ARC Document Solutions, Inc.

Good afternoon, ladies and gentlemen, and welcome to the ARC Q2 2022 earnings report call. At this time, all participants are in a listen-only mode, and please be advised that this call is being recorded. After the speaker's prepared remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. Now, at this time, I'll turn things over to Mr. David Stickney, head of investor relations. Please go ahead, sir.

Thank you, Bo, and welcome everyone. On the call with me today are Suri Suryakumar, our CEO and Chairman, our President and Chief Operating Officer, Dilo Widusuria, and George Avalos, our Chief Financial Officer. Our second quarter results for 2022 were publicized earlier today in a press release. The press release and other company materials are available from our investor relations pages on ArcDocument Solutions website at Please note that today's call will contain forward-looking statements and are only predictions based on information as of today, August 3, 2022, and actual results may differ materially as a result of risks and uncertainties that we highlight in our quarterly and annual SEC filings. Any non-GAAP measures discussed today are reconciled in our press release and Form 8K filings. I'll now turn the call over to our chairman and CEO, Suri Suryakumar. Suri.

Thank you all for joining us. This has been an excellent quarter, and we are very pleased with the outcome. I want to take a few minutes and recap something I stated a few quarters ago which validates our position today. As many of you know, the company experienced tremendous growth through acquisitions since going public in 2005. Then in 2008, the Great Recession brought about the secular change that devastated the entire reprographics industry for the next 10 years. Many of the repographers did not survive. Laden with heavy acquisition debt of nearly $360 million and double-digit revenue erosion, battle through these years. These were remarkable times, and it was an extraordinary feat to keep the company profitable, generate strong cash flows, and meet our debt obligations in order to maintain a healthy balance sheet. By 2018, after 10 of the most difficult years in the company's history, we had reduced our debt by more than 65% to $127 million. In 2020, we were challenged again. The pandemic threatened our very existence, or at least that's what everyone thought. But by now, our management team was exceptionally experienced in navigating through times like this. We saw a perfect opportunity to reinvent the company. a company with a completely different business and revenue model, with lower revenues, but with great opportunities to grow and improve profitability. Understandably, it was hard for any investor to comprehend how the company would return to a path of profitability and prosperity in this period. The past year and a half says it all. five straight quarters of EPS and revenue growth. In addition, we are on track to deliver an EPS of more than 25 cents in 2022. We haven't seen performances like this since 2016 when our revenues were well over $400 million. It is also noteworthy that we did not receive any economic assistance or use the American Rescue Plan during the height of the pandemic. Instead, we continue to pay our debt down, which currently stands at $72 million. Net of cash in hand, our debt is a mere $27 million while we continue to generate cash flows in the region of $35 million or more. Needless to say, if we choose to, we are capable of extinguishing our debt. Even more remarkable has been our ability to ramp up shareholder returns quickly. Confident we can extinguish the debt, within a few years, we started down a path towards returning shareholder value. This too has produced extraordinary results. Our current dividend yield is more than 7%. Meanwhile, over the past three years, we have repurchased almost 12% of the company's shares at an average price of $1.62. This outcome should put to rest any skepticism out there regarding ARK's performance or its ability to continue to grow and return shareholder value. In just a moment, I'm going to hand over the call to Dilo to describe our progress in the recent quarter. Many of you know that Dilo was recently appointed president, a position that I had held for too long. His appointment is in addition to his role as chief operating officer. A 30-year veteran at ARC, Dilo has proved that he is more than capable of handling this position personally by leading the transformation of this company through the pandemic with amazing results. So without further ado, I'll let him add some color to the detail and detail to our Q2 results and the outline of some of our plans for the future. Dheeraj.