ARC Document Solutions, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three Months Ended

March 31,

2017

2016

Service sales

$

86,964

$

90,635

Equipment and supplies sales

11,767

12,915

Total net sales

98,731

103,550

Cost of sales

67,893

69,813

Gross profit

30,838

33,737

Selling, general and administrative expenses

25,147

26,356

Amortization of intangible assets

1,115

1,313

Restructuring expense

—

2

Income from operations

4,576

6,066

Other income, net

(19)

(23)

Loss on extinguishment of debt

66

46

Interest expense, net

1,555

1,446

Income before income tax provision

2,974

4,597

Income tax provision

1,226

1,969

Net income

1,748

2,628

Loss (income) attributable to the noncontrolling interest

36

(54)

Net income attributable to ARC Document  Solutions, Inc. shareholders

$

1,784

$

2,574

Earnings per share attributable to ARC Document Solutions, Inc. shareholders:

Basic

$

0.04

$

0.06

Diluted

$

0.04

$

0.05

Weighted average common shares outstanding:

Basic

45,639

46,608

Diluted

46,382

47,203