WALNUT CREEK, CA--(Marketwire - September 25, 2008) - American Reprographics Company (
NYSE:
ARP), the nation's leading provider of reprographics services and
technology, today announced that it is lowering its annual revenue and
earnings forecast for 2008. The Company currently expects to see revenues
in the range of $700-710 million, down from $720-760 million, and earnings
per share in the range of $1.36-$1.40, down from $1.52-$1.60.
The Company noted that the current upheaval in financial markets will
further aggravate lending restrictions and force more construction project
delays and cancellations, which will impact the Company's revenues in the
short term. Credit availability for private projects is a key driver of the
non-residential construction market.
"Our projections are the result of an increasingly volatile financial
climate," said K. "Suri" Suriyakumar, Chairman, President and CEO of
American Reprographics Company. "We are not experiencing declining business
volumes because of overcapacity in non-residential markets. Instead, there
has been a growing lack of confidence in the credit markets that has lead
to project cancellations and postponements. Given the events of last week
on Wall Street, that confidence has eroded even further. Builders are going
to be very hesitant to start new projects until cash comes back into the
market."
Mr. Suriyakumar went on to say, "We believe that when confidence returns
there will be a quick resumption of building activity without the delays
seen in the early part of the decade when it took several years to absorb
excess capacity that had been built into the commercial real estate
market."
"In the meantime, our cash position is solid, our management team is
completely engaged, our margins are healthy, and our acquisition pipeline
is full. I am confident that we will weather this temporary slowdown and
emerge as an even stronger player in the industry," said Mr. Suriyakumar.
Conference Call
American Reprographics Company will host a conference call on Friday,
September 26 at 5:30 A.M. Pacific Time (8:30 A.M. Eastern Time) to discuss
the Company's financial guidance update. The conference call can be
accessed by dialing 201-689-8562. A replay of this call will be available
approximately one hour after the call for seven days following the call's
conclusion. To access the replay, dial 201-612-7415. The account number
to access the phone replay is 3055 and the conference ID number is 298540.
American Reprographics Company will report its third quarter results on
November 6, 2008, after the market close. Details of the earnings call will
be issued in a future announcement.
About American Reprographics Company
American Reprographics Company is the leading reprographics company in the
United States providing business-to-business document management technology
and services to the architectural, engineering and construction, or AEC
industries. The Company provides these services to companies in non-AEC
industries, such as technology, financial services, retail, entertainment,
and food and hospitality, which also require sophisticated document
management services. American Reprographics Company provides its core
services through its suite of reprographics technology products, a network
of more than 300 locally-branded reprographics service centers across the
U.S., and on-site at more than 5,000 customer locations. The Company's
service centers are arranged in a hub and satellite structure and are
digitally connected as a cohesive network, allowing the provision of
services both locally and nationally to more than 140,000 active customers.
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements that fall within the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995 regarding future events and the future financial performance of the
Company. Words such as "forecast," "believe," "will," "projection" and
"expects to see," and similar expressions also identify forward-looking
statements. We wish to caution you that such statements are only
predictions and actual results may differ materially as a result of risks
and uncertainties that pertain to our business. These risks and
uncertainties include, among others:
-- Prolonged volatility in financial markets that result in restrictive
lending conditions for private construction projects and reduce business
activity in the markets in which we operate;
-- The continued downturn in the architectural, engineering and
construction industries would diminish demand for our products and
services;
-- Competition in our industry and innovation by our competitors may
hinder our ability to execute our business strategy and maintain our
profitability;
-- Failure to anticipate and adapt to future changes in our industry
could harm our competitive position;
-- Failure to manage our acquisitions, including our inability to
integrate and merge the business operations of the acquired companies, and
failure to retain key personnel and customers of acquired companies could
have a negative effect on our future performance, results of operations and
financial condition;
-- Dependence on certain key vendors for equipment, maintenance services
and supplies, could make us vulnerable to supply shortages and price
fluctuations;
-- Damage or disruption to our facilities, our technology centers, our
vendors or a majority of our customers could impair our ability to
effectively provide our services and may have a significant impact on our
revenues, expenses and financial condition;
-- If we fail to continue to develop and introduce new services
successfully, our competitive positioning and our ability to grow our
business could be harmed.
The foregoing list of risks and uncertainties is illustrative but is by no
means exhaustive. For more information on factors that may affect future
performance, please review our SEC filings, specifically our annual report
on Form 10-K for the year ended December 31, 2007, and our quarterly
reports on Form 10-Q for the quarters ended March 31, 2008, and June 30,
2008. These documents contain important risk factors that could cause
actual results to differ materially from those contained in our projections
or forward-looking statements. These forward-looking statements are based
on information as of September 25, 2008, and except as required by law, the
Company undertakes no obligation to update or revise any forward-looking
statements.
Contact Information: Contact:
David Stickney
VP of Corporate Communications
Phone: 925-949-5100
Email: