ARC Reports Second Quarter Fiscal Year 2015 Financial Results

Merger expenses are costs incurred to effectuate our acquisitions, such as advisory, legal and accounting fees. Other non-recurring expenses consist primarily of accounting and legal fees associated with our acquisitions and financing activities. Reorganization expenses are primarily labor and labor related costs association with the termination of employees.

Adjusted EBITDA excludes interest expense, net and income taxes because these items are associated with our capitalization and tax structures. Adjusted EBITDA also excludes depreciation and amortization expense because these non-cash expenses reflect the impact of prior capital expenditure decisions which may not be indicative of future capital expenditure requirements.

The Company has filed a registration statement (including a preliminary prospectus and issuer free writing prospectuses) with the U.S. Securities and Exchange Commission ("SEC") for the offering of common stock to which this presentation relates. Before you invest, you should read the prospectus in that registration statement, the issuer free writing prospectuses and other documents the Company has filed with the SEC for more complete information about the Company and this offering. You may obtain these documents free of charge by visiting the SEC online database (EDGAR) on the SEC's website at www.sec.gov. The Company's registration statement on Form S-1 containing the preliminary prospectus, dated January 20, 2015, is available at the following link:

http://www.sec.gov/Archives/edgar/data/826326/000104746915000280/a2222688zs-1a.htm

Alternatively, you may obtain a copy of the prospectus and any other publicly available documents from the Company by calling (303) 467-5236 or from Brean Capital by calling (212) 702-6500.

About ARC Group Worldwide, Inc.

ARC Group Worldwide, Inc. is a leading global advanced manufacturing and 3D printing service provider. With its business founded in 1987, the Company offers its customers a compelling portfolio of advanced manufacturing technologies and cutting-edge capabilities to improve the efficiency of traditional manufacturing processes and accelerate their time to market. In addition to being a world leader in metal injection molding ("MIM"), ARC has significant expertise in 3D printing and imaging, materials science, advanced tooling, automation, machining, stamping, plastic injection molding, lean manufacturing, and robotics. For more information visit the website of ARC Group Worldwide, Inc. or its operating subsidiaries at 3D Material Technologies, LLC, Advanced Forming Technology, Inc. (Colorado), Advanced Forming Technology, Kft. (Hungary), ARC MIM, ARC Wireless, LLC, Advance Tooling Concepts, Flomet, LLC, General Flange & Forge, LLC, Injectamax International, LLC, Kecy Metals Technology, Tekna Seal, LLC, and Thixoforming.

Forward Looking Statements

This press release may contain "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995, which are based on ARC's current expectations, estimates and projections about future events. These include, but are not limited to, statements, if any, regarding business plans, pro-forma statements and financial projections, ARC's ability to expand its services and realize growth. These statements are not historical facts or guarantees of future performance, events or results. Such statements involve potential risks and uncertainties, and the general effects of financial, economic, and regulatory conditions affecting our industries. Accordingly, actual results may differ materially. ARC does not have any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For additional factors that may affect future results, please see filings made by ARC with the Securities and Exchange Commission ("SEC"), including its registration statement on Form S-1, as amended, its Form 10-K for the fiscal year ended June 30, 2014 and Form 10-Q for the period ended September 28, 2014, as well as current reports on Form 8-K filed from time-to-time with the SEC.

CONTACT: Drew M. Kelley
PHONE: (303) 467-5236
Email: Email Contact

ARC Group Worldwide, Inc.
Unaudited Condensed Consolidated Statements of Operations

	For the three months ended		For the six months ended
(in thousands, except for share and per share amounts)	December 28, 2014	December 29, 2013	December 28, 2014	December 29, 2013
Sales	27,106	19,942	55,804	38,342
Cost of sales	20,719	13,610	42,434	26,387
Gross profit	6,387	6,332	13,370	11,955
Selling, general and administrative	4,919	3,780	10,418	7,502
Merger expense	11	—	187	—
Income from operations	1,457	2,552	2,765	4,453
Other (expense) income, net	(9)	7	(11)	7
Interest expense, net	(1,213)	(294)	(2,134)	(499)
Income before income taxes	235	2,265	620	3,961
Income tax expense	(237)	(690)	(390)	(1,076)
Net (loss) income	(2)	1,575	230	2,885
Less: Net income attributable to non-controlling interest	(58)	(61)	(114)	(117)
Net (loss) income attributable to ARC Group Worldwide, Inc.	(60)	1,514	116	2,768

