##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|          
|           |  | For the Fiscal Year Ended December 31, 2005                                                 
|          
|or        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-32407





AMERICAN REPROGRAPHICS COMPANY


(Exact name of Registrant as specified in its Charter)


|                                                                   |  |                                         
|------------------------------------------------------------------ |  | ----------------------------------------
|Delaware                                                           |  | 20-1700361                              
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification No.)

700 North Central Avenue, Suite 550


Glendale, California 91203


(818) 500-0225


(Address, including zip code, and telephone number,


including area code, of Registrants principal executive
offices)


Securities registered pursuant to Section 12(b) of the
Act:


|                                         |  |                                          
|---------------------------------------- |  | -----------------------------------------
|Title of Each Class                      |  | Name of Each Exchange on Which Registered
|                                         |  |                                          
|Common Stock, par value $0.001 per share |  | New York Stock Exchange                  

Securities registered pursuant to Section 12(g) of the
Act:


NONE


o þ


o þ


þ o


S-K 10-K 10-K. o


12b-2


o o þ


12b-2 o þ






DOCUMENTS INCORPORATED BY REFERENCE












---



##### 










AMERICAN REPROGRAPHICS COMPANY


ANNUAL REPORT ON
FORM 10-K


for the fiscal year ended December 31, 2005


Table of Contents


|              |  |                                                                                                                      |    |      |    |  |  | 
|------------- |  | -------------------------------------------------------------------------------------------------------------------- | -- | ---- | -- |  |  | 
|              |  |                                                                                                                      |    | Page |   
|              |  |                                                                                                                      |    |      |   
|PART I        |  |                                                                                                                      | 3  |     
|Item 1.       |  | Business                                                                                                             |    |      | 3  | 
|Item 1A.      |  | Risk Factors                                                                                                         |    |      | 10 | 
|Item 1B.      |  | Unresolved Staff Comments                                                                                            |    |      | 15 | 
|Item 2.       |  | Properties                                                                                                           |    |      | 15 | 
|Item 3.       |  | Legal Proceedings                                                                                                    |    |      | 16 | 
|Item 4.       |  | Submission of Matters to a Vote of Security
    Holders                                                              |    |      | 16 | 
|             
|PART II       |  |                                                                                                                      | 17 |     
|Item 5.       |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |    |      | 17 | 
|Item 6.       |  | Selected Consolidated Financial Data                                                                                 |    |      | 18 | 
|Item 7.       |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operation                             |    |      | 19 | 
|Item 7A.      |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                       |    |      | 41 | 
|Item 8.       |  | Consolidated Financial Statements and
    Supplementary Data                                                         |    |      | 41 | 
|Item 9.       |  | Changes in and Disagreements with
    Accountants On Accounting And Financial Disclosure                             |    |      | 41 | 
|Item 9A.      |  | Controls and Procedures                                                                                              |    |      | 41 | 
|Item 9B.      |  | Other Information                                                                                                    |    |      | 41 | 
|             
|PART III      |  |                                                                                                                      | 42 |     
|Item 10.      |  | Directors and Executive Officers of the
    Registrant                                                               |    |      | 42 | 
|Item 11.      |  | Executive Compensation                                                                                               |    |      | 45 | 
|Item 12.      |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                   |    |      | 49 | 
|Item 13.      |  | Certain Relationships and Related
    Transactions                                                                   |    |      | 52 | 
|Item 14.      |  | Principal Accounting Fees and Services                                                                               |    |      | 53 | 
|             
|PART IV       |  |                                                                                                                      | 54 |     
|Item 15.      |  | Exhibits, Financial Statement Schedules                                                                              |    |      | 54 | 
|EXHIBIT 10.4 
|EXHIBIT 10.36
|EXHIBIT 10.38
|EXHIBIT 10.51
|EXHIBIT 21.1 
|EXHIBIT 23.1 
|EXHIBIT 31.1 
|EXHIBIT 31.2 
|EXHIBIT 32.1 





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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY 2005 ANNUAL REPORT


In this report, American Reprographics Company,
ARC, the company, we,
us, and our refer to American
Reprographics Company and its consolidated subsidiaries, unless
the context otherwise dictates.


FORWARD-LOOKING STATEMENTS










| |   |                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | general economic conditions and a downturn in the architectural,
    engineering and construction industry;                                                                                                                                            
|
| |  | competition in our industry and innovation by our competitors;                                                                                                                                                                                         
|
| |  | our failure to anticipate and adapt to future changes in our
    industry;                                                                                                                                                                             
|
| |  | uncertainty regarding our product and service innovations;                                                                                                                                                                                             
|
| |  | the inability to charge for our value-added services to offset
    potential declines in print volumes;                                                                                                                                                
|
| |  | adverse developments affecting the State of California,
    including general and local economic conditions, macroeconomic
    trends, and natural disasters;                                                                                          
|
| |  | our inability to successfully identify potential acquisitions,
    manage our acquisitions or open new branches;                                                                                                                                       
|
| |  | our inability to successfully monitor and manage the business
    operations of our subsidiaries and uncertainty regarding the
    effectiveness of financial and management policies and
    procedures we established to improve accounting controls;
|
| |  | adverse developments concerning our relationships with certain
    key vendors;                                                                                                                                                                        
|
| |  | our inability to adequately protect our intellectual property
    and litigation regarding intellectual property;                                                                                                                                      
|
| |  | acts of terrorism, violence, war, natural disaster or other
    circumstances that cause damage or disruption to us, our
    facilities, our technology centers, our vendors or our customers;                                                         
|
| |  | the loss of key personnel or qualified technical staff;                                                                                                                                                                                                
|
| |  | the potential writedown of goodwill or other intangible assets
    we have recorded in connection with our acquisitions;                                                                                                                               
|
| |  | the availability of cash to operate and expand our business as
    planned and to service our debt;                                                                                                                                                    
|
| |  | failure to maintain an effective system of internal controls
    necessary to accurately report our financial results and prevent
    fraud; and                                                                                                       
|
| |  | potential environmental liabilities.                                                                                                                                                                                                                   

1



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##### Table of Contents



10-K, 10-Q, 8-K,




TRADEMARKS AND TRADE NAMES


SM SM tm SM SM tm SM SM ® tm SM Sub-Hub SM


2



---



##### Table of Contents






PART I







|        |         
|------- | --------
|Item 1. | Business

Our Company


business-to business-to print-on on-site










3



---



##### Table of Contents



Available Information


1-800-SEC-0330 www.sec.gov


www.e-arc.com www.e-arc.com 10-K, 10-Q, 8-K


Corporate Background and Reorganization






Acquisitions




4



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##### Table of Contents







Industry Overview




business-to point-of


Our Competitive Strengths






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Leading Market Position in Fragmented Industry. Our size
    and national footprint provide us with significant purchasing
    power, economies of scale, the ability to invest in
    industry-leading technologies, and the resources to service
    large, national customers.                                                                                                                                                                                                                                                          
|
| |  | Leader in Technology and Innovation. We believe our
    PlanWell online planrooms are well positioned to become the
    industry standard for managing and procuring reprographics
    services within the AEC industry. In addition, we have developed
    other proprietary software applications that complement PlanWell
    and have enabled us to improve the efficiency of our services,
    add complementary services and increase our revenue.                                                                                   
|
| |  | Extensive National Footprint with Regional Expertise. Our
    national network of service centers maintains local customer
    relationships while benefiting from the centralized corporate
    functions and national scale. Our service facilities are
    organized as hub and satellite structures within individual
    markets, allowing us to balance production capacity and minimize
    capital expenditures through technology-sharing among our
    service centers within each market. In addition, we serve our
    national

5



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##### Table of Contents



| |   |                                                                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | and regional customers under a single contract through our
    Premier Accounts business unit, while offering centralized
    access to project specific services, billing, and tracking
    information.                                                                                                                                                                
|
| |  | Flexible Operating Model. By promoting regional decision
    making for marketing, pricing, and selling practices, we remain
    responsive to our customers while benefiting from the cost
    structure advantages of our centralized administrative
    functions. Our flexible operating model also allows us to
    capitalize on an improving business environment.
|
| |  | Consistent, Strong Cash Flow. Through management of our
    inventory and receivables and our low capital expenditure
    requirements, we have consistently generated strong cash flow
    from operations after capital expenditures regardless of
    industry and economic conditions.                                                                               
|
| |  | Low Cost Operator. We believe we are one of the lowest
    cost operators in the reprographics industry, which we have
    accomplished by minimizing branch level expenses and
    capitalizing on our significant scale for purchasing
    efficiencies.                                                                                                               
|
| |  | Experienced Management Team and Highly Trained Workforce.
    Our senior management team has an average of over 20 years
    of industry experience. We have also successfully retained
    approximately 90% of the managers of the 100 businesses we have
    acquired since 1997.                                                                                     

Our Services


business-to print-on


Document Management.


Document Distribution and Logistics. pick-up


Print-on


On-site services. on-site


print-on






| |   |                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | PlanWell, our proprietary, internet-based planroom launched in
    June 2000, and our suite of other reprographics software
    products that enable the online purchase and fulfillment of
    document management services.

6



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| |   |                                                                                                                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Production services, including
    print-on-demand,
    document assembly, document finishing, mounting, laminating,
    binding, and kitting. Documents can be digitally transferred
    from one service facility to another to balance production
    capacity or take advantage of a distribute and print
    operating system.
|
| |  | Document distribution and logistics, including the physical pick
    up, delivery, and shipping of time-sensitive, critical documents.                                                                                                                                                                                               
|
| |  | Highly customized large and small format reprographics in color
    and black and white. This includes digital reproduction of
    posters, tradeshow displays, plans, banners, signage and maps.                                                                                                                                    
|
| |  | Facilities management, including recurring
    on-site document
    management services and staffing at our customers
    locations.                                                                                                                                                                                                
|
| |  | Sales of reprographics equipment and supplies and licensing of
    software to other reprographics companies and end-users in the
    AEC industry.                                                                                                                                                                                  
|
| |  | The design and development of other document management and
    reprographics software, in addition to PlanWell, that supports
    ordering, tracking, job costing, and other customer specific
    accounting information for a variety of projects and services.
    These proprietary applications include:                       



| |   |                                                                                                                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Electronic Work Order (EWO), which offers our customers
    access to the services of all of our service centers through the
    internet.                                                                                                                                                                                          
|
| |  | Abacus Print Cost Recovery (PCR) System, which
    provides a suite of software modules for reprographers and their
    customers to track documents produced from equipment installed
    as a part of a facilities management program.                                                                                            
|
| |  | BidCaster
    Invitation-to-Bid
    (ITB), a data management internet application that issues
    customizable invitations to bid from a
    customers desktop using email and a hosted fax server.                                                                                                                            
|
| |  | MetaPrint Print Automation and Device Manager, a
    universal print driver that facilitates the printing of
    documents with output devices manufactured by multiple vendors,
    and allows the reprographer to print multiple documents in
    various formats as a single print submission.                                   
|
| |  | OneView Document Access and Customer Administration
    System, an internet-based application that leverages the
    security attributes of PlanWell to provide a single point of
    access to all of a customers project documents, regardless
    of which of our local production facilities stores the relevant
    documents.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | License our suite of reprographics technology products,
    including our flagship online planroom, PlanWell, to independent
    reprographers.                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Operate PEiR (Profit and Education in Reprographics), a trade
    organization wholly owned by us, through which we charge
    membership fees and provide purchasing, technology and
    educational benefits to other reprographers. PEiR members are
    required to license PlanWell and may purchase equipment and
    supplies at a lower cost than they could obtain independently.
    We also distribute our educational programs to PEiR members to
    help establish and promote best practices within the
    reprographics industry.

Customers




7



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Operations


Geographic Presence.


Hub and Satellite Configuration.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Central Hub Facilities. In each of our major markets, we
    operate one or more large scale full service facilities that
    have high production capacity and sophisticated equipment. These
    larger facilities offer specialized services such as laser
    digital imaging on photographic material, large format color
    printing, and finishing services that may not be economically
    viable for smaller facilities to provide. Our central hub
    facilities also coordinate our facilities management programs.                                   
|
| |  | Satellite Facilities. To supplement the capabilities of
    our central hub facilities, we operate satellite facilities that
    are typically located closer to our customers than the central
    hubs. Our satellite facilities have quick turnaround
    capabilities, responsive, localized service, and handle the
    majority of digital processes.                                                                                                                                                                                                         
|
| |  | Management Systems and Controls. We operate our business
    under a dual operating structure of centralized administrative
    functions and regional decision making. Acquired companies
    typically retain their local business identities, managers,
    sales force, and marketing efforts in order to maintain strong
    local relationships. Our local management maintains autonomy
    over the day-to-day
    operations of their business units, including profitability,
    customer billing, receivables collection, and service mix
    decisions.



Suppliers and Vendors






8



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Sales and Marketing


Divisional Sales Force.


Premier Accounts. print-on


PEiR Group.


Competition




Research and Development




Proprietary Rights




9



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Information Technology






e-commerce


Employees









|         |             
|-------- | ------------
|Item 1A. | Risk Factors



10



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| |                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Future downturns in the architectural, engineering and
    construction industry, or AEC industry, could diminish demand
    for our products and services, which would impair our future
    revenue and profitability.







| |                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Competition in our industry and innovation by our
    competitors may hinder our ability to execute our business
    strategy and maintain our profitability.







| |                                                                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The reprographics industry has undergone vast changes in
    the last six years and will continue to evolve, and our failure
    to anticipate and adapt to future changes in our industry could
    harm our competitive position.



11



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| |                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we fail to continue to develop and introduce new
    services successfully, our competitive positioning and our
    ability to grow our business could be harmed.







| |                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to charge for our value-added services to
    offset potential declines in print volumes, our long term
    revenue could decline.





| |                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We derive a significant percentage of net sales from
    within the State of California and our business could be
    disproportionately harmed by an economic downturn or natural
    disaster affecting California.



12



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| |                                                                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our growth strategy depends in part on our ability to
    successfully identify and manage our acquisitions and branch
    openings. Failure to do so could impede our future growth and
    adversely affect our competitive position.









| |                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to successfully monitor and manage the
    business operations of our subsidiaries, our business and
    profitability could suffer.





| |                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We depend on certain key vendors for reprographics
    equipment, maintenance services and supplies, making us
    vulnerable to supply shortages and price fluctuations.



13



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##### Table of Contents







| |                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------
| | Our failure to adequately protect the proprietary aspects
    of our technology, including PlanWell, may cause us to lose
    market share.





| |                                                                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Damage or disruption to our facilities, our technology
    centers, our vendors or a majority of our customers could impair
    our ability to effectively provide our services and may have a
    significant impact on our revenues, expenses and financial
    condition.

back-up






| |                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we lose key personnel or qualified technical staff, our
    ability to manage the
    day-to-day aspects of
    our business will be adversely affected.

day-to


14



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| |                                                                                                                                                                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we fail to maintain an effective system of internal
    controls, we may not be able to accurately report our financial
    results or prevent fraud. As a result, our business could be
    harmed and current and potential stockholders could lose
    confidence in our company, which could cause our stock price to
    fall.








|         |                          
|-------- | -------------------------
|Item 1B. | Unresolved Staff Comments








|        |           
|------- | ----------
|Item 2. | Properties



|                    |       |            |   |     |         |  |               |         |  |  |         |     |  |  |         |           | 
|------------------- | ----- | ---------- | - | --- | ------- |  | ------------- | ------- |  |  | ------- | --- |  |  | ------- | --------- | 
|                    |       | Number of  |   |     |         |  | Reprographics |         |  | 
|                    |       | Admin & IT |   |     | Square  |  |               | Service |  |  | Square  |    
|Region              |       | Facilities |   |     | Footage |  |               | Centers |  |  | Footage |    
|                    |       |            |   |     |         |  |               |         |  |  |         |    
|Southern California |       |            | 1 |     |         |  | 7,183         |         |  |  | 47      | (2) |  |  | 368,468 |          
|Northern California |       |            | 4 | (1) |         |  | 29,901        |         |  |  | 37      |     |  |  | 265,789 |          
|Pacific Northwest   |       |            | 0 |     |         |  | 0             |         |  |  | 11      |     |  |  | 103,364 |          
|Northeast           |       |            | 1 |     |         |  | 650           |         |  |  | 37      |     |  |  | 179,627 |          
|Southern            |       |            | 0 |     |         |  | 0             |         |  |  | 52      |     |  |  | 319,104 |          
|Midwest             |       |            | 0 |     |         |  | 0             |         |  |  | 31      | (3) |  |  | 238,736 |          
|                    |       |            |   |     |         |  |               |         |  |  |         |    
|                    | Total |            |   | 6   |         |  |               | 37,734  |  |  |         | 215 |  |  |         | 1,475,088 | 






|    |                                                                                        
|--- | ---------------------------------------------------------------------------------------
|(1) | Includes two technology centers in Fremont, California, and one
    in Calcutta, India.
|   
|(2) | Includes one service center in Mexico City, Mexico.                                    
|   
|(3) | Includes two service centers in the Toronto metropolitan area.                         

15



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|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings





Environmental and Regulatory Considerations









|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders



16



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PART II







|        |                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities

Market Information




|                 |  |             |       |  |     |   |       | 
|---------------- |  | ----------- | ----- |  | --- | - | ----- | 
|                 |  | Fiscal 2005 |      
|                 |  |             |      
|                 |  | High        |       |  | Low |  
|                 |  |             |       |  |     |  
|First Quarter(1) |  | $           | 15.64 |  |     | $ | 13.00 | 
|Second Quarter   |  |             | 16.20 |  |     |   | 13.42 | 
|Third Quarter    |  |             | 18.29 |  |     |   | 15.85 | 
|Fourth Quarter   |  |             | 25.95 |  |     |   | 16.55 | 






|    |                                                                                        
|--- | ---------------------------------------------------------------------------------------
|(1) | Beginning on February 4, 2005, the first day that our stock
    was listed on the NYSE.

Holders




Dividends




Sales of Unregistered Securities




17



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|        |                                     
|------- | ------------------------------------
|Item 6. | Selected Consolidated Financial Data



|                                                           |                 |                                |         |         |      |   |         |         |  |   |         |         |  |      |         |         |  |   |         |         | 
|---------------------------------------------------------- | --------------- | ------------------------------ | ------- | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- |  | ---- | ------- | ------- |  | - | ------- | ------- | 
|                                                           |                 | Fiscal Year Ended December 31, |        
|                                                           |                 |                                |        
|                                                           |                 | 2001                           |         |         | 2002 |   |         | 2003    |  |   | 2004    |         |  | 2005 |        
|                                                           |                 |                                |         |         |      |   |         |         |  |   |         |         |  |      |        
|                                                           |                 | (Dollars in thousands)         |        
|Statement of Operations Data:                              |                 |                                |         |         |      |   |         |         |  |   |         |         |  |      |         |         |  |   |         |        
|Reprographics services                                     |                 | $                              | 338,124 |         |      | $ | 324,402 |         |  | $ | 315,995 |         |  | $    | 333,305 |         |  | $ | 369,123 |        
|Facilities management                                      |                 |                                | 39,875  |         |      |   | 52,290  |         |  |   | 59,311  |         |  |      | 72,360  |         |  |   | 83,125  |        
|Equipment and supplies sales                               |                 |                                | 42,702  |         |      |   | 42,232  |         |  |   | 40,654  |         |  |      | 38,199  |         |  |   | 41,956  |        
|                                                           |                 |                                |         |         |      |   |         |         |  |   |         |         |  |      |        
|                                                           | Total net sales |                                |         | 420,701 |      |   |         | 418,924 |  |   |         | 415,960 |  |      |         | 443,864 |  |   |         | 494,204 | 
|Cost of sales                                              |                 |                                | 243,710 |         |      |   | 247,778 |         |  |   | 252,028 |         |  |      | 263,787 |         |  |   | 289,580 |        
|                                                           |                 |                                |         |         |      |   |         |         |  |   |         |         |  |      |        
|Gross profit                                               |                 |                                | 176,991 |         |      |   | 171,146 |         |  |   | 163,932 |         |  |      | 180,077 |         |  |   | 204,624 |        
|Selling, general and administrative expenses               |                 |                                | 104,004 |         |      |   | 103,305 |         |  |   | 101,252 |         |  |      | 105,780 |         |  |   | 112,679 |        
|Provision for sales tax dispute settlement                 |                 |                                |        |         |      |   |        |         |  |   |        |         |  |      | 1,389   |         |  |   |        |        
|Amortization of intangibles                                |                 |                                | 5,801   |         |      |   | 1,498   |         |  |   | 1,709   |         |  |      | 1,695   |         |  |   | 2,120   |        
|Write-off of intangible assets                             |                 |                                | 3,438   |         |      |   |        |         |  |   |        |         |  |      |        |         |  |   |        |        
|                                                           |                 |                                |         |         |      |   |         |         |  |   |         |         |  |      |        
|Income from operations                                     |                 |                                | 63,748  |         |      |   | 66,343  |         |  |   | 60,971  |         |  |      | 71,213  |         |  |   | 89,825  |        
|Other income                                               |                 |                                | 304     |         |      |   | 541     |         |  |   | 1,024   |         |  |      | 420     |         |  |   | 381     |        
|Interest expense                                           |                 |                                | (47,530 | )       |      |   | (39,917 | )       |  |   | (39,390 | )       |  |      | (33,565 | )       |  |   | (26,722 | )      
|Loss on early extinguishment of debt                       |                 |                                |        |         |      |   |        |         |  |   | (14,921 | )       |  |      |         |         |  |   | (9,344  | )      
|                                                           |                 |                                |         |         |      |   |         |         |  |   |         |         |  |      |        
|Income before income tax provision (benefit)               |                 |                                | 16,522  |         |      |   | 26,967  |         |  |   | 7,684   |         |  |      | 38,068  |         |  |   | 54,140  |        
|Income tax provision (benefit)(1)                          |                 |                                | 5,787   |         |      |   | 6,267   |         |  |   | 4,131   |         |  |      | 8,520   |         |  |   | (6,336  | )      
|                                                           |                 |                                |         |         |      |   |         |         |  |   |         |         |  |      |        
|Net income                                                 |                 |                                | 10,735  |         |      |   | 20,700  |         |  |   | 3,553   |         |  |      | 29,548  |         |  |   | 60,476  |        
|Dividends and amortization of discount on preferred equity |                 |                                | (3,107  | )       |      |   | (3,291  | )       |  |   | (1,730  | )       |  |      |        |         |  |   |        |        
|                                                           |                 |                                |         |         |      |   |         |         |  |   |         |         |  |      |        
|Net income                                                 |                 | $                              | 7,628   |         |      | $ | 17,409  |         |  | $ | 1,823   |         |  | $    | 29,548  |         |  | $ | 60,476  |        
|                                                           |                 |                                |         |         |      |   |         |         |  |   |         |         |  |      |        

