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ARC ARC Document Solutions

Cover Page

Cover Page - shares3 Months Ended
Mar. 31, 2021Apr. 29, 2021
Cover [Abstract]
Document Type10-Q
Document Quarterly Reporttrue
Document Period End DateMar. 31,
2021
Document Transition Reportfalse
Entity File Number001-32407
Entity Registrant NameARC DOCUMENT SOLUTIONS, INC.
Entity Incorporation, State or Country CodeDE
Entity Tax Identification Number20-1700361
Entity Address, Address Line One12657 Alcosta Blvd, Suite 200
Entity Address, City or TownSan Ramon
Entity Address, State or ProvinceCA
Entity Address, Postal Zip Code94583
City Area Code925
Local Phone Number949-5100
Title of 12(b) SecurityCommon Stock, par value $0.001 per share
Trading SymbolARC
Security Exchange NameNYSE
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryNon-accelerated Filer
Entity Small Businesstrue
Entity Emerging Growthfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding (in shares)42,706,873
Amendment Flagfalse
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Entity Central Index Key0001305168
Current Fiscal Year End Date--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Current assets:
Cash and cash equivalents $ 49,460 $ 54,950
Accounts receivable, net of allowances for accounts receivable of $2,294 and $2,35736,847 36,279
Inventory9,751 9,474
Prepaid expenses4,029 4,065
Other current assets3,180 3,979
Total current assets103,267 108,747
Property and equipment, net of accumulated depreciation of $222,665 and $219,83452,874 57,830
Right-of-use assets from operating leases35,749 37,859
Goodwill121,051 121,051
Other intangible assets, net441 515
Deferred income taxes16,819 17,261
Other assets2,110 2,175
Total assets332,311 345,438
Current liabilities:
Accounts payable19,468 18,661
Accrued payroll and payroll-related expenses8,868 10,088
Accrued expenses16,541 17,783
Current operating lease liability11,421 12,158
Current portion of finance leases16,600 17,557
Total current liabilities72,898 76,247
Long-term operating lease liabilities31,584 33,561
Long-term debt and finance leases71,780 79,679
Other long-term liabilities1,672 1,615
Total liabilities177,934 191,102
Commitments and contingencies (Note 6)
ARC Document Solutions, Inc. shareholders’ equity:
Preferred stock, $0.001 par value, 25,000 shares authorized; 0 shares issued and outstanding0 0
Common stock, $0.001 par value, 150,000 shares authorized; 49,433 and 49,422 shares issued and 42,733 and 42,792 shares outstanding49 49
Additional paid-in capital128,108 127,755
Retained earnings37,250 37,308
Accumulated other comprehensive loss(2,708)(2,787)
Total stockholders equity before adjustment of treasury stock162,699 162,325
Less cost of common stock in treasury, 6,700 and 6,630 shares14,813 14,657
Total ARC Document Solutions, Inc. shareholders’ equity147,886 147,668
Noncontrolling interest6,491 6,668
Total equity154,377 154,336
Total liabilities and equity $ 332,311 $ 345,438

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowances for accounts receivable $ 2,294 $ 2,357
Accumulated depreciation on property and equipment $ 222,665 $ 219,834
Preferred stock, par value (in usd per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares)25,000,000 25,000,000
Preferred stock, shares issued (in shares)0 0
Preferred stock, shares outstanding (in shares)0 0
Common stock, par value (in usd per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares)150,000,000 150,000,000
Common stock, shares issued (in shares)49,433,000 49,422,000
Common stock, shares outstanding (in shares)42,733,000 42,792,000
Treasury stock, (in shares)6,700,000 6,630,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Income Statement [Abstract]
Net sales $ 61,730 $ 88,425
Cost of sales42,943 60,828
Gross profit18,787 27,597
Selling, general and administrative expenses16,995 24,338
Amortization of intangible assets75 597
Income from operations1,717 2,662
Other income, net(11)(16)
Interest expense, net620 1,109
Income before income tax provision1,108 1,569
Income tax provision496 1,107
Net income612 462
Loss attributable to the noncontrolling interest177 221
Net income attributable to ARC Document Solutions, Inc. shareholders $ 789 $ 683
Earnings per share attributable to ARC Document Solutions, Inc. shareholders:
Basic (in usd per share) $ 0.02 $ 0.02
Diluted (in usd per share) $ 0.02 $ 0.02
Weighted average common shares outstanding:
Basic (in shares)42,264 43,676
Diluted (in shares)42,634 43,811

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income $ 612 $ 462
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments, net of tax79 (974)
Other comprehensive income (loss), net of tax79 (974)
Comprehensive income (loss)691 (512)
Comprehensive loss attributable to noncontrolling interest, net of tax(177)(354)
Comprehensive income (loss) attributable to ARC Document Solutions, Inc. shareholders $ 868 $ (158)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Equity (Unaudited) - USD ($) shares in Thousands, $ in ThousandsTotalCommon StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive LossCommon Stock in TreasuryNoncontrolling Interest
Beginning Balance (in shares) at Dec. 31, 201949,189
Beginning Balance at Dec. 31, 2019 $ 150,040 $ 49 $ 126,117 $ 31,969 $ (3,357) $ (11,410) $ 6,672
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)300
Stock-based compensation505 $ 1 504
Issuance of common stock under employee stock purchase plan (in shares)28
Issuance of common stock under Employee Stock Purchase Plan20 20
Treasury shares(2,432)(2,432)
Cash dividends - common stock ($0.02 per share)(427)(427)
Comprehensive income (loss)(512)683 (841)(354)
Ending Balance (in shares) at Mar. 31, 202049,517
Ending Balance at Mar. 31, 2020 $ 147,194 $ 50 126,641 32,225 (4,198)(13,842)6,318
Beginning Balance (in shares) at Dec. 31, 202049,422 49,422
Beginning Balance at Dec. 31, 2020 $ 154,336 $ 49 127,755 37,308 (2,787)(14,657)6,668
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)0
Stock-based compensation339 339
Issuance of common stock under employee stock purchase plan (in shares)11
Issuance of common stock under Employee Stock Purchase Plan14 14
Treasury shares(156)(156)
Cash dividends - common stock ($0.02 per share)(847)(847)
Comprehensive income (loss) $ 691 789 79 (177)
Ending Balance (in shares) at Mar. 31, 202149,433 49,433
Ending Balance at Mar. 31, 2021 $ 154,377 $ 49 $ 128,108 $ 37,250 $ (2,708) $ (14,813) $ 6,491

