Welcome!

News Feed Item

ARC Group Worldwide, Inc. Reports Record Quarterly Results

For the quarter ended December 29, 2013, compared to the quarter ended December 30, 2012 (fiscal second quarter):

DELAND, Fla., Feb. 12, 2014 /PRNewswire/ -- ARC Group Worldwide, Inc. (NASDAQ: ARCW; the "Company" or "ARC") today reported second quarter fiscal 2014 results, including record Net Revenue of $19.9 million, record Gross Profit of $6.3 million, record Adjusted EBITDA of $3.7 million, and Net Income of $1.5 million, an increase of 91.3% over the comparable prior year period. ARC also reported Adjusted Earnings Per Share ("Adjusted EPS") of $0.32 for the second quarter fiscal 2014, compared to $0.14 in the prior year period. The second quarter results are driven by robust performance across our manufacturing operations and underlying strength in numerous client industries, including medical, automotive, aerospace, and defense.

Mr. Jason Young, Chairman and CEO, said, "We are pleased to report strong quarterly results that reflect sustained growth in revenue and operating margins. At the same time, we continue to materially pay down our debt utilizing the strong free cash flow generated from our businesses. This debt reduction has significantly increased our capacity to add EBITDA through acquisitions, while maintaining our conservative capital structure." He further added, "We are also quite excited about the progress we have made with our 3D printing and imaging efforts, as well as our newly launched online quoting system at 3DMT, all of which dovetail with our existing business quite well."

Company-Wide Operating Results

Net revenue for the fiscal year 2014 second quarter increased 14.6% to $19.9 million, compared to $17.4 million in the prior year period, due to the strong demand in the high growth markets we serve.

The second quarter also showed an improvement in Gross Profit Margin, increasing to 31.8% from 24.7% during the comparable prior year period. The increase is attributed to a combination of top line sales growth, lean manufacturing initiatives, continued realization of acquisition synergies, and improved operational efficiencies through best practices.

ARC reported Adjusted EPS of $0.32 for the second quarter, an increase of 127.4% from $0.14 the prior year quarter. Adjusted Earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") for the second quarter fiscal 2014 was a record $3.7 million.

Adjusted Earnings, Adjusted EPS and Adjusted EBITDA are non-GAAP financial measures. Adjusted Earnings represents the results of operations net of unusual expenses incurred during the period. We have provided this non-GAAP financial information to aid in better understanding the company's performance absence these charges. Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The Company's non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. The reconciliation to GAAP is as follows (in thousands, except for share and per share amounts):

For the three months ended:




GAAP to Non-GAAP Reconciliation:

Dec 29, 2013

Dec 30, 2012

Reported Earnings (GAAP)


$1,515

$792


Plus: Reorganization Expenses

351

-

Adjusted Earnings (Non-GAAP)

$1,866

$792


Plus: Interest Expense, Net

293

225


Plus: Income Taxes


690

-


Plus: Depreciation and Amortization

892

762

Adjusted EBITDA (Non-GAAP)

$3,741

$1,779

Weighted Average Common Shares

5,877,314

5,672,618

Adjusted Earnings Per Share (Non-GAAP)

$0.32

$0.14







For the six months ended:




GAAP to Non-GAAP Reconciliation:

Dec 29, 2013

Dec 30, 2012

Reported Earnings (GAAP)


$2,768

$704


Plus: Merger Expense


-

1,637


Plus: Gain on Bargain Purchase

-

(381)


Plus: Share-Based Executive Compensation

701

-


Plus: Reorganization Expenses

351

-

Adjusted Earnings (Non-GAAP)

$3,820

$1,960


Plus: Interest Expense, Net

499

392


Plus: Income Taxes


1,076

-


Plus: Depreciation and Amortization

1,790

1,330

Adjusted EBITDA (Non-GAAP)

$7,185

$3,682

Weighted Average Common Shares

5,802,727

5,322,488

Adjusted Earnings Per Share (Non-GAAP)

$0.66

$0.37








Balance Sheet and Cash Flow Items

The Company strengthened its cash position during the quarter as cash flow provided by operating activities generated $3.2 million, ending the quarter with Senior Debt, net of Cash, of $7.6 million.  Net Senior Debt currently stands at 0.5x the second quarter annualized Adjusted EBITDA.

About ARC Group Worldwide, Inc.

ARC Group Worldwide is a diversified, global advanced manufacturing company, as well as a world leader in MIM.  ARC was founded in 1987 and has a long history as a technology innovator in manufacturing.  ARC has significant expertise in lean manufacturing and utilizes cutting edge technology including robotics, automation, and 3D printing.  ARC's mission is to bring innovation and technology to manufacturing.  The Company provides a holistic manufacturing solution to help its customers get to market quickly.  ARC's core manufacturing businesses are in precision components, 3D printing, flanges, fittings, and wireless technology, through its operating subsidiaries: www.ARCMIM.com, www.FloMet.com, www.AFTmim.com, www.AFTmimHU.com, www.Injectamax.com, www.TeknaSeal.com, www.3DMaterialTechnologies.com, www.GeneralFlange.com and www.ArcWireless.net.  For more information about ARC Group Worldwide, please visit www.ArcGroupWorldwide.com.

IMPORTANT INFORMATION

This press release may contain "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995, which are based on ARC's current expectations, estimates and projections about future events. These include, but are not limited to, statements, if any, regarding business plans, pro-forma statements and financial projections, ARC's ability to expand its services and realize growth.  These statements are not historical facts or guarantees of future performance, events or results.  Such statements involve potential risks and uncertainties, and the general effects of financial, economic, and regulatory conditions affecting our industries. Accordingly, actual results may differ materially.  ARC does not have any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.  For additional factors that may affect future results, please see filings made by ARC with the Securities and Exchange Commission ("SEC"), including its Form 10-K for the fiscal year ended June 30, 2013 and Form 10-Q for the period ended December 29, 2013, as well as current reports on Form 8-K filed from time-to-time with the SEC.

CONTACT: Drew M. Kelley
PHONE: (303) 467-5236
Email:
[email protected]

SOURCE ARC Group Worldwide, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...