data)
(Unaudited)
 Three Months Ended
March 31,
20242023
Net income attributable to ARC Document Solutions, Inc.$2,453 $1,940 
Deferred tax valuation allowance and other discrete tax items107 234 
Adjusted net income attributable to ARC Document Solutions, Inc.$2,560 $2,174 
Actual:
Earnings per share attributable to ARC Document Solutions, Inc. stockholders:
Basic$0.06 $0.05 
Diluted$0.06 $0.04 
Weighted average common shares outstanding:
Basic42,191 42,552 
Diluted43,049 43,764 
Adjusted:
Earnings per share attributable to ARC Document Solutions, Inc. stockholders:
Basic$0.06 $0.05 
Diluted$0.06 $0.05 
Weighted average common shares outstanding:
Basic42,191 42,552 
Diluted43,049 43,764 
See Non-GAAP Financial Measures discussion below.


Non-GAAP Financial Measures
EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, adjusted net income and adjusted earnings per share 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, net income margin, diluted earnings per share 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. We have presented these measures 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.
EBITDA represents net income before interest, taxes, depreciation and amortization. We calculate EBITDA margin by dividing EBITDA by net sales.
We use EBITDA and EBITDA margin to measure and compare the performance of our operating divisions. Our operating divisions’ financial performance includes all of the operating activities except debt and taxation which are managed at the corporate level for U.S. operating divisions. We use EBITDA and EBITDA margin to compare the performance of our operating divisions and to measure performance for determining consolidated-level compensation. In addition, we use EBITDA and EBITDA margin to evaluate potential acquisitions and potential capital expenditures.
EBITDA and EBITDA margin 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, 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 EBITDA and EBITDA margin only as supplements.
Our presentation of adjusted net income and adjusted EBITDA 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 stockholders for the three months ended March 31, 2024 to reflect the exclusion of changes in the valuation allowances related to certain deferred tax assets and other discrete tax items. We believe this presentation helps facilitate our investors understanding of our results of operations and allows them to make meaningful comparisons of our operating results for the three months ended March 31, 2024 against the corresponding periods in 2023. We believe these changes were the result of items which are not indicative of our actual operating performance.
We have presented Adjusted EBITDA for the three months ended March 31, 2024 to exclude stock-based compensation expense. We calculated Adjusted EBITDA margin by dividing Adjusted EBITDA by net sales. The adjustment to exclude stock-based compensation expense from EBITDA 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 and ability to access our credit facility.




v3.24.1.u1
Cover Page
May 01, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 01, 2024
Entity Registrant Name ARC Document Solutions, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-32407
Entity Tax Identification Number 20-1700361
Entity Address, Address Line One 12657 Alcosta Blvd, Suite 200
Entity Address, City or Town San Ramon
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94583
City Area Code (925)
Local Phone Number 949-5100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol ARC
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001305168
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