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By Ed Avis
ARC reported that its second quarter 2020 net sales dropped nearly 35 percent compared to the same period last year, no surprise given the COVID situation. The worst hit came to their supplies and equipment sales, which dropped 53 percent. Managed print services also crashed, down 48.6 percent.
But the company slashed administrative expenses by 36 percent, so the effect of the drop in sales was somewhat blunted. The company also persuaded landlords to defer some lease payments, saving the company $3 million.
The bottom line is that the company's EBITDA for the quarter was $10.7 million, compared to $14.4 million during the second quarter last year.
In a press release, CEO Suri Suriyakumar said: "I am pleased to announce that we were able to exceed our previously announced expectation in terms of EBITDA and cash in the second quarter. We believe our results for the period are indicative of what we can sustain going forward thanks to transformative actions we've taken over the past several months."