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares1 Months Ended3 Months Ended
Feb. 28, 2021Mar. 31, 2021Mar. 31, 2020
Statement of Stockholders' Equity [Abstract]
Quarterly cash dividends declared (in usd per share) $ 0.02 $ 0.02 $ 0.01

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Cash flows from operating activities
Net income $ 612 $ 462
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for accounts receivable(36)266
Depreciation6,449 7,407
Amortization of intangible assets75 597
Amortization of deferred financing costs16 16
Stock-based compensation339 504
Deferred income taxes392 751
Deferred tax valuation allowance60 290
Other non-cash items, net(38)(18)
Changes in operating assets and liabilities:
Accounts receivable, net(504)(1,995)
Inventory(290)1,027
Prepaid expenses and other assets3,350 3,404
Accounts payable and accrued expenses(5,050)(9,937)
Net cash provided by operating activities5,375 2,774
Cash flows from investing activities
Capital expenditures(568)(1,121)
Other131 73
Net cash used in investing activities(437)(1,048)
Cash flows from financing activities
Proceeds from issuance of common stock under Employee Stock Purchase Plan14 20
Share repurchases(156)(2,432)
Payments on finance leases(4,817)(4,602)
Borrowings under revolving credit facilities15,000 40,000
Payments under revolving credit facilities(20,000)(25,000)
Dividends paid(422)(443)
Net cash (used in) provided by financing activities(10,381)7,543
Effect of foreign currency translation on cash balances(47)(484)
Net change in cash and cash equivalents(5,490)8,785
Cash and cash equivalents at beginning of period54,950 29,425
Cash and cash equivalents at end of period49,460 38,210
Noncash investing and financing activities
Finance lease obligations incurred874 5,353
Operating lease obligations incurred $ 418 $ 3,498

Description of Business and Bas

Description of Business and Basis of Presentation3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
Description of Business and Basis of PresentationDescription of Business and Basis of Presentation ARC Document Solutions, Inc. (“ARC Document Solutions,” “ARC” or the “Company”) is a leading document solutions provider to architectural, engineering, construction, and facilities management professionals, while also providing document solutions to businesses of all types. ARC offers a variety of services including: Construction Document Information Management ("CDIM"), Managed Print Services ("MPS"), and Archive and Information Management ("AIM"). In addition, ARC also sells Equipment and Supplies. The Company conducts its operations through its wholly-owned operating subsidiary, ARC Document Solutions, LLC, a Texas limited liability company, and its affiliates. Basis of Presentation The accompanying interim Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conformity with the requirements of the U.S. Securities and Exchange Commission ("SEC"). As permitted under those rules, certain footnotes or other financial information required by GAAP for complete financial statements have been condensed or omitted. In management’s opinion, the accompanying interim Condensed Consolidated Financial Statements reflect all adjustments of a normal and recurring nature that are necessary to fairly present the interim Condensed Consolidated Financial Statements. All intercompany accounts and transactions have been eliminated in consolidation. The operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the interim Condensed Consolidated Financial Statements and accompanying notes. The Company evaluates its estimates and assumptions on an ongoing basis and relies on historical experience and various other factors that it believes to be reasonable under the circumstances to determine such estimates. Actual results could differ from those estimates and such differences may be material to the interim Condensed Consolidated Financial Statements. These interim Condensed Consolidated Financial Statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Net sales of the Company’s principal services and products were as follows: Three Months Ended 2021 2020 CDIM $ 37,434 $ 49,160 MPS (1) 17,334 27,308 AIM 3,025 3,600 Equipment and supplies sales 3,937 8,357 Net sales $ 61,730 $ 88,425 (1) MPS includes $15.8 million of rental income and $1.5 million of service income for the three months ended March 31, 2021. MPS includes $25.4 million of rental income and $1.9 million of service income for the three months ended March 31, 2020. CDIM consists of professional services and software services to (i) reproduce and distribute large-format and small-format documents in either black and white or color (“Ordered Prints”) and (ii) specialized graphic color printing. Substantially all of the Company’s revenue from CDIM comes from professional services to reproduce Ordered Prints. Sales of Ordered Prints are initiated through a customer order or quote and are governed by established terms and conditions agreed upon at the onset of the customer relationship. Revenue is recognized when the performance obligation under the terms of a contract with a customer are satisfied, which generally occurs with the transfer of control of the Ordered Prints. Transfer of control occurs at a specific point in time, when the Ordered Prints are delivered to the customer’s site or handed to the customer for walk-in orders. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Taxes collected concurrent with revenue-producing activities are excluded from revenue. MPS consists of placement, management, and optimization of print and imaging equipment in customers' offices, job sites, and other facilities. MPS relieves the Company’s customers of the burden of purchasing print equipment and related supplies and maintaining print devices and print networks, and it shifts their costs to a “per-use” basis. MPS is supported by our hosted proprietary technology, Abacus ® , which allows our customers to capture, control, manage, print, and account for their documents. Under its MPS contracts, the Company is paid a fixed rate per unit for each print produced (per-use), often referred to as a “click charge”. MPS sales are driven by the ongoing print needs of the Company’s customers at their facilities. Upon the issuance of Accounting Standards Codification ("ASC") 842, Leases, the Company concluded that certain of its MPS arrangements, which had previously been accounted for as service revenue under ASC 606, Revenue from Contracts with Customers, are accounted for as operating leases under ASC 842. AIM combines software and professional services to facilitate the capture, management, access and retrieval of documents and information that have been produced in the past. AIM includes our hosted SKYSITE ® software to organize, search and retrieve documents, as well as the provision of services that include the capture and conversion of hardcopy and electronic documents into digital files (“Scanned Documents”), and their cloud-based storage and maintenance. Sales of AIM professional services, which represents the majority of AIM revenue, are initiated through a customer order or proposal and are governed by established terms and conditions agreed upon at the onset of the customer relationship. Revenue is recognized when the performance obligation under the terms of a contract with a customer are satisfied, which generally occurs with the transfer of control of the digital files. Transfer of control occurs at a specific point in time, when the Scanned Documents are delivered to the customer either through SKYSITE or on electronic media. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Taxes collected concurrent with revenue-producing activities are excluded from revenue. Equipment and Supplies sales consist of reselling printing, imaging, and related equipment (“Goods”) to customers primarily in architectural, engineering and construction firms. Sales of equipment and supplies are initiated through a customer order and are governed by established terms and conditions agreed upon at the onset of the customer relationship. Revenue is recognized when the performance obligations under the terms of a contract with a customer are satisfied, which occurs with the transfer of control of the Goods. Transfer of control occurs at a specific point in time, when the Goods are delivered to the customer’s site. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Taxes collected concurrent with revenue-producing activities are excluded from revenue. The Company has experienced minimal customer returns or refunds and does not offer a warranty on equipment that it is reselling. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Loss (Topic 326) (“ASU 2016-13”), which updates the guidance on recognition and measurement of credit losses for financial assets. The new requirements, known as the current expected credit loss model ("CECL") will require entities to adopt an impairment model based on expected losses rather than incurred losses. ASU 2016-13 must be adopted on a modified-retrospective approach. This update was effective for fiscal years beginning after December 15, 2020 including interim periods within those fiscal years. In October 2019, the FASB approved an extension for all non-SEC filers, including small reporting companies, to extend the effective date to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Therefore, the effective date for this update will be January 1, 2023. The Company is currently evaluating the potential impact of the adoption of the new standard on its consolidated statements of financial condition and results of operations. Segment Reporting The provisions of ASC 280, Segment Reporting , require public companies to report financial and descriptive information about their reportable operating segments. The Company identifies operating segments based on the various business activities that earn revenue and incur expense and whose operating results are reviewed by the Company's Chief Executive Officer, who is the Company's chief operating decision maker. Because its operating segments have similar products and services, classes of customers, production processes, distribution methods and economic characteristics, the Company operates as a single reportable segment. Risk and Uncertainties The Company generates the majority of its revenue from sales of services and products to customers in the architectural, engineering, construction and building owner/operator ("AEC/O") industry. As a result, the Company’s operating results and financial condition can be significantly affected by economic factors that influence the AEC/O industry, such as non-residential construction spending, GDP growth, interest rates, unemployment rates, and office vacancy rates, all of which have been amplified due to the COVID-19 pandemic. Reduced activity (relative to historic levels) in the AEC/O industry would diminish demand for some of ARC’s services and products, and it would therefore negatively affect revenues and have a material adverse effect on ARC's business, operating results and financial condition. As part of the Company’s growth strategy, ARC intends to continue to offer and grow a variety of service offerings, some of which are relatively new to the Company. The success of the Company’s efforts will be affected by its ability to acquire new customers for the Company’s new service offerings, as well as to sell the new service offerings to existing customers. The Company’s inability to successfully market and execute these relatively new service offerings could significantly affect its business and reduce its long-term revenue, resulting in an adverse effect on its results of operations and financial condition.

