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8-K - FORM 8-K - ARC DOCUMENT SOLUTIONS, INC.d494617d8k.htm

Exhibit 99.1

ARC Document Solutions Reports Results for Fourth Quarter and Fiscal Year 2012

WALNUT CREEK, CA—(February 28, 2013)—ARC Document Solutions, Inc. (NYSE: ARC), the nation’s leading document solutions company for the architecture, engineering, and construction (AEC) industry, today reported its financial results for the fourth quarter and full year ended December 31, 2012.

Business Highlights:

 

   

Annual cash from operations was $37.6 million

 

   

Annual gross margin was 30.4%

 

   

Restructuring activity drove 180 bps expansion in adjusted EBITDA margin from 13.1% in the third quarter to 14.9% in the fourth quarter

 

   

Eight percent annual increase in Onsite Services sales is led by MPS

 

   

Annual adjusted earnings per share was ($0.04)

 

   

2013 Annual adjusted earnings per share outlook is $0.03 to $0.07; annual cash from operations outlook for 2013 is $38-45 million

Financial Highlights:

 

     Three Months Ended     Twelve Months Ended  
     December 31     December 31  

(All dollar figures in millions, except EPS)

   2012     2011     2012     2011  

Net Sales

   $ 96.9      $ 101.8      $ 406.1      $ 422.7   

Gross Margin

     29.6     30.7     30.4     31.8

Net Loss attributable to ARC

   $ (5.9   $ (3.1   $ (32.0   $ (133.1

Adjusted Net Loss attributable to ARC

   $ (0.8   $ (0.2   $ (1.7   $ (1.0

EPS

   $ (0.13   $ (0.07   $ (0.70   $ (2.93

Adjusted EPS

   $ (0.02   $ 0.00      $ (0.04   $ (0.02

Cash from Operations

   $ 6.7      $ 19.7      $ 37.6      $ 49.2   

Capital Expenditures

   $ 6.2      $ 3.6      $ 20.3      $ 15.6   

Debt & Capital Leases (including current)

   $ 222.5     $ 226.3     $ 222.5      $ 226.3   

Management Commentary:

“The aggressive and ambitious restructuring plan we announced in November helped us avoid what could have been a significantly depressed earnings per share and cash performance in the fourth quarter of 2012,” said K. “Suri” Suriyakumar, Chairman, President and CEO of ARC Document Solutions. “A timely response was critical to transition the company in line with the dramatic changes we observed in our customers’ behavior.”

“While our organization continues to strengthen its position as a leading document solutions provider, I am pleased with the speed and efficiency with which we implemented our restructuring plan,” added Mr. Suriyakumar. “ It not only provided a strong finish for the year, but our improved cost structure certainly will allow us to deliver significantly better performance in 2013 even without a full recovery in the AEC industry.”


CFO John Toth commented, “Throughout 2012 we maintained our strong cash flow and balance sheet. We absorbed the costs of the restructuring without drawing on our revolver, and we ended the year with our highest amount of cash since 2009. And in the fourth quarter, we took critical steps to improve the quality of our earnings through diversification across product lines and importantly, refining our cost structure to support and grow margin from multiple service lines. This fundamental improvement in our value proposition – and in the quality of our earnings – can be seen in the expansion of our adjusted EBITDA margin which increased almost 200 basis points between Q3 and Q4, bucking the historic trends of margin contraction between Q3 and Q4.”

Sales Reporting Presentation:

The company announced that beginning with its annual filing on Form 10-K, ARC Document Solutions’ statement of operations will reflect net sales reporting under two categories – “Service sales” and “Equipment and supplies sales” – replacing the historical revenue categories of “Reprographics services,” “Facilities management,” and “Equipment and supplies sales.” The broader categories of “Service sales” and “Equipment and supplies sales” will allow the company to better assign and report distinct sales recognized from its traditional reprographics services, onsite services, color printing services, digital services, and equipment and supplies sales. Under its previous revenue reporting structure, traditional reprographics, color, and digital services were blended in “Reprographics services.”

