About ARC Document Solutions

ARC Document Solutions Inc. is a digital printing company. The company provides digital printing and document-related services to customers in a growing variety of industries. The company’s primary services are: digital printing of general and specialized business documents, such as those found in marketing and advertising, engineering and construction and other industries, as well as producing highly-customized display graphics of all types and sizes; acquiring, placing and managing ARC-certified office printing equipment with proprietary device tracking and print management software at its customers’ offices and job sites; scanning documents, indexing them and adding digital search features for use in digital document management, document archives and facilities management, as well as providing other digital imaging services; and, reselling digital printing equipment and supplies. Each of these services frequently include additional logistics services in the form of distributing and delivering finished documents, installing display graphics, or the digital storage of graphic files. While its production equipment and services are technologically sophisticated, the company has also invested heavily in developing technology applications that improve digital printing and document management process, increase the efficiency of print networks, and provide features that enhance data security. The company’s services, technology and national footprint create economies of scale and production efficiency across geographical boundaries for customers who prefer to work with a single supplier for their digital printing needs. The company serves more than 40,000 active customers in a wide variety of markets, including retail, technology, energy, education, hospitality, public utilities, and others. The company also performs work for a majority of the largest design, engineering, and construction-oriented firms in North America. The company’s largest customers are served by an enterprise sales force called Global Solutions. The company’s services can be customized to meet the needs of individual customers, as well as address the needs of a broad industry. Principal Products and Services Specifically, the company’s offerings include: Digital Printing: The company prints documents of any size in color and black and white on a variety of materials including plain paper, vinyl, fabric, metal, wood and other three-dimensional substrates. While the company can and do print high-page count work such as manuals or catalogs, the documents it typically produces are usually characterized by their high-quality production, low-volume and quick turnaround, and are produced using highly-sophisticated digital printing equipment. Managed Print Services: The company acquires and manages digital printing equipment and places it in its customers' facilities for their use, based on a service level agreement, or SLA. The company leases or owns the equipment itself, while its customers pay for what they use. Per-use minimum charges are often part of its SLAs. The company operates more than 10,500 managed print services, or MPS, locations, ranging in size from one or two pieces of equipment in a single office, to hundreds of pieces equipment in offices around the world. The company also provides proprietary software to its customers that are designed to control their print expenses and connect their remote employees with their offices and ARC print centers nationwide. This software is developed and integrated by ARC. Scanning and Digital Imaging: The company scans hard-copy small format or large format documents in color or black and white, typically providing them to its customers as searchable PDF files. The company also uses its patented optical character recognition technology to make documents searchable, and it hosts them on proprietary applications for use as part of its ARC Facilities solutions. The types of documents that the company scans include office files, construction plans and other small or large documents. The company also processes, distributes and print-on-demand images it captures for its customers. The company’s large, centralized Scanning and Digital Imaging centers are compliant with the Health Insurability Portability and Accountability Act of 1996, or HIPAA, so it can convert documents that include protected health information, or PHI. The company’s unique software creates efficient search tags on scanned data for easy search and retrieval. The company offers Cloud-based document management software and other digital hosting services to its customers or make files available for its customers to host themselves. Equipment and Supplies Sales: The company sells equipment and supplies to a small segment of its customer base. The company also provides ancillary services, such as equipment service and maintenance, often as a way to generate recurring revenue in addition to a one-time sale. In addition, the company offers certified used equipment available for sale or for use in its MPS offering. The company reports its services by production method. Operations The majority of the company’s products and services are available from each of its service centers. All the company’s production centers are digitally connected and it operates standard software and systems to support seamless movement of customers digital data and print anywhere within the ARC system. In addition, the company can provide many of its services in its customers’ offices. The company’s geographic presence is concentrated in the U.S., with additional service centers in Canada, the United Arab Emirates (UAE), China, India, and the United Kingdom. Seasonality Seasonality is a small part of the company’s business, with sales of Digital Printing for construction clients influenced by seasonality and building cycles. Sales of display graphics are affected by retail trends, marketing calendars, advertising campaigns and branding initiatives, as well as the marketing and communication needs of the company’s office and real estate development clients. Strategic Focus The company’s strategic focus areas include driving profitable growth, optimizing its business performance, and returning value to its shareholders. Customers The company serves approximately 40,000 active customers in a wide variety of markets. The size of the company’s customers is wide-ranging, from local restaurant owners and construction subcontractors to international retailers, regional energy companies, and some of the country’s largest school districts. The company frequently sells products and services from across its portfolio to a single customer, particularly when working with larger customers. In addition, the company often sells similar services to different companies within the same industry. The types of Digital Printing customers the company sells to span a wide variety of industries that include but are not limited to advertising/media/marketing/promotional/graphic design departments; building owners and real estate developers; design, engineering and construction professionals; office management and IT departments responsible for print and document management; facilities management staff in schools, hospitals and other institutions; procurement departments in businesses of all kinds; small business owners; retail merchandising departments; and city/county/state municipalities. The local markets the company serves through its service centers are often highly fragmented with a wide variety of specialized, geographically-differentiated business practices. Larger regional, national and international customers often consolidate the purchasing and the acquisition of the company’s services through a single corporate department. The company serves these larger customers through its enterprise sales force which it refers to as its Global Solutions. Suppliers and Vendors The company’s primary vendors of equipment, maintenance services, and digital printing supplies include Hewlett Packard, Canon Solutions America (Océ), and Xerox. Proprietary Rights The company has registered ARC Document Solutions, ARC, as well as its historical name and logo, American Reprographics Company, as trademarks in the U.S. with the United States Patent and Trademark Office, or USPTO. The company has registered PlanWell, PlanWell PDS, Riot Creative Imaging, ABACUS, METAPRINT and SKYSITE as trademarks with the USPTO and in other countries. Research and Development In total, the company’s research and development amounted to $6.5 million during 2022. History The company was founded in 1988. It was incorporated in 2004. The company was formerly known as American Reprographics Company and changed its name to ARC Document Solutions, Inc. in 2012.