SAN RAMON, CA / ACCESSWIRE / June 26, 2023 / ARC Document Solutions, Inc. (NYSE:ARC), a leading provider of visual marketing, digital printing, and document workflow services, today announced that it has entered into an amendment to its credit agreement that increases the amount of restricted payments the company can make and exclude from its fixed charge coverage ratio. Such restricted payments include the use of cash for issuing dividends and repurchasing company stock.
During a time when credit terms are generally becoming more restrictive, ARC's management attributed the favorable terms of its credit agreement amendment to its strong financial performance over the past several years and the continuing strength of its balance sheet.
As part of its commitment to return shareholder value, ARC also disclosed the purchase of 506,403 shares of its own stock via open market transactions from April through the first three weeks of June. The number of shares represents 1.2% of ARC's outstanding shares, and the average share price paid by the company during the period was $2.95.
"With our stock trading below what we think of as its intrinsic value, an expanded share repurchase program recently authorized by our Board, and fewer restrictions thanks to the credit agreement amendment, it was an opportune time to make a series of meaningful purchases," said Suri Suriyakumar, CEO of ARC Document Solutions. "Along with maintaining our strong dividend, we see a regular accumulation of our own shares as an important part of our commitment to return value to our shareholders going forward."
ARC's trading window for purchasing its own shares during the second quarter closed on Thursday, June 22, 2023.
At its most recent meeting in April, ARC's Board of Directors authorized the expansion of the company's previous $15 million share repurchase program to $20 million thru March 2026.
Including the purchase of 506,403 shares of ARC stock announced today, the company has repurchased approximately 13% of its outstanding shares since 2019.
Management expects to have approximately $10 million available for continuing share repurchases as of June 30, 2023.
ARC's 8k filing regarding the amendment to its credit agreement mentioned above was filed on June 21, 2023, and can be found on the company's investor relations website.
About ARC Document Solutions (NYSE:ARC)
ARC partners with top brands around the world to tell their stories through visually compelling graphics. We use advanced digital printing technology, sustainable materials, and innovative techniques to bring their vision to life. ARC also provides other digital printing and scanning services to a wide variety of industries all over North America and in select markets around the world. Follow ARC at www.e-arc.com.
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, and on the Company's operations. Words and phrases such as, "going forward," "continuing purchases," 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, digital printing 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 section titled "Part I - Item 1A. Risk Factors" of ARC Document Solution's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, 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.
VP Corporate Communications & Investor Relations
SOURCE: ARC Document Solutions
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