ARC Reports Second Quarter Fiscal Year 2015 Financial Results

Merger expenses are costs incurred to effectuate our acquisitions, such as advisory, legal and accounting fees.  Other non-recurring expenses consist primarily of accounting and legal fees associated with our acquisitions and financing activities.  Reorganization expenses are primarily labor and labor related costs association with the termination of employees.

Adjusted EBITDA excludes interest expense, net and income taxes because these items are associated with our capitalization and tax structures.  Adjusted EBITDA also excludes depreciation and amortization expense because these non-cash expenses reflect the impact of prior capital expenditure decisions which may not be indicative of future capital expenditure requirements.

The Company has filed a registration statement (including a preliminary prospectus and issuer free writing prospectuses) with the U.S. Securities and Exchange Commission ("SEC") for the offering of common stock to which this presentation relates.  Before you invest, you should read the prospectus in that registration statement, the issuer free writing prospectuses and other documents the Company has filed with the SEC for more complete information about the Company and this offering.  You may obtain these documents free of charge by visiting the SEC online database (EDGAR) on the SEC's website at www.sec.gov.  The Company's registration statement on Form S-1 containing the preliminary prospectus, dated January 20, 2015, is available at the following link:

http://www.sec.gov/Archives/edgar/data/826326/000104746915000280/a2222688zs-1a.htm

Alternatively, you may obtain a copy of the prospectus and any other publicly available documents from the Company by calling (303) 467-5236 or from Brean Capital by calling (212) 702-6500.

About ARC Group Worldwide, Inc.

ARC Group Worldwide, Inc. is a leading global advanced manufacturing and 3D printing service provider. With its business founded in 1987, the Company offers its customers a compelling portfolio of advanced manufacturing technologies and cutting-edge capabilities to improve the efficiency of traditional manufacturing processes and accelerate their time to market. In addition to being a world leader in metal injection molding ("MIM"), ARC has significant expertise in 3D printing and imaging, materials science, advanced tooling, automation, machining, stamping, plastic injection molding, lean manufacturing, and robotics. For more information visit the website of ARC Group Worldwide, Inc. or its operating subsidiaries at 3D Material Technologies, LLC, Advanced Forming Technology, Inc. (Colorado), Advanced Forming Technology, Kft. (Hungary), ARC MIM, ARC Wireless, LLC, Advance Tooling Concepts, Flomet, LLC, General Flange & Forge, LLC, Injectamax International, LLC, Kecy Metals Technology, Tekna Seal, LLC, and Thixoforming.

Forward Looking Statements

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 registration statement on Form S-1, as amended, its Form 10-K for the fiscal year ended June 30, 2014 and Form 10-Q for the period ended September 28, 2014, 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 Contact

 

ARC Group Worldwide, Inc.

Unaudited Condensed Consolidated Statements of Operations




For the three months ended


For the six months ended

 

(in thousands, except for share and

 per share amounts)

 


 

December 28,

2014


 

December 29,

2013


 

December 28,

2014


 

December 29,

2013

Sales


27,106


19,942


55,804


38,342

Cost of sales


20,719


13,610


42,434


26,387

Gross profit


6,387


6,332


13,370


11,955

Selling, general and administrative


4,919


3,780


10,418


7,502

Merger expense


11



187


Income from operations


1,457


2,552


2,765


4,453

Other (expense) income, net


(9)


7


(11)


7

Interest expense, net


(1,213)


(294)


(2,134)


(499)

Income before income taxes


235


2,265


620


3,961

Income tax expense


(237)


(690)


(390)


(1,076)

Net (loss) income


(2)


1,575


230


2,885

Less: Net income attributable to non-controlling interest


(58)


(61)


(114)


(117)

Net (loss) income attributable to ARC Group  
 Worldwide, Inc.


