Arc Document Solutions (ARC) 8-K Results of Operations and Financial Condition

Exhibit 99.1

FINAL TRANSCRIPT            ARP — Q4 2004 American Reprographics Company Earnings Conference Call            Event Date/Time: Mar. 03. 2005 / 5:00PM ETstreetevents@thomson.com 617.603.7900 www.streetevents.com © 2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without theprior written consent of Thomson Financial.

FINAL TRANSCRIPT            ARP — Q4 2004 American Reprographics Company Earnings Conference Call            C O R P O R A T E P A R T I C I P A N T S            David StickneyAmerican Reprographics Company - - IRMohan ChandramohanAmerican Reprographics Company — CEOSuri SuriyakumarAmerican Reprographics Company — Pres., COOMark LeggAmerican Reprographics Company — CFOC O N F E R E N C E C A L L P A R T I C I P A N T S            Jonathan ShapiroGoldman, Sachs — AnalystEric SledgisterCSFB - AnalystMichael SchneiderRobert W. Baird — AnalystThatcher ThompsonCIBC World Markets - AnalystGeorge SteinM.A. Weatherby — AnalystRicky SalenEminence Capital — AnalystBradley SafaloJ.P. Morgan — AnalystP R E S E N T A T I O N            OperatorGood day ladies and gentlemen and welcome to the AmericanReprographics Company’s fourth quarter 2004 earningsconference call. My name is Stephen and I will be yourcoordinator for today. At this time, all participants are inlisten-only mode. We will facilitate a question and answersession toward the end of this conference. (OPERATORINSTRUCTIONS) As a reminder, this conference is beingrecorded for replay purposes. I would now like to turn thepresentation over to Mr. David Stickney, Director of CorporateCommunications.David Stickney- American Reprographics Company — IRThank you, operator, and good afternoon everyone. I’m joinedtoday by Mohan Chandramohan, CEO; Suri Suriyakumar,President and COO and Mark Legg, CFO. We’re very happythat our post-IPO quiet period ended in time to make ameaningful statement of our performance to the financialcommunity.Earlier this afternoon, the Company issued a release reportingfinancial results for the fourth quarter of 2004 endedDecember 31, 2004. This release can be accessed from theinvestor relations section of ARC’s web site at www.e-arc.com.Before we begin, here are a few items for everyone’s reference.First, we have arranged for a taped replay of this call whichmay be accessed by phone. It will be available approximately1 hour after the call’s conclusion today and will be accessiblefor 7 days. The dial-in access number for this replay is617-801-6888. The passcode is 52818160.Secondly, this call is also being webcast live with a Web replayalso available. Both the call and the webcast can be accessedagain from the investor relations section of ARC’s web site ate-arc.com. Finally, our investor relations firm is FinancialDynamics and their contact information is on our pressreleases. Please feel free to contact them directly for generalinformation about the Company.Before we begin, I would like to make a brief statementregarding forward-looking remarks. This call containsforward-looking statements within the Safe Harbor provisionsof the Private Litigation Reform Act of 1995 regarding futureevents and the future financial performance of the Company,including 2005 financial guidance. We wish to caution youthat such statements are only predictions and actual resultsmay differ materially as a result of risks and uncertainties thatpertain to our business. These risks are highlighted under therisk factor section of our final prospectus dated February 3,2005. The forward-looking statements contained in this callare based on information as of March 3, 2005 and except asrequired by law, ARC undertakes no obligation to update orrevise any of these forward-looking statements. Now it is mypleasure to turn the call over to our CEO, MohanChandramohan.Mohan Chandramohan- American Reprographics Company- CEOThanks, David. Good afternoon everyone and thank you forjoining us today to discuss ARC’s results for 2004. We’redelighted and grateful for your interest and participation inour first earnings call as a public company. On February 3,2005, exactly one month ago, ARC successfully completed            streetevents@thomson.com 617.603.7900 www.streetevents.com1© 2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without theprior written consent of Thomson Financial.

