Business News

American Reprographics Company Reports Results for First Quarter 2009

Monday 11. May 2009 - EPS of $0.17 per share; YTD Cash from Operating Activities of $22.3 million; Gross Margin of 37.3%; Company reaffirms forecast

American Reprographics Company (NYSE: ARP) (the “Company”), the nation’s leading provider of reprographic services and technology, today reported its financial results for the first quarter ended March 31, 2009.

“I am extremely pleased with our first quarter results. They clearly demonstrate our ability to quickly reduce our costs and improve efficiency even under very difficult conditions,” said K. “Suri” Suriyakumar, Chairman, President and CEO. “Our management team’s agility in the face of a dynamic market will help our organization drive through this downturn successfully as we remain focused on reducing our operating costs and generating cash.”

Net revenue for the first quarter of 2009 was $139.5 million. The Company’s gross margin was 37.3% for the three-month period ending March 31, 2009. Net income for the first quarter of 2009 was $7.5 million, or $0.17 per diluted share.

Jonathan Mather, Chief Financial Officer, said, “Our gross margin of 37.3% in the first quarter was a distinct improvement over the 2008 fourth quarter gross margin of 36.7%. During the first quarter we saw sequential gains in our gross margins month over month as the effects of our ongoing cost-cutting measures began to be felt. In addition, the Company’s cash flow from operations also increased 9.5% year-over-year, despite the significant decrease in revenue. Cash flow from operating activities for the past twelve months ending March 31, 2009, was $ 129.2 million. While this is impressive in and of itself, it also provides confidence and momentum for the management team while operating under extraordinary circumstances.”

Outlook

The Company reaffirmed its EPS forecast of $0.50 to $0.75 on a fully-diluted basis, projecting cash flow from operations in the range of $70 million to $90 million.