Restructuring Charge

ARC Document Solutions management recorded a restructuring charge of $3.3 million as a result of reducing its service center footprint and headcount during October and November of 2012. The charges pertain primarily to property lease exit costs and severance payments related to headcount reductions.

Outlook:

ARC anticipates annual adjusted earnings per share in 2013 to be in the range of $0.03 to $0.07 on a fully-diluted basis, and annual cash flow from operations to be in the range of $38 million to $45 million.

Teleconference and Webcast:

ARC will host a conference call and audio webcast today at 2:00 P.M. Pacific Time (5:00 P.M. Eastern Time) to discuss results for the Company’s fourth quarter and full year 2012. The conference call can be accessed by dialing (855) 812-4355. The conference ID number is 94854869.

A live Webcast will also be made available on the investor relations page of ARC’s website at www.e-arc.com.

A replay will be available approximately one hour after the call for seven days following the call’s conclusion. To access the replay, dial (855) 859-2056. The conference ID number to access the replay is 94854869. A Web archive will be made available at http://www.e-arc.com for approximately 90 days following the call’s conclusion.

About ARC Document Solutions (NYSE: ARC)

ARC Document Solutions provides specialized document solutions to businesses of all types, with an emphasis on the non-residential segment of the architecture, engineering and construction (“AEC”) industry. The company’s products and services enhance our customers’ document workflow, reduce costs, shorten document processing and distribution time, improve the quality of document management tasks, and provide a secure, controlled environment in which to manage, distribute and produce documents. The company’s service centers are digitally connected and allow the provision of services to tens of thousands of customers all over the world. ARC is headquartered in California with more than 150 service centers located in major metropolitan markets in the US, Canada, China, and in select locations in the U.K., Hong Kong, Australia and India. For more information, visit www.e-arc.com.


Forward-Looking Statements

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. Words such as “allow us to deliver,” “anticipated,” “trends,” “opportunities,” 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. Factors that could cause our actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, current economic conditions and downturn in the architectural, engineering and construction (AEC) industries specifically, and the timing and nature of any economic recovery; our inability to mitigate revenue exposure to the cyclical nature of the AEC industries; our inability to streamline operations and reduce and/or manage costs; our failure to develop and introduce new services successfully, including expansion of client service capabilities in our core AEC market; competition in our industry and innovation by our competitors; our failure to anticipate and adapt to future changes in our industry; our failure to take advantage of market opportunities and/or to complete acquisitions; our dependence on certain key vendors for equipment, maintenance services and supplies; and damage or disruption to our facilities, our technology centers, our vendors or a majority of our customers. The foregoing list of risks and uncertainties is illustrative but is by no means exhaustive. For more information on factors that may affect our future performance, please review our periodic filings with the U.S. Securities and Exchange Commission, and specifically the risk factors set forth in our most recent reports on Form 10-K and Form 10-Q. 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.

Contact Information:

David Stickney

VP Corporate Communications

925-949-511


ARC Document Solutions, Inc.

Consolidated Balance Sheets

(Dollars in thousands, except per share data)

(Unaudited)

 

     December 31,      December 31,  
     2012      2011  

Assets

     

Current assets:

     

Cash and cash equivalents

   $ 28,021       $ 25,437   

Accounts receivable, net of allowances for accounts receivable of $2,634 and $3,309

     51,855         54,713   

Inventories, net

     14,251         12,107   

Prepaid expenses

     3,277         3,999   

Other current assets

     6,819         7,541   
  

 

 

    

 

 

 

Total current assets

     104,223         103,797   

Property and equipment, net of accumulated depreciation of $197,830 and $191,598

     56,471         55,084   

Goodwill

     212,608         229,315   

Other intangible assets, net

     34,498         45,127   

Deferred financing costs, net

     4,219         4,574   

Deferred income taxes

     1,246         1,368   

Other assets

     2,574         2,092   
  

 

 

    

 

 

 

Total assets

   $ 415,839       $ 441,357   
  

 