Earnings per Share

Earnings per Share3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]
Earnings per ShareEarnings per Share The Company accounts for earnings per share in accordance with ASC 260, Earnings Per Share. Basic earnings per share is computed by dividing net income attributable to ARC by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per common share is computed similarly to basic earnings per share except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if shares subject to outstanding options and acquisition rights had been issued and if the additional shares were dilutive. Common share equivalents are excluded from the computation if their effect is anti-dilutive. For the three months ended March 31, 2021, 5.1 million shares of common stock were excluded from the calculation of diluted net income attributable to ARC per common share, because they were anti-dilutive. For the three months ended March 31, 2020, 5.3 million shares of common stock were excluded from the calculation of diluted net loss attributable to ARC per common share, because they were anti-dilutive. The Company's common share equivalents consist of stock options issued under the Company's stock plan. Basic and diluted weighted average common shares outstanding were calculated as follows for the three months ended March 31, 2021 and 2020: Three Months Ended 2021 2020 Weighted average common shares outstanding during the period—basic 42,264 43,676 Effect of dilutive stock awards 370 135 Weighted average common shares outstanding during the period—diluted 42,634 43,811

Goodwill and Other Intangibles

Goodwill and Other Intangibles3 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other IntangiblesGoodwill and Other Intangibles Goodwill In accordance with ASC 350, Intangibles - Goodwill and Other , the Company assesses goodwill for impairment annually as of September 30, and more frequently if events and circumstances indicate that goodwill might be impaired. At September 30, 2020, the Company performed its assessment and determined that goodwill was not impaired. Goodwill impairment testing is performed at the reporting unit level. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or internally generated, are available to support the value of the goodwill. In 2017, the Company elected to early-adopt ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies subsequent goodwill measurement by eliminating step two from the goodwill impairment test. Given the uncertainty regarding the ultimate financial impact of the COVID-19 pandemic and the ensuing economic recovery, there can be no assurance that the estimates and assumptions made for purposes of the Company’s goodwill impairment analysis in 2020 will prove to be accurate predictions of the future. If the Company’s assumptions, including forecasted EBITDA of certain reporting units, are not achieved, or its assumptions regarding disruptions caused by the pandemic, and its impact on the recovery from COVID-19 change, then the Company may be required to record goodwill impairment charges in future periods, whether in connection with the next annual impairment testing in the third quarter of 2021, or on an interim basis, if any such change constitutes a triggering event (as defined under ASC 350, Intangibles-Goodwill and Other ) outside of the quarter when the Company regularly performs its annual goodwill impairment test. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such charge would be material. There was no change in the carrying amount of goodwill from January 1, 2020 through March 31, 2021. See “Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further information regarding the process and assumptions used in the goodwill impairment analysis. Long-lived and Other Intangible Assets The Company periodically assesses potential impairments of its long-lived assets in accordance with the provisions of ASC 360, Accounting for the Impairment or Disposal of Long-lived Assets . An impairment review is performed whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. The Company groups its assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of the other assets and liabilities. The Company has determined that the lowest level for which identifiable cash flows are available is the regional level, which is the operating segment level. Factors considered by the Company include, but are not limited to, significant underperformance relative to historical or projected operating results; significant changes in the manner of use of the acquired assets or the strategy for the overall business; and significant negative industry or economic trends. When the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more of the above indicators of impairment, the Company estimates the future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the expected future undiscounted cash flows and eventual disposition is less than the carrying amount of the asset, the Company recognizes an impairment loss. An impairment loss is reflected as the amount by which the carrying amount of the asset exceeds the fair value of the asset, based on the fair value if available, or discounted cash flows, if fair value is not available. The Company assessed potential impairments of its long lived assets as of September 30, 2020 and concluded that there was no impairment. Other intangible assets that have finite lives are amortized over their useful lives. Customer relationships are amortized using the accelerated method, based on customer attrition rates, over their estimated useful lives of 13 (weighted average) years. The following table sets forth the Company’s other intangible assets resulting from business acquisitions as of March 31, 2021 and December 31, 2020 which continue to be amortized: March 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Amortizable other intangible assets Customer relationships $ 99,471 $ 99,302 $ 169 $ 99,425 $ 99,191 $ 234 Trade names and trademarks 20,323 20,051 272 20,325 20,044 281 $ 119,794 $ 119,353 $ 441 $ 119,750 $ 119,235 $ 515 Estimated future amortization expense of other intangible assets for the remainder of the 2021 fiscal year, and each of the subsequent four fiscal years and thereafter, are as follows: 2021 (excluding the three months ended March 31, 2021) $ 116 2022 103 2023 44 2024 42 2025 38 Thereafter 98 $ 441

