MIRA INFORM REPORT

 

 

Report No. :

325921

Report Date :

10.06.2015

 

IDENTIFICATION DETAILS

 

Name :

ARC GROUP WORLDWIDE, INC.

 

 

Registered Office :

810 Flightline Blvd, Deland, FL 32724

 

 

Country :

United States

 

 

Date of Incorporation :

30.09.1987

 

 

Legal Form :

Public Company

 

 

Line of Business :

Subject is manufactures and sells precision components, flanges, fittings, and wireless equipment

 

 

No. of Employee :

700

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No complaints

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

United States

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

UNITED STATES - ECONOMIC OVERVIEW

 

The US has the most technologically powerful economy in the world, with a per capita GDP of $54,800. In 2014, however, US GDP ran second to China’s, when compared on a Purchasing Power Parity basis; the US lost the top spot, where it had stood for more than a century. In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology has been a driving factor in the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers, has put additional downward pressure on wages and upward pressure on the returns to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression.

To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012, the federal government reduced the growth of spending and the deficit shrank to 7.6% of GDP. Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2014, the direct costs of the wars totaled more than $1.5 trillion, according to US Government figures. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that was designed to extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. In December 2012, the Federal Reserve Board (Fed) announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment dropped below 6.5% or inflation rose above 2.5%. In late 2013, the Fed announced that it would begin scaling back long-term bond purchases to $75 billion per month in January 2014 and reduce them further as conditions warranted; the Fed ended the purchases during the summer of 2014. Long-term problems include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.

 

Source : CIA

 

 

Company name

 

ARC GROUP WORLDWIDE, INC.

 

 

address

 

810 Flightline Blvd, Deland, FL 32724 – USA

 

Telephone:                    +1 386-736-4890

 

Fax:                              +1

 

Website:                       www.arcgroupworldwide.net

 

Corporate ID#:              979224-0142

 

State:                           Utah

 

Judicial form:                Public Company (Nasdaq = ARCW)

 

Date incorporated:        09-30-1987

 

Stock:                           18,530,121 shares issued and outstanding (as of May 7 2015)

 

Value:                           USD 0.0005= par value

 

Name of manager:         Jason Taney YOUNG

 

 

ACTIVITIES & OPERATIONS

 

IST

 

Business

 

ARC Group Worldwide, Inc. manufactures and sells precision components, flanges, fittings, and wireless equipment in the United States and internationally.

It operates in four segments: Precision Components Group, 3DMT Group, Flanges and Fittings Group, and Wireless Group. The company offers engineered fabricated metal components using processes consisting of metal injection molding, metal stamping, and the hermetic sealing of various components for medical/dental devices, firearms and defense, automotive, aerospace, consumer durables, and electronic devices industries. It also provides plastic injection and in house moldings and tooling products, as well as high-density injection molding components from magnesium alloys; and value-added secondary design and production processing services. In addition, the company offers custom machining products and flange facings; precision net shape metal components; and 3D printing services.

 

Further, it designs and develops hardware products, including antennas, radios, and related accessories that are used in broadband and other wireless networks; and serves public and private carriers, wireless infrastructure providers, wireless equipment distributors, value added resellers, and other original equipment manufacturers.

The company is based in Deland, Florida, with several branches in the U.S.

 

The Company is also using the following registered business names:

- PROWSWOOD’S CONCIERGE SERVICE

- ANTENNAS AMERICA, INC.

 

Office of the Foreign Assets Control (OFAC):

 

The company is not listed on the OFAC list.

The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

 

No name of foreign suppliers available.

 

EIN:                  87-0454148

 

Staff:                700

 

Operations & branches:

 

At the headquarters, we find a factory, warehouse and office, owned.

 

The Company maintains branches located:

 

7040 Weld County Road 20

 Longmont, CO 80504

 

33 South Pratt Parkway

Longmont, CO 80504

 

5301 East River Road, Suite 109

Minneapolis, MN 55421

 

8906 Frontier Street

Firestone, CO 80504

 

2381 Philmont Ave., Suite 125

Hungtingdon Valley, PA 19006

 

4111 Munson Road

Hudson, MI 49247

 

447 East Walnut Street

Wauseon, OH 43567

 

Shareholders

 

The Company is listed with the Nasdaq under symbol ARCW.

 

As of 03-31-2015, 6% of the stock was held by institutional and mutual fund owners, including:

 

Keane Capital Management, Inc.

0.75%

FMR, LLC

0.74%

Vanguard Group, Inc. (The)

0.70%

Gruber & Mcbaine Capital Management, LLC

0.69%

Stifel Financial Corporation

0.49%

 

 

Management

 

Jason Taney Young has been the Chief Executive Officer and President of ARC Group Worldwide Inc. since August 7, 2013. Mr. Young co-founded ARC Group Worldwide Inc. in 2008 and manages investments in various private equity fund partnerships and associated investments. He has been the Managing Director at Quadrant Management, Inc. since 2005, where he is responsible for making private equity investments and overseeing numerous companies at the firm.

