ARC Group reports record fiscal year 2014 results

October 18, 2014

ARC Group Worldwide, Inc., a leading global provider of advanced manufacturing solutions including Metal Injection Molding and Additive Manufacturing, has announced its fiscal year 2014 (June 30, 2014) results and preliminary fiscal first quarter 2015 (September 28, 2014) revenue results.

Overall fiscal year 2014 results represent a record year of performance for ARC. Sales for the year were $82.9 million, reflecting 21.0% growth over fiscal year 2013. The company states that the strength in its sales largely reflects the robust demand across the high growth markets served, including the medical/dental, aerospace, automotive and firearm/defence industries. Gross profit was $24.2 million, an increase of 32.2% over the prior year period.

Adjusted EBITDA was $13.7 million for the year, an increase of 42.7% over the prior year period. Adjusted EBITDA margins improved to 16.5% from 14.0%, year over year. Adjusted Earnings were $5.5 million, an increase of 27.9%, and adjusted EPS was $0.38 per share, an increase of 22.6%.


Fiscal year Q4 operating results

Fiscal year fourth quarter 2014 revenue was $23.7 million, an increase of 21.5% compared to the prior year period. The increase, stated ARC, was largely the product of acquisitions completed during the period. The modest organic sales growth reflects a recent slowdown in the firearm/defence industry and the sales cycle inherent in the overall business. Given the nature of the production cycle, the company regularly experiences ‘non-linear’ quarterly orders. Gross profit for the period was $5.8 million, an increase of 3.6% compared to the prior year period. Adjusted EBITDA was $2.2 million, a decline of 38.9% over the prior year period.


Q1 2015 preview

Based on preliminary results for the first quarter ended September 28, 2014, ARC expects record sales of approximately $28 million, an increase of over 50% compared to the first fiscal quarter of 2014. The increase in sales is again attributed to ARC’s recent acquisitions.

Jason Young, Chairman and CEO, commented, “We are pleased to report strong annual results. We believe our holistic strategy of combining additive and subtractive manufacturing, along with the implementation of technology in traditional manufacturing, will continue to position ARC as an ideal supplier to our customer base, while helping clients accelerate their speed-to-market.”

Young further added, “On the heels of three record quarters, we are not surprised by the more modest organic sales results of the fourth quarter. Also, as we experienced with the Advance Forming Technologies (AFT) acquisition, the first several quarters post acquisition tend to lag as we incur upfront costs and the combined companies implement procedures and processes geared towards long-term improvement. Now two years since the AFT acquisition, we have more than doubled EBITDA at those facilities.”

Young continued, “ARC’s fiscal 2012 total annual revenue was approximately $30 million. Two years later, we are approaching that level of revenue in only three months based on our preliminary 2015 fiscal first quarter results. As such, we remain convinced in our market opportunity, business model, and strategy.”


In the latest issue of PIM International…

Download PDF

Extensive MIM, CIM industry and sinter-based AM industry news, plus the following exclusive deep-dive articles and reports:

  • Calling all product designers: Discover what Metal Injection Moulding could do for you through these award-winning parts
  • Binder Jetting of a dual-phase steel: Process insight and optimisation using the Master Sintering Curve
  • The rise of filament-based metal AM: New materials and machines present opportunities for MIM producers
  • Sinter-based Additive Manufacturing at the 20th Plansee Seminar on Refractory Metals and Hard Materials
  • Ceramitec 2022: Opportunities abound for producers of technical ceramics by CIM and AM

The latest news from the MIM, CIM and sinter-based AM industries

Don't miss any new issue of PIM International, and stay up to date with the latest industry news. Sign up to our fortnightly newsletter.

Sign up

News from the industry…

    Discover our magazine archive…

    The free-to-access PIM International magazine archive offers unparalleled insight into the world of MIM, CIM and sinter-based AM from a commercial and technological perspective through:

    • Reports on visits to leading part manufacturers and industry suppliers
    • Articles on technology and application trends
    • Information on materials developments
    • Reviews of key technical presentations from the international conference circuit
    • International industry news

    All past issues are available to download as free PDFs or view in your browser.


    Browse the archive


    Looking for suppliers of materials, production equipment and finished MIM, CIM or sinter-based AM parts?

    Discover suppliers of these and more in our advertisers’ index and buyer’s guide, available in the back of PIM International.

    • Metal powders
    • MIM, CIM & AM parts producers
    • Binders & feedstocks
    • Feedstock mixers
    • Furnaces & furnace supplies
    • Atmospheres & gas generation
    • HIP systems & services
    • Injection moulding machines
    • AM technology
    • Debinding systems
    Download PDF
    Share via
    Copy link
    Powered by Social Snap