Income Taxes

Income Taxes3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income TaxesIncome Taxes On a quarterly basis, the Company estimates its effective tax rate for the full fiscal year and records a quarterly income tax provision based on the anticipated annual effective rate and the recognition of any discrete items within the quarter. The Company recorded an income tax provision of $0.5 million in relation to pretax income of $1.1 million for the three months ended March 31, 2021, which resulted in an effective income tax rate of 44.8%, primarily impacted by certain stock-based compensation, change in valuation allowances against certain deferred tax assets and non-deductible expenses. The Company recorded an income tax provision of $1.1 million in relation to pretax income of $1.6 million for the three months ended March 31, 2020, which resulted in an effective income tax rate of 70.6% primarily driven by the shortfalls in certain stock-based compensation, valuations allowances against certain deferred tax assets, non-deductible expenses and the financial impact from COVID-19. In accordance with ASC 740-10, Income Taxes , the Company evaluates the need for deferred tax asset valuation allowances based on a more likely than not standard. The ability to realize deferred tax assets depends on the ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction. The Company considers the following possible sources of taxable income when assessing the realization of deferred tax assets: • Future reversals of existing taxable temporary differences; • Future taxable income exclusive of reversing temporary differences and carryforwards; • Taxable income in prior carryback years; and • Tax-planning strategies. The assessment regarding whether a valuation allowance is required or should be adjusted also considers all available positive and negative evidence factors, including but not limited to: • Nature, frequency, and severity of recent losses; • Duration of statutory carryforward periods; • Historical experience with tax attributes expiring unused; and • Near- and medium-term financial outlook. The Company utilizes a rolling three years of actual and current year anticipated results as the primary measure of cumulative income/losses in recent years, as adjusted for permanent differences. The evaluation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company's financial statements or tax returns and future profitability. The Company's accounting for deferred tax consequences represents its best estimate of those future events. Changes in the Company's current estimates, due to unanticipated events, such as the ultimate financial impact of and recovery from the COVID-19 pandemic or otherwise, could have a material effect on its financial condition and results of operations. The Company has a $2.1 million valuation allowance against certain deferred tax assets as of March 31, 2021.

Long-Term Debt

Long-Term Debt3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
Long-Term DebtLong-Term Debt Long-term debt consists of the following: March 31, 2021 December 31, 2020 Revolving Loans; 2.0% and 2.2% interest rate at March 31, 2021 and December 31, 2020 $ 50,000 $ 55,000 Various finance leases; weighted average interest rate of 5.0% and 4.9% at March 31, 2021 and December 31, 2020; principal and interest payable monthly through December 2026 38,380 42,236 88,380 97,236 Less current portion (16,600) (17,557) $ 71,780 $ 79,679 Credit Agreement On December 17, 2019, the Company amended its Credit Agreement (the "2019 Amendment") which was originally entered into on November 20, 2014 with Wells Fargo Bank, National Association, as administrative agent and the lenders party thereto (the "2014 Credit Agreement"). The 2019 Amendment increased the maximum aggregate principal amount of revolving loans under the 2014 Credit Agreement from $65 million to $80 million. Proceeds of a portion of the revolving loans available to be drawn under the 2014 Credit Agreement were used to fully repay the $49.5 million term loan that was outstanding under the 2014 Credit Agreement. As of March 31, 2021, the Company's borrowing availability of revolving loans under the revolving loan commitment was $27.8 million, after deducting outstanding letters of credit of $2.2 million and outstanding revolving loans of $50.0 million. Loans borrowed under the 2014 Credit Agreement bear interest, in the case of LIBOR rate loans, at a per annum rate equal to the applicable LIBOR rate, plus a margin ranging from 1.25% to 1.75%, based on the Company’s Total Leverage Ratio (as defined in the Credit Agreement). Loans borrowed under the 2014 Credit Agreement that are not LIBOR rate loans bear interest at a per annum rate equal to (i) the greatest of (A) the Federal Funds Rate plus 0.50%, (B) the one month LIBOR rate plus 1.00%, per annum, and (C) the rate of interest announced, from time to time, by Wells Fargo Bank, National Association as its “prime rate,” plus (ii) a margin ranging from 0.25% to 0.75%, based on the Company’s Total Leverage Ratio. The Company pays certain recurring fees with respect to the 2014 Credit Agreement, including administration fees to the administrative agent. Subject to certain exceptions, including, in certain circumstances, reinvestment rights, the loans extended under the Credit Agreement are subject to customary mandatory prepayment provisions with respect to: the net proceeds from certain asset sales; the net proceeds from certain issuances or incurrences of debt (other than debt permitted to be incurred under the terms of the 2014 Credit Agreement); the net proceeds from certain issuances of equity securities; and net proceeds of certain insurance recoveries and condemnation events of the Company. The 2014 Credit Agreement contains customary representations and warranties, subject to limitations and exceptions, and customary covenants restricting the ability (subject to various exceptions) of the Company and its subsidiaries to: incur additional indebtedness (including guarantee obligations); incur liens; sell certain property or assets; engage in mergers or other fundamental changes; consummate acquisitions; make investments; pay dividends, other distributions or repurchase equity interest of the Company or its subsidiaries; change the nature of their business; prepay or amend certain indebtedness; engage in certain transactions with affiliates; amend their organizational documents; or enter into certain restrictive agreements. In addition, the 2014 Credit Agreement contains financial covenants which requires the Company to maintain (i) at all times, a Total Leverage Ratio in an amount not to exceed 2.75 to 1.00; and (ii) a Fixed Charge Coverage Ratio (as defined in the 2014 Credit Agreement), as of the last day of each fiscal quarter, an amount not less than 1.15 to 1.00. We were in compliance with our covenants as of March 31, 2021. The 2019 Amendment also modified certain tests the Company is required to meet in order to pay dividends, repurchase stock and make other restricted payments. In order to make such payments which are permitted subject to certain customary conditions set forth in the 2014 Credit Agreement, the amount of all such payments will be limited to $15 million during any twelve-month period. Pursuant to the 2019 Amendment, when calculating the fixed charge coverage ratio, the Company may exclude up to $10 million of such restricted payments that would otherwise constitute fixed charges in any twelve-month period. The 2019 Amendment allows for payment of dividends. In February 2021, the Company's board of directors declared a quarterly cash dividend of $0.02 per share that is payable on May 31, 2021 to shareholders of record as of April 30, 2021. Accordingly, the Company recorded a dividend payable of $847 thousand within accrued expenses as of March 31, 2021. The 2014 Credit Agreement contains customary events of default, including with respect to: nonpayment of principal, interest, fees or other amounts; failure to perform or observe covenants; material inaccuracy of a representation or warranty when made; cross-default to other material indebtedness; bankruptcy, insolvency and dissolution events; inability to pay debts; monetary judgment defaults; actual or asserted invalidity or impairment of any definitive loan documentation, repudiation of guaranties or subordination terms; certain ERISA related events; or a change of control. The obligations of the Company’s subsidiary that is the borrower under the 2014 Credit Agreement are guaranteed by the Company and each of its other United States subsidiaries. The 2014 Credit Agreement and any interest rate protection and other hedging arrangements provided by any lender party to the credit facility or any affiliate of such a lender are secured on a first priority basis by a perfected security interest in substantially all of the borrower’s, the Company’s and each guarantor’s assets (subject to certain exceptions). On April 22, 2021, the Company replaced its 2014 Credit Agreement. See Note 9, "Subsequent Events" for further information.