 

    

 

 

 

Liabilities and Equity

     

Current liabilities:

     

Accounts payable

   $ 21,215       $ 21,787   

Accrued payroll and payroll-related expenses

     6,774         7,292   

Accrued expenses

     22,321         19,308   

Current portion of long-term debt and capital leases

     13,263         15,005   
  

 

 

    

 

 

 

Total current liabilities

     63,573         63,392   

Long-term debt and capital leases

     209,262         211,259   

Deferred income taxes

     28,936         26,447   

Other long-term liabilities

     3,231         3,194   
  

 

 

    

 

 

 

Total liabilities

     305,002         304,292   
  

 

 

    

 

 

 

Commitments and contingencies

     

Stockholders’ equity:

     

ARC Document Solutions, Inc. stockholders’ equity:

     

Preferred stock, $0.001 par value, 25,000 shares authorized; 0 shares issued and outstanding

     —           —     

Common stock, $0.001 par value, 150,000 shares authorized; 46,274 and 46,235 shares issued and 46,262 and 46,235 shares outstanding

     46         46   

Additional paid-in capital

     102,510         99,728   

Retained earnings

     695         32,663   

Accumulated other comprehensive income (loss)

     689         (1,760
  

 

 

    

 

 

 
     103,940         130,677   

Less cost of common stock in treasury, 12 and 0 shares

     44         —     
  

 

 

    

 

 

 

Total ARC Document Solutions, Inc.’s equity

     103,896         130,677   

Noncontrolling interest

     6,941         6,388   
  

 

 

    

 

 

 

Total equity

     110,837         137,065   
  

 

 

    

 

 

 

Total liabilities and equity

   $ 415,839       $ 441,357   
  

 

 

    

 

 

 


ARC Document Solutions, Inc.

Consolidated Statements of Operations

(Dollars in thousands, except per share data)

(Unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,     December 31,  
     2012     2011     2012     2011  

Service sales

   $ 82,969      $ 86,898      $ 350,260      $ 368,213   

Equipment and supplies sales

     13,922        14,948        55,858        54,519   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net sales

     96,891        101,846        406,118        422,732   

Cost of sales

     68,251        70,553        282,599        288,434   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     28,640        31,293        123,519        134,298   

Selling, general and administrative expenses

     21,727        23,146        93,073        101,315   

Amortization of intangible assets

     1,791        4,596        11,035        18,715   

Goodwill impairment

     —          —          16,707        65,444   

Restructuring expense

     3,320        —          3,320        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     1,802        3,551        (616     (51,176

Other income, net

     (21     (15     (100     (103

Interest expense, net

     6,490        7,495        28,165        31,104   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income tax provision (benefit)

     (4,667     (3,929     (28,681     (82,177

Income tax provision (benefit)

     939        (941     2,784        50,931   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

     (5,606     (2,988     (31,465     (133,108

(Income) loss attributable to the noncontrolling interest

     (290     (69     (503     21   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to ARC Document Solutions, Inc.

   $ (5,896   $ (3,057   $ (31,968   $ (133,087
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss per share attributable to ARC Document Solutions, Inc.’s shareholders:

        

Basic

   $ (0.13   $ (0.07   $ (0.70   $ (2.93
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ (0.13   $ (0.07   $ (0.70   $ (2.93
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding:

        

Basic

     45,749        45,505        45,668        45,401   

Diluted

     45,749        45,505        45,668        45,401   


ARC Document Solutions, Inc.

