2. ARC Document Solutions assists design and
construction professionals in the management
and distribution of their information.
3. For more than 100 years,
we used print as a medium...
…today we use the cloud
and mobile devices.
3
4. We believe cloud and mobile technology will transform the way the construction industry
distributes documents and information, dramatically increasing its speed and efficiency.
Driven by our extensive industry knowledge and experience, more than 200 technology
professionals at ARC’s technology centers are developing solutions
specifically to address the construction industry needs.
ARC Document Solutions has invested over a $100 million in R&D over the past decade.
4
5. 5
Our clients include tens of thousands of companies throughout the industry,
including exclusive document management agreements with 22 of the
Top 100 design, engineering and construction firms in the U.S.
And thousands
more…
6. 6
Project
Documents
…involving architectural, engineering
and design drawings and documents,
largely involving plans and
specifications.
Archived
Documents
…related to all aspects
of business, including project
documents, specialized use
documents, and office documents.
Office
Documents
…related to business management and
administration such as financial,
contractual, compliance, marketing,
HR, and other activities.
Key Areas of Document Management
3
7. 7
Solutions to Facilitate Communication
3
Construction Document
& Information Management
CDIM
Managed Print
Services
MPS
Archive & Information
Management
AIM
8. CDIM Solutions
PROFESSIONAL SERVICES
• Outsourced document management
• Hyperlinking services
• BIM services and support
• Integrations with third-party software
• Customized BI reports and analytics
• Migration of projects from third-party software
• Data segregation - Separate storage
• Custom branding
• Model creation for all or single trades MEP/FP
• Clash detection and collision reports
• …and more
HARDWARE
• SmartScreens
• Tablet Computers
• Plotters
• MFD’s
• Scanners
• 3D Printers
Project Communication & Distribution • Project Information Management
Document Management & Reproduction • Global Document Distribution
SOFTWARE
C O M P O N E N T S O F E A C H S O L U T I O N3
9. SOFTWARE
MPS Solutions
Managed Prints Services • Print Management • Print Cost Recovery
Business Analytics • Archive-As-You-Print • Reporting Dashboards
• Customized rules implementation
• Customized software development
• Customized integrations with third-party software
• Customized dynamic BI reports and Analytics
• Software installation & support
• Fleet optimization
• IT support and printer and driver management
• …and more
PROFESSIONAL SERVICES
• SmartScreens
• Tablet Computers
• Plotters
• MFD’s
• Scanners
• 3D Printers
HARDWARE
C O M P O N E N T S O F E A C H S O L U T I O N3
10. AIM Solutions
Archiving & Information Management • Facilities Information Management
Compliance Information Management • Reporting Dashboards
• Analog-to-Digital Document Conversion
• Cloud-based Archive & Retrieval
• Archive Organization & Document Destruction
• Workflow Automation & Implementation
• Retention policy implementation
• Customized software development
• Customized integrations with third-party software
• Customized BI reports & analytics
• E-discovery & legal hold
• …and more.
PROFESSIONAL SERVICES
• SmartScreens
• Tablet Computers
• Plotters
• MFD’s
• Scanners
HARDWARESOFTWARE
C O M P O N E N T S O F E A C H S O L U T I O N3
11. 11
• …provides technology and services that
eliminate paper and printing from document
management
• …delivers solutions that strip days and weeks
from project schedules
• …makes legacy documents
searchable and instantly accessible
• …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.