Commitments and Contingencies

Commitments and Contingencies3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and ContingenciesCommitments and Contingencies Operating Leases. The Company leases machinery, equipment, and office and operational facilities under non-cancelable operating lease agreements used in the ordinary course of business. Certain lease agreements for the Company's facilities generally contain renewal options and provide for annual increases in rent based on the local Consumer Price Index. Refer to Note 7, Leasing, on our Annual Report on Form 10-K for the year ended December 31, 2020 a schedule of the Company's future minimum operating lease payments. Legal Proceedings. The Company is involved, and will continue to be involved, in legal proceedings arising out of the conduct of our business, including commercial and employment-related lawsuits. Some of these lawsuits purport or may be determined to be class actions and seek substantial damages, and some may remain unresolved for several years. The Company establishes accruals for specific legal proceedings when it is considered probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company's evaluation of whether a loss is reasonably probable is based on our assessment and consultation with legal counsel regarding the ultimate outcome of the matter. As of March 31, 2021, the Company has accrued for the potential impact of loss contingencies that are probable and reasonably estimable. The Company does not currently believe that the ultimate resolution of any of these matters will have a material adverse effect on its results of operations, financial condition, or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on the Company's results of operations, financial condition, or cash flows.

Stock-Based Compensation

Stock-Based Compensation3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based CompensationStock-Based Compensation The Company's 2014 Stock Incentive Plan provides for the grant of incentive and non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonuses and other forms of awards granted or denominated in the Company's common stock or units of the Company's common stock, as well as cash bonus awards, to employees, directors and consultants of the Company. On April 26, 2018, the Company's shareholders approved an amendment to the Company's 2014 Stock Incentive Plan to increase the aggregate number of shares authorized for issuance under such plan by 3.5 million shares. As of March 31, 2021, 1.0 million shares remained available for issuance under the 2014 Stock Incentive Plan. On April 29, 2021, the Company's shareholders approved the Company's 2021 Incentive Plan, replacing the 2014 Stock Incentive Plan, as amended, which is the only equity incentive plan under which the Company can currently grant equity incentive awards. The 2021 Incentive Plan increases the aggregate number of equity incentive shares authorized for issuance by 3.5 million shares. Stock options granted under the Company's stock plan generally expire no later than ten years from the date of grant. Options generally vest and become fully exercisable over a period of three market value of the Company’s common stock on the date of grant. The Company allows for cashless exercises of vested outstanding options. During the three months ended March 31, 2021, the Company granted options to acquire a total of 0.6 million shares of the Company's common stock to certain key employees with an exercise price equal to the fair market value of the Company’s common stock on the date of grant. During the three months ended March 31, 2021, the Company did not grant any shares of restricted stock awards. Stock-based compensation expense was $0.3 million for the three months ended March 31, 2021, compared to stock-based compensation expense of $0.5 million for the three months ended March 31, 2020. As of March 31, 2021, total unrecognized compensation cost related to unvested stock-based payments totaled $1.5 million and is expected to be recognized over a weighted-average period of approximately 2.0 years.

Fair Value Measurements

Fair Value Measurements3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value MeasurementsFair Value Measurements In accordance with ASC 820, Fair Value Measurement , the Company has categorized its assets and liabilities that are measured at fair value into a three-level fair value hierarchy. If the inputs used to measure fair value fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. The three levels of the hierarchy are defined as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. As of March 31, 2021, the Company's assets and liabilities that are measured at fair value were not material. Fair Values of Financial Instruments. The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments for disclosure purposes: Cash equivalents: Cash equivalents are time deposits with maturity of three months or less when purchased, which are highly liquid and readily convertible to cash. Cash equivalents reported in the Company’s interim Condensed Consolidated Balance Sheet were $13.5 million as of March 31, 2021 and $13.2 million as of December 31, 2020 and are carried at cost and approximate fair value due to the relatively short period to maturity of these instruments. Short and long-term debt: The carrying amount of the Company’s finance leases reported in the interim Condensed Consolidated Balance Sheets approximates fair value based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements. The carrying amount reported in the Company’s interim Condensed Consolidated Balance Sheet as of March 31, 2021 for borrowings under its 2014 Credit Agreement is $50.0 million. The Company has determined, utilizing observable market quotes, that the fair value of borrowings under its 2014 Credit Agreement is $50.0 million as of March 31, 2021.

