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

Twelve Months Ended

December 31,

December 31,

2016

2015

2016

2015

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

$

2,624

$

3,061

$

(47,865)

$

97,040

Interest expense, net

1,461

1,499

5,996

6,974

Income tax provision (benefit)

1,520

2,334

(4,364)

(69,432)

Depreciation and amortization

8,014

8,171

31,751

33,661

EBITDA

13,619

15,065

(14,482)

68,243

Loss on extinguishment of debt

52

89

208

282

Goodwill impairment

—

—

73,920

—

Trade secret litigation costs

—

—

—

34

Restructuring expense

—

—

7

89

Stock-based compensation

620

773

2,693

3,512

Adjusted EBITDA

$

14,291

$

15,927

$

62,346

$

72,160