13. 13
CDIM MPS AIM
~50% of Net Revenue
2015 Sales of $221mm
Annual YOY Growth of 1%
1Q16 YOY Sales Decrease of 2%
Estimated gross margin: 37%-40%
~33% of Net Revenue
2015 Sales of $144mm
Annual YOY Growth of 2%
1Q16 YOY Sales Decrease of 7%
Estimated gross margin: 32%-35%
~4% of Net Revenue
2015 Sales of $13mm
Annual YOY Growth of 22%
1Q16 YOY Sales Increase of 33%
Estimated gross margin: 35%-38%
Equipment & Supplies
(defensive)
~12% of Net Revenue
2015 Sales of $50mm
Annual YOY Decline of -3%
1Q16 YOY Sales Increase of 17%
Estimated gross margin: 18%-21%
14. 14
General Sales Composition of Solutions
CDIM
Traditional Repro (~50%)
Color Imaging (~40%)
Professional & Cloud
Services (~10%)
MPS
Global Customers (~30%)
Regional Customers (~10%)
Local Customers (~60%)
AIM
Digitization Services (~95%)
Professional & Cloud Services (~5%)
15. Revenue generation from new services
beginning to offset slowly declining business
from traditional reprographics
Roughly one-third of sales represent contract-
based, recurring revenue from MPS
Experiencing double-digit revenue growth and
new market opportunities in AIM
Gross Margins expand during periods when
our mix is favorable, when we can leverage
fixed costs and labor against revenue growth,
and can benefit from targeted margin
improvement exercises
Gross Margin
Revenue and Gross Margin Revenue ($mm)
$406 $407 $424 $429
$104.3 $103.6
$0
$100
$200
$300
$400
FY12 FY13 FY14 FY 15 1Q 15 1Q 16
30.4%
33.0%
34.0%
34.6% 34.5%
32.6%
24.0%
28.0%
32.0%
36.0%
FY12 FY13 FY14 FY15 1Q15 1Q16
16. 16
(All figures in millions unless otherwise noted) 2012 2013 2014 2015 1Q '16 Annualized
Traditional Repro YOY Sales Decreases $19.1 $10.2 $3.1 $4.1 $1.2 $5.0
New Services* YOY Sales Increases NA NA $0.8 $3.7 $1.0 $4.0
Traditional Repro % of Net Sales 30% 27% 25% 24% 24%
New Services % of Net Sales NA 2.8% 2.8% 3.7% 4.2%
Notable Revenue Trends
CDIM Sales Trends
• Traditional Reprographics declining slowly with adoption of technology
• Color Imaging in demand in both construction and retail
• SKYSITE®, BIM, Project Information Management, etc. gaining traction
MPS Sales Trends
• Smaller account acquisitions in 2015 suppressed YOY growth rate
• $10mm account did not renew in Dec 2015 putting pressure on 2016 MPS
• Expect continued growth in local and regional accounts in 2016
Primary Sales Offsets by Business Line
AIM Sales Trends
• Double-digit quarterly growth trend over last four quarters
• New service prone to choppy growth due to startup nature
Equipment & Supplies Sales Trends
• Subject to seasonal trends
• International sales (China) highly influential
• Defensive sales; non-strategic
* Includes cloud-applications, BIM/FIM/PIM services, and AIM services
17. EBITDA grows from sales and gross margin improvements
Cash Flows grow from improved financial performance, deleveraging senior debt, and payment of
minimal cash taxes due to approximately $83mm in NOL's
Adjusted Free Cash Flow* grew 15% year-over-year from $40.7mm in 2014 to $46.9mm in 2015
despite single-digit sales growth
Adjusted EBITDA ($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
16.8 14.8
$0.0
$25.0
$50.0
$75.0
FY12 FY13 FY14 FY15 1Q15 1Q16
38.5
47.3
54.0
61.2
6.4 5.3
$-
$10
$20
$30
$40
$50
$60
FY12 FY13 FY14 FY15 1Q15 1Q16
Adjusted CFFO ($mm)
FCF/shr $0.40 $0.63 $0.87 $0.99
18.1
29.1
40.7
46.9
3.0 2.8
$-
$10
$20
$30
$40
$50
FY12 FY13 FY14 FY15 1Q15 1Q16
Annual Adjusted Free Cash Flow & FCF/share
18. 18
Uses of Cash
(All figures in millions unless otherwise noted) 2013 2014 2015 1Q '16
Total Debt $219.7 203.9 172.9 167.0
Senior Debt 196.0 173.0 143.0 $137.1
Delevering/Senior Debt Reduction Senior Debt
reduction of
$58.9mm
in nine quarters
Stock Repurchase Program est. Feb 2016
• 700,000 shares repurchased in first quarter of 2016 at a purchase price of $2.7mm
• 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 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
19. 19
Twelve Months Ended Three Months Ended
December 31, March 31,
(All dollar amounts in millions, except EPS) 2015 2014 2016 2015
Net Revenue $ 428.7 $ 423.8 $ 103.6 $ 104.3
Gross Margin 34.6 % 34.0 % 32.6 % 34.5 %
Net income (loss) attributable to ARC $ 97 $ 7.3 $ 2.6 $ 4.4
Adjusted net income attributable to ARC $ 16.8 $ 11.8 $ 2.7 $ 3.2
Diluted earnings (loss) per share $ 2.04 $ 0.15 $ 0.05 $ 0.09
Adjusted diluted earnings per share $ 0.35 $ 0.25 $ 0.06 $ 0.07
Cash provided by operating activities $ 60.0 $ 50.0 $ 5.3 $ 5.3
Adjusted cash provided by operating activities $ 61.2 $ 54 $ 5.3 $ 6.4
Adjusted EBITDA $ 72.2 $ 72.3 $ 14.8 $ 16.8
Capital Expenditures $ (14.2 ) $ (13.3 ) $ 2.5 $ 3.5
Debt & Capital Leases (including current) $ 173 $ 204 $ 167 $ 198
Financial Highlights from 2015 & 1Q 2016
20. 20
2016 Annual Guidance
Earnings Per Share: $0.30 - $0.35
Cash from Operations: $55mm - $60mm
EBITDA: $66mm - $71mm
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
