Q3 2021 ARC Document Solutions Inc Earnings Call

As we look forward.

In the fourth quarter and beyond.

While the design and construction industries remain.

A strong contributor to our.

New sales are being dominated by work once we consider to be opportunistic.

And by customer segment.

<unk> never heard of US just two years ago.

National retail brands educational institution Pigments Center health.

Healthcare company marketing agencies and many other industries segment regularly continues.

The lion's share of all new stuff.

I think the variety in our customer base speaks volumes about the appeal.

Both our digital printing and document scanning services.

Well at the effectiveness of our marketing efforts.

In quoting new customers.

Meanwhile, our traditional customers continued to return to work and our legacy revenue.

February.

With regard to review of the fourth quarter I mentioned in our last call that you don't see normal seasonal trends in play.

As a logical.

They have historically.

Although opinion hasn't changed.

Demand for better be sure communication more access to documents and information.

<unk> demand and a competitive holiday retail season.

Likely to push.

Deeper into the last quarter of the year than <unk> seen in the recent past.

And yet.

Finally, our commitment to return shareholder value is that right.

<unk>.

We were buyers of hold shares in the open market during the third quarter and the shareholder.

This is their third quarter dividend at the end of November.

Same capabilities demonstrate our project management skills and shook his the end to end solutions of arc.

Transformer company and become the best digital print and document imaging company in the market today.

Our customers are getting busy and promoting their products and services for the season.

We also see a steady increase in back to office employees.

These positive trends will help us grow and consolidate our position in <unk>.

The market we serve.

At this point I'll turn the call over to George for our financial review of the quarter George.

Thank you below sales growth continues to characterize <unk> progress along with the sustainable leverage new sales deliver on our new cost structure.

The best demonstration of that is our sequential and year over year sales growth for the past two quarters.

We delivered $23 8 million and gross profit a nearly 33% gross margin.

Quarterly earnings per share that were not only higher year over year by <unk>.

But also <unk> <unk> higher than in the second quarter.

We were also able to build on our second quarter performance and EBITDA and cash flow from operation.

Both improved in the third quarter.

At $11 $5 million, we constantly exceeded our early expectations for EBITDA, while delivering almost the same amount $11 3 million in cash flow from operations.

The strength of our current and expected future cash generation easily supported our commitment to returning shareholder value as Suri mentioned during the third quarter. We spent a combined $1 4 million.

On share repurchases in the open market and on dividend.

Aggressive inventory management remains a high priority throughout the quarter not just in materials and supplies, but also on the way, we optimize and redeploy underutilized printing equipment and our service centers or at our customers location.

As we mentioned in our Investor presentation. This year.

Actions like these are helping us advance towards our target of $2 million to $4 million in combined equipment and cash admissions per quarter.

Or about half of that capital expenditure levels prior to the pandemic.

Fine we don't have any questions in the queue. So with that I want to thank everyone for their attention. This evening and their continued interest in documents solutions. Thank you and have a good evening.

This concludes today's conference call. Thank you for participating you may now disconnect.

[music].

Okay.

Okay.

Okay.

Okay.

Okay.

Hello.

Okay.

[music].

Okay.

Okay.