Subsequent Events

Subsequent Events3 Months Ended
Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent EventsSubsequent Events On April 22, 2021, the Company entered into a Credit Agreement with U.S. Bank National Association, as administrative agent and the lender party thereto (the "2021 Credit Agreement"). The 2021 Credit Agreement provides for the extension of revolving loans in an aggregate principal amount not to exceed $70 million and replaces the 2014 Credit Agreement dated as of November 20, 2014, as amended. The 2021 Credit Agreement features terms similar to the 2014 Credit Agreement, including the ability to use excess cash of up to $15 million per year for restricted payments such as share repurchases and dividends. The obligation under the 2021 Credit Agreement matures on April 22, 2026. Loans borrowed under the 2021 Credit Agreement bear interest, in the case of LIBOR loans, at a per annum rate equal to the applicable LIBOR (which rate shall not be less than zero), plus a margin ranging from 1.25% to 1.75%, based on the Company’s Total Leverage Ratio (as defined in the 2021 Credit Agreement). Loans borrowed under the 2021 Credit Agreement that are not LIBOR loans bear interest at a per annum rate (which rate shall not be less than zero) equal to (i) the greatest of (A) the Federal Funds Rate plus 0.50%, (B) the one month LIBOR plus 1.00% per annum, and (C) the rate of interest announced, from time to time, by U.S. Bank National Association as its “prime rate,” plus (ii) a margin ranging from 0.25% to 0.75%, based on the Company’s Total Leverage Ratio.

Description of Business and B_2

Description of Business and Basis of Presentation (Policies)3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
Basis of PresentationBasis of Presentation The accompanying interim Condensed Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in conformity with the requirements of the U.S. Securities and Exchange Commission ("SEC"). As permitted under those rules, certain footnotes or other financial information required by GAAP for complete financial statements have been condensed or omitted. In management’s opinion, the accompanying interim Condensed Consolidated Financial Statements reflect all adjustments of a normal and recurring nature that are necessary to fairly present the interim Condensed Consolidated Financial Statements. All intercompany accounts and transactions have been eliminated in consolidation. The operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the interim Condensed Consolidated Financial Statements and accompanying notes. The Company evaluates its estimates and assumptions on an ongoing basis and relies on historical experience and various other factors that it believes to be reasonable under the circumstances to determine such estimates. Actual results could differ from those estimates and such differences may be material to the interim Condensed Consolidated Financial Statements. These interim Condensed Consolidated Financial Statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
Revenue RecognitionRevenue RecognitionRevenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. CDIM consists of professional services and software services to (i) reproduce and distribute large-format and small-format documents in either black and white or color (“Ordered Prints”) and (ii) specialized graphic color printing. Substantially all of the Company’s revenue from CDIM comes from professional services to reproduce Ordered Prints. Sales of Ordered Prints are initiated through a customer order or quote and are governed by established terms and conditions agreed upon at the onset of the customer relationship. Revenue is recognized when the performance obligation under the terms of a contract with a customer are satisfied, which generally occurs with the transfer of control of the Ordered Prints. Transfer of control occurs at a specific point in time, when the Ordered Prints are delivered to the customer’s site or handed to the customer for walk-in orders. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Taxes collected concurrent with revenue-producing activities are excluded from revenue. MPS consists of placement, management, and optimization of print and imaging equipment in customers' offices, job sites, and other facilities. MPS relieves the Company’s customers of the burden of purchasing print equipment and related supplies and maintaining print devices and print networks, and it shifts their costs to a “per-use” basis. MPS is supported by our hosted proprietary technology, Abacus ® , which allows our customers to capture, control, manage, print, and account for their documents. Under its MPS contracts, the Company is paid a fixed rate per unit for each print produced (per-use), often referred to as a “click charge”. MPS sales are driven by the ongoing print needs of the Company’s customers at their facilities. Upon the issuance of Accounting Standards Codification ("ASC") 842, Leases, the Company concluded that certain of its MPS arrangements, which had previously been accounted for as service revenue under ASC 606, Revenue from Contracts with Customers, are accounted for as operating leases under ASC 842. AIM combines software and professional services to facilitate the capture, management, access and retrieval of documents and information that have been produced in the past. AIM includes our hosted SKYSITE ® software to organize, search and retrieve documents, as well as the provision of services that include the capture and conversion of hardcopy and electronic documents into digital files (“Scanned Documents”), and their cloud-based storage and maintenance. Sales of AIM professional services, which represents the majority of AIM revenue, are initiated through a customer order or proposal and are governed by established terms and conditions agreed upon at the onset of the customer relationship. Revenue is recognized when the performance obligation under the terms of a contract with a customer are satisfied, which generally occurs with the transfer of control of the digital files. Transfer of control occurs at a specific point in time, when the Scanned Documents are delivered to the customer either through SKYSITE or on electronic media. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Taxes collected concurrent with revenue-producing activities are excluded from revenue. Equipment and Supplies sales consist of reselling printing, imaging, and related equipment (“Goods”) to customers primarily in architectural, engineering and construction firms. Sales of equipment and supplies are initiated through a customer order and are governed by established terms and conditions agreed upon at the onset of the customer relationship. Revenue is recognized when the performance obligations under the terms of a contract with a customer are satisfied, which occurs with the transfer of control of the Goods. Transfer of control occurs at a specific point in time, when the Goods are delivered to the customer’s site. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Taxes collected concurrent with revenue-producing activities are excluded from revenue. The Company has experienced minimal customer returns or refunds and does not offer a warranty on equipment that it is reselling.
Recent Accounting Pronouncements Not Yet AdoptedRecent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Loss (Topic 326) (“ASU 2016-13”), which updates the guidance on recognition and measurement of credit losses for financial assets. The new requirements, known as the current expected credit loss model ("CECL") will require entities to adopt an impairment model based on expected losses rather than incurred losses. ASU 2016-13 must be adopted on a modified-retrospective approach. This update was effective for fiscal years beginning after December 15, 2020 including interim periods within those fiscal years. In October 2019, the FASB approved an extension for all non-SEC filers, including small reporting companies, to extend the effective date to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Therefore, the effective date for this update will be January 1, 2023. The Company is currently evaluating the potential impact of the adoption of the new standard on its consolidated statements of financial condition and results of operations.
Segment ReportingSegment Reporting The provisions of ASC 280, Segment Reporting , require public companies to report financial and descriptive information about their reportable operating segments. The Company identifies operating segments based on the various business activities that earn revenue and incur expense and whose operating results are reviewed by the Company's Chief Executive Officer, who is the Company's chief operating decision maker. Because its operating segments have similar products and services, classes of
Risk and UncertaintiesRisk and Uncertainties The Company generates the majority of its revenue from sales of services and products to customers in the architectural, engineering, construction and building owner/operator ("AEC/O") industry. As a result, the Company’s operating results and financial condition can be significantly affected by economic factors that influence the AEC/O industry, such as non-residential construction spending, GDP growth, interest rates, unemployment rates, and office vacancy rates, all of which have been amplified due to the COVID-19 pandemic. Reduced activity (relative to historic levels) in the AEC/O industry would diminish demand for some of ARC’s services and products, and it would therefore negatively affect revenues and have a material adverse effect on ARC's business, operating results and financial condition. As part of the Company’s growth strategy, ARC intends to continue to offer and grow a variety of service offerings, some of which are relatively new to the Company. The success of the Company’s efforts will be affected by its ability to acquire new customers for the Company’s new service offerings, as well as to sell the new service offerings to existing customers. The Company’s inability to successfully market and execute these relatively new service offerings could significantly affect its business and reduce its long-term revenue, resulting in an adverse effect on its results of operations and financial condition.
Earnings Per ShareThe Company accounts for earnings per share in accordance with ASC 260, Earnings Per Share.
GoodwillGoodwill In accordance with ASC 350, Intangibles - Goodwill and Other , the Company assesses goodwill for impairment annually as of September 30, and more frequently if events and circumstances indicate that goodwill might be impaired. At September 30, 2020, the Company performed its assessment and determined that goodwill was not impaired. Goodwill impairment testing is performed at the reporting unit level. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or internally generated, are available to support the value of the goodwill. In 2017, the Company elected to early-adopt ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies subsequent goodwill measurement by eliminating step two from the goodwill impairment test. Given the uncertainty regarding the ultimate financial impact of the COVID-19 pandemic and the ensuing economic recovery, there can be no assurance that the estimates and assumptions made for purposes of the Company’s goodwill impairment analysis in 2020 will prove to be accurate predictions of the future. If the Company’s assumptions, including forecasted EBITDA of certain reporting units, are not achieved, or its assumptions regarding disruptions caused by the pandemic, and its impact on the recovery from COVID-19 change, then the Company may be required to record goodwill impairment charges in future periods, whether in connection with the next annual impairment testing in the third quarter of 2021, or on an interim basis, if any such change constitutes a triggering event (as defined under ASC 350, Intangibles-Goodwill and Other
Long-Lived AssetsLong-lived and Other Intangible Assets The Company periodically assesses potential impairments of its long-lived assets in accordance with the provisions of ASC 360, Accounting for the Impairment or Disposal of Long-lived Assets . An impairment review is performed whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. The Company groups its assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of the other assets and liabilities. The Company has determined that the lowest level for which identifiable cash flows are available is the regional level, which is the operating segment level.
Other Intangible AssetsOther intangible assets that have finite lives are amortized over their useful lives. Customer relationships are amortized using the accelerated method, based on customer attrition rates, over their estimated useful lives of 13 (weighted average) years.
Fair Value MeasurementsFair Value Measurements In accordance with ASC 820, Fair Value Measurement , the Company has categorized its assets and liabilities that are measured at fair value into a three-level fair value hierarchy. If the inputs used to measure fair value fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. The three levels of the hierarchy are defined as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Description of Business and B_3

