ARC Document Solutions, Inc.

Good day and thank you for standing by. Welcome to the ARC Q2 2021 Earnings Report. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, David Stickney, VP Corp Communications and Investor Relations. Please go ahead.

Thank you, Jerome, and welcome, everyone. On the call with me today are Suri Suryakumar, our CEO, our Chief Operating Officer, Dila Widjasuria, and George Avalos, our Chief Financial Officer. Our second quarter results for 2021 were publicized earlier today in a press release. The press release and other company materials are available from our investor relations pages on ARC Document Solutions' website at ir.e-arc.com. In today's earnings announcement, ARC offered expanded supplemental disclosures to provide shareholders and analysts with additional information in advance of our quarterly conference call. The disclosures are largely historical and will not be read on today's call. Please note that today's call will contain forward-looking statements that fall within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are only predictions based on information as of today, August 3, 2021, and actual results may differ materially as a result of risks and uncertainties that we highlight in our quarterly and annual SEC filings. This call will also contain references to certain non-GAAP measures, which are reconciled in today's press release and in our Form 8K filing. I'll now turn the call over to our Chairman, President, and CEO, Suri Suryakumar. Suri? Thank you, David, and welcome, everyone.

Our sales were up every segment for the second quarter, producing a 7% increase in net sales over the same period last year. On the strength of this increase in sales, we also posted improvements in gross margin, EPS, and adjusted EBITDA. This performance was, as we anticipated, a continuation of the trend we saw developing back in March. With what appears to be the worst of the pandemic behind us, economic activity picked up and so did demand for our services. While we can certainly attribute some of the success to improving circumstances, most specifically businesses opening their offices again for their employees, our focus on diversifying our market has accounted for the majority of our new business. Meanwhile, the economic reopening across North America has brought new vitality to our existing customers in the AAC market. While construction is struggling with some constraints regarding labor and the cost of materials, plans to move forward have not slowed down. As a case in point, the AIA's Architectural Billing Index recently experienced consecutive months of positive scores not seen since before the Great Recession and other surveys and indices. from trade associations are expressing similar optimism. Looking forward to the rest of the year, we anticipate continuing opportunities from customers both inside and outside of the construction vertical supported by a growing economy. Our challenge will be to accelerate the progress we have made in targeting new customers marketing to their needs, and converting a higher volume of proposals and quotes into sales. Of note, we don't believe that normal seasonal trends will play as a large a role as they have in the past years. Barring major setbacks in the fight against COVID-19, we think the economic and business optimism being expressed may well override the typical desire to slow down with the approach of the holidays. The push to make up lost ground is strong and we expect it to stay that way and benefit from it in the quarters ahead. As you would expect, our strong performance also supports our commitment to shareholder value A return to shareholder value primarily via our quarterly dividend program, as well as opportunistic stock repurchases. Just last week, we announced our fourth dividend of 2021. Shareholders will receive $0.02 per share on November 30th. With this broad sketch of the quarter as a basis for further discussion, I'll now turn the call over to Dilo to provide further detail. Dilo? Thank you, Suri. After a slow start for the year, I'm pleased to share with you that our accelerated activity throughout the period drew our top line by 11.5% from quarter one to quarter two. We also delivered more than $11 million in adjusted EBITDA for Q2, well above the flow of $10 million per quarter we've set for ourselves. We explored new markets, hunted new customers, won new sales, and produced outstanding work. Environmental graphics, specialty color printing for retail, entertainment and education, and scanning services all continue to grow in response to our targeted digital marketing initiatives. While there was plenty of increased activity in the U.S. during the quarter, Canada and the U.K. did not contribute much due to strict COVID-related lockdowns. But as we speak, these regions are opening up and we hope to see improved sales from them in the month ahead. Sales to our construction and non-construction customers continue to grow thanks to the expansion of our services. Our ability to sell more than just construction plant printing to general contractors, engineers, and architects is helping us to capture a larger share of their wallet at a time when construction backlogs are healthy and industry optimism is high. As we discussed in a prior call, around 65% of our new customer acquisition is coming from non-AEC customers. Our marketing team has been focused on this segment with e-marketing and social media campaigns exposing our digital print and document services to many new customer verticals. Digital print opportunities will continue to grow in these new customer verticals as employees return to work in an office. For those customers looking to consolidate their offices, we see a tremendous opportunity to grow our scanning business by digitizing their paper documents. Today, our AIM operations are busy and we are expanding our scan centers to accommodate the increased demand. Thanks to more efficiency and a better cost structure, our sales force is smaller than it was prior to the pandemic. We have learned how to attract more customers to us and develop new and profitable relationships without adding headcount. Likewise, we don't expect to spend more on our infrastructure to support increased demand. As we demonstrated this quarter, in addition to growing sales and increasing opportunities, our management team improved our margins by managing our material, labor, inventory, and infrastructure costs more efficiently. Another benefit of increasing our efficiency has been the smooth operation of our supply chain. We have excellent relationships with our suppliers and flexible inventory management practices to help us sidestep material shortages. At this time, we don't expect supply chain or inflation issues to have an impact on our results in the coming quarters. As Suri said previously, we have emerged as a different company after the pandemic. We will continue to deliver good value to our customers and operate as an efficient technology-driven print and document solutions company. At this time, I will hand over the call to George for a financial review. George?