18



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|                                            |         |                                          |   |        |      |  |   |        |  |  |      |        |  |      |   |        |  |  |   |        | 
|------------------------------------------- | ------- | ---------------------------------------- | - | ------ | ---- |  | - | ------ |  |  | ---- | ------ |  | ---- | - | ------ |  |  | - | ------ | 
|                                            |         | Fiscal Year Ended December 31,           |  
|                                            |         |                                          |  
|                                            |         | 2001                                     |   |        | 2002 |  |   | 2003   |  |  | 2004 |        |  | 2005 |  
|                                            |         |                                          |   |        |      |  |   |        |  |  |      |        |  |      |  
|                                            |         | (In thousands, except per share amounts) |  
|Earnings per share:                         |         |                                          |   |        |      |  |   |        |  |  |      |        |  |      |   |        |  |  |   |       
|                                            | Basic   |                                          | $ | 0.21   |      |  | $ | 0.48   |  |  | $    | 0.05   |  |      | $ | 0.83   |  |  | $ | 1.43   | 
|                                            | Diluted |                                          | $ | 0.21   |      |  | $ | 0.47   |  |  | $    | 0.05   |  |      | $ | 0.79   |  |  | $ | 1.40   | 
|Weighted average common shares outstanding: |         |                                          |   |        |      |  |   |        |  |  |      |        |  |      |   |        |  |  |   |       
|                                            | Basic   |                                          |   | 36,629 |      |  |   | 36,406 |  |  |      | 35,480 |  |      |   | 35,493 |  |  |   | 42,264 | 
|                                            | Diluted |                                          |   | 36,758 |      |  |   | 36,723 |  |  |      | 37,298 |  |      |   | 37,464 |  |  |   | 43,178 | 

|                                 |  |                                |        |  |      |   |        |      |  |   |        |  |  |      |        |  |  |   |        | 
|-------------------------------- |  | ------------------------------ | ------ |  | ---- | - | ------ | ---- |  | - | ------ |  |  | ---- | ------ |  |  | - | ------ | 
|                                 |  | Fiscal Year Ended December 31, |       
|                                 |  |                                |       
|                                 |  | 2001                           |        |  | 2002 |   |        | 2003 |  |   | 2004   |  |  | 2005 |       
|                                 |  |                                |        |  |      |   |        |      |  |   |        |  |  |      |       
|                                 |  | (Dollars in thousands)         |       
|Other Financial Data:            |  |                                |        |  |      |   |        |      |  |   |        |  |  |      |        |  |  |   |        | 
|Depreciation and amortization(2) |  | $                              | 25,442 |  |      | $ | 19,178 |      |  | $ | 19,937 |  |  | $    | 18,730 |  |  | $ | 19,165 | 
|Capital expenditures, net        |  | $                              | 8,659  |  |      | $ | 5,209  |      |  | $ | 4,992  |  |  | $    | 5,898  |  |  | $ | 5,237  | 
|Interest expense                 |  | $                              | 47,530 |  |      | $ | 39,917 |      |  | $ | 39,390 |  |  | $    | 33,565 |  |  | $ | 26,722 | 

|                                                                                      |  |                        |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         | 
|------------------------------------------------------------------------------------- |  | ---------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------- | - |  | - | ------- | 
|                                                                                      |  | As of December 31,     |        
|                                                                                      |  |                        |        
|                                                                                      |  | 2001                   |         |   | 2002 |   |         | 2003 |  |   | 2004    |   |  | 2005 |        
|                                                                                      |  |                        |         |   |      |   |         |      |  |   |         |   |  |      |        
|                                                                                      |  | (Dollars in thousands) |        
|Balance Sheet Data:                                                                   |  |                        |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         | 
|Cash and cash equivalents                                                             |  | $                      | 29,110  |   |      | $ | 24,995  |      |  | $ | 17,315  |   |  | $    | 13,826  |   |  | $ | 22,643  | 
|Total assets                                                                          |  | $                      | 372,583 |   |      | $ | 395,128 |      |  | $ | 374,716 |   |  | $    | 377,334 |   |  | $ | 442,361 | 
|Long term obligations and mandatorily redeemable preferred and
    common stock(3)(4) |  | $                      | 371,515 |   |      | $ | 378,102 |      |  | $ | 360,008 |   |  | $    | 338,371 |   |  | $ | 253,371 | 
|Total stockholders equity (deficit)                                                  |  | $                      | (78,955 | ) |      | $ | (61,082 | )    |  | $ | (60,015 | ) |  | $    | (35,009 | ) |  | $ | 113,569 | 
|Working capital                                                                       |  | $                      | 24,338  |   |      | $ | 24,371  |      |  | $ | 16,809  |   |  | $    | 22,387  |   |  | $ | 35,797  | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Company was reorganized from a California limited liability
    company to a Delaware corporation immediately prior to the
    consummation of its initial public offering on February 9,
    2005. As a result of that reorganization, a deferred tax benefit
    of $27,701 was booked concurrent with the consummation of the
    IPO.                                                                                                                                                                                                                                                                                                       
|   
|(2) | Depreciation and amortization includes a write-off of intangible
    assets of $3.4 million for the year ended December 31,
    2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(3) | In July 2003, we adopted SFAS No. 150,
    Accounting for Certain Financial Instruments with
    Characteristics of both Liabilities and Equity. In
    accordance with SFAS No. 150, the redeemable preferred
    equity of Holdings has been reclassified in our financial
    statements as a component of our total debt upon our adoption of
    this new standard. The redeemable preferred equity amounted to
    $25.8 million as of December 31, 2003 and
    $27.8 million as of December 31, 2004.
    SFAS No. 150 does not permit the restatement of
    financial statements for periods prior to the adoption of this
    standard.
|   
|(4) | Redeemable common stock amounted to $8.1 million at
    December 31, 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          






|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

The following discussion should be read in conjunction with
our consolidated financial statements and the related notes and
other financial information appearing elsewhere in this Annual
Report. This Annual Report contains forward-looking statements
that involve risks and uncertainties. Our actual results may
differ materially from those indicated in forward-looking
statements. See Forward-Looking Statements and
Risk Factors.


19



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##### Table of Contents



Executive Summary


business-to






| |   |                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Document management;                                                                                                                                         
|
| |  | Document distribution & logistics;                                                                                                                           
|
| |  | Print-on-demand; and                                                                                                                                         
|
| |  | On-site services, frequently referred to as facilities
    management, or FMs, (any combination of the above services
    supplied at a customers location).

on-site


17-year








Evaluating our Performance.




| |   |                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------
| |  | Creating consistent, profitable growth;                                                                                    
|
| |  | Maintaining our industry leadership as measured by our
    geographical footprint, market share and revenue generation;    
|
| |  | Continuing to develop and invest in our products, services, and
    technology to meet the changing needs of our customers;
|
| |  | Maintaining the lowest cost structure in the industry; and                                                                 

20



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| |   |                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Maintaining a flexible capital structure that provides for both
    responsible debt service and pursuit of acquisitions and other
    high-return investments.

Primary Financial Measures.


Net Sales. print-on






print-on












Costs and Expenses.


21



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##### Table of Contents











Operating Cash.


Other Common Financial Measures.




| |   |                                                                         
| | - | ------------------------------------------------------------------------
| |  | Net income and earnings per share;                                      
|
| |  | EBIT;                                                                   
|
| |  | EBITDA;                                                                 
|
| |  | Revenue per geographical region;                                        
|
| |  | Material costs as a percentage of net sales; and                        
|
| |  | Days Sales Outstanding/ Days Sales Inventory/ Days Accounts
    Payable.





Measuring revenue by other means.








| |   |                                                                                             
| | - | --------------------------------------------------------------------------------------------
| |  | East Coast  includes New England and the Mid-Atlantic
    states;                          
|
| |  | Midwest  includes Canadian operations as well as
    commonly considered Midwestern states;
|
| |  | Southern  our broadest region, spans Florida to Texas
    and north into Las Vegas;        
|
| |  | Southern California  with the Monterey Bay area as a
    rough dividing line;              

22



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| |   |                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------
| |  | Northern California  includes Silicon Valley, the
    San Francisco Bay Area and the Greater Sacramento/ Central
    Valley area; and
|
| |  | Pacific Northwest  includes Oregon and Washington.                                                                                   




Acquisitions.






23



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##### Table of Contents







| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. Standalone Acquisitions. Post-acquisition, these
    businesses maintain their existing local brand and act as
    strategic platforms for the company to acquire market share in
    and around the specific geographical location.                                                                                                                                                                                                                                                                                                                                                                                            
|
| | 2. Branch/ Fold-in Acquisitions. These are
    equivalent to our opening a new or green field
    branch. They support an outlying portion of a larger market and
    rely on a larger centralized production facility nearby for
    strategic management, load balancing, for providing specialized
    services, and for administrative and other back
    office support. We maintain the staff and equipment of
    these businesses to a minimum to serve a small market or a
    single large customer, or we may physically integrate
    (fold-in) staff and equipment into a larger nearby
    production facility.



Recent Developments.








Economic Factors Affecting Financial Performance.


24



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##### Table of Contents



Non-GAAP Measures














| |   |                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | They do not reflect our cash expenditures, or future
    requirements for capital expenditures and contractual
    commitments;                                                                                                               
|
| |  | They do not reflect changes in, or cash requirements for, our
    working capital needs;                                                                                                                                                      
|
| |  | They do not reflect the significant interest expense, or the
    cash requirements necessary, to service interest or principal
    payments on our debt;                                                                                      
|
| |  | Although depreciation and amortization are non-cash charges, the
    assets being depreciated and amortized will often have to be
    replaced in the future, and EBITDA does not reflect any cash
    requirements for such replacements; and
|
| |  | Other companies, including companies in our industry, may
    calculate these measures differently than we do, limiting their
    usefulness as comparative measures.                                                                         



25



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##### Table of Contents





|                                            |                                                            |                                |        |         |      |   |        |         |   |   |         |         |  
|------------------------------------------- | ---------------------------------------------------------- | ------------------------------ | ------ | ------- | ---- | - | ------ | ------- | - | - | ------- | ------- | -
|                                            |                                                            | Fiscal Year Ended December 31, |       
|                                            |                                                            |                                |       
|                                            |                                                            | 2003                           |        |         | 2004 |   |        | 2005    |  
|                                            |                                                            |                                |        |         |      |   |        |         |  
|                                            |                                                            | (Dollars in thousands)         |       
|Cash flows provided by operating activities |                                                            | $                              | 48,237 |         |      | $ | 60,858 |         |   | $ | 56,648  |        
|                                            | Changes in operating assets and liabilities                |                                |        | (1,102  | )    |   |        | (3,830  | ) |   |         | 8,859   |  
|                                            | Non-cash expenses, including depreciation and amortization |                                |        | (43,582 | )    |   |        | (27,480 | ) |   |         | (5,031  | )
|                                            | Income tax provision (benefit)                             |                                |        | 4,131   |      |   |        | 8,520   |   |   |         | (6,336  | )
|                                            | Interest expense                                           |                                |        | 39,390  |      |   |        | 33,565  |   |   |         | 26,722  |  
|                                            | Loss on early extinguishment of debt                       |                                |        | 14,921  |      |   |        |        |   |   |         | 9,344   |  
|                                            |                                                            |                                |        |         |      |   |        |         |  
|EBIT                                        |                                                            |                                | 61,995 |         |      |   | 71,633 |         |   |   | 90,206  |        
|                                            | Depreciation and amortization                              |                                |        | 19,937  |      |   |        | 18,730  |   |   |         | 19,165  |  
|                                            |                                                            |                                |        |         |      |   |        |         |  
|EBITDA                                      |                                                            |                                | 81,932 |         |      |   | 90,363 |         |   |   | 109,371 |        
|                                            | Interest expense                                           |                                |        | (39,390 | )    |   |        | (33,565 | ) |   |         | (26,722 | )
|                                            | Loss on early extinguishment of debt                       |                                |        | (14,921 | )    |   |        |        |   |   |         | (9,344  | )
|                                            | Income tax (provision) benefit                             |                                |        | (4,131  | )    |   |        | (8,520  | ) |   |         | 6,336   |  
|                                            | Depreciation and amortization                              |                                |        | (19,937 | )    |   |        | (18,730 | ) |   |         | (19,165 | )
|                                            | Dividends and amortization of discount on preferred equity |                                |        | (1,730  | )    |   |        |         |   |   |         |        |  
|                                            |                                                            |                                |        |         |      |   |        |         |  
|Net income                                  |                                                            | $                              | 1,823  |         |      | $ | 29,548 |         |   | $ | 60,476  |        
|                                            |                                                            |                                |        |         |      |   |        |         |  



|           |                                                            |                                |        |        |      |   |        |        |  |   |         |        |  
|---------- | ---------------------------------------------------------- | ------------------------------ | ------ | ------ | ---- | - | ------ | ------ |  | - | ------- | ------ | -
|           |                                                            | Fiscal Year Ended December 31, |       
|           |                                                            |                                |       
|           |                                                            | 2003                           |        |        | 2004 |   |        | 2005   | 
|           |                                                            |                                |        |        |      |   |        |        | 
|           |                                                            | (Dollars in thousands)         |       
|Net income |                                                            | $                              | 1,823  |        |      | $ | 29,548 |        |  | $ | 60,476  |       
|           | Dividends and amortization of discount on preferred equity |                                |        | 1,730  |      |   |        |       |  |   |         |       |  
|           | Interest expense, net                                      |                                |        | 39,390 |      |   |        | 33,565 |  |   |         | 26,722 |  
|           | Loss on early extinguishment of debt                       |                                | $      | 14,921 |      |   |        |        |  |   |         | 9,344  |  
|           | Income tax provision (benefit)                             |                                |        | 4,131  |      |   |        | 8,520  |  |   |         | (6,336 | )
|           | Depreciation and amortization                              |                                |        | 19,937 |      |   |        | 18,730 |  |   |         | 19,165 |  
|           |                                                            |                                |        |        |      |   |        |        | 
|EBITDA     |                                                            | $                              | 81,932 |        |      | $ | 90,363 |        |  | $ | 109,371 |       
|           |                                                            |                                |        |        |      |   |        |        | 



|                  |                                      |                   |      |     |      |  |      |      |   |  |      |      |   
|----------------- | ------------------------------------ | ----------------- | ---- | --- | ---- |  | ---- | ---- | - |  | ---- | ---- | --
|                  |                                      | Fiscal Year Ended |     
|                  |                                      | December 31,      |     
|                  |                                      |                   |     
|                  |                                      | 2003              |      |     | 2004 |  |      | 2005 |  
|                  |                                      |                   |      |     |      |  |      |      |  
|Net income margin |                                      |                   | 0.9  | %   |      |  | 6.7  | %    |   |  | 12.2 | %   
|                  | Interest expense, net                |                   |      | 9.5 | %    |  |      | 7.6  | % |  |      | 5.4  | % 
|                  | Income tax provision (benefit)       |                   |      | 1.0 | %    |  |      | 1.9  | % |  |      | (1.3 | )%
|                  | Loss on early extinguishment of debt |                   |      | 3.6 | %    |  |      |     | % |  |      | 1.9  | % 
|                  |                                      |                   |      |     |      |  |      |      |  
|EBIT margin       |                                      |                   | 14.9 | %   |      |  | 16.2 | %    |   |  | 18.2 | %   
|                  | Depreciation and amortization        |                   |      | 4.8 | %    |  |      | 4.2  | % |  |      | 3.9  | % 
|                  |                                      |                   |      |     |      |  |      |      |  
|EBITDA margin     |                                      |                   | 19.7 | %   |      |  | 20.4 | %    |   |  | 22.1 | %   
|                  |                                      |                   |      |     |      |  |      |      |  

26



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##### Table of Contents



Results of Operations




|                                             |                        |                                |       |      |      |  |       |      |   |  |       |      |  
|-------------------------------------------- | ---------------------- | ------------------------------ | ----- | ---- | ---- |  | ----- | ---- | - |  | ----- | ---- | -
|                                             |                        | As a Percentage of Net Sales   |      
|                                             |                        |                                |      
|                                             |                        | Fiscal Year Ended December 31, |      
|                                             |                        |                                |      
|                                             |                        | 2003                           |       |      | 2004 |  |       | 2005 |  
|                                             |                        |                                |       |      |      |  |       |      |  
|Net sales                                    |                        |                                | 100.0 | %    |      |  | 100.0 | %    |   |  | 100.0 | %   
|Cost of sales                                |                        |                                | 60.6  |      |      |  | 59.4  |      |   |  | 58.6  |     
|                                             |                        |                                |       |      |      |  |       |      |  
|                                             | Gross profit           |                                |       | 39.4 |      |  |       | 40.6 |   |  |       | 41.4 |  
|Selling, general and administrative expenses |                        |                                | 24.3  |      |      |  | 23.8  |      |   |  | 22.8  |     
|Provision for sales tax dispute settlement   |                        |                                |      |      |      |  | 0.3   |      |   |  |      |     
|Amortization of intangibles                  |                        |                                | 0.4   |      |      |  | 0.4   |      |   |  | 0.4   |     
|                                             |                        |                                |       |      |      |  |       |      |  
|                                             | Income from operations |                                |       | 14.7 |      |  |       | 16.1 |   |  |       | 18.2 |  
|Other income                                 |                        |                                | 0.2   |      |      |  | 0.1   |      |   |  | 0.1   |     
|Interest expense, net                        |                        |                                | (9.5  | )    |      |  | (7.6  | )    |   |  | (5.4  | )   
|Loss on early extinguishment of debt         |                        |                                | (3.6  | )    |      |  |      |      |   |  | (1.9  | )   
|                                             |                        |                                |       |      |      |  |       |      |  
|Income before income tax provision           |                        |                                | 1.8   |      |      |  | 8.6   |      |   |  | 11.0  |     
|Income tax (provision) benefit               |                        |                                | (1.0  | )    |      |  | (1.9  | )    |   |  | 1.2   |     
|                                             |                        |                                |       |      |      |  |       |      |  
|                                             | Net income             |                                |       | 0.8  | %    |  |       | 6.7  | % |  |       | 12.2 | %
|                                             |                        |                                |       |      |      |  |       |      |  

Year Ended December 31, 2005 Compared to Year Ended
December 31, 2004


|                                             |                 |               |       |       |                     |   |       |              |  |   |           |      |  |  |        |      |  
|-------------------------------------------- | --------------- | ------------- | ----- | ----- | ------------------- | - | ----- | ------------ |  | - | --------- | ---- |  |  | ------ | ---- | -
|                                             |                 | Year Ended    |       |       |                    
|                                             |                 | December 31,  |       |       | Increase (decrease) |  
|                                             |                 |               |       |       |                     |  
|                                             |                 | 2004          |       |       | 2005                |   |       | (In dollars) |  |   | (Percent) |     
|                                             |                 |               |       |       |                     |   |       |              |  |   |           |     
|                                             |                 | (In millions) |       |       |                     |   |      
|Reprographics services                       |                 | $             | 333.3 |       |                     | $ | 369.1 |              |  | $ | 35.8      |      |  |  | 10.7   | %   
|Facilities management                        |                 |               | 72.4  |       |                     |   | 83.1  |              |  |   | 10.7      |      |  |  | 14.8   |     
|Equipment and supplies sales                 |                 |               | 38.2  |       |                     |   | 42.0  |              |  |   | 3.8       |      |  |  | 10.0   |     
|                                             |                 |               |       |       |                     |   |       |              |  |   |           |     
|                                             | Total net sales |               | $     | 443.9 |                     |   | $     | 494.2        |  |   | $         | 50.3 |  |  |        | 11.3 | %
|Gross profit                                 |                 | $             | 180.1 |       |                     | $ | 204.6 |              |  | $ | 24.5      |      |  |  | 13.6   | %   
|Selling, general and administrative expenses |                 | $             | 105.8 |       |                     | $ | 112.7 |              |  | $ | 6.9       |      |  |  | 6.5    | %   
|Provision for sales tax liability            |                 | $             | 1.4   |       |                     | $ |      |              |  | $ | (1.4      | )    |  |  | n/a    |     
|Amortization of intangibles                  |                 | $             | 1.7   |       |                     | $ | 2.1   |              |  | $ | 0.4       |      |  |  | 23.5   | %   
|Interest expense, net                        |                 | $             | 33.6  |       |                     | $ | 26.7  |              |  | $ | (6.9      | )    |  |  | (20.5  | )%  
|Income taxes provision (benefit)             |                 | $             | 8.5   |       |                     | $ | (6.3  | )            |  | $ | (14.8     | )    |  |  | (174.1 | )%  
|Net income                                   |                 | $             | 29.5  |       |                     | $ | 60.5  |              |  | $ | 31.0      |      |  |  | 105.1  | %   
|EBITDA                                       |                 | $             | 90.4  |       |                     | $ | 109   |              |  | $ | 18.6      |      |  |  | 20.6   | %   



| |           
| | ----------
| | Net Sales.

Reprographic services.


27



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Facilities management. on-site on-site on-site on-site on-site


Equipment and supplies sales. on-site




| |              
| | -------------
| | Gross Profit.



on-site




Selling, General and Administrative Expenses.


28



---



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Amortization of Intangibles. not-to


Interest Expense, Net.


Income Taxes.


Net Income.


EBITDA.


29



---



##### Table of Contents



Year Ended December 31, 2004 Compared to Year Ended
December 31, 2003


|                                             |                 |               |       |       |                     |   |       |              |  |   |           |      |  |  |       |     |  
|-------------------------------------------- | --------------- | ------------- | ----- | ----- | ------------------- | - | ----- | ------------ |  | - | --------- | ---- |  |  | ----- | --- | -
|                                             |                 | Year Ended    |       |       |                    
|                                             |                 | December 31,  |       |       | Increase (Decrease) |  
|                                             |                 |               |       |       |                     |  
|                                             |                 | 2003          |       |       | 2004                |   |       | (In Dollars) |  |   | (Percent) |     
|                                             |                 |               |       |       |                     |   |       |              |  |   |           |     
|                                             |                 | (In millions) |       |       |                     |   |      
|Reprographics services                       |                 | $             | 316.1 |       |                     | $ | 333.3 |              |  | $ | 17.2      |      |  |  | 5.4   | %  
|Facilities management                        |                 |               | 59.3  |       |                     |   | 72.4  |              |  |   | 13.1      |      |  |  | 22.1  | %  
|Equipment and supplies sales                 |                 |               | 40.6  |       |                     |   | 38.2  |              |  |   | (2.4      | )    |  |  | (5.9  | )% 
|                                             |                 |               |       |       |                     |   |       |              |  |   |           |     
|                                             | Total net sales |               | $     | 416.0 |                     |   | $     | 443.9        |  |   | $         | 27.9 |  |  |       | 6.7 | %
|Gross profit                                 |                 | $             | 163.9 |       |                     | $ | 180.1 |              |  | $ | 16.2      |      |  |  | 9.9   | %  
|Selling, general and administrative expenses |                 | $             | 101.3 |       |                     | $ | 105.8 |              |  | $ | 4.5       |      |  |  | 4.4   | %  
|Amortization of intangibles                  |                 | $             | 1.7   |       |                     | $ | 1.7   |              |  | $ |          |      |  |  |      | %  
|Interest expense, net                        |                 | $             | 39.4  |       |                     | $ | 33.6  |              |  | $ | (5.8      | )    |  |  | (14.7 | )% 
|Income taxes                                 |                 | $             | 4.1   |       |                     | $ | 8.5   |              |  | $ | 4.4       |      |  |  | 107.3 | %  
|Net income                                   |                 | $             | 3.6   |       |                     | $ | 29.5  |              |  | $ | 25.9      |      |  |  | 719.4 | %  
|EBITDA                                       |                 | $             | 67.0  |       |                     | $ | 90.4  |              |  | $ | 23.4      |      |  |  | 34.9  | %  

Net Sales.




Gross Profit.


Selling, General and Administrative Expenses.


30



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Provision for Sales Tax Dispute Settlement.


Amortization of Intangibles.


Interest Expense, Net.




Income Taxes.


Net Income.


EBITDA.


