(2) In October 2012, we initiated a restructuring plan which included the closure or downsizing of the Company's service center locations, as well as a reduction in headcount. Restructuring expenses in 2016 and 2015 primarily consist of revised estimated lease termination and obligation costs resulting from facilities closed in 2013.
ARC Document Solutions, Inc. Non-GAAP Measures Reconciliation of net (loss) income attributable to ARC to unaudited adjusted net income attributable to ARC (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, -------------------- -------------------- 2016 2015 2016 2015 --------- --------- --------- --------- Net (loss) income attributable to ARC Document Solutions, Inc. $ (55,904) $ 9,257 $ (53,330) $ 13,693 Loss on extinguishment of debt 44 97 90 97 Goodwill impairment 73,920 -- 73,920 -- Restructuring expense 5 11 7 85 Trade secret litigation costs -- -- -- 34 Income tax benefit related to above items (13,350) (42) (13,369) (84) Deferred tax valuation allowance and other discrete tax items 95 (3,151) 203 (4,407) --------- --------- --------- --------- Unaudited adjusted net income attributable to ARC Document Solutions, Inc. $ 4,810 $ 6,172 $ 7,521 $ 9,418 ========= ========= ========= ========= Actual: (Loss) earnings per share attributable to ARC Document Solutions, Inc. shareholders: Basic $ (1.22) $ 0.20 $ (1.15) $ 0.29 ========= ========= ========= ========= Diluted $ (1.22) $ 0.19 $ (1.15) $ 0.29 ========= ========= ========= ========= Weighted average common shares outstanding: Basic 45,955 46,611 46,285 46,528 Diluted 45,955 47,558 46,285 47,634 Adjusted: Earnings per share attributable to ARC Document Solutions, Inc. shareholders: Basic $ 0.10 $ 0.13 $ 0.16 $ 0.20 ========= ========= ========= ========= Diluted $ 0.10 $ 0.13 $ 0.16 $ 0.20 ========= ========= ========= ========= Weighted average common shares outstanding: Basic 45,955 46,611 46,285 46,528 Diluted 46,568 47,558 46,889 47,634 ARC Document Solutions, Inc. Non-GAAP Measures Reconciliation of net (loss) income attributable to ARC Document Solutions, Inc. shareholders to EBITDA and Adjusted EBITDA (In thousands) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, --------------------- --------------------- 2016 2015 2016 2015 --------- ---------- --------- ---------- Net (loss) income attributable to ARC Document Solutions, Inc. shareholders $ (55,904) $ 9,257 $ (53,330) $ 13,693 Interest expense, net 1,526 1,939 2,972 3,796 Income tax (benefit) provision (10,015) 811 (8,046) 1,572 Depreciation and amortization 7,890 8,520 15,880 17,075 --------- ---------- --------- ---------- EBITDA (56,503) 20,527 (42,524) 36,136 Loss on extinguishment of debt 44 97 90 97 Goodwill impairment 73,920 -- 73,920 -- Trade secret litigation costs -- -- -- 34 Restructuring expense 5 11 7 85 Stock-based compensation 651 921 1,423 2,004 --------- ---------- --------- ---------- Adjusted EBITDA $ 18,117 $ 21,556 $ 32,916 $ 38,356 ========= ========== ========= ========== ARC Document Solutions, Inc. Net Sales by Product Line (In thousands) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, --------------------- --------------------- 2016 2015 2016 2015 ---------- ---------- ---------- ---------- Service sales CDIM $ 54,860 $ 58,835 108,525 113,477 MPS 34,055 37,134 67,286 73,011 AIM 3,666 3,367 7,405 6,173 ---------- ---------- ---------- ---------- Total service sales 92,581 99,336 183,216 192,661 Equipment and supplies sales 11,189 14,053 24,104 25,047 ---------- ---------- ---------- ---------- Total net sales $ 103,770 $ 113,389 $ 207,320 $ 217,708 ========== ========== ========== ==========