FINAL TRANSCRIPT            ARP — Q4 2004 American Reprographics Company Earnings Conference Callan initial public offering of our common stock and listed it onthe New York Stock Exchange. We offer 13,350,000 shares ofcommon stock comprising 7.67 million of primary shares and5.68 million of secondary shares at a share price of $13. Theproceeds of the primary share issue have gone towardsimproving our capital structure which we believe will advanceARC’s competitive position going forward.We are very proud of this accomplishment and I would liketo thank all of those involved, including our customers andemployees, bankers, prospective investors with whom wemet and our new shareholders. This new offering has openeda new chapter in our life as a company. We are excited to startthis new chapter, partnered with our stakeholders who shareour company’s vision.We had a solid fourth quarter; reported sales for that periodof 107.6 million compared to 99.6 million in the fourth quarterof 2003. For the full year, sales increased to 443.3 millioncompared to 415.9 million in 2003.For the benefit of those who are on the call that are stillgetting up to speed on ARC, we would like to briefly discussour business by giving you an overview of our company, ouroperations and our growth strategies. We will then discussour 2004 financial results in greater detail. At the conclusionof our presentation, we would like to take some timeanswering your questions.ARC is the largest firm in the $5 billion reprographics industry.In terms of both of our revenues and footprint, we areapproximately 8 times larger than our nearest competitor.We serve the architectural, engineering and constructioncommunities, commonly known as the AEC industry. Since1997, we have also established a strong presence in othernon-AEC markets. Today, 65 percent of our total revenues arederived from the non-residential construction sector, while15 percent is derived from residential construction and theremaining 20 percent coming from other non-AECapplications. We serve over 65,000 customers from 177(indiscernible) connected reprographic service centers acrossthe country. Our 5 core services, the key growth areas are —digital document management and facilities management.These two areas are also extremely strategic to our long-termobjectives. This is because nothing happens in theconstruction industry without drawings. In providingdocument management services, we take control of ourcustomers’ drawings and in so doing, lock in all of thereprographics revenue from related construction projects.We have pursued a similar strategy with our non-AEC businessas well.As our industry is increasingly transitioned to web-basedtechnologies, we have taken the early lead and developedour own Web-based suite of technology solutions, called PlanWell (ph). With its 274 regional services located across thecountry which are connected to our technology center in theSilicon Valley, Plan Well today is the most widely usedWeb-based document management system in the industry.This rapidly growing database of content has ensured ourcontinued control of our customers’ drawings and throughit, the growth of our core services.Facilities management, our other fee service, is where we giveour customers in-house capabilities to print their check printsand drafts. Our facilities management contracts typically runbetween 3 to 5 years and invariably have an exclusivity clausewhich requires our customers to give us all of theirreprographics business. Today, we have over 1900 facilitiesmanagement contracts and this service has been growing ata compounded annual rate of 32 percent since 1997.As I mentioned earlier, ARC derives approximately two-thirdsof its revenues from the non-residential construction segment.Non-residential construction is projected to grow at acompounded annual rate of 5.8 percent over the next threeyears due to the confluence of three macroeconomic factors,namely sustained jobs growth, business investment growthand a favorable interest rate environment. Due to our strongpresence in the geographic regions of the country which aredriving this growth, we are well positioned to benefit fromthis upturn.In addition to this projected industry growth, we have in placecertain focused growth strategies to gain market share. Ourgrowth strategies will help us expand our footprint throughnew branch openings, acquisitions and facilities managementinstallations. We have many years of experience in these threeareas and over the years, we have perfected highly profitableeconomic models on which to execute these strategies. Ourgrowth strategies will also help us gain large nationalcustomers that are seeking one-stop reprographic solutions.On the cost front, we believe we are the lowest cost operatorin the industry due largely to four key attributes — the lowestvendor pricing in the industry due to our size, our largeoperating scale, tremendous operational efficienciesproduced by our proprietary technologies and a 17-year trackrecord of strong cross-management at all levels of our streetevents@thomson.com 617.603.7900 www.streetevents.com2© 2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without theprior written consent of Thomson Financial.