31



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Quarterly Results of Operations




|                                       |                 |                                   |        |         |          |   |        |           |  |   |          |         |  |          |        |         |          |   |        |           |  |   |          |         |  |   |        |         |  |   |        |         | 
|-------------------------------------- | --------------- | --------------------------------- | ------ | ------- | -------- | - | ------ | --------- |  | - | -------- | ------- |  | -------- | ------ | ------- | -------- | - | ------ | --------- |  | - | -------- | ------- |  | - | ------ | ------- |  | - | ------ | ------- | 
|                                       |                 | Quarter Ended                     |       
|                                       |                 |                                   |       
|                                       |                 | Mar. 31,                          |        |         | June 30, |   |        | Sept. 30, |  |   | Dec. 31, |         |  | Mar. 31, |        |         | June 30, |   |        | Sept. 30, |  |   | Dec. 31, |        
|                                       |                 |                                   |        |         |          |   |        |           |  |   |          |         |  |          |        |         |          |   |        |           |  |   |          |        
|                                       |                 | 2004                              |        |         | 2005     |  
|                                       |                 |                                   |        |         |          |  
|                                       |                 | (Unaudited, dollars in thousands) |       
|Reprographics services                 |                 | $                                 | 84,170 |         |          | $ | 87,237 |           |  | $ | 81,958   |         |  | $        | 79,938 |         |          | $ | 87,695 |           |  | $ | 94,708   |         |  | $ | 94,730 |         |  | $ | 91,990 |        
|Facilities management                  |                 |                                   | 16,529 |         |          |   | 17,954 |           |  |   | 19,254   |         |  |          | 18,624 |         |          |   | 19,172 |           |  |   | 21,076   |         |  |   | 21,577 |         |  |   | 21,300 |        
|Equipment and supplies sales           |                 |                                   | 9,819  |         |          |   | 10,424 |           |  |   | 8,953    |         |  |          | 9,004  |         |          |   | 9,599  |           |  |   | 9,776    |         |  |   | 11,180 |         |  |   | 11,401 |        
|                                       |                 |                                   |        |         |          |   |        |           |  |   |          |         |  |          |        |         |          |   |        |           |  |   |          |        
|                                       | Total net sales |                                   | $      | 110,518 |          |   | $      | 115,615   |  |   | $        | 110,165 |  |          | $      | 107,566 |          |   | $      | 116,466   |  |   | $        | 125,560 |  |   | $      | 127,487 |  |   | $      | 124,691 | 
|Quarterly sales as a % of annual sales |                 |                                   | 24.9   | %       |          |   | 26.1   | %         |  |   | 24.8     | %       |  |          | 24.2   | %       |          |   | 23.6   | %         |  |   | 25.4     | %       |  |   | 25.8   | %       |  |   | 25.2   | %      
|Gross profit                           |                 | $                                 | 45,919 |         |          | $ | 49,424 |           |  | $ | 44,287   |         |  | $        | 40,447 |         |          | $ | 48,325 |           |  | $ | 53,654   |         |  | $ | 52,522 |         |  | $ | 50,124 |        
|Income from operations                 |                 | $                                 | 18,588 |         |          | $ | 20,639 |           |  | $ | 17,702   |         |  | $        | 14,284 |         |          | $ | 21,060 |           |  | $ | 25,083   |         |  | $ | 23,604 |         |  | $ | 20,078 |        
|EBITDA                                 |                 | $                                 | 23,376 |         |          | $ | 25,839 |           |  | $ | 22,627   |         |  | $        | 18,521 |         |          | $ | 25,608 |           |  | $ | 29,648   |         |  | $ | 28,685 |         |  | $ | 25,431 |        
|Net income                             |                 | $                                 | 8,438  |         |          | $ | 9,845  |           |  | $ | 7,191    |         |  | $        | 4,074  |         |          | $ | 35,563 |           |  | $ | 11,383   |         |  | $ | 10,518 |         |  | $ | 3,012  |        



|                                     |  |                                   |        |   |          |   |        |           |  |   |          |   |  |          |        |   |          |   |        |           |  |   |          |   |  |   |        |   |  |   |        |  
|------------------------------------ |  | --------------------------------- | ------ | - | -------- | - | ------ | --------- |  | - | -------- | - |  | -------- | ------ | - | -------- | - | ------ | --------- |  | - | -------- | - |  | - | ------ | - |  | - | ------ | -
|                                     |  | Quarter Ended                     |       
|                                     |  |                                   |       
|                                     |  | Mar. 31,                          |        |   | June 30, |   |        | Sept. 30, |  |   | Dec. 31, |   |  | Mar. 31, |        |   | June 30, |   |        | Sept. 30, |  |   | Dec. 31, |  
|                                     |  |                                   |        |   |          |   |        |           |  |   |          |   |  |          |        |   |          |   |        |           |  |   |          |  
|                                     |  | 2004                              |        |   | 2005     |  
|                                     |  |                                   |        |   |          |  
|                                     |  | (Unaudited, dollars in thousands) |       
|EBITDA                               |  |                                   | 23,376 |   |          |   | 25,839 |           |  |   | 22,627   |   |  |          | 18,521 |   |          |   | 25,608 |           |  |   | 29,648   |   |  |   | 28,685 |   |  |   | 25,431 |  
|Interest expense                     |  |                                   | (8,125 | ) |          |   | (8,405 | )         |  |   | (8,559   | ) |  |          | (8,476 | ) |          |   | (8,324 | )         |  |   | (6,194   | ) |  |   | (6,131 | ) |  |   | (6,074 | )
|Loss on early extinguishment of debt |  |                                   |       |   |          |   |       |           |  |   |         |   |  |          |       |   |          |   |       |           |  |   |         |   |  |   |       |   |  |   | (9,344 | )
|Income tax benefit (provision)       |  |                                   | (2,299 | ) |          |   | (2,682 | )         |  |   | (1,959   | ) |  |          | (1,580 | ) |          |   | 22,709 |           |  |   | (7,612   | ) |  |   | (7,018 | ) |  |   | (1,743 | )
|Depreciation and amortization        |  |                                   | (4,514 | ) |          |   | (4,907 | )         |  |   | (4,918   | ) |  |          | (4,391 | ) |          |   | (4,430 | )         |  |   | (4,459   | ) |  |   | (5,018 | ) |  |   | (5,258 | )
|                                     |  |                                   |        |   |          |   |        |           |  |   |          |   |  |          |        |   |          |   |        |           |  |   |          |  
|Net income                           |  | $                                 | 8,438  |   |          | $ | 9,845  |           |  | $ | 7,191    |   |  | $        | 4,074  |   |          | $ | 35,563 |           |  | $ | 11,383   |   |  | $ | 10,518 |   |  | $ | 3,012  |  
|                                     |  |                                   |        |   |          |   |        |           |  |   |          |   |  |          |        |   |          |   |        |           |  |   |          |  

quarter-to


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Impact of Inflation




Liquidity and Capital Resources




|                                          |  |                         |         |   |      |   |         |      |  |   |         |  
|----------------------------------------- |  | ----------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                          |  | Year Ended December 31, |        
|                                          |  |                         |        
|                                          |  | 2003                    |         |   | 2004 |   |         | 2005 | 
|                                          |  |                         |         |   |      |   |         |      | 
|                                          |  | (Dollars in thousands)  |        
|Net cash provided by operating activities |  | $                       | 48,237  |   |      | $ | 60,858  |      |  | $ | 56,648  |  
|                                          |  |                         |         |   |      |   |         |      | 
|Net cash used in investing activities     |  | $                       | (8,336  | ) |      | $ | (10,586 | )    |  | $ | (27,547 | )
|                                          |  |                         |         |   |      |   |         |      | 
|Net cash used in financing activities     |  | $                       | (47,581 | ) |      | $ | (53,761 | )    |  | $ | (20,284 | )
|                                          |  |                         |         |   |      |   |         |      | 

Operating Activities








Investing Activities




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Financing Activities






|                                                   |                        |                        |         |         |      |   |         |         |  |   |         |         | 
|-------------------------------------------------- | ---------------------- | ---------------------- | ------- | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- | 
|                                                   |                        | December 31            |        
|                                                   |                        |                        |        
|                                                   |                        | 2003                   |         |         | 2004 |   |         | 2005    | 
|                                                   |                        |                        |         |         |      |   |         |         | 
|                                                   |                        | (Dollars in thousands) |        
|Cash and cash equivalents                          |                        | $                      | 17,315  |         |      | $ | 13,826  |         |  | $ | 22,643  |        
|Working capital                                    |                        | $                      | 16,809  |         |      | $ | 22,387  |         |  | $ | 35,797  |        
|                                                  
|Mandatorily redeemable preferred and common equity |                        | $                      | 25,791  |         |      | $ | 27,814  |         |  | $ |        |        
|Other debt obligations                             |                        |                        | 359,340 |         |      |   | 320,833 |         |  |   | 273,812 |        
|                                                   |                        |                        |         |         |      |   |         |         | 
|                                                   | Total debt obligations |                        | $       | 385,131 |      |   | $       | 348,647 |  |   | $       | 273,812 | 
|                                                   |                        |                        |         |         |      |   |         |         | 









34



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Debt Obligations


Senior Secured Credit Facilities.


The Wall Street Journal




35



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|                                                  |  |                         |         |           |                         |   |          |      |  |  |           |           |  |          |          |  |      |   |        |  |  |  |      |  
|------------------------------------------------- |  | ----------------------- | ------- | --------- | ----------------------- | - | -------- | ---- |  |  | --------- | --------- |  | -------- | -------- |  | ---- | - | ------ |  |  |  | ---- | -
|                                                  |  | As of December 31, 2004 |         |           | As of December 31, 2005 |  
|                                                  |  |                         |         |           |                         |  
|                                                  |  |                         |         | Available |                         |   |          |      |  |  | Available |           |  |         
|                                                  |  |                         |         | Borrowing |                         |   | Interest |      |  |  |           | Borrowing |  |          | Interest | 
|                                                  |  | Balance                 |         |           | Capacity                |   |          | Rate |  |  | Balance   |           |  | Capacity |          |  | Rate |  
|                                                  |  |                         |         |           |                         |   |          |      |  |  |           |           |  |          |          |  |      |  
|                                                  |  | (Dollars in thousands)  |        
|Term facility                                     |  | $                       | 94,800  |           |                         | $ |         |      |  |  | 5.26      | %         |  | $        | 230,423  |  |      | $ | 50,000 |  |  |  | 6.12 | %
|Revolving facility                                |  |                         |        |           |                         |   | 30,000   |      |  |  |          |           |  |          | 5,000    |  |      |   | 25,000 |  |  |  | 8.25 | %
|Second priority facility, excluding debt discount |  |                         | 208,231 |           |                         |   |         |      |  |  | 8.92      | %         |  |          |         |  |      |   |       |  |  |  |     |  
|                                                  |  |                         |         |           |                         |   |          |      |  |  |           |           |  |          |          |  |      |  
|                                                  |  | $                       | 303,031 |           |                         | $ | 30,000   |      |  |  |           |           |  | $        | 235,423  |  |      | $ | 75,000 |  |  |  |      |  
|                                                  |  |                         |         |           |                         |   |          |      |  |  |           |           |  |          |          |  |      |  



Redeemable Preferred Units.


Seller Notes.


Off-Balance Sheet Arrangements




Contractual Obligations and Other Commitments




|                            |       |                                   |        |        |      |   |        |        |  |   |         |         |  |      |         |         |            |   |       |       |  |   |        |        | 
|--------------------------- | ----- | --------------------------------- | ------ | ------ | ---- | - | ------ | ------ |  | - | ------- | ------- |  | ---- | ------- | ------- | ---------- | - | ----- | ----- |  | - | ------ | ------ | 
|                            |       | Twelve Months Ending December 31, |        |        |     
|                            |       |                                   |        |        |     
|                            |       | 2006                              |        |        | 2007 |   |        | 2008   |  |   | 2009    |         |  | 2010 |         |         | Thereafter |  
|                            |       |                                   |        |        |      |   |        |        |  |   |         |         |  |      |         |         |            |  
|                            |       | (Dollars in thousands)            |       
|Debt obligations            |       | $                                 | 10,756 |        |      | $ | 4,423  |        |  | $ | 115,522 |         |  | $    | 114,495 |         |            | $ | 1,369 |       |  | $ | 120    |       
|Capital lease obligations   |       |                                   | 9,685  |        |      |   | 8,499  |        |  |   | 5,649   |         |  |      | 2,163   |         |            |   | 973   |       |  |   | 158    |       
|Operating lease obligations |       |                                   | 28,317 |        |      |   | 19,453 |        |  |   | 12,459  |         |  |      | 8,468   |         |            |   | 5,295 |       |  |   | 11,660 |       
|                            |       |                                   |        |        |      |   |        |        |  |   |         |         |  |      |         |         |            |  
|                            | Total |                                   | $      | 48,758 |      |   | $      | 32,375 |  |   | $       | 133,630 |  |      | $       | 125,126 |            |   | $     | 7,637 |  |   | $      | 11,938 | 
|                            |       |                                   |        |        |      |   |        |        |  |   |         |         |  |      |         |         |            |  

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Operating Leases.


Contingent Transaction Consideration.


State Sales Tax.


Impact of Conversion from an LLC to a Corporation




Income Taxes




37



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|                                                                                                      |         |                                               |       |      |      |   |        |      |  |   |       |      |  |      |        |      |  |   |        |      | 
|----------------------------------------------------------------------------------------------------- | ------- | --------------------------------------------- | ----- | ---- | ---- | - | ------ | ---- |  | - | ----- | ---- |  | ---- | ------ | ---- |  | - | ------ | ---- | 
|                                                                                                      |         | Fiscal Year Ended December 31,                |      
|                                                                                                      |         |                                               |      
|                                                                                                      |         | 2001                                          |       |      | 2002 |   |        | 2003 |  |   | 2004  |      |  | 2005 |       
|                                                                                                      |         |                                               |       |      |      |   |        |      |  |   |       |      |  |      |       
|                                                                                                      |         | (In thousands, except per unit/share amounts) |      
|Net income (loss) attributable to common members/stockholders                                         |         | $                                             | 7,628 |      |      | $ | 17,409 |      |  | $ | 1,823 |      |  | $    | 29,548 |      |  | $ | 60,476 |     
|Unaudited pro forma incremental income
    tax provision                                              |         |                                               | 2,574 |      |      |   | 6,211  |      |  |   | 673   |      |  |      | 9,196  |      |  |   | 333    |     
|                                                                                                      |         |                                               |       |      |      |   |        |      |  |   |       |      |  |      |       
|Unaudited pro forma net income attributable to common
    members/stockholders                        |         | $                                             | 5,054 |      |      | $ | 11,198 |      |  | $ | 1,150 |      |  | $    | 20,352 |      |  | $ | 60,143 |     
|                                                                                                      |         |                                               |       |      |      |   |        |      |  |   |       |      |  |      |       
|Unaudited pro forma net income attributable to common
    members/stockholders per common unit/share: |         |                                               |       |      |      |   |        |      |  |   |       |      |  |      |        |      |  |   |        |     
|                                                                                                      | Basic   |                                               | $     | 0.14 |      |   | $      | 0.31 |  |   | $     | 0.03 |  |      | $      | 0.57 |  |   | $      | 1.42 | 
|                                                                                                      | Diluted |                                               | $     | 0.14 |      |   | $      | 0.30 |  |   | $     | 0.03 |  |      | $      | 0.54 |  |   | $      | 1.39 | 

Stockholders Equity




Critical Accounting Policies.




| |                                     
| | ------------------------------------
| | Goodwill and Other Intangible Assets



38



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not-to




| |                                
| | -------------------------------
| | Allowance for Doubtful Accounts





| |                              
| | -----------------------------
| | Commitments and Contingencies



Recent Accounting Pronouncements




39



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##### Table of Contents















40



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##### Table of Contents








|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures about Market
    Risk














|        |                                                             
|------- | ------------------------------------------------------------
|Item 8. | Consolidated Financial Statements and Supplementary
    Data








|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants On
    Accounting And Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

Disclosure Controls and Procedures




13a-15(e) 15d-15(e)


Changes in Internal Control Over Financial Reporting









|         |                  
|-------- | -----------------
|Item 9B. | Other Information



41



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PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant

Board of Directors




|                             |  |            |      |     |     |  |    | 
|---------------------------- |  | ---------- | ---- | --- | --- |  | -- | 
|                             |  | Year First |      |     |    
|Name                         |  | Elected    |      |     | Age | 
|                             |  |            |      |     |     | 
|Sathiyamurthy Chandramohan   |  |            | 1998 | (1) |     |  | 47 | 
|Kumarakulasingam Suriyakumar |  |            | 1998 | (1) |     |  | 52 | 
|Thomas J. Formolo            |  |            | 2000 | (2) |     |  | 41 | 
|Edward D. Horowitz           |  |            | 2005 |     |     |  | 58 | 
|Dewitt Kerry McCluggage      |  |            | 2006 |     |     |  | 51 | 
|Mark W. Mealy                |  |            | 2005 |     |     |  | 48 | 
|Manuel Perez de la Mesa      |  |            | 2002 | (3) |     |  | 48 | 






|    |                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------
|(1) | Served as an advisor of Holdings since 1998 and as a director of
    ARC since October 2004.           
|   
|(2) | Served as an advisor of Holdings since 2000 and as a director of
    ARC since October 2004.           
|   
|(3) | Functioned as a director of Holdings since 2002 and served as a
    director of ARC since October 2004.



Sathiyamurthy (Mohan) Chandramohan


Kumarakulasingam (Suri) Suriyakumar


Thomas J. Formolo


Edward D. Horowitz


42



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##### Table of Contents



e-Citi


Dewitt Kerry McCluggage


Mark W. Mealy


Manuel Perez de la Mesa


Executive Officers of the Registrant




|                             |  |     |    |  |          |                                                            
|---------------------------- |  | --- | -- |  | -------- | -----------------------------------------------------------
|Name                         |  | Age |    |  | Position
|                             |  |     |    |  |         
|Sathiyamurthy Chandramohan   |  |     | 47 |  |          | Chief Executive Officer; Chairman of the Board of Directors
|Kumarakulasingam Suriyakumar |  |     | 52 |  |          | President; Chief Operating Officer; Director               
|Mark W. Legg                 |  |     | 51 |  |          | Chief Financial Officer; Secretary                         
|Rahul K. Roy                 |  |     | 46 |  |          | Chief Technology Officer                                   



Mark W. Legg


Rahul K. Roy


43



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Audit Committee






Section 16(a) Beneficial Ownership Reporting
Compliance






Code of Ethics


S-K


44



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S-K,


Certain Executive Officer Certifications


10-K









|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation



Summary Compensation Table


|                            |                          |                     |      |              |            |   |            |         |  |              |                 |         |  |         |   |        |              |  |   |         |  |   |       |       |     
|--------------------------- | ------------------------ | ------------------- | ---- | ------------ | ---------- | - | ---------- | ------- |  | ------------ | --------------- | ------- |  | ------- | - | ------ | ------------ |  | - | ------- |  | - | ----- | ----- | ----
|                            |                          |                     |      |              |            |   |            |         |  | Long Term    |                 |         | 
|                            |                          |                     |      |              |            |   |            |         |  | Compensation |                 |         | 
|                            |                          |                     |      | Awards       |            |   |           
|                            |                          | Annual Compensation |      |              |            |   |            |        
|                            |                          |                     |      |              | Securities |   |            |        
|                            |                          |                     |      | Other Annual |            |   | Underlying |         |  | All Other    |                
|Name and Principal Position |                          | Year                |      |              | Salary     |   |            | Bonus   |  |              | Compensation(1) |         |  | Options |   |        | Compensation | 
|                            |                          |                     |      |              |            |   |            |         |  |              |                 |         |  |         |   |        |              | 
|S. Chandramohan             |                          |                     | 2005 |              |            | $ | 649,583    |         |  | $            | 1,080,000       | (2)     |  | $       |  | (3)    |              |  |  |         |  | $ | 270   | (4)  
|                            | Chairman of the Board of |                     |      | 2004         |            |   |            | 600,000 |  |              |                 | 225,000 |  |         |   | 58,718 | (5)          |  |   |        |  |   |       | 288   | (4) 
|                            | Directors and Chief      |                     |      | 2003         |            |   |            | 600,000 |  |              |                 |        |  |         |   | 52,150 | (6)          |  |   |        |  |   |       | 288   | (4) 
|                            | Executive Officer        |                     |      |              |            |   |            |         |  |              |                 |         |  |         |   |        |              |  |   |         |  |   |       |       |     
|K. Suriyakumar              |                          |                     | 2005 |              |            |   | 649,583    |         |  |              | 1,080,000       | (7)     |  |         |  | (3)    |              |  |  |         |  |   | 383   | (4)  
|                            | President, Chief         |                     |      | 2004         |            |   |            | 600,000 |  |              |                 | 225,000 |  |         |   | 66,332 | (8)          |  |   |        |  |   |       | 288   | (4) 
|                            | Operating Officer and    |                     |      | 2003         |            |   |            | 600,000 |  |              |                 |        |  |         |   | 66,527 | (8)          |  |   |        |  |   |       | 288   | (4) 
|                            | Director                 |                     |      |              |            |   |            |         |  |              |                 |         |  |         |   |        |              |  |   |         |  |   |       |       |     
|Mark W. Legg                |                          |                     | 2005 |              |            |   | 243,461    |         |  |              | 250,000         |         |  |         |  | (3)    |              |  |  |         |  |   | 1,593 | (9)  
|                            | Chief Financial Officer  |                     |      | 2004         |            |   |            | 196,667 |  |              |                 | 490,000 |  |         |   |       |              |  |   | 15,000  |  |   |       | 1,280 | (10)
|                            | and Secretary            |                     |      | 2003         |            |   |            | 200,000 |  |              |                 | 387,000 |  |         |   |       |              |  |   |        |  |   |       | 1,288 | (11)
|Rahul K. Roy                |                          |                     | 2005 |              |            |   | 403,077    |         |  |              |                | (15)    |  |         |  | (3)    |              |  |  |         |  |   | 3,580 | (12) 
|                            | Chief Technology Officer |                     |      | 2004         |            |   |            | 360,000 |  |              |                 |        |  |         |   |       |              |  |   | 100,000 |  |   |       | 3,018 | (13)
|                            |                          |                     |      | 2003         |            |   |            | 360,000 |  |              |                 |        |  |         |   |       |              |  |   |        |  |   |       | 2,688 | (14)






| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Certain perquisites and other personal benefits provided by us
    to the Named Executive Officers are not included in the above
    table as permitted by the SEC regulations because the aggregate
    amount of such perquisites and other personal benefits for each
    Named Executive Officer in each year reflected in the table did
    not exceed the lesser of $50,000 or 10% of the sum of such
    officers salary and bonus in each respective year.

45



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##### Table of Contents





| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (2) | Represents incentive bonus paid under terms of employment
    agreement consisting of 40,326 shares of the Companys
    common stock. The employment agreement provides that
    Mr. Chandramohan can elect to receive his incentive bonus
    in cash, the Companys common stock, or partly in each. If
    the incentive bonus is paid in the Companys common stock,
    such stock is valued using the average of the closing prices of
    the Companys common stock on the NYSE for the 10 trading
    days immediately preceding the valuation date (March 1,
    2006) of the Companys common stock in payment of the
    incentive bonus.
|
| | (3) | Messrs. Chandramohan, Suriyakumar, Legg and Roy received
    standard benefits received by full-time employees under the
    terms of their employment agreements. These include an employee
    stock purchase plan (which is not reflected in this table.)                                                                                                                                                                                                                                                                                                                                                                                          
|
| | (4) | Consists of premiums for life insurance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| | (5) | Includes $54,218 for automobile lease payments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | (6) | Includes $47,770 for automobile lease payments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | (7) | Represents incentive bonus paid under terms of employment
    agreement consisting of 40,326 shares of the Companys
    common stock. The employment agreement provides that
    Mr. Suriyakumar can elect to receive his incentive bonus in
    cash, the Companys common stock, or partly in each. If the
    incentive bonus is paid in the Companys common stock, such
    stock is valued using the average of the closing prices of the
    Companys common stock on the NYSE for the 10 trading days
    immediately preceding the valuation date of the Companys
    common stock in payment of the incentive bonus.                     
|
| | (8) | Consists of automobile lease payments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| | (9) | Consists of $414 of premiums for life insurance and $1,179 paid
    by us as the employer match under our 401(k) plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                



|     |                                                                                                                       
|---- | ----------------------------------------------------------------------------------------------------------------------
|(10) | Consists of $213 of premiums for life insurance and $1,067 paid
    by us as the employer match under our 401(k) plan.
|    
|(11) | Consists of $288 of premiums for life insurance and $1,000 paid
    by us as the employer match under our 401(k) plan.
|    
|(12) | Consists of $903 of premiums for life insurance and $2,677 paid
    by us as the employer match under our 401(k) plan.
|    
|(13) | Consists of $360 of premiums for life insurance and $2,658 paid
    by us as the employer match under our 401(k) plan.
|    
|(14) | Consists of $288 of premiums for life insurance and $2,400 paid
    by us as the employer match under our 401(k) plan.
|    
|(15) | The amount of Mr. Roys bonus has not yet been
    determined.                                                        

Option Grants During the Year Ended December 31, 2005




46



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##### Table of Contents



Aggregated Option Exercises During the Year Ended
December 31, 2005 and Value of Options Held at
December 31, 2005




Fiscal Year-End Option Values


|                |  |             |        |  |                |                        |              |               |                      |              |                 |  |  |   |                       | 
|--------------- |  | ----------- | ------ |  | -------------- | ---------------------- | ------------ | ------------- | -------------------- | ------------ | --------------- |  |  | - | --------------------- | 
|                |  |             |        |  |                | Number of Securities   |              |               | Value of Unexercised |             
|                |  |             |        |  |                | Underlying Unexercised |              |               | In-the-Money         |             
|                |  |             |        |  |                | Options at FY-End      |              |               | Options at FY-End    |             
|                |  | Shares      |        |  |                |                        |              |               |                      |              |                
|                |  | Acquired    |        |  |                |                        | Exercisable/ |               |                      | Exercisable/ |                
|Name            |  | on Exercise |        |  | Value Realized |                        |              | Unexercisable |                      |              | Unexercisable   | 
|                |  |             |        |  |                |                        |              |               |                      |              |                 | 
|S. Chandramohan |  |             |       |  |                |                        |             |               |                      |              |                |  |  |   |                      | 
|K. Suriyakumar  |  |             |       |  |                |                        |             |               |                      |              |                |  |  |   |                      | 
|Mark W. Legg    |  |             |       |  |                |                        |             |               |                      |              | 15,000/0        |  |  | $ | 296,898/$0            | 
|Rahul K. Roy    |  |             | 76,000 |  |                | $                      | 958,955      |               |                      |              | 604,000/120,000 |  |  | $ | 12,248,553/$2,371,092 | 

Compensation of Directors








2005 Non-Employee Directors Compensation


|                        |  |          |        |  |            |   |       |            |  |  |          |  |  |   |        | 
|----------------------- |  | -------- | ------ |  | ---------- | - | ----- | ---------- |  |  | -------- |  |  | - | ------ | 
|                        |  | Annual   |        |  | Committee  |   |       | Stock      |  |  |         
|Non-Employee Directors  |  | Retainer |        |  | Chair Fees |   |       | Options(1) |  |  | Total(2) | 
|                        |  |          |        |  |            |   |       |            |  |  |          | 
|Andrew W. Code          |  | $        | 40,000 |  |            | $ |      |            |  |  | 9,854    |  |  | $ | 90,000 | 
|Thomas J. Formolo       |  |          | 40,000 |  |            |   |      |            |  |  | 9,854    |  |  |   | 90,000 | 
|Edward D. Horowitz      |  |          | 40,000 |  |            |   | 5,000 |            |  |  | 9,854    |  |  |   | 95,000 | 
|Mark W. Mealy           |  |          | 40,000 |  |            |   | 5,000 |            |  |  | 9,854    |  |  |   | 95,000 | 
|Manuel Perez de la Mesa |  |          | 40,000 |  |            |   | 5,000 |            |  |  | 9,854    |  |  |   | 95,000 | 






|    |                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------
|(1) | Reflects those options granted under the 2005 Stock Option Plan,
    as described above.                                 
|   
|(2) | Table does not include compensation for items such as
    reimbursement for travel and expenses to attend board meetings.

