ARC has re-engineered itself to prepare for the post-COVID era, according to a press release from the company. Here is the copy of that release, which came out July 15:
ARC Document Solutions, Inc. said it has successfully re-engineered the Company to create opportunities for growth and strong margins in a post-COVID-19 era.
"While the impact of COVID-19 has been devastating to our industry and the markets we serve, we saw this as an opportunity to transform our business into a smaller but stronger company with potential for new growth and similar, if not better margins," said Suri Suriyakumar, Chairman, President and CEO of ARC. "We have reimagined our business for a post-COVID era that includes offerings that range well beyond the construction vertical and our historical print segments, and we have aggressively removed costs related to segments of businesses that are no longer relevant to our existing customers."
"We have also reconfigured our operating structure and costs to serve new customer needs today and in the future," said Mr. Suriyakumar. "This will allow us to improve our EBITDA margins, continue to strengthen our cash position, and address a level of sales that is smaller, but has greater potential than our legacy business."
Specifically, management reported that after reconfiguring its operations and cost structure, it expects second quarter adjusted EBITDA of approximately $10 million and cash flow from operations is expected to be more than $20 million. Management anticipates pandemic-reduced sales of approximately $63 million.
ARC executives will be available for comment during the company's second quarter earnings report scheduled for August 4, 2020, after the market close. The earnings call will provide additional details on ARC's financial and operational performance for the period, and updates to current market conditions.
To access the live audio call, dial (833) 968-2212. International callers may join the conference by dialing (778) 560-2897. The conference code is 4563937 and will be required to dial in to the call. A live webcast will also be made available on the investor relations page of ARC Document Solution's website at http://ir.e-arc.com. A replay of the webcast will be available on the website following the call's conclusion.