FINAL TRANSCRIPT            ARP — Q4 2004 American Reprographics Company Earnings Conference Callorganization give us a strong cost advantage over ourcompetitors.Finally, our management team is highly committed to ARCand its future. It is primarily made up of invested(indiscernible) who have joined us through our manyacquisitions over the past 17 years. Our managementprotection rate over this period is greater than 93 percent.This means our core team has been together and successfullyoperated together for many years. At this time, I would liketo call upon our President and COO Suri to give you a briefupdate on our growth strategies. Suri?Suri Suriyakumar- American Reprographics Company — Pres.,COOThank you, Mohan. Before I dive into our growth initiatives,I want to explain the terms reprographic, particularly for thosewho have not heard of it before. Reprographics (indiscernible)construction documentation (indiscernible). Documentsactually mean communication in construction. Nothinghappens in construction without documents. You cannotdesign, code, make, build, or for that matter, even do tenantimprovement without drawings. In construction, in a perfectmove from one fit to another, namely from design to bid tobuild will undergo significant amount of changes. Thousandsof documents are created and exchanged due to this process.Over 290 (indiscernible) tradespeople in spite of theconstruction industry have to come together to orchestratea difficult commercial building projects, literally truckloadsof paper gets printed and distributed.Repographers handle all of this documentation anddistribution services and actually have done this for 100 years.In the (indiscernible) reprographics, we have a Web basesophisticated and complex document management systemcalled Granville (ph). Granville accesses the simple(indiscernible) for our customers in order to manage anddistribute documents and the information when they wantand where they want. It is commonly known as a digitalGranville.Let me emphasize that construction is one of the largestindustries in the world, almost $1 trillion in size. Repographersmanage and distribute what is considered to be a criticalcomponent of the industry, which are the drawings. Ourobjective is to develop and establish (indiscernible) as thestandard in the industry and continue to build a database ofdrawings. By doing so, we will have the ability to manage anddistribute content which is critical for the trillion-dollarconstruction industry.Now to our (indiscernible) plans. Our new branch openings,combined with the existing market grows and acquisition, isexpected to yield 10 to 15 percent in potential annual growth.I’m excited to report that we’re on target to meet theseprojections. What I would like to specifically report are thetwo areas where we have made good progress. Firstly, withregards (indiscernible) in reprographics. This is the privateindustry association of (indiscernible) buyers. During our roadshow, we stated that we have signed 45 members since ourinception. We’re pleased to report that we have increasedour membership by over 25 percent to 58 members. This hasincreased our Plan Well technology installations from 257 to274 across the country.Secondly are (indiscernible) installations which actually areon-site facilities in our customers’ offices like Mohan stated.During our road show, we recorded a total of 1760installations. It has now increased to 1926, an additional 166locations. With that, I will hand it over to Mark Legg, our ChiefFinancial Officer. Mark?Mark Legg- American Reprographics Company - CFOThank you, Suri, and good afternoon everyone. I would liketo start our financial review today with our discussion of 2004results of operation. Revenue for the full-year was 443.9million compared to 115  million reported in 2003 for anincrease of 6.7 percent. This increase was driven by an increasein our FM business of $13 million, or 22 percent, coupled withan increase in our reprographic service business of 17.3million, or 5.5 percent.These increases were partially offset by a decrease in ourequipment and supplies business of $2.5 million. We expectour equipment business to continue to decline as we convertthis revenue base into FM revenue base at much better grossmargins. Margins, gross margins for the year, came in at 40.6percent, up from 39.4 percent in 2003. This increase was theresult of the margin expansion we enjoyed to organicallygrow our incremental revenue. Operating expensescomprised mostly of SG&A were 108.9 million in 2004compared to 103 million in 2003. As a percentage of revenue,operating expenses were 24.5 percent for 2004, which is downfrom 24.8 percent for the previous period. Included in 2004operating expenses is a non-recurring item totaling $1.4million related to a dispute with the sales tax authorities in            streetevents@thomson.com 617.603.7900 www.streetevents.com3© 2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without theprior written consent of Thomson Financial.

FINAL TRANSCRIPT            ARP — Q4 2004 American Reprographics Company Earnings Conference Callthe state of California. Without this onetime item, 2004operating expense would have been 107.5 million, or 24.2percent of revenue compared to 24.8 percent of revenue in2003.EBITDA of 90.9 million was achieved in 2004 compared to81.9 million in 2003 for an increase of 11 percent. EBITDAmargins in 2004 came in at 20.5 percent compared to 19.7percent in 2003. Once again, I want to emphasize that EBITDAin 2004 includes the 1.4 million of non-recurring items, andthat without that item, our 2004 EBITDA margin would havebeen 20.8 percent in ‘04 compared to 19.7 percent in ‘03.Operating income in 2004 was 71.2 million or 16 percent ofrevenue compared to 61 million or 14.7 percent of revenuein ‘03. As with EBITDA, operating income in ‘04 includes thenon-recurring 1.4 million tax dispute.Operating margins have increased over 2003 due to themargin expansion we enjoyed on organically derivedincremental revenue. This expansion is the result of our coststructure being approximately 60 percent fixed and the factthat we have additional capacity today on our productionfloor. The interest expense in 2004 came in at 33.6 millioncompared to 39.4 million in 2003. Because all of our net IPOproceeds for the sale of primary shares were used to pay downdebt, we anticipate that growth interest expense in futureperiods will be lowered by approximately $9 million per year.Net income for 2004 after adjusted for the pro formaincremental tax provision as if we had converted to aDelaware corporation at the beginning of the period was$20.4 million or 54 cents per share fully diluted compared tonet income of 1.1 million or 3 cents a share in 2003. Pleasenote that 2003 earnings included a charge of 14.9 millionincurred in connection with the earlier (indiscernible) of ourdebt. Had this chart not been incurred, 2003 net incomewould have been 10.4 million or 28 cents per share.Cash flow from operations in 2004 came in at $60.8 million.That compares to $48.2 million in 2003. This increase wasprimarily the result of two factors. First and foremost, ourEBITDA increased over 2003 by $9 million. Secondly, in 2003,we incurred a 5.9 million cash charge for the early retirementof our mezzanine debt. These cash gains were partially offsetby IPO-related cash expenses incurred in 2004.Moving to the balance sheet, our working capitalrequirements remain relatively minimal. At December 31,2004, working capital was 23.3 million, or approximately 5percent of our revenue. We closed the year with 13.8 millionin cash as compared to 17.3 million in cash in 2003. Netaccounts receivable increased from 56.7 million to 61.6 millionin 2004, while our days sales outstanding, or DSO, remainedconstant at approximately 51 days.Inventory at the end of 2004 was $6 million compared to 5.9million in the prior year and represents an inventory supplyon hand of approximately 32 days. Total debt at the end of2004 was 348.6 million, which is down from 385.1 million in2003 as we continue to use our free cash flow to pay downdebt. In fact, during 2004, we retired approximately $47million of debt from internally generated cash flow. As Mohanmentioned earlier, we completed our IPO last month and allof the net proceeds from the sale of our primary shares wasused to pay down debt. Specifically, we paid down 27 millionin preferred equity, 51 million in second lien (ph) senior debtand 10 million in first lien debt. Of course, debt paydown fromIPO proceeds in addition to the 47 million we paid down lastyear from cash flow. Again, as a result of the debt retirementfrom our IPO proceeds, gross annual interest saving s willexceed $9 million.For 2005, we believe that ARC will generate revenue ofapproximately 470 to 480 million. This outlook excludes anylarge and significant acquisitions that may take place duringthe year. Based on this revenue level, we expect ourearnings-per-share to be in the range from 79 cents to 81cents per share fully diluted.That concludes our financial discussion, and at this point, Iwould like to turn the call back to the operator for thequestion and answer session. Operator, could you come onthe line please.Q U E S T I O N S A N D A N S W E R S            Operator(Operator Instructions) Jonathan Shapiro, Goldman, Sachs.Jonathan Shapiro- Goldman, Sachs — AnalystGood afternoon, everyone. I wanted to see if you guys couldtalk a little bit about sort of trends in commercial construction.I guess on the margin, all the news that has come out in thelast month or so since the IPO has been on the margin positiveand things seem to be sort of picking up steam. I was streetevents@thomson.com 617.603.7900 www.streetevents.com4© 2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without theprior written consent of Thomson Financial.