(60)


1,514


116


2,768










Net income per common share:









  Basic and diluted income per share



0.10


0.01


0.19










Weighted average common shares outstanding:









Basic and diluted


14,673,205


14,693,285


14,673,205


14,506,817










 

 

 

ARC Group Worldwide, Inc.

Condensed Consolidated Balance Sheets


(in thousands, except for share and per share amounts)


December 28, 2014



June 30, 2014

ASSETS


         (unaudited)




Current assets:






Cash and cash equivalents


$

3,859



$

9,384

Accounts receivable, net


15,679



15,337

Inventories, net


16,432



15,231

Prepaid and other current assets


4,058



2,606

Total current assets


40,028

 



42,558

Property and equipment, net


45,772



45,268

Goodwill


14,764



16,357

Intangible assets, net


29,089



30,825

Other


2,019



1,381

Total assets


$

131,672



$

136,389







LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities:






Accounts payable


$

6,485



$

9,430

Accrued expenses


5,623



5,905

Deferred revenue


1,290



1,016

Bank borrowings, current portion of long-term debt


13,120



14,419

Capital lease obligations, current portion


1,140



1,124

Accrued escrow obligation


4,291



2,400

Total current liabilities


31,949



34,294

Long-term debt, net of current portion


62,807



62,757

Capital lease obligations, net of current portion


4,240



4,723

Accrued escrow obligation




2,600

Other


1,276



674

Total liabilities


100,272



105,048







Commitments and contingencies






Stockholders' equity:






Preferred stock, $0.001 par value, 2,000,000 authorized, no shares issued and outstanding




Common stock, $0.0005 par value, 250,000,000 shares authorized; 15,088,522 shares issued and 15,080,121 shares outstanding at December 28, 2014 and June 30, 2014


3



3

Treasury stock, at cost; 8,401 shares at December 28, 2014 and June 30, 2014


(94)



(94)

Additional paid-in capital


14,122



14,293

Retained earnings


16,259



16,143

ARC Group Worldwide, Inc. total stockholder equity


30,290



30,345

Non-controlling interest


1,110



996

Total stockholders' equity


31,400



31,341

Total liabilities and stockholders' equity


$

131,672



$

136,389

 

 

 

ARC Group Worldwide, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows




For the six months ended


(in thousands)


December 28, 2014



December 29, 2013


Cash flows from operating activities:







Net income


$

230



$

2,885


Adjustments to reconcile net income to net cash (used in) provided by operating activities:







Depreciation and amortization


4,666



1,790


Non-cash stock based compensation expense




779


Amortization of debt discount




211


Bad debt expense and other


(56)



59


Deferred income taxes


12




Changes in working capital







Accounts receivable


(309)



526


Inventory


(1,200)



(936)


Prepaid expenses and other assets


(1,502)



(200)


Accounts payable


(2,944)



30


Other accrued expenses


604



978


Deferred revenue


274



(92)


Net cash (used in) provided by operating activities


(225)



6,030









Cash flows from investing activities:







Purchase of plant and equipment


(3,446)



(892)


Net cash used in investing activities


(3,446)



(892)









Cash flows from financing activities:







Proceeds from debt issuance


23,500




Repayments of long-term debt and capital lease obligations


(25,216)



(3,112)


Stock issuance costs


(138)




Repurchase of shares




(93)


Net cash used in financing activities


(1,854)



(3,205)


Net (decrease) increase in cash and cash equivalents


(5,525)



1,933


Cash and cash equivalents, beginning of period


9,384



3,601


Cash and cash equivalents, end of period


$

3,859



$

5,534


Supplemental disclosures of cash flow information:







Cash paid for interest


$

1,587



$

288


Cash paid for income taxes


$

20



$


Non-cash investing and financing activities:







Termination of note receivable from related party


$



$

272


 

 

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/arc-reports-second-quarter-fiscal-year-2015-financial-results-300031856.html

SOURCE ARC Group Worldwide, Inc.

Contact:
ARC Group Worldwide, Inc.
Web: http://www.arcgroupworldwide.net



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