Description of Business and Basis of Presentation (Tables)3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
Net Sales of Principal Services and ProductsNet sales of the Company’s principal services and products were as follows: Three Months Ended 2021 2020 CDIM $ 37,434 $ 49,160 MPS (1) 17,334 27,308 AIM 3,025 3,600 Equipment and supplies sales 3,937 8,357 Net sales $ 61,730 $ 88,425 (1) MPS includes $15.8 million of rental income and $1.5 million of service income for the three months ended March 31, 2021. MPS includes $25.4 million of rental income and $1.9 million of service income for the three months ended March 31, 2020.

Earnings per Share (Tables)

Earnings per Share (Tables)3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]
Basic and Diluted Earnings Per ShareBasic and diluted weighted average common shares outstanding were calculated as follows for the three months ended March 31, 2021 and 2020: Three Months Ended 2021 2020 Weighted average common shares outstanding during the period—basic 42,264 43,676 Effect of dilutive stock awards 370 135 Weighted average common shares outstanding during the period—diluted 42,634 43,811

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)3 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets Resulting from Business AcquisitionsThe following table sets forth the Company’s other intangible assets resulting from business acquisitions as of March 31, 2021 and December 31, 2020 which continue to be amortized: March 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Amortizable other intangible assets Customer relationships $ 99,471 $ 99,302 $ 169 $ 99,425 $ 99,191 $ 234 Trade names and trademarks 20,323 20,051 272 20,325 20,044 281 $ 119,794 $ 119,353 $ 441 $ 119,750 $ 119,235 $ 515
Estimated Future Amortization Expense of Amortizable Intangible AssetsEstimated future amortization expense of other intangible assets for the remainder of the 2021 fiscal year, and each of the subsequent four fiscal years and thereafter, are as follows: 2021 (excluding the three months ended March 31, 2021) $ 116 2022 103 2023 44 2024 42 2025 38 Thereafter 98 $ 441

Long-Term Debt (Tables)

Long-Term Debt (Tables)3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
Long-Term DebtLong-term debt consists of the following: March 31, 2021 December 31, 2020 Revolving Loans; 2.0% and 2.2% interest rate at March 31, 2021 and December 31, 2020 $ 50,000 $ 55,000 Various finance leases; weighted average interest rate of 5.0% and 4.9% at March 31, 2021 and December 31, 2020; principal and interest payable monthly through December 2026 38,380 42,236 88,380 97,236 Less current portion (16,600) (17,557) $ 71,780 $ 79,679

