ARC Document Solutions, Inc.

emphasized earlier today in a press release. The press release and other company materials are available from our investor relations pages on our document solutions website at ir.e-arc.com. Please note that today's call will contain forward-looking statements and are only predictions based on information as of today, February 28, 2024, 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 filing. I'll turn the call over to our Chairman and CEO, Suri Suryakumar. Suri? Thank you, David.

If there was a year that validated our efforts to transform the company, 2023 might have been it. The challenges were easy to see, but so were the opportunities that balanced them. Watching the progress we made in offsetting declines in our older business lines with our more contemporary services, namely color and document scanning, was extremely gratifying. I can see a time in the not too distant future when our strategic business lines will come to dominate our revenue mix. Business conditions were fairly predictable for us after the first quarter of 2023. Capital spending was constrained due to interest rate hikes. Market activity was strong but focused on short-term. Return to office initiatives lost much of their momentum. And while the country and the general business environment seemed like it was improving, sentiment was muted. As much as we prefer bigger, long-term projects, Seasonal and event-driven marketing work helped us spur growth in our color services throughout the year. The trend for converting paper documents to digital information that began with the pandemic continued to gain momentum throughout the year and dramatically increased demand for scanning historical documents from the office and from warehouse storage. While the short-term growth of this service is gratifying, The volume of such information and the compelling need for it to be converted are both enormous and likely to last for decades. While we've seen declines in our on-site services as employees continue to work from home, sales in 2023 began to stabilize and we had significant success in the fourth quarter. You will hear more about that from Dillow later on this call. In this economic environment, construction projects were much more difficult to justify as for the purchases of large equipment. So it wasn't much of a surprise when construction plan printing got off to a sluggish start and the equipment and supply sales followed suit. But our ability to adapt to changing market conditions drove an increase in fourth quarter revenue, limited declines in annual revenue to less than 2%, and our skill and experience in managing costs held gross margin steady for the year. We had higher hopes, of course, but the continuing progress we made in identifying new markets, launching new and exciting products, and finding new partners and making the necessary investments to take promising services to the next level positioned us well for 2024 and beyond. To help explain some of the details about our efforts throughout the last quarter and to help put the entire year in perspective, I'll turn the call over to Dilo and George for their comments. Dilo?

Thank you, Suri. In the fourth quarter, we achieved encouraging results particularly in our strategic revenue lines, as Suri mentioned. Despite facing a decline in planned printing revenue, we successfully offset this loss by growing our document scanning and digital color revenue streams. Notably, our sales in document scanning services were 34% higher than they were in 2022, and our digital color services saw a surge in demand driven by significant projects supporting year-end promotional activities across various business verticals. Beyond the holidays, our consistent focus on expanding retail, trade show, and mall operations, coupled with increased tourism activity in the hotels vertical, contributed much of the business that led to our growth in digital color printing. Leveraging our premier digital print services brand, Riot, we continue to attract major brands across North America, positioning ourselves as a leading provider of on-demand, high-quality color printing solutions in all major markets in the U.S. In North America, few companies offer anything close. Achieving this level of service demands meticulous planning and a cohesive, dedicated production team, qualities that define our operations. Over the past three decades, we honed these capabilities with plan printing, resulting in a dominant market presence in construction. Now, we are applying the same expertise and co-competencies to our digital wide format color services, ensuring consistent quality and efficiency to our clients. The demand for document scanning remains robust as businesses prioritize moving their critical content to digital platforms. Hybrid work models and the growing trend of office space reduction further propel the adoption of document digitization projects among our clientele. Our teams conduct thorough site audits and collaborate closely with clients to tailor solutions to their specific requirements. Our Scan by the Box program caters to smaller clients seeking efficient and cost-effective scanning solutions for a file cabinet or two and our success in securing enterprise-level scanning contracts in the past few months with several contracts exceeding six figures has significantly improved our production backlog. Through targeted marketing campaigns, we are actively educating clients on the advantages of digitizing documents, and our performance is solidifying ARC's reputation as a trusted nationwide provider of document scanning services. Additionally, Our continuous enhancement of technology tools enables us to streamline project management, elevate quality standards, manage labor costs, and provide improved accessibility via cloud-based solutions for valued customers. By contrast, we have yet to observe any significant improvement in plan printing from new construction projects. Our assessment indicates that positive momentum in this revenue stream hinges on a substantial decline in interest rates, which we have yet to witness. Nonetheless, we remain proactive in showcasing and promoting other services offered by AHRQ to diversify our revenue streams. Our long-standing relationships with construction clients serve as a valuable foundation for introducing and expanding our new services within their accounts. As office customer behaviors evolve, we've also noted a decline in onsite print services along with equipment sales. However, over the past year, we have made a concentrated effort in renewing our onsite service contracts with key clients. I'm pleased to report that we've achieved successful renewals for multiple years with several major MPS customers. Their continued satisfaction with our service and confidence in our comprehensive on-site service solution bode well for maintaining revenue in this service line. Moving forward, our revenue performance in the fourth quarter serves as a clear indication of the positive direction our company is headed. Our emphasis on scanning and digital color printing is driving overall company expansion, and our management team is Every market is 100% on board. Our strategic investments, ongoing staff training initiatives, and targeted marketing and selling strategies are all directed towards advancing this primary objective. Key areas of focus for our management teams include production management, customer service, margin optimization, and planning capacity. We are also doubling down on our online and social media marketing efforts to generate new customer leads while maintaining a steady sales representative headcount. I encourage our investor community to follow us on LinkedIn and other social media platforms. Creating and sustaining a fun and secure workplace environment for employees remains a top priority for management. We consistently implement initiatives to support our team members, including various employee assistance programs and a profit sharing bonus plan. As we further establish ourselves as a prominent presence in digital color printing, document conversion, and more, fostering a dedicated and inspired team is crucial to our success. I look forward to sharing our first quarter results soon. At this point, I'll hand over to George for more on the financials. George?