Non-GAAP Measures

Reconciliation of cash flows provided by operating activities to EBIT, EBITDA and Adjusted EBITDA

(Dollars in thousands)

(Unaudited)

 

     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2012     2011     2012     2011  

Cash flows provided by operating activities (1)

   $ 6,673      $ 19,678      $ 37,552      $ 49,168   

Changes in operating assets and liabilities, net of business acquisitions

     1,647        (8,926     (463     10,152   

Non-cash expenses, including depreciation amortization and restructuring

     (13,926     (13,740     (68,554     (192,428

Income tax provision (benefit)

     939        (941     2,784        50,931   

Interest expense

     6,490        7,495        28,165        31,104   

Net (income) loss attributable to the noncontrolling interest

     (290     (69     (503     21   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT

     1,533        3,497        (1,019     (51,052

Depreciation and amortization

     9,012        11,513        39,522        47,876   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     10,545        15,010        38,503        (3,176

Goodwill impairment

     —          —          16,707        65,444   

Restructuring expense

     3,320        —          3,320        —     

Stock-based compensation

     542        496        1,999        4,271   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 14,407      $ 15,506      $ 60,529      $ 66,539   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) For the three and twelve months ended December 31, 2012 cash flows provided by operating activities includes $1.0 million in cash payments related to restructuring.


ARC Document Solutions, Inc.

Non-GAAP Measures

Reconciliation of net loss attributable to ARC Document Solutions, Inc. to unaudited adjusted net loss attributable to ARC

Document Solutions, Inc.

(Dollars in thousands, except per share data)

(Unaudited)

 

     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2012     2011     2012     2011  

Net loss attributable to ARC Document Solutions, Inc.

   $ (5,896   $ (3,057   $ (31,968   $ (133,087

Goodwill impairment

     —          —          16,707        65,444   

Change in trade name impact to amortization

     —          2,369        3,158        9,475   

Restructuring expense

     3,320        —          3,320        —     

Interest rate swap related costs

     393        1,322        3,440        5,691   

Income tax provision, related to above items

     (1,397     (1,308     (7,676     (16,053

Deferred tax valuation allowance and other discrete tax items

     2,736        516        11,311        67,556   
  

 

 

   

 

 

   

 

 

   

 

 

 

Unaudited adjusted net loss attributable to ARC Document Solutions, Inc.

   $ (844   $ (158   $ (1,708   $ (974
  

 

 

   

 

 

   

 

 

   

 

 

 

Actual:

        

Loss per share attributable to ARC Document Solutions, Inc.’s shareholders:

        

Basic

   $ (0.13   $ (0.07   $ (0.70   $ (2.93
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ (0.13   $ (0.07   $ (0.70   $ (2.93
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding:

        

Basic

     45,749        45,505        45,668        45,401   

Diluted

     45,749        45,505        45,668        45,401   

Adjusted:

        

Loss per share attributable to ARC Document Solutions, Inc.’s shareholders:

        

Basic

   $ (0.02   $ (0.00   $ (0.04   $ (0.02
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ (0.02   $ (0.00   $ (0.04   $ (0.02
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding:

        

Basic

     45,749        45,505        45,668        45,401   

Diluted

     45,749        45,505        45,668        45,401   


ARC Document Solutions, Inc.

Non-GAAP Measures

Reconciliation of net loss attributable to ARC to EBIT, EBITDA and Adjusted EBITDA

(Dollars in thousands)

(Unaudited)

 

     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2012     2011     2012     2011  

Net loss attributable to ARC Document Solutions, Inc.

   $ (5,896   $ (3,057   $ (31,968   $ (133,087

Interest expense, net

     6,490        7,495        28,165        31,104   

Income tax provision (benefit)

     939        (941     2,784        50,931   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBIT

     1,533        3,497        (1,019     (51,052

Depreciation and amortization

     9,012        11,513        39,522        47,876   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     10,545        15,010        38,503        (3,176

Goodwill impairment

     —          —          16,707        65,444   

Restructuring expense

     3,320        —          3,320        —     

Stock-based compensation

     542        496        1,999        4,271   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 14,407      $ 15,506      $ 60,529      $ 66,539   
  

 

 

   

 

 

   

 

 

   

 

 

 

ARC Document Solutions, Inc.