In 2008, Mr. Young co-founded Vanterra Capital LLC and has been a Managing Partner since then. Mr. Young served as the Chief Executive Officer of ARC Group Worldwide Inc. from November 2008 to August 2011. Mr. Young has been Chairman of the Board at ARC Group Worldwide, Inc. since November 2008.

He served as the Chief Executive Officer at ARC wireless Solutions Inc. from November 2008 to August 16, 2011, Secretary and Principal Accounting Officer until August 16, 2011 and also served as its Chief Financial Officer.

From 2000 to 2005, Mr. Young worked for Merrill Lynch in the Investment Banking Group and in the Global Principal Investment Group.

From 1999 to 2000, he was an Analyst at Helicon Capital Management.

Mr. Young has been the Chairman of Yola, Inc. since 2011 and serves as its Director. He has been a Director of ARC Group Worldwide, Inc. since October 2, 2008. He held Director and Executive level positions at several portfolio companies including Access Point Medical, LLC.

Mr. Young served as the Chairman of ARC Wireless Solutions Inc. since November 2008 and its Director since October 2, 2008.

He holds a B.A. in International Economics from UCLA.

 

Drew M. KELLEY is the CFO and Director.

 

Other Directors include Gregory D. WALLIS, Eddie W. NEELY, and Todd A. GRIMM.

 

 

Subsidiaries And partnership

 

TeknaSeal LLC                      Florida

FloMet LLC                         Delaware

General Flange & Forge LLC         Delaware

ARC Wireless, Inc.                 Delaware

ARC Wireless, LLC                  Delaware        

ARC Wireless, Ltd.                 British Virgin Islands

Advanced Forming Technology, Inc.  Colorado

AFT-Hungary Kft.                   Hungary

ARC Metal Stamping, LLC            Delaware

3D Material Technologies, LLC      Delaware

Thixoforming LLC                   Colorado

Advance Tooling Concepts, LLC      Colorado

Quadrant Metals Technologies LLC   Delaware

TubeFit LLC                        Delaware

 

 

FINANCIALS

 

On May 11, 2015, Arc group worldwide, inc. reported consolidated earnings results for the third quarter and nine months ended march 29, 2015.

 

The company reported third quarter total sales were $27,864,000 compared with $20,930,000 a year ago. Income from operations was $1,733,000 compared with $3,272,000 a year ago. Income before income taxes was $395,000 compared with $2,992,000 a year ago. Net income attributable to arc group worldwide, inc. Was $383,000 compared with $1,585,000 a year ago. Basic and diluted income per share was $0.02 compared with $0.11 a year ago. EBITDA (Non-GAAP) was $4,256,000 compared with $4,188,000 a year ago.

 

For the nine months ended march 29, 2015, the company reported, total sales were $83,668,000 compared with $59,272,000 a year ago. Income from operations was $4,498,000 compared with $7,725,000 a year ago. Income before income taxes was $1,015,000 compared with $6,593,000 a year ago. Net income attributable to arc group worldwide, inc. Was $499,000 compared with $4,353,000 a year ago. Basic and diluted income per share was $0.03 compared with $0.30 a year ago. Net cash provided by operating activities was $1,502,000 compared with $8,036,000 a year ago. Purchase of plant and equipment was $4,236,000 compared with $2,623,000 a year ago.

 

On attachment:

- 10K 2013-2014

- 3rd 10Q 2015

 

Banks:  Citizens Bank

 

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there is no legal filing pending with the Courts.

 

Secured debts summary (UCC):   9 UCC files

 

COMPANY CREDIT HISTORY

 

Trade references:

 

Date reported:               May 2015

High credit:                   USD 35,000

Now owing:                   0

Past due:                      0

Last purchase:              April 2015

Line of business:           Office supply

Paying status:               On terms

 

Date reported:               May 2015

High credit:                   USD 900,000

Now owing:                   0

Past due:                      0

Last purchase:              April 2015

Line of business:           Payroll

Paying status:               As agreed

 

Date reported:               May 2015

High credit:                   USD 1,200

Now owing:                   0

Past due:                      0

Last purchase:              April 2015

Line of business:           Telecommunications

Paying status:               On terms

 

 

Domestic credit history:

National Credit Bureaus gave a satisfying credit risk.

According to our credit analysts, during the last 6 months, domestic payments were made on due date.

 

International credit history:

Payments of imports are currently made on terms.

 

Other comments:

The Company maintains its business.

The bank confirmed a regular account.

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

Last report was filed on November 6, 2014.

The risk is low.

 

Our opinion:

A business connection may be conducted.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.94

UK Pound

1

Rs.98.27

Euro

1

Rs.72.37

 

INFORMATION DETAILS

 

Analysis Done by :

SAN

 

 

Report Prepared by :

ASH

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.