Employment Agreements




47



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Compensation Committee Interlocks and Insider
Participation








48



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##### Table of Contents
















|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters

Equity Compensation Plan Information




|                                                       |                                    |                         |           |           |                      |                                |   |                          |  |  |           |           |    
|------------------------------------------------------ | ---------------------------------- | ----------------------- | --------- | --------- | -------------------- | ------------------------------ | - | ------------------------ |  |  | --------- | --------- | ---
|                                                       |                                    | (a)                     |           |           | (b)                  |                                |   | (c)                      | 
|                                                       |                                    |                         |           |           |                      |                                |   |                          | 
|                                                       |                                    |                         |           |           |                      | Number of Securities           |  
|                                                       |                                    |                         |           |           |                      | Remaining Available for Future |  
|                                                       |                                    | Number of Securities to |           |           | Weighted-Average     |                                |   | Issuance Under Equity    | 
|                                                       |                                    | be Issued Upon Exercise |           |           | Exercise Price of    |                                |   | Compensation Plans       | 
|                                                       |                                    | of Outstanding Options, |           |           | Outstanding Options, |                                |   | (Excluding Securities    | 
|Plan Category                                          |                                    | Warrants and Rights     |           |           | Warrants and Rights  |                                |   | Reflected in Column (a)) | 
|                                                       |                                    |                         |           |           |                      |                                |   |                          | 
|Equity compensation plans approved by stockholders     |                                    |                         |           |           |                      |                                |   |                          |  |  |           |          
|                                                       | 2005 Stock Plan                   |                         |           | 1,422,585 | (1)                  |                                | $ | 5.91                     |  |  |           | 3,249,315 | (2)
|                                                       | 2005 Employee Stock Purchase Plan |                         |           | 362,061   |                      |                                | $ | 11.05                    |  |  |           | 387,939   |    
|Equity compensation plans not approved by stockholders |                                    |                         |          |           |                      | $                              |  |                          |  |  |          |          
|                                                       |                                    |                         |           |           |                      |                                |   |                          | 
|Total                                                  |                                    |                         | 1,784,646 |           |                      | $                              |  |                          |  |  | 3,637,254 |          
|                                                       |                                    |                         |           |           |                      |                                |   |                          | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents outstanding options granted under the 2005 Stock Plan
    to acquire common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   
|(2) | The total shares of common stock currently reserved and
    authorized for issuance under the 2005 Stock Plan equals
    5,000,000 shares of common stock. This authorization
    automatically increases annually on the first day of our fiscal
    year, from 2006 through and including 2010, by the lesser of
    (i) 1.0% of the outstanding shares on the date of the
    increase; (ii) 300,000 shares; or (iii) such
    smaller number of shares determined by our board of directors.
    The board may elect to increase, with stockholder approval, or
    reduce the number of additional shares authorized in any given
    year.

Security Ownership of Certain Beneficial Owners and
Management






| |   |                                                                                         
| | - | ----------------------------------------------------------------------------------------
| |  | each person who is known to us to own beneficially more than 5%
    of our common stock;
|
| |  | all directors and Named Executive Officers as a group; and                              

49



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##### Table of Contents





| |   |                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------
| |  | each of our directors and each of our executive officers named
    in the Summary Compensation Table on page 45 of this report.



|                                                                         |                                |                     |            |            |         |  |      |      |  
|------------------------------------------------------------------------ | ------------------------------ | ------------------- | ---------- | ---------- | ------- |  | ---- | ---- | -
|                                                                         |                                | Shares Beneficially |           
|                                                                         |                                | Owned               |           
|                                                                         |                                |                     |           
|Name and Address of Beneficial Owner                                     |                                | Number              |            |            | Percent | 
|                                                                         |                                |                     |            |            |         | 
|Principal Stockholders:                                                  |                                |                     |            |            |         |  |      |     
|                                                                         | ARC Acquisition Co., L.L.C.(1) |                     |            | 11,042,194 |         |  |      | 24.7 | %
|                                                                         | 10 S. Wacker Drive, Suite 3175 |                     |            |            |         |  |      |      |  
|                                                                         | Chicago, IL 60606              |                     |            |            |         |  |      |      |  
|Micro Device, Inc.                                                       |                                |                     | 6,630,442  |            |         |  | 14.9 | %   
|OCB Reprographics, Inc.                                                  |                                |                     | 4,332,882  |            |         |  | 9.7  | %   
|Billy E. Thomas(2)                                                       |                                |                     | 4,436,555  |            |         |  | 9.9  | %   
|                                                                         | 600 North Central Expressway   |                     |            |            |         |  |      |      |  
|                                                                         | Richardson, TX 75080           |                     |            |            |         |  |      |      |  
|Delaware Management Holdings(13)                                         |                                |                     | 2,638,936  |            |         |  | 5.9  | %   
|                                                                         | 2005 Market Street             |                     |            |            |         |  |      |      |  
|                                                                         | Philadelphia, PA 19103         |                     |            |            |         |  |      |      |  
|Directors and Named Executive Officers:                                  |                                |                     |            |            |         |  |      |     
|Sathiyamurthy Chandramohan(2)(4)(5)(6)                                   |                                |                     | 13,564,906 |            |         |  | 30.4 | %   
|Kumarakulasingam Suriyakumar(2)(4)(5)(6)(7)                              |                                |                     | 13,512,925 |            |         |  | 30.3 | %   
|                                                                         | 1981 N. Broadway, Suite 202    |                     |            |            |         |  |      |      |  
|                                                                         | Walnut Creek, CA 94596         |                     |            |            |         |  |      |      |  
|Thomas J. Formolo(3)(8)                                                  |                                |                     | 11,077,566 |            |         |  | 24.8 | %   
|Edward D. Horowitz(8)                                                    |                                |                     | 17,239     |            |         |  | **   |     
|Mark W. Legg(9)                                                          |                                |                     | 341,082    |            |         |  | **   |     
|Dewitt Kerry McCluggage                                                  |                                |                     | 0          |            |         |  | **   |     
|Mark W. Mealy(8)(10)                                                     |                                |                     | 79,239     |            |         |  | **   |     
|Manuel Perez de la Mesa(11)                                              |                                |                     | 54,739     |            |         |  | **   |     
|Rahul K. Roy(12)                                                         |                                |                     | 644,000    |            |         |  | 1.4  | %   
|All directors and Named Executive Officers as a group
    (nine persons) |                                |                     | 25,669,108 |            |         |  | 56.6 | %   






| |   |                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | * | Except as otherwise noted, the address of each person listed in
    the table is c/o American Reprographics Company, 700 North
    Central Avenue, Suite 550, Glendale, California 91203.



| |    |                                                                 
| | -- | ----------------------------------------------------------------
| | ** | Less than one percent of the outstanding shares of common stock.



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | The sole member of ARC Acquisition Co., L.L.C. is Code
    Hennessey & Simmons IV LP. The general partner of
    Code Hennessy & Simmons IV LP is CHS
    Management IV LP. The general partner of CHS
    Management IV LP is Code Hennessy & Simmons LLC.
    Code Hennessy & Simmons LLC, CHS Management IV LP
    and Code Hennessy & Simmons IV LP may be deemed to
    beneficially own these shares, but disclaim beneficial ownership
    of shares in which they do not have a pecuniary interest. The
    investment committee of Code Hennessy & Simmons LLC is
    composed of Andrew W. Code, Daniel J.

50



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##### Table of Contents



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     | Hennessy, Brian P. Simmons, Thomas J. Formolo, Peter M. Gotsch,
    Steven R. Brown, David O. Hawkins and Richard A. Lobo.
    Messrs. Code, Hennessy, Simmons, Formolo, Gotsch, Brown,
    Hawkins and Lobo may be deemed to beneficially own these shares
    due to the fact that they share investment and voting control
    over shares held by ARC Acquisition Co., L.L.C., but disclaim
    beneficial ownership of shares in which they do not have a
    pecuniary interest.                 
|
| | (2) | Includes 4,332,882 shares held by OCB Reprographics, Inc.
    As Messrs. Chandramohan, Suriyakumar and Thomas have
    ownership interests of 22.4%, 17.6% and 40%, respectively, in
    OCB Reprographics, Inc. and serve on its board of directors,
    each could be deemed to have beneficial ownership of all these
    shares. Messrs. Chandramohan and Suriyakumar each disclaim
    beneficial ownership of these shares except to the extent of
    each of their pecuniary interests therein.



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (3) | Includes 11,042,194 shares held by ARC Acquisition Co.,
    L.L.C. and 18,133 shares held by CHS Associates IV. Thomas
    J. Formolo is a member of the investment committee of Code
    Hennessy & Simmons LLC, the general partner of CHS
    Management IV LP, which in turn is the general partner of
    Code Hennessy & Simmons IV LP, which is the sole
    member of ARC Acquisition Co., L.L.C. Code Hennessy &
    Simmons LLC is also the general partner of CHS Associates IV.
    Messr. Formolo may be deemed to beneficially own the shares
    owned by ARC Acquisition Co., L.L.C. and CHS Associates IV, but
    disclaims beneficial ownership of shares in which he does not
    have a pecuniary interest.



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (4) | Includes 6,630,442 shares held by Micro Device, Inc. As
    Messrs. Chandramohan and Suriyakumar have ownership
    interests of 56% and 44%, respectively, in Micro Device, Inc.
    and serve on its board of directors, each could be deemed to
    have beneficial ownership of all these shares.
    Messrs. Chandramohan and Suriyakumar each disclaim
    beneficial ownership of these shares except to the extent of
    each of their pecuniary interests therein.            
|
| | (5) | Includes 1,553,982 shares held by Brownies Blueprint, Inc.
    As Messrs. Chandramohan and Suriyakumar have ownership
    interests of 42% and 33%, respectively, in Brownies Blueprint,
    Inc. and serve on its board of directors, each could be deemed
    to have beneficial ownership of all these shares.
    Messrs. Chandramohan and Suriyakumar each disclaim
    beneficial ownership of these shares except to the extent of
    each of their pecuniary interests therein.
|
| | (6) | Includes 805,282 shares held by Dietrich-Post Company. As
    Messrs. Chandramohan and Suriyakumar have ownership
    interests of 47.6% and 37.4%, respectively, in Dietrich-Post
    Company and serve on its board of directors, each could be
    deemed to have beneficial ownership of all these shares.
    Messrs. Chandramohan and Suriyakumar each disclaim
    beneficial ownership of these shares except to the extent of
    each of their pecuniary interests therein.   
|
| | (7) | Includes 114,613 shares held by the Suriyakumar Family
    Trust. Mr. Suriyakumar and his spouse, as trustees of the
    Suriyakumar Family Trust, share voting and investment power over
    these shares.                                                                                                                                                                                                                                                                             
|
| | (8) | Includes 9,239 shares issuable upon exercise of outstanding
    stock options exercisable within 60 days of March 1,
    2006.                                                                                                                                                                                                                                                                                                                                                          
|
| | (9) | Includes 15,000 shares issuable upon exercise of
    outstanding stock options exercisable within 60 days of
    March 1, 2006. Shares held by the Legg Family Trust.
    Mr. Legg and his spouse, as trustees of the Legg Family
    Trust, share voting and investment power over these shares.                                                                                                                                                                                       



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Includes 35,000 shares held by Eastover Group LLC.
    Mr. Mealy has a 100% ownership interest in Eastover Group
    LLC and has sole voting and investment power over these shares.                                                                                                                                                                                                                                                                     
|    
|(11) | Includes 34,739 shares issuable upon exercise of
    outstanding stock options exercisable within 60 days of
    March 1, 2006. Includes 6,000 shares held by
    Mr. Perezs children.                                                                                                                                                                                                                                                                  
|    
|(12) | Includes 644,000 shares issuable upon exercise of
    outstanding stock options exercisable within 60 days of
    March 1, 2006.                                                                                                                                                                                                                                                                                                                         
|    
|(13) | This information is based solely on a Schedule 13G jointly
    filed by Delaware Management Holdings and Delaware Management
    Business Trust on February 9, 2006. According to the
    Schedule 13G, Delaware Management Holdings and Delaware
    Management Business Trust have sole voting power with respect to
    2,628,992 shares, shared voting power with respect to
    403 shares and sole dispositive power with respect to
    2,638,936.

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|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions



Related Party Leases and Purchases






Management Agreement




Indemnification Agreements




Registration Rights Agreement




Demand Registrations. S-1 S-2, S-3


52



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Piggyback Rights.


Piggyback Registrations. S-4 S-8)


Conditions and Limitations; Expenses.


Investor Unitholders Agreement









|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accounting Fees and Services



|                      |  |      |     |  |      |   |       | 
|--------------------- |  | ---- | --- |  | ---- | - | ----- | 
|                      |  | 2005 |     |  | 2004 |  
|                      |  |      |     |  |      |  
|Audit fees(a)         |  | $    | 780 |  |      | $ | 678   | 
|Audit related fees(b) |  |      | 43  |  |      |   | 981   | 
|Tax fees(c)           |  |      | 56  |  |      |   | 63    | 
|All other fees(d)     |  |      |    |  |      |   |      | 
|                      |  |      |     |  |      |  
|                      |  | $    | 879 |  |      | $ | 1,659 | 
|                      |  |      |     |  |      |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Consists of aggregate fees billed or expected to be billed for
    professional services rendered for the audit of our annual
    consolidated financial statements for each of the fiscal years
    ended December 31, 2005 and December 31, 2004, reviews
    of financial statements in the Companys quarterly reports
    on Form 10-Q for
    each of the fiscal years ended December 31, 2005 and
    December 31, 2004, and other services normally performed in
    connection with statutory and regulatory filings or engagements.



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Consists of aggregate fees billed or expected to be billed for
    assurance and related services reasonably related to the
    performance of the audit or review of the Companys
    financial statements for each of the fiscal years ended
    December 31, 2005 and December 31, 2004 and are not
    included in the Audit Fees listed above. Of the aggregate fees
    of $981 for the fiscal year ended December 31, 2004,
    $172,000 of this aggregate amount was for retrospective reviews
    of the Companys quarterly consolidated financial
    statements during the years ended December 31, 2004 and
    2003, and $1,095 of this aggregate amount was for review of
    registration statement on
    Form S-1 and
    related matters.

53



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|    |  |                                                                                                                                                                                                                               
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) |  | Consists of aggregate fees billed or expected to be billed for
    tax compliance, tax advice, and tax planning for each of the
    fiscal years ended December 31, 2005 and December 31,
    2004.                           
|   
|(d) |  | Consists of aggregate fees billed or expected to be billed for
    all other services not included in the three categories set
    forth above for each of the fiscal years ended December 31,
    2005 and December 31, 2004.



contribution-in





PART IV







|         |                                        
|-------- | ---------------------------------------
|Item 15. | Exhibits, Financial Statement Schedules



Financial Statements




| |                                                                                      
| | -------------------------------------------------------------------------------------
| | The following consolidated financial statements are filed as
    part of this report:



| |                                                                                               
| | ----------------------------------------------------------------------------------------------
| | Report of Independent Registered Public Accounting Firm                                       
|
| | Consolidated Balance Sheets as of December 31, 2004 and 2005                                  
|
| | Consolidated Statements of Operations for the years ended
    December 31, 2003, 2004 and 2005



| |                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------
| | Consolidated Statements of Stockholders Equity and
    Comprehensive Income for the years ended December 31, 2003,
    2004 and 2005



| |                                                                                               
| | ----------------------------------------------------------------------------------------------
| | Consolidated Statements of Cash Flows for the years ended
    December 31, 2003, 2004 and 2005
|
| | Notes to Consolidated Financial Statements                                                    



| |                                 
| | --------------------------------
| | (2) Financial Statement Schedule



| |                                                
| | -----------------------------------------------
| | Schedule II  Valuation and Qualifying Accounts



54



---



##### Table of Contents







Index to Exhibits


|       |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|------ | -- | ----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |    | Description
|       |    |            
|       | 3  | .1          |  | Amended and Restated Certificate of Incorporation, filed
    February 2, 2005 (incorporated by reference to
    Exhibit 3.1 to the Registrants Form 10-K filed
    on March 31, 2005).                                                                                                                                                                                                                                                           
|       | 3  | .2          |  | Amended and Restated Bylaws, adopted by Board January 28,
    2005 (incorporated by reference to Exhibit 3.2 to the
    Registrants Form 10-K filed on March 31, 2005).                                                                                                                                                                                                                                                                          
|      
|       | 4  | .1          |  | Specimen Stock Certificate (incorporated by reference to
    Exhibit 4.1 to the Registrants Registration Statement
    on Form S-1 A (Reg. No. 333-119788), as amended on
    January 13, 2005).                                                                                                                                                                                                                                                 
|      
|       | 10 | .1          |  | Second Amended and Restated Credit and Guaranty Agreement dated
    as of December 21, 2005 by and among American Reprographics
    Company; American Reprographics Company, L.L.C., American
    Reprographics Holdings, L.L.C., certain subsidiaries of American
    Reprographics Company, L.L.C., or guarantors, and the lenders
    named therein (incorporated by reference to Exhibit 10.1 of
    the Form 8-K filed on December 21, 2005).
|      
|       | 10 | .2          |  | Intercreditor Agreement, dated as of December 18, 2003,
    between American Reprographics Company, L.L.C. and General
    Electric Capital Corporation and Goldman Sachs Credit Partners
    L.P., as collateral agents (incorporated by reference to
    Exhibit 10.3 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                      
|      
|       | 10 | .3          |  | 2004 Bonus Plan, dated March 24, 2004, between American
    Reprographics Company and Mr. Legg (incorporated by
    reference to Exhibit 10.4 to the Registrants
    Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).^                                                                                                                                                                               
|      
|       | 10 | .4          |  | 2005 Bonus Plan between American Reprographics Company and Mark
    Legg.*^                                                                                                                                                                                                                                                                                                                                                                       
|      
|       | 10 | .5          |  | American Reprographics Holdings, L.L.C. Unit Option
    Plan II, adopted effective as of January 1, 2001
    (incorporated by reference to Exhibit 10.5 to the
    Registrants Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).^                                                                                                                                                                     
|      
|       | 10 | .6          |  | Amendment No. 1 dated as of July 1, 2003 to American
    Reprographics Holdings, L.L.C. Unit Option Plan II
    (incorporated by reference to Exhibit 10.6 to the
    Registrants Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).^                                                                                                                                                                  
|      
|       | 10 | .7          |  | American Reprographics Company 2005 Stock Plan (incorporated by
    reference to Exhibit 10.7 to the Registrants
    Registration Statement on Form S-1 A (Reg.
    No. 333-119788), as amended on January 13, 2005).^                                                                                                                                                                                                                           
|      
|       | 10 | .8          |  | Forms of Stock Option Agreements under the 2005 Stock Plan
    (incorporated by reference to Exhibit 10.8 to the
    Registrants Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).^                                                                                                                                                                                                                   
|      
|       | 10 | .9          |  | Form of American Reprographics Company Stock Option Grant
    Notice  Non-employee Directors (Discretionary
    Non-statutory Stock Options) (incorporated by reference to
    Exhibit 10.1 to the Form 8-K filed on
    December 16, 2005).^                                                                                                                                                                                                    
|      
|       | 10 | .10         |  | Form of American Reprographics Company Non-employee
    Directors  Stock Option Agreement (Discretionary
    Grants) (incorporated by reference to Exhibit 10.2 to the
    Form 8-K filed on December 16, 2005).^                                                                                                                                                                                                                                
|      
|       | 10 | .11         |  | American Reprographics Company 2005 Employee Stock Purchase Plan
    (incorporated by reference to Exhibit 10.9 to the
    Registrants Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).^                                                                                                                                                                                                             
|      
|       | 10 | .12         |  | Lease Agreement, dated November 19, 1997, between American
    Reprographics Company, L.L.C. (formerly Ford Graphics Group,
    L.L.C.) and Sumo Holdings LA, LLC (incorporated by reference to
    Exhibit 10.10 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                            

55



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##### Table of Contents



|       |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|------ | -- | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |    | Description
|       |    |            
|      
|       | 10 | .13         |  | Amendment to Lease for the premises commonly known as 934 and
    940 Venice Boulevard, Los Angeles, CA, effective as of
    August 2, 2005, by and between SUMO HOLDINGS LA, LLC,
    Landlord and AMERICAN REPROGRAPHICS COMPANY, L.L.C. (formerly
    known as FORD GRAPHICS GROUP, L.L.C.) Tenant (incorporated by
    reference to Exhibit 10.2 to the Form 10-Q filed on
    November 14, 2005)                                                                   
|      
|       | 10 | .14         |  | Lease Agreement between American Reprographics Company, L.L.C.
    and Sumo Holdings San Jose, LLC (incorporated by reference
    to Exhibit 10.11 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                                                                                 
|      
|       | 10 | .15         |  | Lease Agreement between American Reprographics Company, L.L.C.
    and Sumo Holdings Irvine, LLC (incorporated by reference to
    Exhibit 10.12 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                                                                                   
|      
|       | 10 | .16         |  | Amendment to Lease for the premises commonly known as 17721
    Mitchell North, Irvine, CA, effective as of August 2, 2005,
    by and between SUMO HOLDINGS IRVINE, LLC, Lessor and AMERICAN
    REPROGRAPHICS COMPANY, L.L.C., Lessee (incorporated by reference
    to Exhibit 10.1 to the Form 10-Q filed on
    November 14, 2005).                                                                                                                                
|      
|       | 10 | .17         |  | Lease Agreement, dated December 1, 1997, between American
    Reprographics Company, L.L.C. and Sumo Holdings Sacramento, LLC
    (Oakland Property) (incorporated by reference to
    Exhibit 10.13 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                               
|      
|       | 10 | .18         |  | Lease Agreement between American Reprographics Company, L.L.C.
    (formerly Ford Graphics Group, L.L.C.) and Sumo Holdings
    Sacramento, LLC (Sacramento Property) (incorporated by reference
    to Exhibit 10.14 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                              
|      
|       | 10 | .19         |  | Amendment to Lease for the premises commonly known as 1322 V
    Street, Sacramento, CA, effective as of August 2, 2005, by
    and between SUMO HOLDINGS SACRAMENTO, LLC, Landlord and AMERICAN
    REPROGRAPHICS COMPANY, L.L.C. (formerly known as FORD GRAPHICS
    GROUP, L.L.C.) Tenant (incorporated by reference to
    Exhibit 10.4 to the Form 10-Q filed on
    November 14, 2005).                                                                          
|      
|       | 10 | .20         |  | Lease Agreement, dated December 7, 1995, between
    Leet-Melbrook, Inc. and Sumo Holdings Maryland, LLC (as
    successor lessor) (incorporated by reference to
    Exhibit 10.15 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                                                 
|      
|       | 10 | .21         |  | Amendment to Lease for the premises commonly known as 18810
    Woodfield Road, Gaithersburg, MD, effective as of August 2,
    2005, by and between SUMO HOLDINGS MARYLAND, LLC, Landlord and
    LEET-MELBROOK, INC., Tenant (incorporated by reference to
    Exhibit 10.3 to the Form 10-Q filed on
    November 14, 2005).                                                                                                                                         
|      
|       | 10 | .22         |  | Lease Agreement, dated September 23, 2003, between American
    Reprographics Company (dba Consolidated Reprographics) and
    Sumo Holdings Costa Mesa, LLC (incorporated by reference to
    Exhibit 10.16 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                       
|      
|       | 10 | .23         |  | Management Agreement, dated April 10, 2000, between
    American Reprographics Company, L.L.C. and CHS
    Management IV LP (incorporated by reference to
    Exhibit 10.17 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                                                        
|      
|       | 10 | .24         |  | Termination Agreement to Management Agreement, dated
    November 29, 2004, between American Reprographics Company,
    L.L.C. and CHS Management IV LP (incorporated by reference
    to Exhibit 10.18 to the Registrants Registration
    Statement on Form S-1 A(Reg. No. 333-119788), as
    amended on December 6, 2004).                                                                                                                                         
|      
|       | 10 | .25         |  | Indemnification Agreement, dated April 10, 2000, among
    American Reprographics Company, L.L.C., American Reprographics
    Holdings, L.L.C., ARC Acquisition Co., L.L.C.,
    Mr. Chandramohan, Mr. Suriyakumar, Micro Device, Inc.,
    Dietrich-Post Company, ZS Ford L.P., and ZS Ford L.L.C.
    (incorporated by reference to Exhibit 10.19 to the
    Registrants Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).