Net Sales by Product Line

(Dollars in thousands)

(Unaudited)

 

     Three Months Ended December 31,      Twelve Months Ended December 31,  
     2012      2011      2012      2011  

Service sales

           

Traditional reprographics

   $ 28,357       $ 32,820       $ 126,785       $ 145,449   

Color

     19,241         19,355         79,080         84,062   

Digital

     7,816         9,345         35,578         38,020   
  

 

 

    

 

 

    

 

 

    

 

 

 

Subtotal (1)

     55,414         61,520         241,443         267,531   

Onsite services (2)

     27,555         25,378         108,817         100,682   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total service sales

     82,969         86,898         350,260         368,213   

Equipment and supplies sales

     13,922         14,948         55,858         54,519   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total net sales

   $ 96,891       $ 101,846       $ 406,118       $ 422,732   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) For comparison purposes this subtotal agrees with reprographics services historically reported.
(2) Represents work done at our customers’ sites which includes Facilities Management (“FM”) and Managed Print Services (“MPS”)


Non-GAAP Financial Measures.

EBIT, EBITDA and related ratios presented in this report are supplemental measures of our performance that are not required by or presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These measures are not measurements of our financial performance under GAAP and should not be considered as alternatives to net income, income from operations, or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating, investing or financing activities as a measure of our liquidity.

EBIT represents net income before interest and taxes. EBITDA represents net income before interest, taxes, depreciation and amortization. EBIT margin is a non-GAAP measure calculated by dividing EBIT by net sales. EBITDA margin is a non-GAAP measure calculated by dividing EBITDA by net sales.

We present EBIT, EBITDA and related ratios because we consider them important supplemental measures of our performance and liquidity. We believe investors may also find these measures meaningful, given how our management makes use of them. The following is a discussion of our use of these measures.

We use EBIT and EBITDA to measure and compare the performance of our operating segments. Our operating segments’ financial performance includes all of the operating activities except debt and taxation which are managed at the corporate level for U.S. operating segments. As a result, we believe EBIT is the best measure of operating segment profitability and the most useful metric by which to measure and compare the performance of our operating segments. We also use EBIT to measure performance for determining operating segment-level compensation and we use EBITDA to measure performance for determining consolidated-level compensation. In addition, we use EBIT and EBITDA to evaluate potential acquisitions and potential capital expenditures.

EBIT, EBITDA and related ratios have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows:

 

  They do not reflect our cash expenditures, or future requirements for capital expenditures and contractual commitments;

 

  They do not reflect changes in, or cash requirements for, our working capital needs;

 

  They do not reflect the significant interest expense, or the cash requirements necessary, to service interest or principal payments on our debt;

 

  Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and

 

  Other companies, including companies in our industry, may calculate these measures differently than we do, limiting their usefulness as comparative measures.

Because of these limitations, EBIT, EBITDA, and related ratios should not be considered as measures of discretionary cash available to us to invest in business growth or to reduce our indebtedness. We compensate for these limitations by relying primarily on our GAAP results and using EBIT, EBITDA and related ratios only as supplements.

Our presentation of adjusted net income and adjusted EBITDA over certain periods is an attempt to provide meaningful comparisons to our historical performance for our existing and future investors. The unprecedented changes in our end markets over the past several years have required us to take measures that are unique in our history and specific to individual circumstances. Comparisons inclusive of these actions make normal financial and other performance patterns difficult to discern under a strict GAAP presentation. Each non-GAAP presentation, however, is explained in detail in the reconciliation tables above. For more information, see our 2011 Annual Report on Form 10-K.

Specifically, we have presented adjusted net loss attributable to ARC and adjusted loss per share attributable to ARC shareholders for the three and twelve months ended December 31, 2012 and 2011 to reflect the exclusion of goodwill impairment charges, the amortization impact related specifically to the change in useful lives of trade names, restructuring expense, interest rate swap related costs, the valuation allowance related to certain deferred tax assets and other discrete tax items. This presentation facilitates a meaningful comparison of our operating results for the three and twelve months ended December 31, 2012 and 2011. We believe these charges were the result of our capital restructuring, or other items which are not indicative of our actual operating performance.

