ARC Group Worldwide Inc., DeLand, Florida, USA, has reported net revenue of $18.4 million its first quarter fiscal 2014 results for the period ending September 29, 2013. Record adjusted EBITDA of $3.4 million, and net income of $1.3 million, were also announced. ARC also reported record adjusted earnings per share (Adjusted EPS) of $0.34 for the first quarter fiscal 2014. The first quarter results, it was stated, were driven by improved performance in its manufacturing operations and higher sales revenue resulting from the reverse acquisition between ARC and Quadrant Metals Technologies (QMT), and the acquisition of Advanced Forming Technology, Inc. (AFT) and AFT-Hungary Kft., (AFT-HU).
Jason Young, Chairman and CEO, stated, “I am pleased to report outstanding quarterly results that reflect continued growth in revenue, cash flow, and earnings per share. As the leader in Metal Injection Moulding and other niche manufacturing businesses, we continue to focus on building our market position in these areas, both organically and through acquisitions.” He further added, “We are also focused on bringing technology and innovation to manufacturing. We have made good progress utilising 3D printing and view it to be a key area of future growth for ARC in production and prototypes.”
The company’s first quarter results stated that net revenue for the first quarter of the fiscal year 2014 increased 38.1% to $18.4 million, compared to $13.3 million in the prior year period. The QMT and AFT Acquisitions, which closed during the fiscal year 2013 period, contributed $2.9 million in additional sales. Excluding the impact from the aforementioned acquisition, sales growth still increased $2.2 million, or 16.3% compared to the prior year period. This increase is primarily the result of robust growth in our MIM businesses, the company stated.
ARC stated that it is committed to continuing to grow its MIM business as well as strengthen its market position in its core manufacturing businesses in glass-to-metal seals, flanges, fittings and wireless equipment. The company focuses on utilising technology and innovation, such as automation, robotics and 3D printing in order to help achieve its goals. ARC stated that it is also seeking out vertical and horizontal acquisitions in order to bolster its market position. In addition to making acquisitions that are strategic to ARC’s core business, the company evaluates new manufacturing niches that fit into its broader objectives.
In October ARC Group announced the appointment of Drew M Kelley as the new Chief Financial Officer, replacing Norma Caceres. The company stated that Caceres will continue in a leadership capacity in the finance and accounting department of the QMT Metal Injection Moulding businesses.
Commenting on the changes, Young stated, “We thank Ms Caceres for her service as CFO of ARC as we transitioned the business.” He further added, “We are very pleased to welcome Mr Kelley to ARC. Mr Kelley has an excellent corporate finance and capital markets background, having worked in leadership roles at several major Wall Street investment banks. His background will be instrumental as we utilise acquisitions and capital markets to fuel part of our future growth. We feel fortunate to have Drew join us at this stage and look forward to his role in helping us build ARC.”
ARC group stated that Kelley brings a wealth of experience in equity and debt placements as well as mergers and acquisitions. Kelley was most recently a Senior Vice President at Jefferies LLC, a major Wall Street investment bank.
The ARC Group also recently launched its new website, www.arcgroupworldwide.com. Commenting on the new website, Young stated, “We are excited to launch our new website, which clearly and simply lays out ARC’s capabilities, strategy and culture. We hope our new website is a helpful resource for our shareholders, customers, employees, and current and future partners.”