ARC Document Solutions Reports Results for Fourth Quarter and Full Year 2015
/EINPresswire.com/ -- WALNUT CREEK, CA -- (Marketwired) -- 02/23/16 -- ARC Document Solutions, Inc. (NYSE: ARC), the nation's leading document solutions provider for the architecture, engineering, and construction (AEC) industry, today reported its financial results for the fourth quarter and full year ended December 31, 2015.
2015 Annual Business Highlights:
- Revenue grew by $4.9 million year-over-year, or 1.2%
- Adjusted diluted earnings per share grew 40% to $0.35 vs. $0.25 in 2014
- Gross margin increased 60 basis points year-over-year to 34.6%
- Adjusted EBITDA was $72.2 million
- Adjusted cash flow from operations grew more than 13% to $61.2 million
- Total debt reduced by $30.9 million, or 15.2%
- 2016 fully-diluted annual adjusted earnings per share projected to be in the range of $0.30 to $0.35; annual adjusted cash provided by operating activities projected to be in the range of $55 to $60 million; and annual adjusted EBITDA to be in the range of $66 million to $71 million
Financial Highlights:
Twelve Months
Three Months Ended Ended
December 31, December 31,
------------------ ------------------
(All dollar amounts in millions,
except EPS) 2015 2014 2015 2014
-------- -------- -------- --------
Net Revenue $ 104.5 $ 107.6 $ 428.7 $ 423.8
Gross Margin 33.8% 32.5% 34.6% 34.0%
Net income (loss) attributable to
ARC $ 3.1 $ (2.3) $ 97.0 $ 7.3
Adjusted net income attributable to
ARC $ 3.2 $ 2.6 $ 16.8 $ 11.8
Diluted earnings (loss) per share $ 0.06 $ (0.05) $ 2.04 $ 0.15
Adjusted diluted earnings per share $ 0.07 $ 0.06 $ 0.35 $ 0.25
Cash provided by operating
activities $ 16.9 $ 13.0 $ 60.0 $ 50.0
Adjusted cash provided by operating
activities $ 16.9 $ 13.1 $ 61.2 $ 54.0
EBITDA $ 15.1 $ 9.6 $ 68.2 $ 58.3
Adjusted EBITDA $ 15.9 $ 17.0 $ 72.2 $ 72.3
Capital Expenditures $ (2.7) $ (3.2) $ (14.2) $ (13.3)
Debt & Capital Leases (including
current) $ 173.0 $ 203.9
Management Commentary
"In 2015 we carved out a solid position for our new technology solutions, generated more than a million dollars of new sales from innovative technology-enabled services, and drove impressive growth in our Archiving and Information Management business," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC Document Solutions. "Our team also generated a consolidated gross margin of nearly 35 percent, paid down more than 10 percent of our senior debt obligations, generated strong cash flows and healthy EBITDA performance, and created the opportunity to produce strong returns on a share repurchase program. All of this was done in the face of our traditional business being challenged due to secular headwinds and a continuing industry trend toward reducing print."
"As we look at the next 24 to 36 months," said Mr. Suriyakumar, "we expect to deliver excellent cash generation, healthy gross margin performance, and continuing improvements to our capital structure as we capture new business, gain traction with our new business lines, and build upon them to offset the slow declines in our traditional business. We're building a new business, and as we do so, we believe our investors will recognize the fundamental value of our transformation."
2015 Fourth Quarter Supplemental Information:
Net sales were $104.5 million, a 2.8% decrease compared to the fourth quarter of 2014.
Days sales outstanding in Q4 2015 and 2014 were 52.
AEC customers comprised approximately 77% of our total net sales, while non-AEC customers made up 23% of our total net sales.
The number of MPS accounts has grown to approximately 9,000, a gain of approximately 500 contracts over Q4 2014.
Sales from Services and Product Lines as a Percentage of Net Sales
Twelve Months
Three Months Ended Ended
December 31, December 31,
------------------ ------------------
Services and Product Line 2015 2014 2015 2014
-------- -------- -------- --------
CDIM 50.7% 49.8% 51.6% 51.9%
MPS 33.8% 33.5% 33.6% 33.3%
AIM 3.2% 2.5% 3.1% 2.6%
Equipment and supplies sales 12.3% 14.2% 11.7% 12.2%
Outlook
ARC Document Solutions anticipates annual adjusted earnings per share in 2016 to be in the range of $0.30 to $0.35 on a fully diluted basis, and annual cash flow from operations to be in the range of $55 million to $60 million. The Company's outlook for 2016 annual adjusted EBITDA is expected to be in the range of $66 million to $71 million.