FINAL TRANSCRIPT            ARP — Q4 2004 American Reprographics Company Earnings Conference Callwondering if you guys could comment on what you’re seeingin the market so far?Mohan Chandramohan- American Reprographics Company- CEOJonathan, thank you for your question. This is Mohan. We areseeing positive feedback from our customers. We constantlyperform intelligence on the ground, especially with ourcustomers taking on their project pipelines and theinformation and the feedback we’re getting is that thepipelines are growing and the outlook looks pretty good andquite in-line with the projections that we have stated.Jonathan Shapiro- Goldman, Sachs — AnalystSo you think the 5 to 7 percent growth, sort of market thatyou guys were talking about, pretty firm. And thenacquisitions, branch openings, all that would be on top ofthat?Mohan Chandramohan- American Reprographics Company- CEOThat is correct. The market expansion relative to the 5.8percent. Growth in (indiscernible) and construction, we feelgood about that.Jonathan Shapiro- Goldman, Sachs - AnalystDo you guys have on hand the fourth quarter revenues by —I guess it would be business segment, sort of facilitiesmanagement (indiscernible) services?Mohan Chandramohan- American Reprographics Company- CEOI will have Mark Legg, our CFO, address that.Mark Legg- American Reprographics Company — CFOThanks, Mohan. Jonathan, it’s good to hear from you.(indiscernible) you’re talking about the quarter or for the fullyear?Jonathan Shapiro- Goldman, Sachs — AnalystIf you happen to have the quarterly on hand, I’m sure wecould actually do the algebra, based on what you gave us. Ifyou have the quarterly stuff handy, that would be helpful.Mark Legg- American Reprographics Company — CFOI don’t have it right front of me. I will be happy send it to youoff-line, but I will give you the annual number.Jonathan Shapiro- Goldman, Sachs — AnalystSure. That would be great.Mark Legg- American Reprographics Company — CFOReprographic services came in at 333.3 million, facilitiesmanagement came in at 72.4 million, equipment and suppliescame in at 38.2 million.Jonathan Shapiro- Goldman, Sachs — AnalystTwo other quick questions. One is on hedging. You talkedabout interest expense coming down from proceeds in theIPO and sort of a run rate of what paid down in free cash flowlast year. To the extent interest rates are going up, can yousort of explain sort of your current debt position and howmuch of that is hedged and how much of that you have fullexposure as LIBOR goes up?Mohan Chandramohan- American Reprographics Company- CEOMark, could you answer that too?Mark Legg- American Reprographics Company — CFORoughly today, 60 percent of our bank debt is hedged withwhat I would characterize as a collar hedge, Jonathan. In otherwords, we have a collar, whereas LIBOR goes above 5 percent,we have production. So as long as it stays within the rangebelow 5 percent, the debt flows at LIBOR. streetevents@thomson.com 617.603.7900 www.streetevents.com5© 2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without theprior written consent of Thomson Financial.