We presented adjusted EBITDA in the three months ended December 31, 2012 to exclude restructuring expense of $3.3 million, and stock-based compensation expense of $0.5 million. We presented adjusted EBITDA in the twelve months ended December 31, 2012 to exclude the non-cash goodwill impairment charge of $16.7 million, restructuring expense of $3.3 million, and stock-based compensation expense of $2.0 million. We presented adjusted EBITDA for the three and twelve months ended December 31, 2011 to exclude stock-based compensation expense of $0.5 million and $4.3 million, respectively, and a non-cash goodwill impairment charge of $65.4 million for the twelve months ended December 31, 2011. The adjustments to EBITDA for non-cash items are consistent with the definition of adjusted EBITDA in our credit agreement; therefore, we believe this information is useful to investors in assessing our financial performance.


ARC Document Solutions, Inc.

Consolidated Statements of Cash Flows

(Dollars in thousands)

(Unaudited)

 

      Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2012     2011     2012     2011  

Cash flows from operating activities

        

Net loss

   $ (5,606   $ (2,988   $ (31,465   $ (133,108

Adjustments to reconcile net loss to net cash provided by operating activities:

        

Allowance for accounts receivable

     (76     288        456        1,034   

Depreciation

     7,221        6,917        28,487        29,161   

Amortization of intangible assets

     1,791        4,596        11,035        18,715   

Amortization of deferred financing costs

     276        225        1,088        887   

Amortization of bond discount

     158        142        611        549   

Goodwill impairment

     —          —          16,707        65,444   

Stock-based compensation

     542        496        1,999        4,271   

Excess tax benefit related to stock-based compensation

     —          31        —          —     

Deferred income taxes

     (2,132     (2,833     (6,433     673   

Deferred tax valuation allowance

     2,984        2,827        9,750        68,546   

Restructuring expense, non-cash portion

     2,379        —          2,379        —     

Amortization of derivative, net of tax effect

     246        828        2,154        3,565   

Other noncash items, net

     537        223        321        (417

Changes in operating assets and liabilities, net of effect of business acquisitions:

        

Accounts receivable

     5,864        5,917        2,533        (2,582

Inventory

     (339     (1,206     (3,005     (1,170

Prepaid expenses and other assets

     2,233        12,652        1,032        (453

Accounts payable and accrued expenses

     (9,405     (8,437     (97     (5,947
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     6,673        19,678        37,552        49,168   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities

        

Capital expenditures

     (6,154     (3,615     (20,348     (15,553

Payments for businesses acquired, net of cash acquired and including other cash payments associated with the acquisitions

     —          (823     —          (823

Payment for swap transaction

     —          —          —          (9,729

Other

     190        (2     323        923   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (5,964     (4,440     (20,025     (25,182
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities

        

Proceeds from stock option exercises

     —          —          79        108   

Proceeds from issuance of common stock under Employee Stock Purchase Plan

     —          31        28        62   

Excess tax benefit related to stock-based compensation

     —          (31     —          —     

Payments on long-term debt agreements and capital leases

     (3,560     (5,460     (15,601     (25,179

Net borrowings (repayments) under revolving credit facilities

     225        (10,121     1,266        701   

Payment of deferred financing costs

     —          (131     (839     (799
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (3,335     (15,712     (15,067     (25,107
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of foreign currency translation on cash balances

     113        (43     124        265   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net change in cash and cash equivalents

     (2,513     (517     2,584        (856

Cash and cash equivalents at beginning of period

     30,534        25,954        25,437        26,293   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 28,021      $ 25,437      $ 28,021      $ 25,437   
  

 

 

   

 

 

   

 

 

   

 

 

 
     —          —          —          —     

Supplemental disclosure of cash flow information

        

Noncash investing and financing activities

        

Noncash transactions include the following:

        

Capital lease obligations incurred

   $ 1,536      $ 3,202      $ 10,047      $ 10,678   

Liabilities in connection with acquisition of businesses

   $ —        $ —        $ —        $ 548   

Liabilities in connection with deferred financing costs

   $ —        $ 107      $ —        $ 107