Tag Archives: American Reprographics Company

ARP Raises Guidance for 4Q09 Revenues, EPS – Consensus Estimates Appear Too Low for 2010

January 27, 2010 – 7:23 pm

After the close today, ARP issued a press release indicating that the company now expects to beat its prior revenue and EPS guidance for 4Q09.  You can read the full release here.  Management did not specifically identify the sources or magnitude of revenue upside.  The company has increased its full year guidance for EPS from [...]

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Feedback from Independent Reprographers Suggests the Potential for ARP to Beat Estimates is High, AIA Billings Index Could Finally Eclipse 50 in 1Q10

January 20, 2010 – 10:02 pm

We introduced ARPas an investment idea approximately 9-months ago. At that time we thought the stock had considerable upside based in large part on the company’s market leadership position and strong free cash flow generation.  This would enable the company to weather the current economic downturn through strategic cost cutting and debt reduction.  For the [...]

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PAA Research SMid Cap Portfolio Update

December 21, 2009 – 1:54 am

We wanted to provide you with an update on the performance of our SMid Cap portfolio, which we introduced on 9/3/09. As a reminder this is a “mock” portfolio with an initial value of $100 million. We plan to manage the portfolio like a long/short equity hedge fund.
Here are the highlights of the performance since [...]

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Canon’s Takeover Bid for Oce N.V. Validates Value of ARP Shares

November 16, 2009 – 11:20 am

CanonInc. today announced its intention to launch a takeover bid for Oce N.V., a leading manufacturer of digital printing systems and document management service provider.  Canon will launch a tender offer in 1Q10 at Eur8.60/share, or a 70% premium to Oce’s closing price on Friday.  The tender offer will also represent a 100% premium to [...]

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Despite Weakness in the AIA Billings Index, Channel Checks Suggest Another Quarter of Upside Out of ARP – Looking at the Company’s Next Growth Vehicle

July 31, 2009 – 2:00 pm

We continue to recommend purchase of ARP shares, even after the 50% gain in the stock since we first introduced the idea.  The company will report results on August 6th, after the market close. We have received a few questions from investors about the potential for a revenue or earnings short fall from ARP given the recent [...]

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Recent Correction in ARP Shares Brings the FCF Yield Back to 20%+

June 24, 2009 – 10:23 am

Since reaching its YTD high of $10.11 on June 5, ARP shares have witnessed a 20% correction. At today’s price, ARP shares now sport a free cash flow (FCF) yield of 20%. After generating $20 million in FCF in the first quarter, we think ARP is well on its way to generating $70+ million [...]

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ARP is a Cash Cow. If That’s the Worst of It, We’ll Take All We Can Get

May 7, 2009 – 6:23 pm

ARP reported 1Q09 results after the close. You can read the detail here. The quick highlights are as follows:

Revenues were inline with street consensus, but the company had clear positive sequential improvement in trends over the course of the quarter.
As we anticipated in our original post, ARP was able to deftly manage costs. [...]

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Comments from a Reprographics Industry Veteran

May 6, 2009 – 12:22 pm

We had the opportunity to speak with a three-decade veteran of the reprographics industry to get a better sense of his views on the state of the marketplace, the competitive landscape, consolidation opportunities, and the transition towards digital solutions. This executive’s former company was sold to ARC, and he now serves as a consultant [...]

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ARP is a Cash Cow

April 29, 2009 – 9:34 am

Please make sure to click on the link at the end of this post to read our full write-up on ARP.
First and foremost, we do not want our enthusiasm for ARP shares to be misconstrued as a bullish call on construction spending or commercial real estate. We have been followers of American Reprographics [...]

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