56



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##### Table of Contents



|       |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------ | -- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |    | Description
|       |    |            
|      
|       | 10 | .26         |  | Investor Registration Rights Agreement, dated April 10,
    2000, among American Reprographics Holdings, L.L.C., ARC
    Acquisition Co., L.L.C., Mr. Chandramohan,
    Mr. Suriyakumar, GS Mezzanine Partners II, L.P. and GS
    Mezzanine Partners II Offshore, L.P. (incorporated by
    reference to Exhibit 10.20 to the Registrants
    Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).                                                                                                                                                                     
|      
|       | 10 | .27         |  | First Amendment to Investor Registration Rights Agreement, among
    American Reprographics Holdings, L.L.C., American Reprographics
    Company, ARC Acquisition Co., L.L.C., CHS Associates IV,
    Ms. Paige Walsh, Mr. Chandramohan,
    Mr. Suriyakumar, GS Mezzanine Partners II, L.P., GS
    Mezzanine Partners II Offshore, L.P., Stone Street
    Fund 2000, L.P. and Bridge Street Special Opportunities
    Fund, 2000, L.P. (incorporated by reference to
    Exhibit 10.21 to the Registrants Registration
    Statement on Form S-1 A (Reg. No. 333-119788), as
    amended on January 13, 2005).
|      
|       | 10 | .28         |  | Warrant Agreement, dated April 10, 2000, between American
    Reprographics Holdings, L.L.C. and each of GS Mezzanine Partners
    II, L.P. and GS Mezzanine Partners II Offshore, L.P.
    (incorporated by reference to Exhibit 10.22 to the
    Registrants Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).                                                                                                                                                                                                                                                     
|      
|       | 10 | .29         |  | First Amendment to Warrant Agreement, dated September 8,
    2000, between American Reprographics Holdings, L.L.C. and each
    of GS Mezzanine Partners II, L.P. and GS Mezzanine
    Partners II Offshore, L.P. (incorporated by reference to
    Exhibit 10.23 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                                                                                                           
|      
|       | 10 | .30         |  | Investor Unitholders Agreement, dated April 10, 2000, among
    American Reprographics Holdings, L.L.C., ARC Acquisition Co.,
    L.L.C., GS Mezzanine Partners II, L.P. and GS Mezzanine
    Partners II Offshore, L.P. (incorporated by reference to
    Exhibit 10.24 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                                                                                                    
|      
|       | 10 | .31         |  | Termination Agreement of Investor Unitholders Agreement, dated
    November 29, 2004, among American Reprographics Holdings,
    L.L.C., ARC Acquisition Co., L.L.C., GS Mezzanine
    Partners II, L.P., GS Mezzanine Partners II Offshore,
    L.P., Stone Street Fund 2000, L.P. and Bridge Street
    Special Opportunities Fund, 2000, L.P. (incorporated by
    reference to Exhibit 10.25 to the Registrants
    Registration Statement on Form S-1 A (Reg.
    No. 333-119788), as amended on December 6, 2004).                                                                                        
|      
|       | 10 | .32         |  | Forms of Restricted Stock Award Agreements under 2005 Stock Plan
    (incorporated by reference to Exhibit 10.27 to the
    Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on December 6,
    2004).^                                                                                                                                                                                                                                                                                                                                                                   
|      
|       | 10 | .33         |  | Form of Restricted Stock Unit Award Agreement under 2005 Stock
    Plan (incorporated by reference to Exhibit 10.28 to the
    Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on December 6,
    2004).^                                                                                                                                                                                                                                                                                                                                                                
|      
|       | 10 | .34         |  | Form of Stock Appreciation Right Agreement under 2005 Stock Plan
    (incorporated by reference to Exhibit 10.29 to the
    Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on January 13,
    2005).^                                                                                                                                                                                                                                                                                                                                                                   
|      
|       | 10 | .35         |  | Employment Agreement, dated January 7, 2005, between
    American Reprographics Company and Mr. Sathiyamurthy
    Chandramohan (incorporated by reference to Exhibit 10.30 to
    the Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on January 13,
    2005).^                                                                                                                                                                                                                                                                                                         
|      
|       | 10 | .36         |  | First Amendment to Employment Agreement between American
    Reprographics Company and Mr. Sathiyamurthy Chandramohan,
    effective November 18, 2005.*^                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|      
|       | 10 | .37         |  | Employment Agreement, dated January 7, 2005, between
    American Reprographics Company and Mr. Kumarakulasingam
    Suriyakumar (incorporated by reference to Exhibit 10.31 to
    the Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on January 13,
    2005).^                                                                                                                                                                                                                                                                                                       
|      
|       | 10 | .38         |  | First Amendment to Employment Agreement between American
    Reprographics Company and Mr. Kumarakulasingam Suriyakumar,
    effective November 18, 2005.*^                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|      
|       | 10 | .39         |  | Employment Agreement, dated January 7, 2005, between
    American Reprographics Company and Mr. Mark W. Legg
    (incorporated by reference to Exhibit 10.32 to the
    Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on January 13,
    2005).^                                                                                                                                                                                                                                                                                                                       

57



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##### Table of Contents



|       |    |             |  |                                                                                                                                                                                                                                                                                           
|------ | -- | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |    | Description
|       |    |            
|      
|       | 10 | .40         |  | Employment Agreement, dated January 7, 2005, between
    American Reprographics Company and Mr. Rahul K. Roy
    (incorporated by reference to Exhibit 10.33 to the
    Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on January 13,
    2005).^
|      
|       | 10 | .41         |  | Agreement to Grant Stock dated effective December 7, 2004,
    between American Reprographics Company and Rahul K. Roy
    (incorporated by reference to Exhibit 10.36 to the
    Registrants Form 10-K filed on March 31,
    2005).^                                                   
|      
|       | 10 | .42         |  | Indemnification Agreement made as of September 30, 2004
    between American Reprographics Company and Sathiyamurthy
    Chandramohan (incorporated by reference to Exhibit 10.37 to
    the Registrants Form 10-K filed on March 31,
    2005).                                         
|      
|       | 10 | .43         |  | Indemnification Agreement made as of September 30, 2004
    between American Reprographics Company and Andrew W. Code
    (incorporated by reference to Exhibit 10.38 to the
    Registrants Form 10-K filed on March 31, 2005).                                                         
|      
|       | 10 | .44         |  | Indemnification Agreement made as of September 30, 2004
    between American Reprographics Company and Thomas J. Formolo
    (incorporated by reference to Exhibit 10.39 to the
    Registrants Form 10-K filed on March 31, 2005).                                                      
|      
|       | 10 | .45         |  | Indemnification Agreement made as of October 7, 2004
    between American Reprographics Company and Mark W. Legg
    (incorporated by reference to Exhibit 10.40 to the
    Registrants Form 10-K filed on March 31, 2005).                                                              
|      
|       | 10 | .46         |  | Indemnification Agreement made as of September 30, 2004
    between American Reprographics Company and Manuel Perez de la
    Mesa (incorporated by reference to Exhibit 10.41 to the
    Registrants Form 10-K filed on March 31, 2005).                                                
|      
|       | 10 | .47         |  | Indemnification Agreement made as of January 11, 2005
    between American Reprographics Company and Edward D. Horowitz
    (incorporated by reference to Exhibit 10.42 to the
    Registrants Form 10-K filed on March 31, 2005).                                                       
|      
|       | 10 | .48         |  | Indemnification Agreement made as of March 3, 2005 between
    American Reprographics Company and Mark W. Mealy (incorporated
    by reference to Exhibit 10.43 to the Registrants
    Form 10-K filed on March 31, 2005).                                                               
|      
|       | 10 | .49         |  | Indemnification Agreement made as of September 30, 2004
    between American Reprographics Company and Kumarakulasingam
    Suriyakumar (incorporated by reference to Exhibit 10.44 to
    the Registrants Form 10-K filed on March 31,
    2005).                                       
|      
|       | 10 | .50         |  | Indemnification Agreement made as of October 7, 2004
    between American Reprographics Company and Rahul K. Roy
    (incorporated by reference to Exhibit 10.45 to the
    Registrants Form 10-K filed on March 31, 2005).                                                              
|      
|       | 10 | .51         |  | Indemnification Agreement made as of February 2, 2006
    between American Reprographics Company and Dewitt Kerry
    McCluggage.*                                                                                                                                                        
|      
|       | 21 | .1          |  | List of Subsidiaries.*                                                                                                                                                                                                                                                                    
|      
|       | 23 | .1          |  | Consent of PricewaterhouseCoopers LLP, Independent Registered
    Public Accounting Firm.*                                                                                                                                                                                                
|      
|       | 31 | .1          |  | Certification by the Chief Executive Officer pursuant to
    Rules 13a-14(a)/15d-14(a) of the Securities Exchange Act of
    1934.*                                                                                                                                                       
|      
|       | 31 | .2          |  | Certification by the Chief Financial Officer pursuant to
    Rules 13a-14(a)/15d-14(a) of the Securities Exchange Act of
    1934.*                                                                                                                                                       
|       | 32 | .1          |  | Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.*                                                                                                                                                          






| |   |               
| | - | --------------
| | * | Filed herewith



| |   |                                                                
| | - | ---------------------------------------------------------------
| | ^ | Indicates management contract or compensatory plan or agreement

58



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##### Table of Contents



SIGNATURES






| |                               
| | ------------------------------
| | AMERICAN REPROGRAPHICS COMPANY



| |     |                               
| | --- | ------------------------------
| | By: | /s/ SATHIYAMURTHY CHANDRAMOHAN

| |                                       
| | --------------------------------------
| |                                       
| | Chairman of the Board of Directors and
| | Chief Executive Officer               





|                                                                 |  |                                                                                                      |  | 
|---------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------- |  | 
|Signature                                                        |  | Title                                                                                               
|                                                                 |  |                                                                                                     
|                                                                
|/s/ SATHIYAMURTHY
    CHANDRAMOHANSathiyamurthy Chandramohan     |  | Chairman of the Board of Directors and Chief Executive
    Officer
    (Principal Executive Officer)
|                                                                
|                                                                
|/s/ KUMARAKULASINGAM
    SURIYAKUMARKumarakulasingam Suriyakumar |  | President, Chief Operating Officer,
    and Director                                                
|                                                                
|                                                                
|/s/ MARK W. LEGGMark W. Legg                                     |  | Chief Financial Officer and Secretary                                                               
|                                                                
|                                                                
|/s/ THOMAS J. FORMOLOThomas J. Formolo                           |  | Director                                                                                            
|                                                                
|                                                                
|/s/ EDWARD D. HOROWITZEdward D. Horowitz                         |  | Director                                                                                            
|                                                                
|                                                                
|/s/ DEWITT KERRY
    MCCLUGGAGEDewitt Kerry McCluggage           |  | Director                                                                                            
|                                                                
|                                                                
|/s/ MARK W. MEALYMark W. Mealy                                   |  | Director                                                                                            
|                                                                
|                                                                
|/s/ MANUEL PEREZ DE LA
    MESAManuel Perez de la Mesa           |  | Director                                                                                            

59



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##### Table of Contents



INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


|                                                                                                                                      |                                                 |  |     |      | 
|------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------- |  | --- | ---- | 
|Report of Independent Registered Public
    Accounting Firm                                                                           |                                                 |  | F-2 |     
|Consolidated Balance Sheets as of
    December 31, 2004 and 2005                                                                      |                                                 |  | F-3 |     
|Consolidated Statements of Operations for
    the years ended December 31, 2003, 2004 and 2005                                        |                                                 |  | F-4 |     
|Consolidated Statements of
    Stockholders Equity and Comprehensive Income for the years
    ended December 31, 2003, 2004 and 2005 |                                                 |  | F-5 |     
|Consolidated Statements of Cash Flows for
    the years ended December 31, 2003, 2004 and 2005                                        |                                                 |  | F-6 |     
|Notes to Consolidated Financial
    Statements                                                                                        |                                                 |  | F-7 |     
|Financial Statement Schedule:                                                                                                         |                                                 |  |     |     
|                                                                                                                                      | Schedule II  Valuation and Qualifying Accounts |  |     | F-32 | 

F-1



---



##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








1




| |                               
| | ------------------------------
| | /s/ PRICEWATERHOUSECOOPERS LLP







F-2



---



##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES





CONSOLIDATED BALANCE SHEETS


|                                                  |                                                                                                                                                                                                |                                            |         |         |         |   |         |        |         | 
|------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ------- | ------- | ------- | - | ------- | ------ | ------- | 
|                                                  |                                                                                                                                                                                                | December 31,                               |        
|                                                  |                                                                                                                                                                                                |                                            |        
|                                                  |                                                                                                                                                                                                | 2004                                       |         |         | 2005    |  
|                                                  |                                                                                                                                                                                                |                                            |         |         |         |  
|                                                  |                                                                                                                                                                                                | (In thousands, except                      |        
|                                                  |                                                                                                                                                                                                | share data)                                |        
|ASSETS                                           
|Current assets:                                   |                                                                                                                                                                                                |                                            |         |         |         |   |         |       
|                                                  | Cash and cash equivalents                                                                                                                                                                      |                                            | $       | 13,826  |         |   | $       | 22,643 |        
|                                                  | Accounts receivable, net of allowance for doubtful accounts of
    $3,053 and $3,172, respectively                                                                                             |                                            |         | 61,679  |         |   |         | 71,062 |        
|                                                  | Inventories, net of inventory obsolescence of $321 and $430,
    respectively                                                                                                                  |                                            |         | 6,012   |         |   |         | 6,817  |        
|                                                  | Deferred income taxes                                                                                                                                                                          |                                            |         | 1,364   |         |   |         | 4,272  |        
|                                                  | Prepaid expenses and other current assets                                                                                                                                                      |                                            |         | 7,855   |         |   |         | 6,425  |        
|                                                  |                                                                                                                                                                                                |                                            |         |         |         |  
|                                                  |                                                                                                                                                                                                | Total current assets                       |         |         | 90,736  |   |         |        | 111,219 | 
|Property and equipment, net                       |                                                                                                                                                                                                |                                            | 35,023  |         |         |   | 45,773  |       
|Goodwill                                          |                                                                                                                                                                                                |                                            | 231,357 |         |         |   | 245,271 |       
|Other intangible assets, net                      |                                                                                                                                                                                                |                                            | 12,095  |         |         |   | 21,387  |       
|Deferred financing costs, net                     |                                                                                                                                                                                                |                                            | 6,619   |         |         |   | 923     |       
|Deferred income taxes                             |                                                                                                                                                                                                |                                            |        |         |         |   | 16,216  |       
|Other assets                                      |                                                                                                                                                                                                |                                            | 1,504   |         |         |   | 1,573   |       
|                                                  |                                                                                                                                                                                                |                                            |         |         |         |  
|                                                  |                                                                                                                                                                                                | Total assets                               |         | $       | 377,334 |   |         | $      | 442,362 | 
|                                                  |                                                                                                                                                                                                |                                            |         |         |         |  
|                                                 
|LIABILITIES AND STOCKHOLDERS EQUITY             
|Current liabilities:                              |                                                                                                                                                                                                |                                            |         |         |         |   |         |       
|                                                  | Accounts payable                                                                                                                                                                               |                                            | $       | 21,170  |         |   | $       | 20,811 |        
|                                                  | Accrued payroll and payroll-related expenses                                                                                                                                                   |                                            |         | 11,683  |         |   |         | 15,486 |        
|                                                  | Accrued expenses                                                                                                                                                                               |                                            |         | 25,209  |         |   |         | 18,684 |        
|                                                  | Current portion of long-term debt and capital leases                                                                                                                                           |                                            |         | 10,276  |         |   |         | 20,441 |        
|                                                  |                                                                                                                                                                                                |                                            |         |         |         |  
|                                                  |                                                                                                                                                                                                | Total current liabilities                  |         |         | 68,338  |   |         |        | 75,422  | 
|Long-term debt and capital leases                 |                                                                                                                                                                                                |                                            | 310,557 |         |         |   | 253,371 |       
|Mandatorily redeemable preferred membership units |                                                                                                                                                                                                |                                            | 27,814  |         |         |   |        |       
|Deferred income taxes                             |                                                                                                                                                                                                |                                            | 5,634   |         |         |   |        |       
|                                                  |                                                                                                                                                                                                |                                            |         |         |         |  
|                                                  |                                                                                                                                                                                                | Total liabilities                          |         |         | 412,343 |   |         |        | 328,793 | 
|                                                  |                                                                                                                                                                                                |                                            |         |         |         |  
|Commitments and contingencies (Note 6)            |                                                                                                                                                                                                |                                            |         |         |         |   |         |       
|Stockholders equity (deficit):                   |                                                                                                                                                                                                |                                            |         |         |         |   |         |       
|                                                  | Members deficit                                                                                                                                                                               |                                            |         | (32,688 | )       |   |         |       |        
|                                                  | Preferred stock, $.001 par value, 25,000,000 shares
    authorized; none issued and outstanding                                                                                                |                                            |         |        |         |   |         |       |        
|                                                  | Common stock, $.001 par value, 150,000,000 shares
    authorized; no shares issued and outstanding at
    December 31, 2004 and 44,598,815 shares issued and
    outstanding December 31, 2005 |                                            |         |        |         |   |         | 44     |        
|                                                  | Additional paid-in capital                                                                                                                                                                     |                                            |         |        |         |   |         | 56,825 |        
|                                                  | Deferred stock-based compensation                                                                                                                                                              |                                            |         | (2,527  | )       |   |         | (1,903 | )      
|                                                  | Retained earnings                                                                                                                                                                              |                                            |         |        |         |   |         | 58,561 |        
|                                                  | Accumulated other comprehensive income                                                                                                                                                         |                                            |         | 206     |         |   |         | 42     |        
|                                                  |                                                                                                                                                                                                |                                            |         |         |         |  
|                                                  |                                                                                                                                                                                                | Total stockholders equity (deficit)       |         |         | (35,009 | ) |         |        | 113,569 | 
|                                                  |                                                                                                                                                                                                |                                            |         |         |         |  
|                                                  |                                                                                                                                                                                                | Total liabilities and stockholders equity |         | $       | 377,334 |   |         | $      | 442,362 | 
|                                                  |                                                                                                                                                                                                |                                            |         |         |         |  



F-3



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                        |                 |                                       |         |            |      |   |         |            |  |   |         |            | 
|----------------------------------------------------------------------- | --------------- | ------------------------------------- | ------- | ---------- | ---- | - | ------- | ---------- |  | - | ------- | ---------- | 
|                                                                        |                 | Year Ended December 31,               |        
|                                                                        |                 |                                       |        
|                                                                        |                 | 2003                                  |         |            | 2004 |   |         | 2005       | 
|                                                                        |                 |                                       |         |            |      |   |         |            | 
|                                                                        |                 | (In thousands, except per share data) |        
|Reprographics services                                                  |                 | $                                     | 315,995 |            |      | $ | 333,305 |            |  | $ | 369,123 |           
|Facilities management                                                   |                 |                                       | 59,311  |            |      |   | 72,360  |            |  |   | 83,125  |           
|Equipment and supplies sales                                            |                 |                                       | 40,654  |            |      |   | 38,199  |            |  |   | 41,956  |           
|                                                                        |                 |                                       |         |            |      |   |         |            | 
|                                                                        | Total net sales |                                       |         | 415,960    |      |   |         | 443,864    |  |   |         | 494,204    | 
|Cost of sales                                                           |                 |                                       | 252,028 |            |      |   | 263,787 |            |  |   | 289,580 |           
|                                                                        |                 |                                       |         |            |      |   |         |            | 
|Gross profit                                                            |                 |                                       | 163,932 |            |      |   | 180,077 |            |  |   | 204,624 |           
|Selling, general and administrative expenses                            |                 |                                       | 101,252 |            |      |   | 105,780 |            |  |   | 112,679 |           
|Provision for sales tax dispute settlement                              |                 |                                       |        |            |      |   | 1,389   |            |  |   |        |           
|Amortization of intangible assets                                       |                 |                                       | 1,709   |            |      |   | 1,695   |            |  |   | 2,120   |           
|                                                                        |                 |                                       |         |            |      |   |         |            | 
|Income from operations                                                  |                 |                                       | 60,971  |            |      |   | 71,213  |            |  |   | 89,825  |           
|Other income                                                            |                 |                                       | 1,024   |            |      |   | 420     |            |  |   | 381     |           
|Interest expense, net                                                   |                 |                                       | (39,390 | )          |      |   | (33,565 | )          |  |   | (26,722 | )         
|Loss on early extinguishment of debt                                    |                 |                                       | (14,921 | )          |      |   |        |            |  |   | (9,344  | )         
|                                                                        |                 |                                       |         |            |      |   |         |            | 
|Income before income tax provision                                      |                 |                                       | 7,684   |            |      |   | 38,068  |            |  |   | 54,140  |           
|Income tax provision (benefit)                                          |                 |                                       | 4,131   |            |      |   | 8,520   |            |  |   | (6,336  | )         
|                                                                        |                 |                                       |         |            |      |   |         |            | 
|Net income                                                              |                 |                                       | 3,553   |            |      |   | 29,548  |            |  |   | 60,476  |           
|Dividends and amortization of discount on preferred
    members equity |                 |                                       | (1,730  | )          |      |   |        |            |  |   |        |           
|                                                                        |                 |                                       |         |            |      |   |         |            | 
|Net income attributable to common shares                                |                 | $                                     | 1,823   |            |      | $ | 29,548  |            |  | $ | 60,476  |           
|                                                                        |                 |                                       |         |            |      |   |         |            | 
|Net income attributable to common shares:                               |                 |                                       |         |            |      |   |         |            |  |   |         |           
|                                                                        | Basic           |                                       | $       | 0.05       |      |   | $       | 0.83       |  |   | $       | 1.43       | 
|                                                                        |                 |                                       |         |            |      |   |         |            | 
|                                                                        | Diluted         |                                       | $       | 0.05       |      |   | $       | 0.79       |  |   | $       | 1.40       | 
|                                                                        |                 |                                       |         |            |      |   |         |            | 
|Weighted average common shares outstanding:                             |                 |                                       |         |            |      |   |         |            |  |   |         |           
|                                                                        | Basic           |                                       |         | 35,480,289 |      |   |         | 35,493,136 |  |   |         | 42,264,001 | 
|                                                                        | Diluted         |                                       |         | 37,298,349 |      |   |         | 37,464,123 |  |   |         | 43,178,001 | 