FINAL TRANSCRIPT            ARP — Q4 2004 American Reprographics Company Earnings Conference Call            Jonathan Shapiro- Goldman, Sachs — AnalystLast question is cheap stock. I know you guys have a little bitof cheap stock you have to amortize. How much of that doyou have in your ‘05 numbers?Mohan Chandramohan- American Reprographics Company- CEOMark?Mark Legg- American Reprographics Company — CFOIt is roughly $550,000 for the year in ‘05.Jonathan Shapiro- Goldman, Sachs — AnalystGreat. Thanks, guys.OperatorEric Sledgister, CSFB.Eric Sledgister- CSFB - AnalystThe first question relates to internal growth. I was hoping youcould summarize that for us for the fourth quarter and for theyear.Mohan Chandramohan- American Reprographics Company- CEOI will pass this to Mark. Mark, you should have those numbers.Mark Legg- American Reprographics Company — CFOInternal growth, actually almost all of the growth in ‘04 wasorganic. In other words, while we may have had some verysmall fold-in acquisitions, we were primarily only buyingcustomer lists and we really treat that as organic. So we’relooking at almost I would say 6.6 of the 6.7 percent growthis organic and the same holds true for the fourth quarter. Wedid not see any meaningful acquisitions that added toplinerevenue to our numbers during that time.Eric Sledgister- CSFB — AnalystOkay. And we were also a little bit surprised to see SG&A downabout 2 million sequentially and below the prior year amountas well. Could you tell us what was driving that and whereyou expect that to be going forward?Mohan Chandramohan- American Reprographics Company- CEOMark, you should have the details on that, too.Mark Legg- American Reprographics Company - CFODuring the third quarter of ‘04 as we were preparing to gopublic, we did several initiatives to strengthen and improveour financial reporting structure. Part of those improvementswas the implementation of a standardized sale of accountsthroughout our 42 business units and standardized reportingpractices throughout our 42 units. As a result of thatstandardization procedure, we took each labor componentand classified it standardly over all 42 business units as eitherbeing part of cost of goods sold and production or part ofSG&A in the back office. And prior to that point ion time, noteverybody was accounting for people exactly on a consistentbasis. As a result of that exercise, a certain amount of laborat some divisions had categorized as SG&A was recategorizedas cost of goods sold production labor. And particularly, I’mtalking about what we call fillers and customer service repsthat actually operate on the production floor and are inconstant contact with our customer base. Some of thedivisions had put those into SG&A, and we adopted aconsistent standard and moved that up to production costs.So it was just a reclass in between the labor categories.Eric Sledgister- CSFB — AnalystGreat. Thanks a lot guys.OperatorMichael Schneider, Robert W. Baird.Michael Schneider- Robert W. Baird — AnalystGood afternoon guys. A couple of questions. First I want totalk about pricing. On the roadshow, you talked about as theeconomy improves, you get any gains from pricing power. streetevents@thomson.com 617.603.7900 www.streetevents.com6© 2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without theprior written consent of Thomson Financial.

FINAL TRANSCRIPT            ARP — Q4 2004 American Reprographics Company Earnings Conference CallHave you seen any indication of that? And what does yourguidance assume about pricing in ‘05?Mohan Chandramohan- American Reprographics Company- CEOWe’re not giving any guidance on that Michael, but typicallyas capacity utilization picks up in the industry and turnaroundtimes become the (indiscernible), prices will go up.Michael Schneider- Robert W. Baird — AnalystHave you begun to see that yet?Mohan Chandramohan- American Reprographics Company- CEONot yet. We’re in the very early stages of this turnaround inthe commercial construction business.Michael Schneider- Robert W. Baird — AnalystAnd as we’ve indicated the thing in a couple of different ways,the market is getting better. What have you seen in the M&Aarena at this point? And have you seen people become morewilling to sell or actually less willing to sell, because the marketis actually in an upswing?Mohan Chandramohan- American Reprographics Company- CEOIt is our opinion that is the market turns around and getsbetter, there will be more people willing to sell, as was thecase back in the late ‘90s because a seller wants to sell off oftheir good numbers. So we would expect that, and we’reseeing the early signs of that. Suri, would you like to add tothat?Suri Suriyakumar- American Reprographics Company — Pres.,COOAbsolutely, that’s exactly true. What has been happening isthat as the market starts improving, people who have hadopportunities to get out of the business, particularly movingaround for awhile and was looking for an exit strategy wouldstart thinking about that. This has happened before and wecertainly expect it to happen now.Michael Schneider- Robert W. Baird — AnalystAnd in terms of branches, you opened 18 in 2004. What wouldyou expect in 2005?Mohan Chandramohan- American Reprographics Company- CEOGrand branch openings for this year is the minimum of 15.We have already planned 15. In terms of R&D growth, we’remore (ph) than that.Michael Schneider- Robert W. Baird — AnalystJust a couple of final questions. First, the tax rate for 2005.What have you assumed in your range of guidance?Mohan Chandramohan- American Reprographics Company- CEOMark, could you could you answer that?Mark Legg- American Reprographics Company — CFOYes. We’re having a go-forward tax rate in 2005 of 43 percent.Out of that amount, 36 percent is a cash tax rate; the rest isthe deferred tax rate. 8 percent is deferred.Michael Schneider- Robert W. Baird — AnalystBut then you mentioned in the guidance, you haven’tassumed any significant acquisitions. I guess, could you giveus some sense as to what you are define as significant enoughto exclude from organic growth versus include from organicgrowth?Mohan Chandramohan- American Reprographics Company- CEOWhat we would include in organic growth with these smallinsignificant fold-in acquisition that is tantamount to a newbranch opening, particularly where we buy a real smallcompany, what we’re actually acquiring is a customer list. streetevents@thomson.com 617.603.7900 www.streetevents.com7© 2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without theprior written consent of Thomson Financial.

