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
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, 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.
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are a modern development application platform and we have a suite of products that allow you to application release automation, we do version control, and we do application life cycle management," explained Flint Brenton, CEO of CollabNet, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, attendees learned about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...