ARC Document Solutions Reports Results for Third Quarter 2015
/EINPresswire.com/ -- WALNUT CREEK, CA -- (Marketwired) -- 11/04/15 -- 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:
David Stickney
VP Corporate Communications and Investor Relations
925-949-5114
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