FINAL TRANSCRIPT            ARP — Q4 2004 American Reprographics Company Earnings Conference Call            Michael Schneider- Robert W. Baird — AnalystAnd those are businesses with revenue run rates of roughlywhat?Mohan Chandramohan- American Reprographics Company- CEOI would say up to $2.5 million a year.Michael Schneider- Robert W. Baird — AnalystAll right, thank you guys.Operator(Operator Instructions) Thatcher Thompson, CIBC WorldMarkets.Thatcher Thompson- CIBC World Markets — AnalystWelcome to your first earnings conference call. The facilitiesmanagement side is obviously growing very quickly. Can youjust describe kind of the gross margin of that business versusyour overall 40.6 percent company-wide gross margin? Andthen the leverage opportunity in that part of your business?Mohan Chandramohan- American Reprographics Company- CEOI will take part of the question, and perhaps Suri will answerthe second part of it. In terms of gross margins, this is how itwill break down. Roughly 75 percent of our sales come fromreprographics, 15 from facilities management and 10 percentcomes from supplies and equipment. Our gross margins onthe reprographics is 41 percent, facilities management 15percent and supplies and equipment 25 percent, which kindof gives you an average of where we ended up for the year,about 40.6 percent. I’d like to have Suri expand on the grossproduct.Suri Suriyakumar- American Reprographics Company — Pres.,COOThanks, Mohan. Usually, SM-17 (ph) a strength for us since —in the last five years, so it probably have (indiscernible) 52percent growth over the last five years, and that trend iscontinuing. People like to do more and more check prints orquick prints on site. And of course, there are more and morecost-effective small format and large format output deviceswhich are being produced by manufacturers. So every timethese opportunities arise, and you know it is an opportunityfor us and part of being (indiscernible), particularly when anarchitect or a construction company — if they were to go andbuy an (indiscernible) in the marketplace, they’re probablyright at the list price of — a price as a 10 percent discount. Butwhen we go in there, because of our buying power, becausewe are the purchaser of — the largest purchaser of(indiscernible) output devices, we can buy the same outputdevices at significant accounts. We not only buy the outputdevices at significant discounts, but we also buy the papertoner and the main (indiscernible) at a significant discount.So we’ve gone through the whole thing and give it to ourcustomers. And more than anything else, in addition to that,because most of these expenses are passed through, ourcustomers can also get (indiscernible) from us foe all of theprinting which takes place in those output devices which theycan get it reimbursed, so they like that. So the (indiscernible)is really a strong one and something which is sought after inour industry and we’re doing very well with that.Thatcher Thompson- CIBC World Markets — AnalystAlright, thanks guys.OperatorGeorge Stein (ph), M.A. Weatherby (ph).George Stein- M.A. Weatherby — AnalystMy question is the gross margin seems to drop 40 bips in thefourth quarter year-over-year. As that due to thereclassification of certain expenses?Mohan Chandramohan- American Reprographics Company- CEOThank you for the question George, yes, you are exactly right.It was — and Mark, would you want to expand on that?Mark Legg- American Reprographics Company — CFONo, that is exactly the right answer. streetevents@thomson.com 617. 603.7900 www.streetevents.com8© 2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without theprior written consent of Thomson Financial.

FINAL TRANSCRIPT            ARP — Q4 2004 American Reprographics Company Earnings Conference Call            George Stein- M.A. Weatherby — AnalystAlright, thank you.OperatorRicky Salen (ph), Eminence (ph) Capital.Ricky Salen- Eminence Capital — AnalystJust a question on the cash-flow statement that came forbusiness in the quarter at $4.6 million — does that representthe cumulative of all of these sort of small customer list typeacquisitions that you’ve talk about making, or does thatrepresent earnouts on the previous year’s acquisitions, andthen sort of consistent with a kind of revenue you’reexpecting, ex-meaningful acquisitions for ‘05? Should weexpect the similar sort of $5 million of these small customerlist type acquisitions be included in?Mohan Chandramohan- American Reprographics Company- CEOThanks for the question. Mark, you want to take that question?Mark Legg- American Reprographics Company — CFOYes, thanks, Mohan. Ricky, it’s good to hear from you. The 4.6million is a combination of the cash portion of businessesacquired this year, plus earnouts from acquisitions in prioryears. So the answer to your question is, absent any large andsignificant acquisitions, that number would probably rachetup slightly or stay the same. Now of course none, as theearnouts start to expire, then that drops it back down again.Ricky Salen- Eminence Capital — AnalystWhat is the mix in the (indiscernible) between earnouts andsmall cash acquisitions?Mark Legg- American Reprographics Company — CFOI don’t have that right at my fingertips, but I can e-mail it toyou this afternoon.Ricky Salen- Eminence Capital — AnalystDo you guys do any other currency to pay for acquisitions, orcan I assume that everything you had paid for thoseacquisitions would be included in there, plus the earnouts?Mohan Chandramohan- American Reprographics Company- CEOMark go ahead.Mark Legg- American Reprographics Company — CFORicky, I’m sorry (indiscernible) e-mail you. Could you repeatthe question?Ricky Salen- Eminence Capital - AnalystThe question was — you mentioned that the 4.6 representsthe cash portion of acquisitions plus earnouts. Are there anyother forms of payment you’ve used to make acquisitions?Mark Legg- American Reprographics Company — CFOI’m sorry, I understand the question now.Ricky Salen- Eminence Capital — AnalystShares of stock, something of debt, you know —.Mark Legg- American Reprographics Company — CFOOur typical acquisition model is 50 percent cash, 20 percentin a seller note, which is usually on the term of five years, androughly 20 percent in earnouts. So only once in our historyhave we issued stock for an acquisition, and that was ourlargest acquisition (indiscernible).Ricky Salen- Eminence Capital — AnalystOkay. So then the total cost of acquisitions that you wouldhave done in the year included (indiscernible) have to addwhatever seller notes that you added to the balance sheeton those acquisitions? streetevents@thomson.com 617.603.7900 www.streetevents.com9© 2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without theprior written consent of Thomson Financial.

