netrashetty
Netra Shetty
American Reprographics Company (NYSE: ARC) is the largest reprographics company in the United States, providing business-to-business document management services to the architectural, engineering and construction (AEC) industry. It also provides these services to companies in other industries that require sophisticated document management services. The company provides its core services through a proprietary suite of reprographics technology products, a nationwide network of locally-branded reprographics service centers, and facilities management programs at customers' locations throughout the country.
Founded in 1988 as a single reprographics firm in Southern California by S. "Mohan" Chandramohan (now Chairman of the Board), the company has grown into a national corporation with 2006 revenues of $591 million.
Corporate headquarters are co-located in Walnut Creek, California.
The company, with more than 40 operating divisions, employs more than 4,500 employees, and serves more than 140,000 customers nationwide. ARC continues to grow through acquisition.
On February 3, 2005, ARC announced pricing of its initial public offering of 13,350,000 shares of common stock at $13.00 per share for gross proceeds of $173,550,000. $92,690,004 of the proceeds went to ARC, $68,711,496 went to selling shareholders.[1]
ARC created the products PlanWell, Pinadmin, BidCaster, Metaprint, Sub-Hub and Abacus — applications aimed at solving problems of the reprographic and construction industries with sharing, transferring and managing printed and digital data.
American Reprographics Company (ARP)[1] provides blue print technologies to contractor and governments. Their 'PlanWell' service allows all the engineers to work on blue prints electronically, whereas in the past, changes required a reprinting by all parties. ARP is the only truly national organization with offices in >280 locations in North America.
History
ARP was founded by a couple life long friends with backgrounds in scientific engineering and banking. Some of the company's initial financing was done by Code Hennessy and Simmons and the IPO was primarily underwritten by William Blair & Company.
Growth Strategy
In 2006, cash flow was 67% of EBITDA. Growth and acquisitions were funded entirely from cash flow.
ARP is seeking relationships with national customers to provide blue prints for the construction of new locations of the national customer.
EBITDA margins grew to 24.6% in 2006. The number would have been higher, but ARP acquires companies with lower margins and then seeks to improve the acquired operations and increase its margins. By way of example: If an acquired company had EBITDA margins of 8%, ARP could:
Eliminate certain jobs that it can perform from a central location
ARP also has learned a bit about what are the best practices for the industry. Implimenting these practices can boost margins
ARP often has products or services that the acquired company did not; the acquired company can try to sell these to its existing customers- e.g PlanWell
ARP's national customers can build in the acquired company's location, so ARP can bring sales to it
ARP has better purchasing power to reduce some costs
Contents
1 History
2 Growth Strategy
3 Competition
4 Services
5 Customers
5.1 References
6 References
EBITDA margin expansion of acquired companies is a significant source of growth. Also, the average margin for the company will be lower than if it acquired no companies.
The company acquired 14 companies in 2005 and 16 companies in 2006. In the past 10 years it has acquired more than 100 companies.
In October 2007 it announced digital expansion into China where it hopes to become the industry standard.
It also is discovering what it hopes will be a new business segment. ARP is providing services to Boeing Company (BA) and stated there is expanding demand within Boeing.
Competition
The industry is highly fragmented with some 300,000 firms with average annual sales of $1.5 million and 20 to 25 employees. By contrast ARP had sales of $592 million in 2006 and has >4,000 employees.
Services
Document Management- store, organize, print and track project documents
Document Distrobution and Logistics- packaging prints and delivering documents to multiple locations within tight time constraints
Print on demand- place equiptment at customer's facilities
On-site services- any combination of the services above
65% of revenues from commercial construction and 15% of revenues from residential construction
Customers
No customer accounted for more than 2% or revenues in 2006
46% of 2006 revenues were derived in the state of California
Boeing Company (BA) is using a new application from ARP
Founded in 1988 as a single reprographics firm in Southern California by S. "Mohan" Chandramohan (now Chairman of the Board), the company has grown into a national corporation with 2006 revenues of $591 million.
Corporate headquarters are co-located in Walnut Creek, California.
The company, with more than 40 operating divisions, employs more than 4,500 employees, and serves more than 140,000 customers nationwide. ARC continues to grow through acquisition.
On February 3, 2005, ARC announced pricing of its initial public offering of 13,350,000 shares of common stock at $13.00 per share for gross proceeds of $173,550,000. $92,690,004 of the proceeds went to ARC, $68,711,496 went to selling shareholders.[1]
ARC created the products PlanWell, Pinadmin, BidCaster, Metaprint, Sub-Hub and Abacus — applications aimed at solving problems of the reprographic and construction industries with sharing, transferring and managing printed and digital data.
American Reprographics Company (ARP)[1] provides blue print technologies to contractor and governments. Their 'PlanWell' service allows all the engineers to work on blue prints electronically, whereas in the past, changes required a reprinting by all parties. ARP is the only truly national organization with offices in >280 locations in North America.
History
ARP was founded by a couple life long friends with backgrounds in scientific engineering and banking. Some of the company's initial financing was done by Code Hennessy and Simmons and the IPO was primarily underwritten by William Blair & Company.
Growth Strategy
In 2006, cash flow was 67% of EBITDA. Growth and acquisitions were funded entirely from cash flow.
ARP is seeking relationships with national customers to provide blue prints for the construction of new locations of the national customer.
EBITDA margins grew to 24.6% in 2006. The number would have been higher, but ARP acquires companies with lower margins and then seeks to improve the acquired operations and increase its margins. By way of example: If an acquired company had EBITDA margins of 8%, ARP could:
Eliminate certain jobs that it can perform from a central location
ARP also has learned a bit about what are the best practices for the industry. Implimenting these practices can boost margins
ARP often has products or services that the acquired company did not; the acquired company can try to sell these to its existing customers- e.g PlanWell
ARP's national customers can build in the acquired company's location, so ARP can bring sales to it
ARP has better purchasing power to reduce some costs
Contents
1 History
2 Growth Strategy
3 Competition
4 Services
5 Customers
5.1 References
6 References
EBITDA margin expansion of acquired companies is a significant source of growth. Also, the average margin for the company will be lower than if it acquired no companies.
The company acquired 14 companies in 2005 and 16 companies in 2006. In the past 10 years it has acquired more than 100 companies.
In October 2007 it announced digital expansion into China where it hopes to become the industry standard.
It also is discovering what it hopes will be a new business segment. ARP is providing services to Boeing Company (BA) and stated there is expanding demand within Boeing.
Competition
The industry is highly fragmented with some 300,000 firms with average annual sales of $1.5 million and 20 to 25 employees. By contrast ARP had sales of $592 million in 2006 and has >4,000 employees.
Services
Document Management- store, organize, print and track project documents
Document Distrobution and Logistics- packaging prints and delivering documents to multiple locations within tight time constraints
Print on demand- place equiptment at customer's facilities
On-site services- any combination of the services above
65% of revenues from commercial construction and 15% of revenues from residential construction
Customers
No customer accounted for more than 2% or revenues in 2006
46% of 2006 revenues were derived in the state of California
Boeing Company (BA) is using a new application from ARP
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