ARC Document Solutions, Inc.

Non-GAAP Measures

Reconciliation of net income (loss) attributable to ARC Document Solutions, Inc. shareholders to EBITDA and Adjusted EBITDA

(In thousands)

(Unaudited)

 Three Months Ended

Nine Months Ended

September 30,

September 30,

2016

2015

2016

2015

Net income (loss) attributable to ARC Document Solutions, Inc. shareholders

$

2,841

$

80,286

$

(50,489)

$

93,979

Interest expense, net

1,563

1,679

4,535

5,475

Income tax provision (benefit)

2,162

(73,338)

(5,884)

(71,766)

Depreciation and amortization

7,857

8,415

23,737

25,490

EBITDA

14,423

17,042

(28,101)

53,178

Loss on extinguishment of debt

66

96

156

193

Goodwill impairment

—

—

73,920

—

Trade secret litigation costs

—

—

—

34

Restructuring expense

—

4

7

89

Stock-based compensation

650

735

2,073

2,739

Adjusted EBITDA

$

15,139

$

17,877

$

48,055

$

56,233