FINAL TRANSCRIPT            ARP — Q4 2004 American Reprographics Company Earnings Conference Call            Mark Legg- American Reprographics Company — CFOThat’s correct.Ricky Salen- Eminence Capital — AnalystAnd you’re saying growth for next year included in the 470to 480 is sort of a similar of these slow acquisition, but nothingmeaningful in terms of acquisitions?Mohan Chandramohan- American Reprographics Company- CEOThat is correct.Ricky Salen- Eminence Capital - AnalystSo that looks like it’s sort of 6 to 8 percent growth off of whatyou did this year. So what would you guys think would bethe right level of incremental proceed now for EBITDA off ofthat level of growth?Mohan Chandramohan- American Reprographics Company- CEOMark, we’re not giving any guidance on EBITDA right now. Isthat right?Mark Legg- American Reprographics Company — CFOThe only guidance, Ricky, that we’re going to give goingforward is revenue and earnings-per-share.Ricky Salen- Eminence Capital — AnalystOkay, fair enough. Thanks a lot.OperatorBradley Safalo, J.P. Morgan.Bradley Safalo- J.P. Morgan — AnalystGood afternoon, guys. Just a follow-up question really on thefacilities management side. You guys are actually well aheadof what our expectations were in basically for the full year in’05. And I’m just wondering in the pipeline now, do you stillsee a lot of appetite in ongoing conversations there? This1900-plus number is going to 2000, 2100 for the year?Mohan Chandramohan- American Reprographics Company- CEOAbsolutely, Brad. This is a big growth area for us, it is a bigfocus. Suri, could you please expand on what our expectationsare?Suri Suriyakumar- American Reprographics Company — Pres.,COOBradley, continue the market this affects very nicely (ph)obviously as all customers continue to look for facilities insidetheir offices, particularly for check prints and quick prints.Sometimes not necessarily in the drafting room area, but alsoin the common area, we’re able to offer those solutions in acost-effective way to our customer — that is the key. Theydon’t have to put the money upfront and they don’t have tospend an arm and a leg to get it up and running. So that hasbeen very attractive for them and it is an opportunity for us.So all of our divisions are trained. We retrained every one ofour divisions on our FM training call (ph). And we continueto market it. And every time actually equipmentmanufacturers market their treatment to our customers, moreor less, it becomes an opportunity for us to place an FM, andwe continue to take advantage of that.Bradley Safalo- J.P. Morgan — AnalystIs there any sort of seasonality that you guys have seen?Because at the year-end and in the first quarter, people arekind of looking at their cost structure and saying we want tochange next year. Is the first half more heavily weightedtowards new contracts, or is it fairly consistent throughoutthe year?Mohan Chandramohan- American Reprographics Company- CEOWe have not seen much seasonality there, Brad. It is a longersales cycle and like Suri said, at the time suppliers out thereare trying to sell a piece of equipment right on their heelsshowing the value of an asset. So we have not detected anyseasonality there. streetevents@thomson.com 617.603.7900 www.streetevents.com10© 2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without theprior written consent of Thomson Financial.

