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ARC reported that their sales climbed 7 percent in the second quarter of 2021 over that period in 2020. Net sales were $68.8 million in the quarter, and the AEC market represented 67 percent of sales.
"We are pleased with our second quarter growth in sales and the improvements in gross margin, EPS and adjusted EBITDA that came with it," said Suri Suriyakumar, Chairman, President and CEO of ARC. "The diversity of our products and services continue to drive expansion into digital color production and the economic re-opening is bringing new vitality to our existing customers in the AEC market. Every major category of sales grew during the second quarter."
"Our sales teams capitalized on new opportunities often driven by targeted marketing campaigns. We are watching closely how various industry verticals are responding to changing business conditions, and we are adapting quickly to build momentum for the second half of the year," said Mr. Suriyakumar.
2021 Second Quarter Supplemental Information:
- Net sales were $68.8 million, a 7.0% increase compared to the second quarter of 2020.
- Cash & cash equivalents on the consolidated balance sheet in the second quarter 2021 were $52.4 million. Days sales outstanding were 50 in Q2 2021 as compared to 59 in Q2 2020.
- Architectural, engineering, construction and building owner/operators (AEC/O) customers comprised approximately 67% of total net sales, while customers outside of construction made up approximately 33% of total net sales.
- The number of managed print services (MPS) locations dropped by approximately 165 locations year over year to approximately 10,780 as of June 30, 2021.
Net Revenue
For the second quarter 2021, net sales increased 7.0%, compared to the same period in 2020 primarily due to increasing year-over-year economic activity as the negative effects of the recent pandemic subsided. Sales in the second quarter also benefittted from targeted marketing of services to address the changing graphic printing and scanning needs of customers.
Revenue by Business Lines
For the second quarter 2021, construction document and information management (CDIM) sales increased 4.9% compared to prior year. As noted in previous quarters, the negative impact of the pandemic on CDIM has not been as pronounced as in other parts of our business due to the expansion of products and services beyond the construction vertical. During the second quarter, sales of these expanded services, primarily color graphics, have been driven by secular demands of businesses re-opening as opposed to sales of COVID-related products and services. Sales of construction and design-related services also grew during the period, coinciding with a resumption in building activity in most North American markets.
For the second quarter 2021, MPS sales increased 10.9% year-over-year. MPS sales increased as work from home directives ended for some of our customers, which in turn, lead to increased demand for our services performed on site.
For the second quarter 2021, archiving and information management (AIM) sales increased 23.9% year-over-year. Sales increases in AIM were driven by reasons similar to MPS, primarily attributable to the return of workers in oces and creating greater demand for scanning services.
For the second quarter 2021, equipment and supplies sales increased 1.3% year-over-year. The increase is a reection of the more favorable economic conditions in 2021 when compared to the second quarter of 2020. Equipment and supply sales from our Chinese joint venture declined due to continued constraints on capital spending in that country, but were offset by improvements in U.S. sales as the economy began to recover.