Teleconference and Webcast
ARC Document Solutions will host a conference call and audio webcast today at 2:00 P.M. Pacific Time (5:00 P.M. Eastern Time) to discuss results for the Company's fourth quarter of 2015. To access the live audio call, dial 888-378-0320. International callers may join the conference by dialing 719-325-2361. The conference ID number is 6449686. 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 6449686. 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 8,500 of its customers' offices, offsite in service centers around the world, and digitally in the form of proprietary software and web applications. For more information please visit www.e-arc.com.
Forward-Looking Statements
This press release contains forward-looking statements that are based on current opinions, estimates and assumptions of management regarding future events and the future financial performance of the Company. Words such as "expect," "forecast," "project," "outlook," 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)
December 31, December 31,
------------ ------------
Current assets: 2015 2014
------------ ------------
Cash and cash equivalents $ 23,963 $ 22,636
Accounts receivable, net of allowances for
accounts receivable of $2,094 and $2,413 60,085 62,045
Inventories, net 16,972 16,251
Deferred income taxes - 278
Prepaid expenses 4,555 4,767
Other current assets 4,131 6,080
------------ ------------
Total current assets 109,706 112,057
Property and equipment, net of accumulated
depreciation of $202,457 and $214,697 57,590 59,520
Goodwill 212,608 212,608
Other intangible assets, net 17,946 23,841
Deferred financing fees, net 1,586 2,440
Deferred income taxes 74,196 1,110
Other assets 2,492 2,492
------------ ------------
Total assets $ 476,124 $ 414,068
============ ============
Current liabilities:
Accounts payable $ 23,989 $ 26,866
Accrued payroll and payroll-related expenses 12,118 13,765
Accrued expenses 19,194 22,793
Current portion of long-term debt and capital
leases 14,374 27,969
------------ ------------
Total current liabilities 69,675 91,393
Long-term debt and capital leases 158,604 175,916
Deferred income taxes 35,933 33,463
Other long-term liabilities 2,778 3,458
------------ ------------
Total liabilities 266,990 304,230
------------ ------------
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; 47,130 and 46,800 shares issued
and 47,029 and 46,723 shares outstanding 47 47
Additional paid-in capital 115,089 110,650
Retained earnings (deficit) 89,687 (7,353)
Accumulated other comprehensive loss (2,097) (161)
------------ ------------
202,726 103,183
Less cost of common stock in treasury, 101 and
77 shares 612 408
------------ ------------
Total ARC Document Solutions, Inc.
stockholders' equity 202,114 102,775
Noncontrolling interest 7,020 7,063
------------ ------------
Total equity 209,134 109,838
------------ ------------
Total liabilities and equity $ 476,124 $ 414,068
============ ============
ARC Document Solutions, Inc.
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2015 2014 2015 2014
--------- --------- --------- ---------
Service sales $ 91,593 $ 92,329 $ 378,638 $ 371,884
Equipment and supplies sales 12,946 15,265 50,027 51,872
--------- --------- --------- ---------
Total net sales 104,539 107,594 428,665 423,756
Cost of sales 69,238 72,680 280,541 279,478
--------- --------- --------- ---------
Gross profit 35,301 34,914 148,124 144,278
Selling, general and
administrative expenses 26,877 26,952 107,280 107,672
Amortization of intangible
assets 1,336 1,489 5,642 5,987
Restructuring expense - 12 89 777
--------- --------- --------- ---------
Income from operations 7,088 6,461 35,113 29,842
Other income, net (18) (25) (99) (96)
Loss on extinguishment of debt 89 5,252 282 5,599
Interest expense, net 1,499 2,923 6,974 14,560
--------- --------- --------- ---------
Income (loss) before income
tax provision (benefit) 5,518 (1,689) 27,956 9,779
Income tax provision (benefit) 2,334 418 (69,432) 2,348
--------- --------- --------- ---------
Net income (loss) 3,184 (2,107) 97,388 7,431
Income attributable to
noncontrolling interest (123) (220) (348) (156)
--------- --------- --------- ---------
Net income (loss) attributable
to ARC Document Solutions,
Inc. shareholders $ 3,061 $ (2,327) $ 97,040 $ 7,275
========= ========= ========= =========
Income (loss) per share
attributable to ARC Document
Solutions, Inc. shareholders:
Basic $ 0.07 $ (0.05) $ 2.08 $ 0.16
========= ========= ========= =========
Diluted $ 0.06 $ (0.05) $ 2.04 $ 0.15