Description of Business and B_4

Description of Business and Basis of Presentation (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Segment Reporting Information [Line Items]
Net sales $ 61,730 $ 88,425
CDIM
Segment Reporting Information [Line Items]
Net sales37,434 49,160
MPS
Segment Reporting Information [Line Items]
Net sales17,334 27,308
Rental income15,800 25,400
Service income1,500 1,900
AIM
Segment Reporting Information [Line Items]
Net sales3,025 3,600
Equipment and supplies sales
Segment Reporting Information [Line Items]
Net sales $ 3,937 $ 8,357

Earnings per Share - Additional

Earnings per Share - Additional Information (Details) - shares shares in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Earnings Per Share [Abstract]
Common stock options excluded for anti-dilutive (in shares)5.1 5.3

Earnings per Share - Basic and

Earnings per Share - Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Earnings Per Share [Abstract]
Weighted average common shares outstanding during the period—basic (in shares)42,264 43,676
Effect of dilutive stock awards (in shares)370 135
Weighted average common shares outstanding during the period—diluted (in shares)42,634 43,811

Goodwill and Other Intangible_2

Goodwill and Other Intangibles - Additional Information (Details) - USD ($)3 Months Ended9 Months Ended
Mar. 31, 2021Sep. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Goodwill impairment $ 0
Change of goodwill during period $ 0
Impairment of long lived assets $ 0
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated period for amortization (in years)13 years

Goodwill and Other Intangible_3

Goodwill and Other Intangibles - Schedule of Other Intangible Assets (Details) - USD ($)9 Months Ended
Sep. 30, 2020Mar. 31, 2021Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount $ 119,794,000 $ 119,750,000
Accumulated Amortization119,353,000 119,235,000
Net Carrying Amount441,000 515,000
Impairment of long lived assets $ 0
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount99,471,000 99,425,000
Accumulated Amortization99,302,000 99,191,000
Net Carrying Amount169,000 234,000
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount20,323,000 20,325,000
Accumulated Amortization20,051,000 20,044,000
Net Carrying Amount $ 272,000 $ 281,000

Goodwill and Other Intangible_4

Goodwill and Other Intangibles - Estimated Future Amortization Expense of Amortizable Intangible Assets (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2021 (excluding the three months ended March 31, 2021) $ 116
2022103
202344
202442
202538
Thereafter98
Net Carrying Amount $ 441 $ 515

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income tax provision $ 496 $ 1,107
Pretax income $ 1,108 $ 1,569
Effective income tax rate reconciliation, percent44.80%70.60%
Deferred tax assets, net of valuation allowance, current $ 2,100

Long-Term Debt - Summary of Lon

Long-Term Debt - Summary of Long Term Debt (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Debt Instrument [Line Items]
Various finance leases; weighted average interest rate of 5.0% and 4.9% at March 31, 2021 and December 31, 2020; principal and interest payable monthly through December 2026 $ 38,380 $ 42,236
Long-term debt and finance leases, including current maturities88,380 97,236
Current portion of long-term debt and capital leases(16,600)(17,557)
Long-term debt and finance leases $ 71,780 $ 79,679
Weighted average discount rate, finance leases5.00%4.90%
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Revolving Loans; 2.0% and 2.2% interest rate at March 31, 2021 and December 31, 2020 $ 50,000 $ 55,000
Interest rate, effective percentage2.00%2.20%

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($)Dec. 17, 2019Feb. 28, 2021Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020Nov. 30, 2018
Debt Instrument [Line Items]
Quarterly cash dividends declared (in usd per share) $ 0.02 $ 0.02 $ 0.01
Cash dividends payable $ 847,000
Line of Credit
Debt Instrument [Line Items]
Covenant term, total leverage ratio2.75
Fixed charged coverage ratio1.15
Line of Credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate1.00%
Line of Credit | Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate0.50%
Line of Credit | Term Loan
Debt Instrument [Line Items]
Repayments of debt $ 49,500,000
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity80,000,000 $ 65,000,000
Line of credit available borrowing capacity $ 27,800,000
Long-term debt outstanding50,000,000 $ 55,000,000
Debt covenant terms, fixed charge coverage ratio, maximum annual payments15,000,000
Debt covenant terms, fixed charge coverage ratio, payments excluded $ 10,000,000
Revolving Credit Facility | Letter of Credit
Debt Instrument [Line Items]
Long-term debt outstanding $ 2,200,000
Minimum | Line of Credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate1.25%
Minimum | Line of Credit | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate0.25%
Maximum | Line of Credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate1.75%
Maximum | Line of Credit | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate0.75%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in MillionsApr. 29, 2021Apr. 26, 2018Mar. 31, 2021Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized (in shares)3,500,000
Shares available for issuance (in shares)1,000,000
Stock option expiration period (in years)10 years
Exercise price of options, percentage of fair market value of Company's common stock100.00%
Share-based compensation expense $ 0.3 $ 0.5
Total unrecognized compensation cost related to unvested stock-based payments $ 1.5
Expected weighted-average period to recognize compensation cost (in years)2 years
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized (in shares)3,500,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)0
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)4 years
Key Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)600,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Debt Instrument [Line Items]
Cash and cash equivalents $ 13.5 $ 13.2
Term Loan | Line of Credit
Debt Instrument [Line Items]
Long-term debt50
Fair value of borrowings $ 50

Subsequent Events (Details)

Subsequent Events (Details) - Line of Credit - USD ($)Apr. 22, 2021Mar. 31, 2021
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate1.00%
Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate0.50%
Subsequent Event | 2021 Credit Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity $ 70,000,000
Cash advances limit with restricted use $ 15,000,000
Subsequent Event | London Interbank Offered Rate (LIBOR) | 2021 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate1.00%
Subsequent Event | Federal Funds Effective Swap Rate | 2021 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate0.50%
Minimum | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate1.25%
Minimum | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate0.25%
Minimum | Subsequent Event | London Interbank Offered Rate (LIBOR) | 2021 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate1.25%
Minimum | Subsequent Event | Prime Rate | 2021 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate0.25%
Maximum | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate1.75%
Maximum | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate0.75%
Maximum | Subsequent Event | London Interbank Offered Rate (LIBOR) | 2021 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate1.75%
Maximum | Subsequent Event | Prime Rate | 2021 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate0.75%