F-4



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY AND
COMPREHENSIVE INCOME


|                                                                                                           |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |   |        |   |      |       |      |   |         |        |        |  
|---------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------- | --------------------------------------------------------- | ------- | ------------ | ------ |  | ---------- | ----- | - | ------- | ------- | - | ----------- | ------------ | ------- | -------- | -------- | - | ------------- | ------ | - | ------------- | ------ | - | ------ | - | ---- | ----- | ---- | - | ------- | ------ | ------ | -
|                                                                                                           |                                                               |                                                           |         | Common Stock |        |  |            |       |   |         |         |   | Accumulated |              |         |         
|                                                                                                           |                                                               |                                                           |         |              |        |  | Additional |       |   |         |         |   |             | Other        |         |          | Total    |  
|                                                                                                           |                                                               | Members                                                  |         |              |        |  | Par        |       |   | Paid-In |         |   | Deferred    |              |         | Retained |          |   | Comprehensive |        |   | Stockholders |       
|                                                                                                           |                                                               | Deficit                                                   |         |              | Shares |  |            | Value |   |         | Capital |   |             | Compensation |         |          | Earnings |   |               | Income |   |               | Equity |  
|                                                                                                           |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |  
|                                                                                                           |                                                               | (Dollars in thousands)                                    |        
|Balance at December 31, 2002                                                                               |                                                               | $                                                         | (60,248 | )            |        |  |           |       |   | $       |        |   |             | $            |        |          |          | $ |              |        |   | $             |       |   |        | $ | (834 | )     |      | $ | (61,082 | )     
|Comprehensive income:                                                                                      |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |   |        |   |      |       |      |   |         |       
|                                                                                                           | Net Income                                                    |                                                           |         | 3,553        |        |  |            |      |   |         |         |  |             |              |         |         |          |   |               |       |   |               |        |  |        |   |      |      |      |   |         | 3,553  |       
|                                                                                                           | Reclassification to interest expense related to swap contract |                                                           |         |             |        |  |            |      |   |         |         |  |             |              |         |         |          |   |               |       |   |               |        |  |        |   |      | 834   |      |   |         | 834    |       
|                                                                                                           | Interest rate swap fair value adjustment                      |                                                           |         |             |        |  |            |      |   |         |         |  |             |              |         |         |          |   |               |       |   |               |        |  |        |   |      | (822  | )    |   |         | (822   | )     
|                                                                                                           |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |  
|Comprehensive income                                                                                       |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |   |        |   |      |       |      |   | 3,565   |       
|Issuance of common membership units                                                                        |                                                               |                                                           | 111     |              |        |  |           |       |   |         |        |   |             |              |        |          |          |   |              |        |   |               |       |   |        |   |     |       |      |   | 111     |       
|Distribution to members                                                                                    |                                                               |                                                           | (1,670  | )            |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |   |        |   |      |       |      |   | (1,670  | )     
|Accretion of noncash portion of yield on mandatorily redeemable
    preferred membership units             |                                                               |                                                           | (858    | )            |        |  |           |       |   |         |        |   |             |              |        |          |          |   |              |        |   |               |       |   |        |   |     |       |      |   | (858    | )     
|Amortization of discount on madatorily redeemable preferred
    membership units                           |                                                               |                                                           | (81     | )            |        |  |           |       |   |         |        |   |             |              |        |          |          |   |              |        |   |               |       |   |        |   |     |       |      |   | (81     | )     
|                                                                                                           |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |  
|Balance at December 31, 2003                                                                               |                                                               |                                                           | (59,193 | )            |        |  |           |       |   |         |        |   |             |              |        |          |          |   |              |        |   |               |       |   |        |   | (822 | )     |      |   | (60,015 | )     
|Deferred stock-based compensation charge for options issued to
    employees                               |                                                               |                                                           | 3,074   |              |        |  |           |       |   |         |        |   |             |              |        |          |          |   | (3,074        | )      |   |               |       |   |        |   |     |       |      |   |        |       
|Amortization of stock-based compensation                                                                   |                                                               |                                                           |        |              |        |  |           |       |   |         |        |   |             |              |        |          |          |   | 547           |        |   |               |       |   |        |   |     |       |      |   | 547     |       
|Comprehensive income:                                                                                      |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |   |        |   |      |       |      |   |         |       
|                                                                                                           | Net Income                                                    |                                                           |         | 29,548       |        |  |            |      |   |         |         |  |             |              |         |         |          |   |               |       |   |               |        |  |        |   |      |      |      |   |         | 29,548 |       
|                                                                                                           | Fair value adjustment of derivatives,                         |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |   |        |   |      |       |      |   |         |        |       
|                                                                                                           | net of tax                                                    |                                                           |         |             |        |  |            |      |   |         |         |  |             |              |         |         |          |   |               |       |   |               |        |  |        |   |      | 1,028 |      |   |         | 1,028  |       
|                                                                                                           |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |  
|Comprehensive income                                                                                       |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |   |        |   |      |       |      |   | 30,576  |       
|Issuance of common membership units                                                                        |                                                               |                                                           | 118     |              |        |  |           |       |   |         |        |   |             |              |        |          |          |   |              |        |   |               |       |   |        |   |     |       |      |   | 118     |       
|Write-off of notes receivable from members related to common
    membership units issued in 1998           |                                                               |                                                           | (111    | )            |        |  |           |       |   |         |        |   |             |              |        |          |          |   |              |        |   |               |       |   |        |   |     |       |      |   | (111    | )     
|Distribution to members                                                                                    |                                                               |                                                           | (6,124  | )            |        |  |           |       |   |         |        |   |             |              |        |          |          |   |              |        |   |               |       |   |        |   |     |       |      |   | (6,124  | )     
|                                                                                                           |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |  
|Balance at December 31, 2004                                                                               |                                                               | $                                                         | (32,688 | )            |        |  |           |       |   |         |        |   |             |              |        |          |          |   | (2,527        | )      |   |               |       |   |        |   | 206  |       |      |   | (35,009 | )     
|Amortization of deferred stock-based compensation for the period
    from January 1 to February 9, 2005    |                                                               |                                                           |        |              |        |  |           |       |   |         |        |   |             |              |        |          |          |   | 61            |        |   |               |       |   |        |   |     |       |      |   | 61      |       
|Comprehensive income for the period January 1 to
    February 9, 2005:                                     |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |   |        |   |      |       |      |   |         |       
|                                                                                                           | Net Income                                                    |                                                           |         | 1,914        |        |  |            |      |   |         |         |  |             |              |         |         |          |   |               |       |   |               |        |  |        |   |      |      |      |   |         | 1,914  |       
|                                                                                                           | Fair value adjustment of                                      |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |   |        |   |      |       |      |   |         |        |       
|                                                                                                           | derivatives                                                   |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |   |        |   |      | 195   |      |   |         | 195    |       
|Comprehensive income                                                                                       |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |   |        |   |      |       |      |   | 2,109   |       
|Distributions to members                                                                                   |                                                               |                                                           | (8,244  | )            |        |  |           |       |   |         |        |   |             |              |        |          |          |   |              |        |   |               |       |   |        |   |     |       |      |   | (8,244  | )     
|Reorganization from LLC to C Corporation                                                                 |                                                               |                                                           | 39,018  |              |        |  | 35,510,011 |       |   |         | 35      |   |             |              | (39,053 | )        |          |   |              |        |   |               |       |   |        |   |     |       |      |   |        |       
|Issuance of common stock in initial public offering, net of
    underwriting discounts                     |                                                               |                                                           |        |              |        |  | 7,666,667  |       |   |         | 8       |   |             |              | 92,682  |          |          |   |              |        |   |               |       |   |        |   |     |       |      |   | 92,690  |       
|Issuance of common stock in exchange for warrants exercised upon
    initial public offering               |                                                               |                                                           |        |              |        |  | 754,476    |       |   |         | 1       |   |             |              |        |          |          |   |              |        |   |               |       |   |        |   |     |       |      |   | 1       |       
|Direct costs of initial public offering                                                                    |                                                               |                                                           |        |              |        |  |           |       |   |         |        |   |             |              | (3,916  | )        |          |   |              |        |   |               |       |   |        |   |     |       |      |   | (3,916  | )     
|Amortization of deferred stock-based compensation for the period
    from February 10 to December 31, 2005 |                                                               |                                                           |        |              |        |  |           |       |   |         |        |   |             |              |        |          |          |   | 563           |        |   |               |       |   |        |   |     |       |      |   | 563     |       
|Issuance of common stock under Employee Stock Purchase Plan                                                |                                                               |                                                           |        |              |        |  | 362,061    |       |   |         |        |   |             |              | 4,000   |          |          |   |              |        |   |               |       |   |        |   |     |       |      |   | 4,000   |       
|Stock options exercised                                                                                    |                                                               |                                                           |        |              |        |  | 305,600    |       |   |         |        |   |             |              | 1,536   |          |          |   |              |        |   |               |       |   |        |   |     |       |      |   | 1,536   |       
|Tax benefit from exercise of stock options                                                                 |                                                               |                                                           |        |              |        |  |           |       |   |         |        |   |             |              | 1,576   |          |          |   |              |        |   |               |       |   |        |   |     |       |      |   | 1,576   |       
|Comprehensive income for the period from February 10, to
    December 31, 2005:                            |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |   |        |   |      |       |      |   |         |       
|                                                                                                           |                                                               | Net income                                                |         |              |       |  |            |       |  |         |         |   |            |              |         |          |         |   |               |        |  |               |        |   | 58,561 |   |      |       |     |   |         |        | 58,561 |  
|                                                                                                           |                                                               | Fair value adjustment of derivatives , net of tax effects |         |              |       |  |            |       |  |         |         |   |            |              |         |          |         |   |               |        |  |               |        |   |       |   |      |       | (359 | ) |         |        | (359   | )
|                                                                                                           |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |  
|Comprehensive income                                                                                       |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |   |        |   |      |       |      |   | 58,202  |       
|                                                                                                           |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |  
|Balance at December 31, 2005                                                                               |                                                               | $                                                         |        |              |        |  | 44,598,815 |       |   | $       | 44      |   |             | $            | 56,825  |          |          | $ | (1,903        | )      |   | $             | 58,561 |   |        | $ | 42   |       |      | $ | 113,569 |       
|                                                                                                           |                                                               |                                                           |         |              |        |  |            |       |   |         |         |   |             |              |         |          |          |   |               |        |   |               |        |  



F-5



---



##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                                                                              |                                                                                          |                                       |          |        |        |   |         |        |        |   |         |         |        |  
|----------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------- | ------------------------------------- | -------- | ------ | ------ | - | ------- | ------ | ------ | - | ------- | ------- | ------ | -
|                                                                                                                              |                                                                                          | Year Ended December 31,               |         
|                                                                                                                              |                                                                                          |                                       |         
|                                                                                                                              |                                                                                          | 2003                                  |          |        | 2004   |   |         | 2005   |       
|                                                                                                                              |                                                                                          |                                       |          |        |        |   |         |        |       
|                                                                                                                              |                                                                                          | (Dollars in thousands)                |         
|Cash flows from operating activities:                                                                                         |                                                                                          |                                       |          |        |        |   |         |        |        |   |         |        
|Net income                                                                                                                    |                                                                                          | $                                     | 3,553    |        |        | $ | 29,548  |        |        | $ | 60,476  |        
|Adjustments to reconcile net income to net cash provided by
    operating activities:                                         |                                                                                          |                                       |          |        |        |   |         |        |        |   |         |        
|                                                                                                                              | Accretion of yield on redeemable preferred member units                                  |                                       |          | 949    |        |   |         | 2,023  |        |   |         | 449     |       
|                                                                                                                              | Allowance for doubtful accounts                                                          |                                       |          | 1,698  |        |   |         | 1,281  |        |   |         | 771     |       
|                                                                                                                              | Reserve for inventory obsolescence                                                       |                                       |          | 248    |        |   |         | 89     |        |   |         | 88      |       
|                                                                                                                              | Reserve for sales tax liability                                                          |                                       |          |       |        |   |         | 1,389  |        |   |         |        |       
|                                                                                                                              | Depreciation                                                                             |                                       |          | 18,228 |        |   |         | 17,035 |        |   |         | 17,045  |       
|                                                                                                                              | Amortization of intangible assets                                                        |                                       |          | 1,709  |        |   |         | 1,695  |        |   |         | 2,120   |       
|                                                                                                                              | Amortization of deferred financing costs                                                 |                                       |          | 1,559  |        |   |         | 1,964  |        |   |         | 1,660   |       
|                                                                                                                              | Noncash interest expense                                                                 |                                       |          | 8,565  |        |   |         |       |        |   |         |        |       
|                                                                                                                              | Deferred income taxes                                                                    |                                       |          | 1,622  |        |   |         | 867    |        |   |         | (24,815 | )     
|                                                                                                                              | Write-off of unamortized debt discount                                                   |                                       |          | 3,875  |        |   |         |       |        |   |         |        |       
|                                                                                                                              | Write-off of deferred financing costs                                                    |                                       |          | 5,129  |        |   |         | 590    |        |   |         | 7,089   |       
|                                                                                                                              | Amortization of deferred stock-based compensation                                        |                                       |          |       |        |   |         | 547    |        |   |         | 624     |       
|                                                                                                                              | Changes in operating assets and liabilities, net of effect of
    business acquisitions: |                                       |          |        |        |   |         |        |        |   |         |         |       
|                                                                                                                              |                                                                                          | Accounts receivable                   |          |        | 1,802  |   |         |        | (5,780 | ) |         |         | (3,964 | )
|                                                                                                                              |                                                                                          | Inventory                             |          |        | 1,034  |   |         |        | 386    |   |         |         | 754    |  
|                                                                                                                              |                                                                                          | Prepaid expenses and other assets     |          |        | 410    |   |         |        | (3,133 | ) |         |         | 433    |  
|                                                                                                                              |                                                                                          | Accounts payable and accrued expenses |          |        | (2,144 | ) |         |        | 12,357 |   |         |         | (6,082 | )
|                                                                                                                              |                                                                                          |                                       |          |        |        |   |         |        |       
|Cash provided by operating activities                                                                                         |                                                                                          |                                       | 48,237   |        |        |   | 60,858  |        |        |   | 56,648  |        
|                                                                                                                              |                                                                                          |                                       |          |        |        |   |         |        |       
|Cash flows from investing activities:                                                                                         |                                                                                          |                                       |          |        |        |   |         |        |        |   |         |        
|Capital expenditures                                                                                                          |                                                                                          |                                       | (4,992   | )      |        |   | (5,898  | )      |        |   | (5,237  | )      
|Payments for businesses acquired, net of cash acquired and
    including other cash payments associated with the acquisitions |                                                                                          |                                       | (3,116   | )      |        |   | (4,654  | )      |        |   | (22,380 | )      
|Other                                                                                                                         |                                                                                          |                                       | (228     | )      |        |   | (34     | )      |        |   | 70      |        
|                                                                                                                              |                                                                                          |                                       |          |        |        |   |         |        |       
|Cash used in investing activities                                                                                             |                                                                                          |                                       | (8,336   | )      |        |   | (10,586 | )      |        |   | (27,547 | )      
|                                                                                                                              |                                                                                          |                                       |          |        |        |   |         |        |       
|Cash flows from financing activities:                                                                                         |                                                                                          |                                       |          |        |        |   |         |        |        |   |         |        
|Proceeds from initial public offering, net of underwriting
    discounts                                                      |                                                                                          |                                       |         |        |        |   |        |        |        |   | 92,690  |        
|Direct costs of initial public offering                                                                                       |                                                                                          |                                       |         |        |        |   |        |        |        |   | (1,487  | )      
|Proceeds from stock option exercises                                                                                          |                                                                                          |                                       |         |        |        |   |        |        |        |   | 1,536   |        
|Proceeds from issuance of common                                                                                              |                                                                                          |                                       |          |        |        |   |         |        |        |   |         |        
|stock under Employee Stock Purchase Plan                                                                                      |                                                                                          |                                       |         |        |        |   |        |        |        |   | 4,000   |        
|Redemption of preferred member units                                                                                          |                                                                                          |                                       |         |        |        |   |        |        |        |   | (28,263 | )      
|Proceeds from borrowings under debt agreements                                                                                |                                                                                          |                                       | 337,750  |        |        |   | 1,000   |        |        |   | 18,000  |        
|Payments on long-term debt under debt agreements                                                                              |                                                                                          |                                       | (375,613 | )      |        |   | (48,400 | )      |        |   | (97,212 | )      
|Payment of loan fees                                                                                                          |                                                                                          |                                       | (8,159   | )      |        |   | (355    | )      |        |   | (1,304  | )      
|Proceeds from issuance of common membership units                                                                             |                                                                                          |                                       | 111      |        |        |   | 118     |        |        |   |        |        
|Member distributions and redemptions                                                                                          |                                                                                          |                                       | (1,670   | )      |        |   | (6,124  | )      |        |   | (8,244  | )      
|                                                                                                                              |                                                                                          |                                       |          |        |        |   |         |        |       
|Cash used in financing activities                                                                                             |                                                                                          |                                       | (47,581  | )      |        |   | (53,761 | )      |        |   | (20,284 | )      
|                                                                                                                              |                                                                                          |                                       |          |        |        |   |         |        |       
|Net change in cash and cash equivalents                                                                                       |                                                                                          |                                       | (7,680   | )      |        |   | (3,489  | )      |        |   | 8,817   |        
|Cash and cash equivalents at beginning of period                                                                              |                                                                                          |                                       | 24,995   |        |        |   | 17,315  |        |        |   | 13,826  |        
|                                                                                                                              |                                                                                          |                                       |          |        |        |   |         |        |       
|Cash and cash equivalents at end of period                                                                                    |                                                                                          | $                                     | 17,315   |        |        | $ | 13,826  |        |        | $ | 22,643  |        
|                                                                                                                              |                                                                                          |                                       |          |        |        |   |         |        |       
|Supplemental disclosure of cash flow information                                                                              |                                                                                          |                                       |          |        |        |   |         |        |        |   |         |        
|Cash paid for:                                                                                                                |                                                                                          |                                       |          |        |        |   |         |        |        |   |         |        
|                                                                                                                              | Interest                                                                                 |                                       | $        | 28,190 |        |   | $       | 25,165 |        |   | $       | 28,508  |       
|                                                                                                                              |                                                                                          |                                       |          |        |        |   |         |        |       
|                                                                                                                              | Income taxes                                                                             |                                       | $        | 1,966  |        |   | $       | 5,720  |        |   | $       | 21,323  |       
|                                                                                                                              |                                                                                          |                                       |          |        |        |   |         |        |       
|Noncash investing and financing activities                                                                                    |                                                                                          |                                       |          |        |        |   |         |        |        |   |         |        
|Noncash transactions include the following:                                                                                   |                                                                                          |                                       |          |        |        |   |         |        |        |   |         |        
|                                                                                                                              | Accretion of noncash portion of yield on preferred membership
    units                  |                                       | $        | 858    |        |   | $       |       |        |   | $       |        |       
|                                                                                                                              | Amortization of discount on preferred membership units                                   |                                       | $        | 81     |        |   | $       |       |        |   | $       |        |       
|                                                                                                                              | Capital lease obligations incurred                                                       |                                       | $        | 4,443  |        |   | $       | 7,413  |        |   | $       | 19,403  |       
|                                                                                                                              | Issuance of subordinated notes in connection with the
    acquisition of businesses      |                                       | $        |       |        |   | $       | 915    |        |   | $       | 10,293  |       
|                                                                                                                              | Change in fair value of derivatives                                                      |                                       | $        | (822   | )      |   | $       | 1,028  |        |   | $       | (164    | )     



F-6



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(Dollars in thousands, except dollars per share)




|   |                                                  
|-- | -------------------------------------------------
|1. | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

business-to




| |                                           
| | ------------------------------------------
| | Reorganization and Initial Public Offering









| |                      
| | ---------------------
| | Basis of Presentation





|   |                                           
|-- | ------------------------------------------
|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



| |                 
| | ----------------
| | Cash Equivalents



F-7



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AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






| |                                                          
| | ---------------------------------------------------------
| | Concentrations of Credit Risk and Significant
    Vendors











| |            
| | -----------
| | Inventories

first-in,




| |                       
| | ----------------------
| | Property and Equipment



|                                     |  |  |             | 
|------------------------------------ |  |  | ----------- | 
|Buildings and leasehold improvements |  |  | 10-20 years | 
|Machinery and equipment              |  |  | 3-7 years   | 
|Furniture and fixtures               |  |  | 3-7 years   | 



F-8



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AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










| |                                
| | -------------------------------
| | Impairment of Long-Lived Assets





| |                                     
| | ------------------------------------
| | Goodwill and Other Intangible Assets





F-9



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)














|                             |  |          |         | 
|---------------------------- |  | -------- | ------- | 
|                             |  | Goodwill |        
|                             |  |          |        
|Balance at December 31, 2004 |  | $        | 231,357 | 
|Additions                    |  |          | 13,914  | 
|                             |  |          |        
|Balance at December 31, 2005 |  | $        | 245,271 | 
|                             |  |          |        



not-to


F-10



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|           |  |   |        | 
|---------- |  | - | ------ | 
|2006       |  | $ | 2,632  | 
|2007       |  |   | 2,417  | 
|2008       |  |   | 2,100  | 
|2009       |  |   | 1,911  | 
|2010       |  |   | 1,732  | 
|Thereafter |  |   | 10,595 | 
|           |  |   |       
|           |  | $ | 21,387 | 
|           |  |   |       



| |                         
| | ------------------------
| | Deferred Financing Costs





| |                                 
| | --------------------------------
| | Derivative Financial Instruments











F-11



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








| |                                                                   
| | ------------------------------------------------------------------
| | Adoption of Statement of Financial Accounting Standard
    No. 150





F-12



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AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                                     
| | ------------------------------------
| | Fair Values of Financial Instruments



Cash and cash equivalents:


Short- and long-term debt (excluding the Holdings and Opco
Notes):


Interest rate swap and collar agreements:




| |                         
| | ------------------------
| | Self-Insurance Liability





| |                    
| | -------------------
| | Revenue Recognition











F-13



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






| |                     
| | --------------------
| | Comprehensive Income





| |                                 
| | --------------------------------
| | Segment and Geographic Reporting







|                                      |       |                         |         |         |      |   |         |         |  |   |         |         | 
|------------------------------------- | ----- | ----------------------- | ------- | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- | 
|                                      |       | Year Ended December 31, |        
|                                      |       |                         |        
|                                      |       | 2003                    |         |         | 2004 |   |         | 2005    | 
|                                      |       |                         |         |         |      |   |         |         | 
|Reprographics services                |       | $                       | 315,227 |         |      | $ | 332,004 |         |  | $ | 367,517 |        
|Facilities management                 |       |                         | 59,311  |         |      |   | 72,360  |         |  |   | 83,125  |        
|Equipment and supplies sales          |       |                         | 40,654  |         |      |   | 38,199  |         |  |   | 41,956  |        
|Software licenses and membership fees |       |                         | 768     |         |      |   | 1,301   |         |  |   | 1,606   |        
|                                      |       |                         |         |         |      |   |         |         | 
|                                      | Total |                         | $       | 415,960 |      |   | $       | 443,864 |  |   | $       | 494,204 | 
|                                      |       |                         |         |         |      |   |         |         | 



| |                                            
| | -------------------------------------------
| | Advertising and Shipping and Handling Costs





| |             
| | ------------
| | Income Taxes



F-14



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                         
| | ------------------------
| | Stock-Based Compensation