========= ========= ========= =========
Weighted average common shares
outstanding:
Basic 46,722 46,393 46,631 46,245
Diluted 47,400 46,393 47,532 47,088
ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of cash flows provided by operating activities to EBIT,
EBITDA and Adjusted EBITDA
(Dollars in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2015 2014 2015 2014
--------- --------- --------- ---------
Cash flows provided by operating
activities $ 16,864 $ 12,963 $ 59,981 $ 50,012
Changes in operating assets
and liabilities, net of
effect of business
acquisitions (2,338) 453 4,905 4,438
Non-cash expenses, including
depreciation, amortization
and restructuring (11,342) (15,523) 32,502 (47,019)
Income tax (benefit) provision 2,334 418 (69,432) 2,348
Interest expense, net 1,499 2,923 6,974 14,560
Income attributable to
noncontrolling interest (123) (220) (348) (156)
--------- --------- --------- ---------
EBIT 6,894 1,014 34,582 24,183
Depreciation and amortization 8,171 8,574 33,661 34,135
--------- --------- --------- ---------
EBITDA 15,065 9,588 68,243 58,318
Loss on extinguishment of debt 89 5,252 282 5,599
Trade secret litigation costs
(1) - 979 34 3,766
Restructuring expense - 12 89 777
Stock-based compensation 773 1,184 3,512 3,802
--------- --------- --------- ---------
Adjusted EBITDA $ 15,927 $ 17,015 $ 72,160 $ 72,262
========= ========= ========= =========
(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
(Dollars in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- ---------------------
2015 2014 2015 2014
---------- ---------- ---------- ----------
Cash flows provided by operating
activities $ 16,864 $ 12,963 $ 59,981 $ 50,012
Payments related to trade
secret litigation costs - 130 1,033 2,744
Payments related to
restructuring expenses 11 9 165 1,203
---------- ---------- ---------- ----------
Adjusted cash flows provided by
operating activities $ 16,875 $ 13,102 $ 61,179 $ 53,959
========== ========== ========== ==========
ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of net (loss) income attributable to ARC to unaudited
adjusted net income attributable to ARC
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2015 2014 2015 2014
--------- --------- --------- ---------
Net income (loss) attributable
to ARC Document Solutions, Inc. $ 3,061 $ (2,327) $ 97,040 $ 7,275
Loss on extinguishment of debt 89 5,252 282 5,599
Restructuring expense - 12 89 777
Trade secret litigation costs - 979 34 3,766
Income tax benefit related to
above items (33) (2,434) (158) (3,953)
Deferred tax valuation
allowance and other discrete
tax items 41 1,141 (80,513) (1,657)
--------- --------- --------- ---------
Unaudited adjusted net income
attributable to ARC Document
Solutions, Inc. $ 3,158 $ 2,623 $ 16,774 $ 11,807
========= ========= ========= =========
Actual:
Income (loss) per share
attributable to ARC Document
Solutions, Inc. shareholders:
Basic $ 0.07 $ (0.05) $ 2.08 $ 0.16
========= ========= ========= =========
Diluted $ 0.06 $ (0.05) $ 2.04 $ 0.15
========= ========= ========= =========
Weighted average common shares
outstanding:
Basic 46,722 46,393 46,631 46,245
Diluted 47,400 46,393 47,532 47,088
Adjusted:
Earnings per share attributable
to ARC Document Solutions, Inc.
shareholders:
Basic $ 0.07 $ 0.06 $ 0.36 $ 0.26
========= ========= ========= =========
Diluted $ 0.07 $ 0.06 $ 0.35 $ 0.25
========= ========= ========= =========
Weighted average common shares
outstanding:
Basic 46,722 46,393 46,631 46,245
Diluted 47,400 47,595 47,532 47,088
ARC Document Solutions, Inc.
Non-GAAP Measures
Reconciliation of net (loss) income attributable to ARC to EBIT, EBITDA and
Adjusted EBITDA
(Dollars in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- ---------------------
2015 2014 2015 2014
---------- --------- --------- ----------
Net income (loss) attributable
to ARC Document Solutions, Inc. $ 3,061 $ (2,327) $ 97,040 $ 7,275
Interest expense, net 1,499 2,923 6,974 14,560
Income tax provision (benefit) 2,334 418 (69,432) 2,348
---------- --------- --------- ----------
EBIT 6,894 1,014 34,582 24,183
Depreciation and amortization 8,171 8,574 33,661 34,135
---------- --------- --------- ----------
EBITDA 15,065 9,588 68,243 58,318
Loss on extinguishment of debt 89 5,252 282 5,599
Trade secret litigation costs - 979 34 3,766
Restructuring expense - 12 89 777
Stock-based compensation 773 1,184 3,512 3,802
---------- --------- --------- ----------
Adjusted EBITDA $ 15,927 $ 17,015 $ 72,160 $ 72,262
========== ========= ========= ==========
ARC Document Solutions, Inc.