FINAL TRANSCRIPT            ARP — Q4 2004 American Reprographics Company Earnings Conference Call            Bradley Safalo- J.P. Morgan — AnalystFrom the acquisition landscape, sounds like you think that over the next couple of years, you will be seeing increased activity. I’m just curious if you see any sort of changes from— I know you’re several times the size of your nearest competitors, but those that are out there, is there any sense that they’re potentially trying to be more aggressive on the acquisition front as we get into a stronger environment to kind of match you guys or somehow catch up?Mohan Chandramohan- American Reprographics Company — CEONo, there aren’t any big players out there, big acquisitions. There are smaller regional firms doing acquisitions in their marketplace that are smaller, but there are not any firms out there that are out there trying to match us. And the largest firms that try to do this, the likes of Ikon, Lason (ph) and —Suri, do you care to (indiscernible) other large firms?Suri Suriyakumar- American Reprographics Company - - Pres., COOPeople like Service Point, they’ve already been interested in doing acquisitions (indiscernible) the reprographics company (indiscernible), but they’re not (indiscernible). A very interesting aspect is there aren’t too many large reprographic companies available in the marketplace, as you know. We have seen in a way most of the low-hanging fruit so to speak during the last year (indiscernible). So the few companies who have been around who offer larger size, significant size I mean, are people who did not want to sell or were planning to stay on their own. But there are not too many companies, but there are a large number of small companies floating around, and that’s what — most of the companies which can be acquired by other reprographic companies whenever an opportunity arises on original basis, and that’s what we do right now. So we don’t see significant competition for any large company or significant size reprographics companies from another (indiscernible). So that’s for some reason not on the horizon.Mohan Chandramohan- American Reprographics Company — CEOTo finish my statement also Brad, the Ikon and the Lasons tried this in the late ‘90s, mid to late ‘90s, and they have since withdrawn and completely got out of the reprographics business.Bradley Safalo- J.P. Morgan — AnalystFrom a valuation perspective, the kind of historical multiple that you been able to (indiscernible) smaller players, you expect that to remain the same, given the landscape you’ve seen in front of you from a competitive perspective?Mohan Chandramohan- American Reprographics Company — CEOYes. Historically, if you take the ‘90s, it was north of 5 multiples, and we think that’s where it will be going forward.Suri Suriyakumar- American Reprographics Company — Pres., COOAnd I also think that the companies who have non (indiscernible) that are not interested in selling, it’s in these, the larger companies, 10 million output, if indeed they were this, they probably, they have a better sense of their value. Definitely the smaller companies might be at the low market multiples, but the larger ones might be looking for better multiples if indeed they were to kind of exit.Bradley Safalo- J.P. Morgan — AnalystSure. My last question has to do with the branch expansion strategy. I know tat some of that has to do with at the local level, whether that particular manager feels that he has a need for a new branch or expand his businesses such. So maybe it’s not as easy to predict fro m a seasonal perspective. But off the 18 from last year, how should we think about how that flows through in terms of new location of things throughout the year?Mohan Chandramohan- American Reprographics Company — CEOWe would average at least one a month with some thrusters (ph) in the middle, I would say. So one a month, and then towards the middle of the year, we would expect 3 one month and 3 another, so just to the 15. streetevents@thomson.com 617.603.7900 www.streetevents.com11© 2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Thomson Financial.

FINAL TRANSCRIPT            ARP — Q4 2004 American Reprographics Company Earnings Conference Call            Bradley Safalo- J.P. Morgan — AnalystGreat, thanks a lot guys.OperatorMichael Schneider.Michael Schneider- Robert W. Baird — AnalystCould you give us the breakdown of revenue by geography?Mohan Chandramohan- American Reprographics Company — CEOMark, could to take that question?Mark Legg- American Reprographics Company — CFOYes, I would be happy to, Mohan. For 2004 in Southern California, we have 6 regions that we track. Southern California was 139.8 million; northern California was 84.1 million; Pacific Northwest, which includes Washington and Oregon, was 24.8 million; our Southern region, which includes Las Vegas, all of the Gulf Coast and Florida, came in at 68.3 million; our Midwest divisions came in at 48.8 million and our Northeast divisions came in at 78 million.Michael Schneider- Robert W. Baird — AnalystOkay, thank you. And Mohan, could you just address the issue with the AIA and trying to get them to reform their rules about digital reimbursement?Mohan Chandramohan- American Reprographics Company — CEOYes. This is something that the architects are dealing with their initial, when they went from drafting manually to the computers, getting their balance reimbursed when they send their digital files to us, rather than manually drawing it. When we produce the balance, they initially had difficulty getting that reimbursed, but they got through that. So they’re going through a similar transition right now.Michael Schneider- Robert W. Baird — AnalystAnd when would you expect there to actually be a pronouncement on this, or is it difficult to tell?Mohan Chandramohan- American Reprographics Company — CEOIt is difficult to tell.Michael Schneider- Robert W. Baird — AnalystOkay, thank you again.OperatorThere no further questions, sir.Mohan Chandramohan- American Reprographics Company - CEOThank you, Stephen.David Stickney- American Reprographics Company — IRThank you very much, operator. This is David Stickney again. I would like to thank everyone for joining us today on our first earnings call. For anyone who has further questions about the Company, please contact Jason Golz of Financial Dynamics at the following the number — 415-439-4532. Thank you again and have a great evening. streetevents@thomson.com 617.603.7900 www.streetevents.com12© 2005 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Thomson Financial.

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