ARC Document Solutions, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three Months Ended

March 31,

2018

2017

Service sales

$

86,710

$

86,964

Equipment and supplies sales

10,998

11,767

Total net sales

97,708

98,731

Cost of sales

67,523

67,893

Gross profit

30,185

30,838

Selling, general and administrative expenses

27,301

25,147

Amortization of intangible assets

1,008

1,115

Income from operations

1,876

4,576

Other income, net

(81)

(19)

Loss on extinguishment and modification of debt

—

66

Interest expense, net

1,442

1,555

Income before income tax provision

515

2,974

Income tax provision

39

1,226

Net income

476

1,748

Loss attributable to the noncontrolling interest

152

36

Net income attributable to ARC Document  Solutions, Inc. shareholders

$

628

$

1,784

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

Basic

$

0.01

$

0.04

Diluted

$

0.01

$

0.04

Weighted average common shares outstanding:

Basic

44,741

45,639

Diluted

44,855

46,382