F-15



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                       |                                                                                                                                                                                                                         |                         |   |       |      |  |   |        |   |  |   |        |  
|-------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------- | - | ----- | ---- |  | - | ------ | - |  | - | ------ | -
|                                       |                                                                                                                                                                                                                         | Year Ended December 31, |  
|                                       |                                                                                                                                                                                                                         |                         |  
|                                       |                                                                                                                                                                                                                         | 2003                    |   |       | 2004 |  |   | 2005   |  
|                                       |                                                                                                                                                                                                                         |                         |   |       |      |  |   |        |  
|Net income attributed to common shares |                                                                                                                                                                                                                         |                         |   |       |      |  |   |        |   |  |   |       
|                                       | As reported                                                                                                                                                                                                             |                         | $ | 1,823 |      |  | $ | 29,548 |   |  | $ | 60,476 |  
|                                       | Equity-based employee compensation cost included in as reported
    net income                                                                                                                                          |                         |   |      |      |  |   | 547    |   |  |   | 624    |  
|                                       | Equity-based employee compensation cost that would have been
    included in the determination of net income attributed to common
    shares if the fair value method had been applied                                  |                         |   | (225  | )    |  |   | (727   | ) |  |   | (953   | )
|                                       |                                                                                                                                                                                                                         |                         |   |       |      |  |   |        |  
|                                       | Adjusted                                                                                                                                                                                                                |                         | $ | 1,598 |      |  | $ | 29,368 |   |  | $ | 60,147 |  
|                                       |                                                                                                                                                                                                                         |                         |   |       |      |  |   |        |  
|Basic earnings per common share:       |                                                                                                                                                                                                                         |                         |   |       |      |  |   |        |   |  |   |       
|                                       | As reported                                                                                                                                                                                                             |                         | $ | 0.05  |      |  | $ | 0.83   |   |  | $ | 1.43   |  
|                                       | Equity-based employee compensation cost, net of related tax
    effects, included in as reported net income attributed to common
    shares                                                                             |                         |   |      |      |  |   | 0.02   |   |  |   | 0.01   |  
|                                       | Equity-based employee compensation cost, net of related tax
    effects, that would have been included in the determination of
    net income attributed to common shares if the fair value method
    had been applied |                         |   | (0.01 | )    |  |   | (0.02  | ) |  |   | (0.02  | )
|                                       |                                                                                                                                                                                                                         |                         |   |       |      |  |   |        |  
|                                       | Adjusted                                                                                                                                                                                                                |                         | $ | 0.04  |      |  | $ | 0.83   |   |  | $ | 1.42   |  
|                                       |                                                                                                                                                                                                                         |                         |   |       |      |  |   |        |  
|Diluted earnings per common share:     |                                                                                                                                                                                                                         |                         |   |       |      |  |   |        |   |  |   |       
|                                       | As reported                                                                                                                                                                                                             |                         | $ | 0.05  |      |  | $ | 0.79   |   |  | $ | 1.40   |  
|                                       | Equity-based employee compensation cost, net of related tax
    effects, included in as reported net income attributed to common
    shares                                                                             |                         |   |      |      |  |   | 0.02   |   |  |   | 0.01   |  
|                                       | Equity-based employee compensation cost, net of related tax
    effects, that would have been included in the determination of
    net income attributed to common shares if the fair value method
    had been applied |                         |   | (0.01 | )    |  |   | (0.02  | ) |  |   | (0.02  | )
|                                       |                                                                                                                                                                                                                         |                         |   |       |      |  |   |        |  
|                                       | Adjusted                                                                                                                                                                                                                |                         | $ | 0.04  |      |  | $ | 0.79   |   |  | $ | 1.39   |  
|                                       |                                                                                                                                                                                                                         |                         |   |       |      |  |   |        |  



F-16



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                                  
| | ---------------------------------
| | Research and development expenses





| |                 
| | ----------------
| | Use of Estimates





| |                   
| | ------------------
| | Earnings Per Share





|                                                     |  |                         |            |  |      |  |            |      |  |  |            | 
|---------------------------------------------------- |  | ----------------------- | ---------- |  | ---- |  | ---------- | ---- |  |  | ---------- | 
|                                                     |  | Year Ended December 31, |           
|                                                     |  |                         |           
|                                                     |  | 2003                    |            |  | 2004 |  |            | 2005 | 
|                                                     |  |                         |            |  |      |  |            |      | 
|Weighted average common shares outstanding  basic   |  |                         | 35,480,289 |  |      |  | 35,493,136 |      |  |  | 42,264,001 | 
|Effect of dilutive stock options                     |  |                         | 985,991    |  |      |  | 1,138,918  |      |  |  | 833,579    | 
|Effect of dilutive warrants                          |  |                         | 832,069    |  |      |  | 832,069    |      |  |  | 80,420     | 
|                                                     |  |                         |            |  |      |  |            |      | 
|Weighted average common shares outstanding  diluted |  |                         | 37,298,349 |  |      |  | 37,464,123 |      |  |  | 43,178,001 | 
|                                                     |  |                         |            |  |      |  |            |      | 



| |                                 
| | --------------------------------
| | Recent Accounting Pronouncements





F-17



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)














|   |             
|-- | ------------
|3. | ACQUISITIONS



F-18



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






15-year




|                                                        |                        |              |       |       |      |   |        |        | 
|------------------------------------------------------- | ---------------------- | ------------ | ----- | ----- | ---- | - | ------ | ------ | 
|                                                        |                        | December 31, |      
|                                                        |                        |              |      
|                                                        |                        | 2004         |       |       | 2005 |  
|                                                        |                        |              |       |       |      |  
|Purchase price                                          |                        | $            | 3,740 |       |      | $ | 32,080 |       
|                                                        |                        |              |       |       |      |  
|Cash and cash equivalents                               |                        |              | 97    |       |      |   | 1,235  |       
|Accounts receivable                                     |                        |              | 518   |       |      |   | 5,767  |       
|Property and equipment                                  |                        |              | 1,476 |       |      |   | 2,735  |       
|Inventories                                             |                        |              | 550   |       |      |   | 1,729  |       
|Other assets                                            |                        |              | 52    |       |      |   | 821    |       
|                                                        |                        |              |       |       |      |  
|                                                        | Total assets           |              |       | 2,693 |      |   |        | 12,287 | 
|Accounts payable                                        |                        |              | 576   |       |      |   | 2,568  |       
|Accrued expenses                                        |                        |              | 316   |       |      |   | 1,594  |       
|Long-term debt                                          |                        |              | 40    |       |      |   | 853    |       
|                                                        |                        |              |       |       |      |  
|                                                        | Net assets acquired    |              |       | 1,761 |      |   |        | 7,272  | 
|                                                        |                        |              |       |       |      |  
|Excess purchase price over net tangible assets acquired |                        | $            | 1,979 |       |      | $ | 24,808 |       
|                                                        |                        |              |       |       |      |  
|Intangible assets:                                      |                        |              |       |       |      |   |        |       
|                                                        | Customer relationships |              | $     | 1,049 |      |   | $      | 10,780 | 
|                                                        | Trade names            |              |       | 86    |      |   |        | 630    | 
|                                                        | Goodwill               |              |       | 844   |      |   |        | 13,398 | 
|                                                        |                        |              |       |       |      |  
|                                                        |                        | $            | 1,979 |       |      | $ | 24,808 |       
|                                                        |                        |              |       |       |      |  

F-19



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|                                         |         |                         |         |      |      |   |         |      |  |   |         |      | 
|---------------------------------------- | ------- | ----------------------- | ------- | ---- | ---- | - | ------- | ---- |  | - | ------- | ---- | 
|                                         |         | Year Ended December 31, |        
|                                         |         |                         |        
|                                         |         | 2003                    |         |      | 2004 |   |         | 2005 | 
|                                         |         |                         |         |      |      |   |         |      | 
|Net sales                                |         | $                       | 430,130 |      |      | $ | 450,906 |      |  | $ | 524,630 |     
|Net income attributable to common equity |         | $                       | 2,286   |      |      | $ | 29,813  |      |  | $ | 69,022  |     
|Earnings per share:                      |         |                         |         |      |      |   |         |      |  |   |         |     
|                                         | Basic   |                         | $       | 0.06 |      |   | $       | 0.84 |  |   | $       | 1.63 | 
|                                         | Diluted |                         | $       | 0.06 |      |   | $       | 0.80 |  |   | $       | 1.60 | 











|   |                       
|-- | ----------------------
|4. | PROPERTY AND EQUIPMENT



|                                               |  |              |         |   |      |   |         |  
|---------------------------------------------- |  | ------------ | ------- | - | ---- | - | ------- | -
|                                               |  | December 31, |        
|                                               |  |              |        
|                                               |  | 2004         |         |   | 2005 |  
|                                               |  |              |         |   |      |  
|Machinery and equipment                        |  | $            | 82,796  |   |      | $ | 119,335 |  
|Buildings and leasehold improvements           |  |              | 15,463  |   |      |   | 17,700  |  
|Furniture and fixtures                         |  |              | 3,417   |   |      |   | 4,998   |  
|                                               |  |              |         |   |      |  
|                                               |  |              | 101,676 |   |      |   | 142,033 |  
|Less accumulated depreciation and amortization |  |              | (66,653 | ) |      |   | (96,260 | )
|                                               |  |              |         |   |      |  
|                                               |  | $            | 35,023  |   |      | $ | 45,773  |  
|                                               |  |              |         |   |      |  

F-20



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|   |               
|-- | --------------
|5. | LONG-TERM DEBT



|                                                                                                                                                                                                                                                                                                                         |  |              |         |   |      |   |         |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------ | ------- | - | ---- | - | ------- | -
|                                                                                                                                                                                                                                                                                                                         |  | December 31, |        
|                                                                                                                                                                                                                                                                                                                         |  |              |        
|                                                                                                                                                                                                                                                                                                                         |  | 2004         |         |   | 2005 |  
|                                                                                                                                                                                                                                                                                                                         |  |              |         |   |      |  
|Borrowings from senior secured First Priority 
    Revolving Credit Facility; variable interest payable quarterly
    (8.25% interest rate at December 31, 2005); any unpaid
    principal and interest due December 18, 2008                                                                                           |  | $            |        |   |      | $ | 5,000   |  
|Borrowings from senior secured First Priority  Term
    Loan Credit Facility; variable interest payable quarterly
    (5.26% and 7.25% interest rate at December 31, 2004 and
    2005, respectively); principal payable in varying quarterly
    installments; any unpaid principal and interest due
    June 18, 2009 |  |              | 94,800  |   |      |   | 230,423 |  
|Borrowings from senior secured Second Priority  Term
    Loan Credit Facility; variable interest payable quarterly
    (8.92% and 10.64% interest rate at December 31, 2004 and
    2005, respectively); any unpaid principal and interest due
    December 18, 2009                                                    |  |              | 208,231 |   |      |   |        |  
|Various subordinated notes payable; interest ranging from 5% to
    8%; principal and interest payable monthly through January 2010                                                                                                                                                                                      |  |              | 4,833   |   |      |   | 11,262  |  
|Various capital leases; interest rates ranging to 15.9%;
    principal and interest payable monthly through September 2010                                                                                                                                                                                               |  |              | 14,688  |   |      |   | 27,127  |  
|                                                                                                                                                                                                                                                                                                                         |  |              |         |   |      |  
|                                                                                                                                                                                                                                                                                                                         |  |              | 322,552 |   |      |   | 273,812 |  
|Less debt discount on Second Priority Credit Facility                                                                                                                                                                                                                                                                    |  |              | (1,719  | ) |      |   |        |  
|                                                                                                                                                                                                                                                                                                                         |  |              |         |   |      |  
|                                                                                                                                                                                                                                                                                                                         |  |              | 320,833 |   |      |   | 273,812 |  
|Less current portion                                                                                                                                                                                                                                                                                                     |  |              | (10,276 | ) |      |   | (20,441 | )
|                                                                                                                                                                                                                                                                                                                         |  |              |         |   |      |  
|                                                                                                                                                                                                                                                                                                                         |  | $            | 310,557 |   |      | $ | 253,371 |  
|                                                                                                                                                                                                                                                                                                                         |  |              |         |   |      |  





F-21



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


















F-22



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|                         |      |           |         |         |               |   |        |        | 
|------------------------ | ---- | --------- | ------- | ------- | ------------- | - | ------ | ------ | 
|                         |      | Long-Term |         |         | Capital Lease |  
|                         |      | Debt      |         |         | Obligations   |  
|                         |      |           |         |         |               |  
|Year ending December 31: |      |           |         |         |               |   |        |       
|                         | 2006 |           | $       | 10,756  |               |   | $      | 11,904 | 
|                         | 2007 |           |         | 4,423   |               |   |        | 9,604  | 
|                         | 2008 |           |         | 115,522 |               |   |        | 6,162  | 
|                         | 2009 |           |         | 114,495 |               |   |        | 2,337  | 
|                         | 2010 |           |         | 1,369   |               |   |        | 1,020  | 
|Thereafter               |      |           | 120     |         |               |   | 162    |       
|                         |      |           |         |         |               |  
|                         |      | $         | 246,685 |         |               |   | 31,189 |       
|                         |      |           |         |         |               |  
|Less interest            |      |           |         |         |               |   | (4,062 | )     
|                         |      |           |         |         |               |  
|                         |      |           |         |         |               | $ | 27,127 |       
|                         |      |           |         |         |               |  



|   |             
|-- | ------------
|6. | INCOME TAXES



F-23



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                              |         |                         |       |       |      |   |       |       |  |   |         |         |  
|------------------------------------------------------------- | ------- | ----------------------- | ----- | ----- | ---- | - | ----- | ----- |  | - | ------- | ------- | -
|                                                              |         | Year Ended December 31, |      
|                                                              |         |                         |      
|                                                              |         | 2003                    |       |       | 2004 |   |       | 2005  | 
|                                                              |         |                         |       |       |      |   |       |       | 
|Current:                                                      |         |                         |       |       |      |   |       |       |  |   |         |        
|                                                              | Federal |                         | $     | 1,562 |      |   | $     | 6,079 |  |   | $       | 14,401  |  
|                                                              | State   |                         |       | 947   |      |   |       | 1,574 |  |   |         | 4,078   |  
|                                                              |         |                         |       |       |      |   |       |       | 
|                                                              |         |                         | 2,509 |       |      |   | 7,653 |       |  |   | 18,479  |        
|Deferred:                                                     |         |                         |       |       |      |   |       |       |  |   |         |        
|                                                              | Federal |                         |       | 1,411 |      |   |       | 310   |  |   |         | (21,713 | )
|                                                              | State   |                         |       | 211   |      |   |       | 557   |  |   |         | (3,102  | )
|                                                              |         |                         |       |       |      |   |       |       | 
|                                                              |         |                         | 1,622 |       |      |   | 867   |       |  |   | (24,815 | )      
|                                                              |         |                         |       |       |      |   |       |       | 
|Income tax provision (benefit)                                |         |                         | 4,131 |       |      |   | 8,520 |       |  |   | (6,336  | )      
|Deferred income tax benefit as a result of the Reorganization |         |                         |      |       |      |   |      |       |  |   | 27,701  |        
|                                                              |         |                         |       |       |      |   |       |       | 
|Income tax provision excluding effects of Reorganization      |         | $                       | 4,131 |       |      | $ | 8,520 |       |  | $ | 21,365  |        
|                                                              |         |                         |       |       |      |   |       |       | 



|                                                              |                                                                                     |              |        |        |      |   |        |         |  
|------------------------------------------------------------- | ----------------------------------------------------------------------------------- | ------------ | ------ | ------ | ---- | - | ------ | ------- | -
|                                                              |                                                                                     | December 31, |       
|                                                              |                                                                                     |              |       
|                                                              |                                                                                     | 2004         |        |        | 2005 |  
|                                                              |                                                                                     |              |        |        |      |  
|Current portion of deferred tax assets (liabilities):         |                                                                                     |              |        |        |      |   |        |        
|                                                              | Financial statement accruals not currently deductible                               |              | $      | 1,206  |      |   | $      | 3,538   |  
|                                                              | State taxes                                                                         |              |        | 158    |      |   |        | 734     |  
|                                                              |                                                                                     |              |        |        |      |  
|                                                              | Net current deferred tax assets                                                     |              |        | 1,364  |      |   |        | 4,272   |  
|                                                              |                                                                                     |              |        |        |      |  
|Non-current portion of deferred tax assets and (liabilities): |                                                                                     |              |        |        |      |   |        |        
|                                                              | Excess of income tax basis over net book value of intangible
    assets             |              |        |       |      |   |        | 31,612  |  
|                                                              | Excess of income tax basis over net book value of property,
    plant and equipment |              |        |       |      |   |        | 1,993   |  
|                                                              | Deferred stock-based compensation                                                   |              |        |       |      |   |        | 364     |  
|                                                              | Excess of net book value over income tax basis of intangible
    assets             |              |        | (3,981 | )    |   |        | (17,753 | )
|                                                              | Excess of net book value over income tax basis of property,
    plant and equipment |              |        | (1,653 | )    |   |        |        |  
|                                                              |                                                                                     |              |        |        |      |  
|                                                              | Net non-current deferred tax assets (liabilities)                                   |              |        | (5,634 | )    |   |        | 16,216  |  
|                                                              |                                                                                     |              |        |        |      |  
|Net deferred tax assets (liabilities)                         |                                                                                     | $            | (4,270 | )      |      | $ | 20,488 |        
|                                                              |                                                                                     |              |        |        |      |  

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AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                       |  |              |    |   |      |  |     |      |  |  |     |   
|------------------------------------------------------ |  | ------------ | -- | - | ---- |  | --- | ---- |  |  | --- | --
|                                                       |  | Year Ended   |   
|                                                       |  | December 31, |   
|                                                       |  |              |   
|                                                       |  | 2003         |    |   | 2004 |  |     | 2005 | 
|                                                       |  |              |    |   |      |  |     |      | 
|Statutory federal income tax rate                      |  |              | 34 | % |      |  | 35  | %    |  |  | 35  | % 
|State taxes                                            |  |              | 14 |   |      |  | 4   |      |  |  | 5   |   
|Non-deductible expenses                                |  |              | 8  |   |      |  |    |      |  |  | (1  | ) 
|Income of the LLC not taxed at the LLC level           |  |              | (2 | ) |      |  | (17 | )    |  |  |    |   
|Non-recurring income tax benefit due to reorganization |  |              |   |   |      |  |    |      |  |  | (51 | ) 
|                                                       |  |              |    |   |      |  |     |      | 
|Effective income tax rate                              |  |              | 54 | % |      |  | 22  | %    |  |  | (12 | )%
|                                                       |  |              |    |   |      |  |     |      | 





|   |                              
|-- | -----------------------------
|7. | COMMITMENTS AND CONTINGENCIES



|                         |            |       |        |        |         |   |        |       |  |   |        |        | 
|------------------------ | ---------- | ----- | ------ | ------ | ------- | - | ------ | ----- |  | - | ------ | ------ | 
|                         |            | Third |        |        | Related |   |        |      
|                         |            | Party |        |        | Party   |   |        | Total | 
|                         |            |       |        |        |         |   |        |       | 
|Year ending December 31: |            |       |        |        |         |   |        |       |  |   |        |       
|                         | 2006       |       | $      | 25,732 |         |   | $      | 2,585 |  |   | $      | 28,317 | 
|                         | 2007       |       |        | 16,903 |         |   |        | 2,550 |  |   |        | 19,453 | 
|                         | 2008       |       |        | 9,897  |         |   |        | 2,562 |  |   |        | 12,459 | 
|                         | 2009       |       |        | 6,197  |         |   |        | 2,270 |  |   |        | 8,468  | 
|                         | 2010       |       |        | 3,314  |         |   |        | 1,981 |  |   |        | 5,295  | 
|                         | Thereafter |       |        | 5,435  |         |   |        | 6,225 |  |   |        | 11,660 | 
|                         |            |       |        |        |         |   |        |       | 
|                         |            | $     | 67,480 |        |         | $ | 18,173 |       |  | $ | 85,653 |       
|                         |            |       |        |        |         |   |        |       | 

month-to






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AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








|                         |  |   |       | 
|------------------------ |  | - | ----- | 
|Year ending December 31: |  |   |       | 
|2006                     |  | $ | 2,540 | 
|2007                     |  |   | 2,405 | 
|2008                     |  |   | 163   | 
|                         |  |   |      
|                         |  | $ | 5,108 | 
|                         |  |   |      







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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








|   |                           
|-- | --------------------------
|8. | RELATED PARTY TRANSACTIONS









|   |                 
|-- | ----------------
|9. | RETIREMENT PLANS





|    |                                                   
|--- | --------------------------------------------------
|10. | EMPLOYEE STOCK PURCHASE PLAN AND STOCK OPTION PLAN



| |                             
| | ----------------------------
| | Employee Stock Purchase Plan



F-27



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)












| |                                                                
| | ---------------------------------------------------------------
| | American Reprographics Holdings, L.L.C. Unit Option
    Plan II







|                                 |  |                         |           |          |          |   |       |           |          |  |           |   |  |   |       |  
|-------------------------------- |  | ----------------------- | --------- | -------- | -------- | - | ----- | --------- | -------- |  | --------- | - |  | - | ----- | -
|                                 |  | Year Ended December 31, |          
|                                 |  |                         |          
|                                 |  | 2003                    |           |          | 2004     |  
|                                 |  |                         |           |          |          |  
|                                 |  |                         |           | Weighted |          |   |       |           | Weighted | 
|                                 |  |                         |           | Average  |          |   |       |           | Average  | 
|                                 |  | Number of               |           |          | Exercise |   |       | Number of |          |  | Exercise  |  
|                                 |  | Shares                  |           |          | Price    |   |       | Shares    |          |  | Price     |  
|                                 |  |                         |           |          |          |   |       |           |          |  |           |  
|Outstanding at beginning of the  |  |                         |           |          |          |   |       |           |          |  |           |   |  |   |       |  
|period                           |  |                         | 1,421,500 |          |          | $ | 5.07  |           |          |  | 1,446,000 |   |  | $ | 5.09  |  
|Granted                          |  |                         | 39,500    |          |          |   | 5.55  |           |          |  | 307,915   |   |  |   | 5.91  |  
|Canceled                         |  |                         | (15,000   | )        |          |   | (4.87 | )         |          |  | (41,000   | ) |  |   | (5.52 | )
|Expired                          |  |                         |          |          |          |   |      |           |          |  |          |   |  |   |      |  
|Exercised                        |  |                         |          |          |          |   |      |           |          |  | (22,500   | ) |  |   | (5.25 | )
|                                 |  |                         |           |          |          |   |       |           |          |  |           |  
|Outstanding at end of the period |  |                         | 1,446,000 |          |          | $ | 5.09  |           |          |  | 1,690,415 |   |  | $ | 5.22  |  
|                                 |  |                         |           |          |          |   |       |           |          |  |           |  

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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










| |                    
| | -------------------
| | Employee Stock Plan







F-29



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AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                       |  |              |           |          |          |   |       |  
|-------------------------------------- |  | ------------ | --------- | -------- | -------- | - | ----- | -
|                                       |  | Year Ended   |          
|                                       |  | December 31, |          
|                                       |  |              |          
|                                       |  | 2005         |          
|                                       |  |              |          
|                                       |  |              |           | Weighted |         
|                                       |  |              |           | Average  |         
|                                       |  | Number of    |           |          | Exercise |  
|                                       |  | Shares       |           |          | Price    |  
|                                       |  |              |           |          |          |  
|Outstanding at beginning of the period |  |              | 1,690,415 |          |          | $ | 5.22  |  
|Granted                                |  |              | 49,270    |          |          |   | 23.85 |  
|Canceled                               |  |              | (11,500   | )        |          |   | (5.82 | )
|Expired                                |  |              |          |          |          |   |      |  
|Exercised                              |  |              | (305,600  | )        |          |   | (5.03 | )
|                                       |  |              |           |          |          |  
|Outstanding at end of the period       |  |              | 1,422,585 |          |          | $ | 5.90  |  
|                                       |  |              |           |          |          |  







|    |                                               
|--- | ----------------------------------------------
|11. | MEMBERS EQUITY AND REDEEMABLE PREFERRED UNITS



| |                                                  
| | -------------------------------------------------
| | Mandatorily Redeemable Preferred Membership Units





