American Reprographics Company (ARC) JPMorgan Ultimate Services Conference November 9, 2011 2:45 p.m. ET Executives Suri Suriyakumar - Chairman, President & Chief Executive Officer Dilo Wijesuriya - Chief Operating Officer John Toth - Chief Financial Officer Analysts Molly McGarrett - JPMorgan Presentation Molly McGarrett - JPMorgan
So what we do. So fundamentally what we do is document management, what used to be known as reprographics. So if you go back 30 years or 35 years, people would have referred to us as blueprinters. And then in the last 10-15 years we were known as reprographers doing document management for the AEC industry. We still do the same thing though. We are just becoming more and more document control and document management. So what it means is this access to documents. Organization of documents, collaboration of documents and archival of documents. So that’s in a way, in the modern terminology, that’s where it’s going it’s becoming more digital.So these are all indications as to how the industry is starting to kind of evolve. And of course documents logistics is a big part both digitally and also physical delivery is a key element. And print on demand, which means we will print onsite, offsite, large format, small format, black and white, color, managed print services, the whole range. On top of that we also have technology development and integration for the document solutions required for our AEC customers. So we do have a planned room. We distribute documents, manage documents. We use bidding tools. So there is a variety of technology tools to enable our customers to accomplish their goals faster and efficiently. So as our customers evolve, like I said, the construction industry especially with this downturn is starting to use more digital technologies and starting to evolve. We are also becoming more and more content manager of the information and be able to provide that content to them. When they want them, where they want them, in whatever form they want them. Whether they need it in CDs, DVDs, printed copies or just digital files. We are able to provide the entire range of services there.
ARC provides a very critical role in construction and communication. For anyone of you who has not heard this before, I have constantly said this to my existing investors. So I always put in a small story. For example, to understand what we do in the industry, if an architect wants to give instructions let’s say to a construction company about doing a window in this building. You know he doesn’t send them an email saying that, hey, I want a window. You know 8X4 in this wall. He doesn’t send them an email or leave a voice mail.He actually issues a drawing and the drawing will say what kind of window, what should the frame be. Should it would be wood, steel, aluminum? What should be the glass; what should be the tensile strength in the glass; how should it be secured; what should be the hinges. Should it be aluminum, steel. All the details he will put in a drawing and then he will communicate that to the contractor. So think about it like this. In the construction industry we have over 220 different trades. And how I explain that is the same guy who comes to install your carpets doesn’t do your plumbing, right, in your house. The guy who does the plumbing won't do cabinetry. The cabinet guy won't do steel. Steel guy won't do the roofing. Roofing guys won't do plumbing. I mean it goes on and on and on. 200 different trades. So if you think about a new building when an architect is giving instructions, he has to give instructions or he has to issue drawings to all 200 trades. And that’s the only way they communicate. Because the architect doesn’t walk around saying, I want a five-foot wall here and I want it to be eight-feet wide. He won't say that. He will actually issue a drawing. Read the rest of this transcript for free on seekingalpha.com