Net Sales by Product Line
(Dollars in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- ---------------------
2015 2014 2015 2014
---------- ---------- ---------- ----------
Service Sales
CDIM $ 52,987 $ 53,530 $ 221,174 $ 219,764
MPS 35,310 36,097 144,244 141,313
AIM 3,296 2,702 13,220 10,807
---------- ---------- ---------- ----------
Total services sales 91,593 92,329 378,638 371,884
Equipment and supplies sales 12,946 15,265 50,027 51,872
---------- ---------- ---------- ----------
Total net sales $ 104,539 $ 107,594 $ 428,665 $ 423,756
========== ========== ========== ==========
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.
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. For more information, see our 2014 Annual Report on Form 10-K.
Specifically, we have presented adjusted net income attributable to ARC and adjusted earnings per share attributable to ARC shareholders for the three and twelve months ended December 31, 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 twelve months ended December 31, 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 twelve months ended December 31, 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 for the three and twelve months ended December 31, 2015 and 2014 to exclude loss on extinguishment of debt, trade secret litigation costs, stock-based compensation expense, and restructuring expense. The adjustment of EBITDA for these items is consistent with the definition of adjusted EBITDA in our credit agreement; therefore, we believe this information is useful to investors in assessing our financial performance.
ARC Document Solutions
Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2015 2014 2015 2014
--------- --------- --------- ---------
Cash flows from operating
activities
Net income (loss) $ 3,184 $ (2,107) $ 97,388 $ 7,431
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities:
Allowance for accounts
receivable 48 102 340 546
Depreciation 6,835 7,085 28,019 28,148
Amortization of intangible
assets 1,336 1,489 5,642 5,987
Amortization of deferred
financing costs 129 171 589 758
Amortization of discount on
long-term debt - 108 - 764
Stock-based compensation 773 1,184 3,512 3,802
Deferred income taxes 1,952 (843) 10,173 5,429
Deferred tax valuation
allowance 213 1,100 (80,669) (3,552)
Loss on early extinguishment
of debt 89 5,252 282 5,599
Other non-cash items, net (33) (125) (390) (462)
Changes in operating assets
and liabilities, net of
effect of business
acquisitions:
Accounts receivable 4,366 1,526 729 (6,898)
Inventory 808 (149) (967) (2,220)
Prepaid expenses and other
assets (645) (1,521) 2,296 (1,830)
Accounts payable and accrued
expenses (2,191) (309) (6,963) 6,510
--------- --------- --------- ---------
Net cash provided by operating
activities 16,864 12,963 59,981 50,012
--------- --------- --------- ---------
Cash flows from investing
activities
Capital expenditures (2,728) (3,242) (14,245) (13,269)
Payments for businesses
acquired, net of cash acquired - - (142) (342)
Other 75 (690) 731 (185)
--------- --------- --------- ---------
Net cash used in investing
activities (2,653) (3,932) (13,656) (13,796)
--------- --------- --------- ---------
Cash flows from financing
activities
Proceeds from stock option
exercises 112 26 673 1,227
Proceeds from issuance of common
stock under Employee Stock
Purchase Plan 28 17 111 82
Share repurchases - shares
surrendered for tax withholding - (89) (204) (240)
Contingent consideration on
prior acquisitions (54) - (413) -
Proceeds from borrowings on
long-term debt agreements - 175,000 - 175,000
Early extinguishment of long-
term debt (3,625) (182,000) (14,500) (194,500)
Payments on long-term debt
agreements and capital leases (7,287) (2,780) (27,329) (19,217)
Net borrowings (repayments)
under revolving credit
facilities - 926 (1,888) 98
Payment of deferred financing
costs - (2,281) (25) (2,735)
Payment of hedge premium - - (632) -
Dividends paid to noncontrolling
interest - - - (486)
--------- --------- --------- ---------
Net cash used in financing
activities (10,826) (11,181) (44,207) (40,771)
--------- --------- --------- ---------
Effect of foreign currency
translation on cash balances (246) (49) (791) (171)
--------- --------- --------- ---------
Net change in cash and cash
equivalents 3,139 (2,199) 1,327 (4,726)
Cash and cash equivalents at
beginning of period 20,824 24,835 22,636 27,362
--------- --------- --------- ---------
Cash and cash equivalents at end
of period $ 23,963 $ 22,636 $ 23,963 $ 22,636
========= ========= ========= =========
Supplemental disclosure of cash
flow information:
Noncash financing activities:
Capital lease obligations
incurred $ 3,490 $ 4,146 $ 13,157 $ 19,055
Liabilities in connection with
the acquisition of businesses $ - $ 658 $ - $ 1,768
Liabilities in connection with
deferred financing costs $ - $ 8 $ - $ 8
Contact Information:
David Stickney
VP Corporate Communications & Investor Relations
925-949-5114