F-30



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##### Table of Contents



AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                         
| | ------------------------
| | Distributions to Members





|    |                                     
|--- | ------------------------------------
|12. | QUARTERLY FINANCIAL DATA (Unaudited)



|                      |         |               |         |      |          |   |         |               |  |   |              |      |  |   |         |      | 
|--------------------- | ------- | ------------- | ------- | ---- | -------- | - | ------- | ------------- |  | - | ------------ | ---- |  | - | ------- | ---- | 
|                      |         | Quarter Ended |        
|                      |         |               |        
|                      |         | March 31,     |         |      | June 30, |   |         | September 30, |  |   | December 31, |     
|                      |         | 2004          |         |      | 2004     |   |         | 2004          |  |   | 2004         |     
|                      |         |               |         |      |          |   |         |               |  |   |              |     
|Net sales             |         | $             | 110,518 |      |          | $ | 115,615 |               |  | $ | 110,165      |      |  | $ | 107,566 |     
|Gross profit          |         | $             | 45,919  |      |          | $ | 49,424  |               |  | $ | 44,287       |      |  | $ | 40,447  |     
|Net income            |         | $             | 8,438   |      |          | $ | 9,845   |               |  | $ | 7,191        |      |  | $ | 4,074   |     
|Net income per share: |         |               |         |      |          |   |         |               |  |   |              |      |  |   |         |     
|                      | Basic   |               | $       | 0.24 |          |   | $       | 0.28          |  |   | $            | 0.20 |  |   | $       | 0.11 | 
|                      | Diluted |               | $       | 0.23 |          |   | $       | 0.26          |  |   | $            | 0.19 |  |   | $       | 0.11 | 

|                      |         |               |         |      |          |   |         |               |  |   |              |      |  |   |         |     | 
|--------------------- | ------- | ------------- | ------- | ---- | -------- | - | ------- | ------------- |  | - | ------------ | ---- |  | - | ------- | --- | 
|                      |         | Quarter Ended |        
|                      |         |               |        
|                      |         | March 31,     |         |      | June 30, |   |         | September 30, |  |   | December 31, |     
|                      |         | 2005          |         |      | 2005     |   |         | 2005          |  |   | 2005         |     
|                      |         |               |         |      |          |   |         |               |  |   |              |     
|Net sales             |         | $             | 116,466 |      |          | $ | 125,560 |               |  | $ | 127,487      |      |  | $ | 124,691 |    
|Gross profit          |         | $             | 48,325  |      |          | $ | 53,654  |               |  | $ | 52,522       |      |  | $ | 50,124  |    
|Net income            |         | $             | 35,563  |      |          | $ | 11,383  |               |  | $ | 10,518       |      |  | $ | 3,012   |    
|Net income per share: |         |               |         |      |          |   |         |               |  |   |              |      |  |   |         |    
|                      | Basic   |               | $       | 0.87 |          |   | $       | 0.26          |  |   | $            | 0.24 |  |   | $       | .07 | 
|                      | Diluted |               | $       | 0.85 |          |   | $       | 0.25          |  |   | $            | 0.23 |  |   | $       | .07 | 



|    |                  
|--- | -----------------
|13. | SUBSEQUENT EVENTS



| |             
| | ------------
| | Acquisitions



F-31



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##### Table of Contents






Schedule II


AMERICAN REPROGRAPHICS COMPANY AND SUBSIDIARIES


VALUATION AND QUALIFYING ACCOUNTS


(Dollars in thousands)


|                              |                                      |            |       |       |            |   |       |            |  |            |        |        |   |   |       |       | 
|----------------------------- | ------------------------------------ | ---------- | ----- | ----- | ---------- | - | ----- | ---------- |  | ---------- | ------ | ------ | - | - | ----- | ----- | 
|                              |                                      | Balance at |       |       | Charges to |   |       |            |  | Balance at |       
|                              |                                      | Beginning  |       |       | Cost and   |   |       |            |  | End of     |       
|                              |                                      | of Period  |       |       | Expenses   |   |       | Deductions |  |            | Period |       
|                              |                                      |            |       |       |            |   |       |            |  |            |        |       
|Year ended December 31, 2003: |                                      |            |       |       |            |   |       |            |  |            |        |        |   |   |       |      
|                              | Allowance for doubtful accounts      |            | $     | 2,148 |            |   | $     | 1,698      |  |            | $      | (1,056 | ) |   | $     | 2,790 | 
|                              | Allowance for inventory obsolescence |            |       | 273   |            |   |       | 248        |  |            |        | (243   | ) |   |       | 278   | 
|                              |                                      |            |       |       |            |   |       |            |  |            |        |       
|                              |                                      | $          | 2,421 |       |            | $ | 1,946 |            |  | $          | (1,299 | )      |   | $ | 3,068 |      
|                              |                                      |            |       |       |            |   |       |            |  |            |        |       
|Year ended December 31, 2004: |                                      |            |       |       |            |   |       |            |  |            |        |        |   |   |       |      
|                              | Allowance for doubtful accounts      |            | $     | 2,790 |            |   | $     | 1,281      |  |            | $      | (1,018 | ) |   | $     | 3,053 | 
|                              | Allowance for inventory obsolescence |            |       | 278   |            |   |       | 89         |  |            |        | (46    | ) |   |       | 321   | 
|                              |                                      |            |       |       |            |   |       |            |  |            |        |       
|                              |                                      | $          | 3,068 |       |            | $ | 1,370 |            |  | $          | (1,064 | )      |   | $ | 3,374 |      
|                              |                                      |            |       |       |            |   |       |            |  |            |        |       
|Year ended December 31, 2005: |                                      |            |       |       |            |   |       |            |  |            |        |        |   |   |       |      
|                              | Allowance for doubtful accounts      |            | $     | 3,053 |            |   | $     | 1,241      |  |            | $      | (1,122 | ) |   | $     | 3,172 | 
|                              | Allowance for inventory obsolescence |            |       | 321   |            |   |       | 109        |  |            |        |       |   |   |       | 430   | 
|                              |                                      |            |       |       |            |   |       |            |  |            |        |       
|                              |                                      | $          | 3,374 |       |            | $ | 1,350 |            |  | $          | (1,122 | )      |   | $ | 3,602 |      
|                              |                                      |            |       |       |            |   |       |            |  |            |        |       

F-32



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##### Table of Contents



EXHIBIT INDEX


|       |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|------ | -- | ----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |    | Description
|       |    |            
|       | 3  | .1          |  | Amended and Restated Certificate of Incorporation, filed
    February 2, 2005 (incorporated by reference to
    Exhibit 3.1 to the Registrants Form 10-K filed
    on March 31, 2005).                                                                                                                                                                                                                                                           
|       | 3  | .2          |  | Amended and Restated Bylaws, adopted by Board January 28,
    2005 (incorporated by reference to Exhibit 3.2 to the
    Registrants Form 10-K filed on March 31, 2005).                                                                                                                                                                                                                                                                          
|      
|       | 4  | .1          |  | Specimen Stock Certificate (incorporated by reference to
    Exhibit 4.1 to the Registrants Registration Statement
    on Form S-1 A (Reg. No. 333-119788), as amended on
    January 13, 2005).                                                                                                                                                                                                                                                 
|      
|       | 10 | .1          |  | Second Amended and Restated Credit and Guaranty Agreement dated
    as of December 21, 2005 by and among American Reprographics
    Company; American Reprographics Company, L.L.C., American
    Reprographics Holdings, L.L.C., certain subsidiaries of American
    Reprographics Company, L.L.C., or guarantors, and the lenders
    named therein (incorporated by reference to Exhibit 10.1 of
    the Form 8-K filed on December 21, 2005).
|      
|       | 10 | .2          |  | Intercreditor Agreement, dated as of December 18, 2003,
    between American Reprographics Company, L.L.C. and General
    Electric Capital Corporation and Goldman Sachs Credit Partners
    L.P., as collateral agents (incorporated by reference to
    Exhibit 10.3 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                      
|      
|       | 10 | .3          |  | 2004 Bonus Plan, dated March 24, 2004, between American
    Reprographics Company and Mr. Legg (incorporated by
    reference to Exhibit 10.4 to the Registrants
    Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).^                                                                                                                                                                               
|      
|       | 10 | .4          |  | 2005 Bonus Plan between American Reprographics Company and Mark
    Legg.*^                                                                                                                                                                                                                                                                                                                                                                       
|      
|       | 10 | .5          |  | American Reprographics Holdings, L.L.C. Unit Option
    Plan II, adopted effective as of January 1, 2001
    (incorporated by reference to Exhibit 10.5 to the
    Registrants Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).^                                                                                                                                                                     
|      
|       | 10 | .6          |  | Amendment No. 1 dated as of July 1, 2003 to American
    Reprographics Holdings, L.L.C. Unit Option Plan II
    (incorporated by reference to Exhibit 10.6 to the
    Registrants Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).^                                                                                                                                                                  
|      
|       | 10 | .7          |  | American Reprographics Company 2005 Stock Plan (incorporated by
    reference to Exhibit 10.7 to the Registrants
    Registration Statement on Form S-1 A (Reg.
    No. 333-119788), as amended on January 13, 2005).^                                                                                                                                                                                                                           
|      
|       | 10 | .8          |  | Forms of Stock Option Agreements under the 2005 Stock Plan
    (incorporated by reference to Exhibit 10.8 to the
    Registrants Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).^                                                                                                                                                                                                                   
|      
|       | 10 | .9          |  | Form of American Reprographics Company Stock Option Grant
    Notice  Non-employee Directors (Discretionary
    Non-statutory Stock Options) (incorporated by reference to
    Exhibit 10.1 to the Form 8-K filed on
    December 16, 2005).^                                                                                                                                                                                                    
|      
|       | 10 | .10         |  | Form of American Reprographics Company Non-employee
    Directors  Stock Option Agreement (Discretionary
    Grants) (incorporated by reference to Exhibit 10.2 to the
    Form 8-K filed on December 16, 2005).^                                                                                                                                                                                                                                
|      
|       | 10 | .11         |  | American Reprographics Company 2005 Employee Stock Purchase Plan
    (incorporated by reference to Exhibit 10.9 to the
    Registrants Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).^                                                                                                                                                                                                             
|      
|       | 10 | .12         |  | Lease Agreement, dated November 19, 1997, between American
    Reprographics Company, L.L.C. (formerly Ford Graphics Group,
    L.L.C.) and Sumo Holdings LA, LLC (incorporated by reference to
    Exhibit 10.10 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                            
|      
|       | 10 | .13         |  | Amendment to Lease for the premises commonly known as 934 and
    940 Venice Boulevard, Los Angeles, CA, effective as of
    August 2, 2005, by and between SUMO HOLDINGS LA, LLC,
    Landlord and AMERICAN REPROGRAPHICS COMPANY, L.L.C. (formerly
    known as FORD GRAPHICS GROUP, L.L.C.) Tenant (incorporated by
    reference to Exhibit 10.2 to the Form 10-Q filed on
    November 14, 2005)                                             
|      
|       | 10 | .14         |  | Lease Agreement between American Reprographics Company, L.L.C.
    and Sumo Holdings San Jose, LLC (incorporated by reference
    to Exhibit 10.11 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                                                           



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##### Table of Contents



|       |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------ | -- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |    | Description
|       |    |            
|      
|       | 10 | .15         |  | Lease Agreement between American Reprographics Company, L.L.C.
    and Sumo Holdings Irvine, LLC (incorporated by reference to
    Exhibit 10.12 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                                                                                                                                                                                                                            
|      
|       | 10 | .16         |  | Amendment to Lease for the premises commonly known as 17721
    Mitchell North, Irvine, CA, effective as of August 2, 2005,
    by and between SUMO HOLDINGS IRVINE, LLC, Lessor and AMERICAN
    REPROGRAPHICS COMPANY, L.L.C., Lessee (incorporated by reference
    to Exhibit 10.1 to the Form 10-Q filed on
    November 14, 2005).                                                                                                                                                                                                                                                                         
|      
|       | 10 | .17         |  | Lease Agreement, dated December 1, 1997, between American
    Reprographics Company, L.L.C. and Sumo Holdings Sacramento, LLC
    (Oakland Property) (incorporated by reference to
    Exhibit 10.13 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                                                                                                                                                                        
|      
|       | 10 | .18         |  | Lease Agreement between American Reprographics Company, L.L.C.
    (formerly Ford Graphics Group, L.L.C.) and Sumo Holdings
    Sacramento, LLC (Sacramento Property) (incorporated by reference
    to Exhibit 10.14 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                                                                                                                                                       
|      
|       | 10 | .19         |  | Amendment to Lease for the premises commonly known as 1322 V
    Street, Sacramento, CA, effective as of August 2, 2005, by
    and between SUMO HOLDINGS SACRAMENTO, LLC, Landlord and AMERICAN
    REPROGRAPHICS COMPANY, L.L.C. (formerly known as FORD GRAPHICS
    GROUP, L.L.C.) Tenant (incorporated by reference to
    Exhibit 10.4 to the Form 10-Q filed on
    November 14, 2005).                                                                                                                                                                                                                   
|      
|       | 10 | .20         |  | Lease Agreement, dated December 7, 1995, between
    Leet-Melbrook, Inc. and Sumo Holdings Maryland, LLC (as
    successor lessor) (incorporated by reference to
    Exhibit 10.15 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                                                                                                                                                                                          
|      
|       | 10 | .21         |  | Amendment to Lease for the premises commonly known as 18810
    Woodfield Road, Gaithersburg, MD, effective as of August 2,
    2005, by and between SUMO HOLDINGS MARYLAND, LLC, Landlord and
    LEET-MELBROOK, INC., Tenant (incorporated by reference to
    Exhibit 10.3 to the Form 10-Q filed on
    November 14, 2005).                                                                                                                                                                                                                                                                                  
|      
|       | 10 | .22         |  | Lease Agreement, dated September 23, 2003, between American
    Reprographics Company (dba Consolidated Reprographics) and
    Sumo Holdings Costa Mesa, LLC (incorporated by reference to
    Exhibit 10.16 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                                                                                                                                                                
|      
|       | 10 | .23         |  | Management Agreement, dated April 10, 2000, between
    American Reprographics Company, L.L.C. and CHS
    Management IV LP (incorporated by reference to
    Exhibit 10.17 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                                                                                                                                                                                                 
|      
|       | 10 | .24         |  | Termination Agreement to Management Agreement, dated
    November 29, 2004, between American Reprographics Company,
    L.L.C. and CHS Management IV LP (incorporated by reference
    to Exhibit 10.18 to the Registrants Registration
    Statement on Form S-1 A(Reg. No. 333-119788), as
    amended on December 6, 2004).                                                                                                                                                                                                                                                                                  
|      
|       | 10 | .25         |  | Indemnification Agreement, dated April 10, 2000, among
    American Reprographics Company, L.L.C., American Reprographics
    Holdings, L.L.C., ARC Acquisition Co., L.L.C.,
    Mr. Chandramohan, Mr. Suriyakumar, Micro Device, Inc.,
    Dietrich-Post Company, ZS Ford L.P., and ZS Ford L.L.C.
    (incorporated by reference to Exhibit 10.19 to the
    Registrants Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).                                                                                                                                         
|      
|       | 10 | .26         |  | Investor Registration Rights Agreement, dated April 10,
    2000, among American Reprographics Holdings, L.L.C., ARC
    Acquisition Co., L.L.C., Mr. Chandramohan,
    Mr. Suriyakumar, GS Mezzanine Partners II, L.P. and GS
    Mezzanine Partners II Offshore, L.P. (incorporated by
    reference to Exhibit 10.20 to the Registrants
    Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).                                                                                                                                                                     
|      
|       | 10 | .27         |  | First Amendment to Investor Registration Rights Agreement, among
    American Reprographics Holdings, L.L.C., American Reprographics
    Company, ARC Acquisition Co., L.L.C., CHS Associates IV,
    Ms. Paige Walsh, Mr. Chandramohan,
    Mr. Suriyakumar, GS Mezzanine Partners II, L.P., GS
    Mezzanine Partners II Offshore, L.P., Stone Street
    Fund 2000, L.P. and Bridge Street Special Opportunities
    Fund, 2000, L.P. (incorporated by reference to
    Exhibit 10.21 to the Registrants Registration
    Statement on Form S-1 A (Reg. No. 333-119788), as
    amended on January 13, 2005).



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##### Table of Contents



|       |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|------ | -- | ----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |    | Description
|       |    |            
|      
|       | 10 | .28         |  | Warrant Agreement, dated April 10, 2000, between American
    Reprographics Holdings, L.L.C. and each of GS Mezzanine Partners
    II, L.P. and GS Mezzanine Partners II Offshore, L.P.
    (incorporated by reference to Exhibit 10.22 to the
    Registrants Registration Statement on Form S-1 (Reg.
    No. 333-119788), as filed on October 15, 2004).                                                                                                                                                             
|      
|       | 10 | .29         |  | First Amendment to Warrant Agreement, dated September 8,
    2000, between American Reprographics Holdings, L.L.C. and each
    of GS Mezzanine Partners II, L.P. and GS Mezzanine
    Partners II Offshore, L.P. (incorporated by reference to
    Exhibit 10.23 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                                   
|      
|       | 10 | .30         |  | Investor Unitholders Agreement, dated April 10, 2000, among
    American Reprographics Holdings, L.L.C., ARC Acquisition Co.,
    L.L.C., GS Mezzanine Partners II, L.P. and GS Mezzanine
    Partners II Offshore, L.P. (incorporated by reference to
    Exhibit 10.24 to the Registrants Registration
    Statement on Form S-1 (Reg. No. 333-119788), as filed
    on October 15, 2004).                                                                                                                            
|      
|       | 10 | .31         |  | Termination Agreement of Investor Unitholders Agreement, dated
    November 29, 2004, among American Reprographics Holdings,
    L.L.C., ARC Acquisition Co., L.L.C., GS Mezzanine
    Partners II, L.P., GS Mezzanine Partners II Offshore,
    L.P., Stone Street Fund 2000, L.P. and Bridge Street
    Special Opportunities Fund, 2000, L.P. (incorporated by
    reference to Exhibit 10.25 to the Registrants
    Registration Statement on Form S-1 A (Reg.
    No. 333-119788), as amended on December 6, 2004).
|      
|       | 10 | .32         |  | Forms of Restricted Stock Award Agreements under 2005 Stock Plan
    (incorporated by reference to Exhibit 10.27 to the
    Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on December 6,
    2004).^                                                                                                                                                                                                                                                                           
|      
|       | 10 | .33         |  | Form of Restricted Stock Unit Award Agreement under 2005 Stock
    Plan (incorporated by reference to Exhibit 10.28 to the
    Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on December 6,
    2004).^                                                                                                                                                                                                                                                                        
|      
|       | 10 | .34         |  | Form of Stock Appreciation Right Agreement under 2005 Stock Plan
    (incorporated by reference to Exhibit 10.29 to the
    Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on January 13,
    2005).^                                                                                                                                                                                                                                                                           
|      
|       | 10 | .35         |  | Employment Agreement, dated January 7, 2005, between
    American Reprographics Company and Mr. Sathiyamurthy
    Chandramohan (incorporated by reference to Exhibit 10.30 to
    the Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on January 13,
    2005).^                                                                                                                                                                                                                 
|      
|       | 10 | .36         |  | First Amendment to Employment Agreement between American
    Reprographics Company and Mr. Sathiyamurthy Chandramohan,
    effective November 18, 2005.*^                                                                                                                                                                                                                                                                                                                                                                
|      
|       | 10 | .37         |  | Employment Agreement, dated January 7, 2005, between
    American Reprographics Company and Mr. Kumarakulasingam
    Suriyakumar (incorporated by reference to Exhibit 10.31 to
    the Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on January 13,
    2005).^                                                                                                                                                                                                               
|      
|       | 10 | .38         |  | First Amendment to Employment Agreement between American
    Reprographics Company and Mr. Kumarakulasingam Suriyakumar,
    effective November 18, 2005.*^                                                                                                                                                                                                                                                                                                                                                              
|      
|       | 10 | .39         |  | Employment Agreement, dated January 7, 2005, between
    American Reprographics Company and Mr. Mark W. Legg
    (incorporated by reference to Exhibit 10.32 to the
    Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on January 13,
    2005).^                                                                                                                                                                                                                               
|      
|       | 10 | .40         |  | Employment Agreement, dated January 7, 2005, between
    American Reprographics Company and Mr. Rahul K. Roy
    (incorporated by reference to Exhibit 10.33 to the
    Registrants Registration Statement on Form S-1 A
    (Reg. No. 333-119788), as amended on January 13,
    2005).^                                                                                                                                                                                                                               
|      
|       | 10 | .41         |  | Agreement to Grant Stock dated effective December 7, 2004,
    between American Reprographics Company and Rahul K. Roy
    (incorporated by reference to Exhibit 10.36 to the
    Registrants Form 10-K filed on March 31,
    2005).^                                                                                                                                                                                                                                                                                  
|      
|       | 10 | .42         |  | Indemnification Agreement made as of September 30, 2004
    between American Reprographics Company and Sathiyamurthy
    Chandramohan (incorporated by reference to Exhibit 10.37 to
    the Registrants Form 10-K filed on March 31,
    2005).                                                                                                                                                                                                                                                                        
|      
|       | 10 | .43         |  | Indemnification Agreement made as of September 30, 2004
    between American Reprographics Company and Andrew W. Code
    (incorporated by reference to Exhibit 10.38 to the
    Registrants Form 10-K filed on March 31, 2005).                                                                                                                                                                                                                                                                                        



---



##### Table of Contents



|       |    |             |  |                                                                                                                                                                                                                                                    
|------ | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number |    | Description
|       |    |            
|      
|       | 10 | .44         |  | Indemnification Agreement made as of September 30, 2004
    between American Reprographics Company and Thomas J. Formolo
    (incorporated by reference to Exhibit 10.39 to the
    Registrants Form 10-K filed on March 31, 2005).               
|      
|       | 10 | .45         |  | Indemnification Agreement made as of October 7, 2004
    between American Reprographics Company and Mark W. Legg
    (incorporated by reference to Exhibit 10.40 to the
    Registrants Form 10-K filed on March 31, 2005).                       
|      
|       | 10 | .46         |  | Indemnification Agreement made as of September 30, 2004
    between American Reprographics Company and Manuel Perez de la
    Mesa (incorporated by reference to Exhibit 10.41 to the
    Registrants Form 10-K filed on March 31, 2005).         
|      
|       | 10 | .47         |  | Indemnification Agreement made as of January 11, 2005
    between American Reprographics Company and Edward D. Horowitz
    (incorporated by reference to Exhibit 10.42 to the
    Registrants Form 10-K filed on March 31, 2005).                
|      
|       | 10 | .48         |  | Indemnification Agreement made as of March 3, 2005 between
    American Reprographics Company and Mark W. Mealy (incorporated
    by reference to Exhibit 10.43 to the Registrants
    Form 10-K filed on March 31, 2005).                        
|      
|       | 10 | .49         |  | Indemnification Agreement made as of September 30, 2004
    between American Reprographics Company and Kumarakulasingam
    Suriyakumar (incorporated by reference to Exhibit 10.44 to
    the Registrants Form 10-K filed on March 31,
    2005).
|      
|       | 10 | .50         |  | Indemnification Agreement made as of October 7, 2004
    between American Reprographics Company and Rahul K. Roy
    (incorporated by reference to Exhibit 10.45 to the
    Registrants Form 10-K filed on March 31, 2005).                       
|      
|       | 10 | .51         |  | Indemnification Agreement made as of February 2, 2006
    between American Reprographics Company and Dewitt Kerry
    McCluggage.*                                                                                                                 
|      
|       | 21 | .1          |  | List of Subsidiaries.*                                                                                                                                                                                                                             
|      
|       | 23 | .1          |  | Consent of PricewaterhouseCoopers LLP, Independent Registered
    Public Accounting Firm.*                                                                                                                                                         
|      
|       | 31 | .1          |  | Certification by the Chief Executive Officer pursuant to
    Rules 13a-14(a)/15d-14(a) of the Securities Exchange Act of
    1934.*                                                                                                                
|      
|       | 31 | .2          |  | Certification by the Chief Financial Officer pursuant to
    Rules 13a-14(a)/15d-14(a) of the Securities Exchange Act of
    1934.*                                                                                                                
|       | 32 | .1          |  | Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.*                                                                                                                   






| |   |               
| | - | --------------
| | * | Filed herewith



| |   |                                                                
| | - | ---------------------------------------------------------------
| | ^ | Indicates management contract or compensatory plan or agreement