Net income per common share:
Basic and diluted income per share	—	0.10	0.01	0.19

Weighted average common shares outstanding:
Basic and diluted	14,673,205	14,693,285	14,673,205	14,506,817

ARC Group Worldwide, Inc.
Condensed Consolidated Balance Sheets

(in thousands, except for share and per share amounts)	December 28, 2014		June 30, 2014
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	3,859	$	9,384
Accounts receivable, net	15,679		15,337
Inventories, net	16,432		15,231
Prepaid and other current assets	4,058		2,606
Total current assets	40,028		42,558
Property and equipment, net	45,772		45,268
Goodwill	14,764		16,357
Intangible assets, net	29,089		30,825
Other	2,019		1,381
Total assets	$	131,672	$	136,389

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	6,485	$	9,430
Accrued expenses	5,623		5,905
Deferred revenue	1,290		1,016
Bank borrowings, current portion of long-term debt	13,120		14,419
Capital lease obligations, current portion	1,140		1,124
Accrued escrow obligation	4,291		2,400
Total current liabilities	31,949		34,294
Long-term debt, net of current portion	62,807		62,757
Capital lease obligations, net of current portion	4,240		4,723
Accrued escrow obligation	—		2,600
Other	1,276		674
Total liabilities	100,272		105,048

Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, 2,000,000 authorized, no shares issued and outstanding	—		—
Common stock, $0.0005 par value, 250,000,000 shares authorized; 15,088,522 shares issued and 15,080,121 shares outstanding at December 28, 2014 and June 30, 2014	3		3
Treasury stock, at cost; 8,401 shares at December 28, 2014 and June 30, 2014	(94)		(94)
Additional paid-in capital	14,122		14,293
Retained earnings	16,259		16,143
ARC Group Worldwide, Inc. total stockholder equity	30,290		30,345
Non-controlling interest	1,110		996
Total stockholders' equity	31,400		31,341
Total liabilities and stockholders' equity	$	131,672	$	136,389

ARC Group Worldwide, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows

	For the six months ended
(in thousands)	December 28, 2014		December 29, 2013
Cash flows from operating activities:
Net income	$	230	$	2,885
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	4,666		1,790
Non-cash stock based compensation expense	—		779
Amortization of debt discount	—		211
Bad debt expense and other	(56)		59
Deferred income taxes	12		—
Changes in working capital
Accounts receivable	(309)		526
Inventory	(1,200)		(936)
Prepaid expenses and other assets	(1,502)		(200)
Accounts payable	(2,944)		30
Other accrued expenses	604		978
Deferred revenue	274		(92)
Net cash (used in) provided by operating activities	(225)		6,030

Cash flows from investing activities:
Purchase of plant and equipment	(3,446)		(892)
Net cash used in investing activities	(3,446)		(892)

Cash flows from financing activities:
Proceeds from debt issuance	23,500		—
Repayments of long-term debt and capital lease obligations	(25,216)		(3,112)
Stock issuance costs	(138)		—
Repurchase of shares	—		(93)
Net cash used in financing activities	(1,854)		(3,205)
Net (decrease) increase in cash and cash equivalents	(5,525)		1,933
Cash and cash equivalents, beginning of period	9,384		3,601
Cash and cash equivalents, end of period	$	3,859	$	5,534
Supplemental disclosures of cash flow information:
Cash paid for interest	$	1,587	$	288
Cash paid for income taxes	$	20	$	—
Non-cash investing and financing activities:
Termination of note receivable from related party	$	—	$	272

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SOURCE ARC Group Worldwide, Inc.

Contact:

ARC Group Worldwide, Inc.
Web: http://www.arcgroupworldwide.net

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