ARC Document Solutions, Inc.
Consolidated Statements of Cash Flows
(In thousands)

(Unaudited)

Three Months Ended

March 31,

2018

2017

Cash flows from operating activities

Net income

$

476

$

1,748

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

Allowance for accounts receivable

327

208

Depreciation

7,129

7,139

Amortization of intangible assets

1,008

1,115

Amortization of deferred financing costs

60

94

Stock-based compensation

653

737

Deferred income taxes

(92)

1,177

Deferred tax valuation allowance

57

(11)

Loss on extinguishment and modification of debt

—

66

Other non-cash items, net

(44)

27

Changes in operating assets and liabilities:

Accounts receivable

(2,913)

(53)

Inventory

524

(1,534)

Prepaid expenses and other assets

(150)

(202)

Accounts payable and accrued expenses

(9,014)

(3,569)

Net cash (used in) provided by operating activities

(1,979)

6,942

Cash flows from investing activities

Capital expenditures

(2,892)

(2,012)

Other

380

132

Net cash used in investing activities

(2,512)

(1,880)

Cash flows from financing activities

Proceeds from stock option exercises

—

68

Proceeds from issuance of common stock under Employee Stock Purchase Plan

44

36

Share repurchases

(60)

—

Contingent consideration on prior acquisitions

(53)

(70)

Early extinguishment of long-term debt

—

(8,500)

Payments on long-term debt agreements and capital leases

(5,751)

(3,808)

Borrowings under revolving credit facilities

2,000

1,500

Payments under revolving credit facilities

(5,875)

(125)

Net cash used in financing activities

(9,695)

(10,899)

Effect of foreign currency translation on cash balances

95

267

Net change in cash and cash equivalents

(14,091)

(5,570)

Cash and cash equivalents at beginning of period

28,059

25,239

Cash and cash equivalents at end of period

$

13,968

$

19,669

Supplemental disclosure of cash flow information

Noncash investing and financing activities

Capital lease obligations incurred

$

3,275

$

7,920